Rock union tells Whitehall to support public workers

Mar 25 2008 by Adrian Pearson, The Journal

THE union responsible for safeguarding jobs at Northern Rock has accused the Government of being more concerned with helping City bosses than looking after working families.

Unite bosses are calling on the Government to show more support to public workers and agency staff following growing frustration with Labour’s employment policies.

Derek Simpson, joint leader of Unite, has emailed a message to hundreds of thousands of union activists, criticising ministers for spending billions of pounds on propping up the money markets on top of the huge loan to Northern Rock while refusing to concede to union pension demands.

In a speech designed to raise political awareness among union members, Mr Simpson said: “At the moment we are paying through our wallets and purses but if things get worse, a full-blown recession could mean paying with our jobs.

“If the Government can magic tens of billions out of thin air for its financier friends, so it can also afford proper pensions, rights for agency workers and a fully-funded public sector.”

Blaydon MP Dave Anderson, a keen advocate of increased employment rights, last night said that while more could be done for public sector workers, the Government’s efforts in the City benefited everyone.

Mr Anderson said: “The money we lend to the banks, we get back, and the risk is really that if we don’t act, it will be worse for everyone.

“Somewhere down the line we will get this cash back.

“And I know there are still public-sector issues we have to address, no one is overlooking that, but it is not as simple as saying money from another pot can be used here.

“No one wants to see a repeat of Northern Rock, and if we had not intervened in that situation then everything could have gone down the plug hole.”

Mr Simpson’s rallying call comes after a week in which the Bank of England put up £5bn to support high-street lenders during the global credit crunch.

Bank Governor Mervyn King has previously been reluctant to help struggling banks as he believes this would encourage banks to pursue risky business models as they would not have to suffer the consequences.

But since the problems with Northern Rock, the Bank of England has offered much more support.

The union is now asking the Government to show a similar level of commitment to providing a fully-funded public service.