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date: Wednesday 20 May 2009

embargo: noon 20 May 2009

TUC urges Westminster to follow Cardiff's lead

Speaking at the Wales TUC annual conference in Llandudno later today (Wednesday), TUC General Secretary Brendan Barber will urge the Westminster Government to follow Cardiff's lead and introduce a fund for businesses forced to move to short-time working, similar to the Assembly's successful Pro-Act scheme.

Addressing the delegates in the town's Venue Cymru, Brendan Barber will say:

'Here in Wales, you're showing that devolution can really deliver, with the ProAct short-time working and training scheme providing up to £4,000 of support per worker to struggling firms. The scheme has made a real difference - saving jobs, safeguarding skills and protecting workers and their families. That's why the TUC is urging Westminster to follow suit.

'But as successful as Pro-Act has been, it is essentially about mitigating the impact of the downturn. Alongside these short-term fixes, we also need long-term strategies to create a new kind of economy, to promote a more equal society and to make sure we never find ourselves in a mess like this again.

'We are in the grip of the worst recession since the 1930s, with jobs being slashed and homes repossessed on an alarming scale. Some analysts think we may have turned a corner, that with stock markets recovering, the worst of the crisis may be behind us. But as the Bank of England's latest report makes clear, the process of recovery - when it finally arrives - will be painfully slow.

'It's worth remembering that the UK economy is set to contract by around four per cent this year, with the prospect of further stagnation next and public finances are in their most perilous state since World War Two, with the services we all depend on facing a deeply uncertain future. We're also seeing the return of mass unemployment, with three million likely to be without work even when growth resumes.

'In Wales the bad news has been relentless as the jobless total has accelerated past the 100,000 mark. At Airbus in Flintshire 250 agency posts have been cut and at Indesit in Denbighshire 305 workers made redundant. There's Panasonic in Newport and Cardiff with 210 jobs lost, Corus in Llanwern where 600 jobs are going and JCB in Wrexham where 58 posts have been slashed. Hoover in Merthyr Tydfil has seen 337 jobs go, Novelis in Newport has lost 440 jobs and Musashi Auto Parts in Caerphilly has cut 124 posts.

'This is not just a terrible blow to the Welsh economy, nor merely a shameful waste of skilled labour - it is an unfolding tragedy for workers, families and communities right across Wales.

'This in a country still battered and bruised by the industrial vandalism of the Thatcher era, where wages lag 13 per cent below the UK average, and where some areas rank among the poorest anywhere in the EU.

'The Government has done much to try to limit the effects of the financial collapse - it has lead the world in saving the banks from collapse, it has maintained public spending, and made our tax system more progressive, with the super rich no longer able to get way with avoidance on such an epic scale.

'But more needs to be done to support ordinary working people through the worst of this crisis. With Labour flatlining in the polls, with the European and local elections just two weeks away, and with the BNP seeking to exploit the Westminster expenses scandal, what we need now is a clear vision of how we get out of this mess.

'We need a sense of what, and who, a Labour government is for. And we are not powerless to act - public works programmes can create new employment, better redundancy entitlements can cushion the pain for those who lose their jobs, and an improved Jobseekers Allowance can help vulnerable people through the worst.

'What we need now from our Government is bold, imaginative action that addresses both the causes and the effects of the global economic crisis. We need action to re-regulate the financial system and to make our economy more stable, with a fairer distribution of wealth between capital and labour, rich and poor, and London and the rest of Britain.

'We need action to tackle climate change, including a new green industrial strategy to help us unlock a market projected to be worth $800 billion within the next five years. Not only would this help smooth our transition to a low-carbon economy, it would also provided a much-needed boost for our manufacturing industry.

'Manufacturing still employs 13 per cent of the workforce here in Wales and provides good, skilled, union jobs. If the current crisis proves one thing about our economy, then it is surely this - we can't get by on financial services and property speculation alone. What we need is a strong manufacturing sector, a fairer, more stable economy and action to combat the jobs emergency.'

NOTES TO EDITORS:

- The Wales TUC annual conference is taking place at the Venue Cymru in Llandudno from Tuesday 19 May to Thursday 21 May. Speakers over the three days include Brendan Barber and Welsh Secretary Paul Murphy MP (Wednesday afternoon) and First Minister Rhodri Morgan (Thursday morning). Issues being debated include the economy and skills, green jobs, campaigning against the BNP and against the privatisation of the Post Office.

Contacts:

Media enquiries:

Chris Hartwell, Wales TUC M: 07989 440131 E: chartwell@tuc.org.uk

Liz Chinchen T: 020 7467 1248 M: 07778 158175 E: media@tuc.org.uk
Rob Holdsworth T: 020 7467 1372 M: 07717 531150 E: rholdsworth@tuc.org.uk
Elly Brenchley T: 020 7467 1337 M: 07900 910624 E: ebrenchley@tuc.org.uk

Press release (1,000 words) issued 20 May 2009