The State We’re In: Will Hutton bashes “greedy” trade union leaders and global financiers - I must admit to being a bit peeved with Will after reading his article on trade unions militancy the other week (Hat tip to Tom). Yes, I agree with many of his points about the odd “Life on Mars” Don Quixote Union baron (mention no names). However, Will spoils his case by suggesting that all is needed is for Unions to be some sort of proactive “Stakeholders”. The balance of power in such a partnership is still usually weighted decisively in favour of the employer.
A progressive trade union still needs “teeth” otherwise workers will not be convinced that they have to join (and pay subs). Strikes should always be the weapons of the last resort (and if properly called – fought ruthlessly to win) but being “stakeholders” is just not enough. Maybe worker representatives should be elected on large company boards? Should the vast amounts of workers’ capital invested in pension and insurance funds be used more appropriately in line with their owner’s wishes and beliefs? And so on….
Will is far more convincing on his analysis over the current financial “crisis” in the UK (and world). He has been to a certain extent proved right by his predictions of “at least a couple of household British financial names have to be offered a lifeline”. - Northern Rock?
I am personally pretty sure that this will only have a short term effect on the market (this is just “what happens” in a capitalist society). However, what is not right, is that we fail to regulate financial markets properly. For example, large financial institutions make eye watering large amounts of money by encouraging loans to people when there is a real likelihood of them being unable to repay those loans. At the same time “neutral” credit rating agencies make their big bucks by recommending these “no hoper” borrowers as secure credit risks!
Some may just laugh and say “serve them all right”. Yes, but in my experience, in each financial disaster (let’s make a list of those in my lifetime - Maxwell, Lloyds Insurance, Mortgage Endowments, Personal Pension Schemes, Equitable Life, Encom, Split Investment trusts, Farepak, Northern Rock etc) lots of ordinary people suffer – big time.
My point Will, is perhaps that the same degree of radical measures that you want trade unions to adopt also need to taken up by the financial markets. Just think, maybe most modern day British trade unions are probably more innovative and responsive than the reactionary and old fashioned City interests? Just a thought….
A progressive trade union still needs “teeth” otherwise workers will not be convinced that they have to join (and pay subs). Strikes should always be the weapons of the last resort (and if properly called – fought ruthlessly to win) but being “stakeholders” is just not enough. Maybe worker representatives should be elected on large company boards? Should the vast amounts of workers’ capital invested in pension and insurance funds be used more appropriately in line with their owner’s wishes and beliefs? And so on….
Will is far more convincing on his analysis over the current financial “crisis” in the UK (and world). He has been to a certain extent proved right by his predictions of “at least a couple of household British financial names have to be offered a lifeline”. - Northern Rock?
I am personally pretty sure that this will only have a short term effect on the market (this is just “what happens” in a capitalist society). However, what is not right, is that we fail to regulate financial markets properly. For example, large financial institutions make eye watering large amounts of money by encouraging loans to people when there is a real likelihood of them being unable to repay those loans. At the same time “neutral” credit rating agencies make their big bucks by recommending these “no hoper” borrowers as secure credit risks!
Some may just laugh and say “serve them all right”. Yes, but in my experience, in each financial disaster (let’s make a list of those in my lifetime - Maxwell, Lloyds Insurance, Mortgage Endowments, Personal Pension Schemes, Equitable Life, Encom, Split Investment trusts, Farepak, Northern Rock etc) lots of ordinary people suffer – big time.
My point Will, is perhaps that the same degree of radical measures that you want trade unions to adopt also need to taken up by the financial markets. Just think, maybe most modern day British trade unions are probably more innovative and responsive than the reactionary and old fashioned City interests? Just a thought….
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