average FTSE 100 CEO saw their pay increase 12% to an average of £4.8m:

"It is important to remember why “radical reform” is urgently necessary. On Tuesday, it was reported that the average FTSE 100 CEO saw their pay increase 12% to an average of £4.8m: approximately 200 times average private sector pay. By contrast, disposable incomes for the rest of us are set to fall for the third year running (pdf)". hat tip http://www.leftfootforward.org/2012/06/shareholders-reject-martin-sorrell-bonus-wpp/

Why Income Equality at Work is better for everyone

This is my speech to the UNISON London Regional Council AGM last week on Motion 4 "Why Income Equality at Work is better for everyone". Which was passed and selected as a regional motion to send to our national conference.

"Council, Convenor, John  Gray Housing Assocaition Branch moving motion 4. "Why Income Equality at Work is better for everyone". Council, Let us not forget that it is not just the Bankers and the Executives in the private sector who have been filling their pockets with other peoples money to a degree out of all recognition to their worth. In the traditional public sector and in supposedly “Not for profit” organisations, who provide public services, you also find that many Executives and members of the SMT have in recent years, enjoyed massive pay rises and massive increases in their income. We use the example of the CEO of the housing and social care association, Anchor, who earned over 330k last year - up 14%. At a time when many of her employees, doing a difficult and demanding job, caring for the frail and the vulnerable, earn little more than minimum wage. Nearly 30 times less.

For crying out aloud, Anchor Housing, was originally set up by the respected charity “Help the Aged”. This pattern of greed at the top for a few and poverty for the many at the bottom is repeated in many other private and public organisations providing public services up and down the country.

This issue is not just about fairness or social justice nor is it about the so called “politics of envy”. Such vast and growing inequalities in income are not just morally wrong it is deeply damaging and destructive to those organisations that allow it.

In the same way as researchers for the book “The Spirit Level” found compelling evidence that the more unequal societies are, with regard to incomes, the more rotten the society. The more unequal the greater the death rates of new born babies; the greater the levels of mental illness; the greater the drug abuse; the greater the violence; the greater the ignorance and squalor. It is ironic that the day after the 200th birthday of the birth of Charles Dickens, we still find in our own Capital city, one of the very richest cities in the world, that your life expectancy, how long you live, is determined largely by how affluent the postal code is in the area you happen to have been born in.

With regard to income inequality in the work place it is not enough for us to simply condemn but to explain to our members how harmful it is not only to society but to that workplace– If you are managed by not just highly paid or people on a good earning but the super rich; while most workers struggle to keep their head above the water - it is corrosive it is divisive. It causes low staff morale and poor service; it causes resentment and mistrust from our clients, residents and services users who after all have to pay for all this inequality.

We are told that there is no choice, competition is king, the market must decide the rate of pay, yet there is a choice. There are successful modern countries in the world such as Sweden where there is much, much less inequality. Where for example trade unions reps sit on boards and remuneration committees as a matter of course. They have done this for decades and act on as a brake on greed. There are countries such as Japan were if there are economic problems, managers become leaders and will often be the first to volunteer for pay curbs or restraint. Unlike in my sector, where yesterday I found out that staff at project being tuped over to a supposed charity, who had won a tender, were told by this charity that they had to have pay cuts and low jobs since they had to “pay their way” to keep to the new contract. While at the same time the SMT of that organisation pays itself massive bonuses to reward themselves for winning new business. This culture, this attitude, this view of life, can and must change.

The Equality Trust is the charitable arm set up by the authors of the Spirit level to promote income equality. Please also consider affiliating your own branches to them. Next week they are coming to my branch AGM to speak to us about what we can do to help bring about change.

Finally Council remember that greater income equality at the work place will make it a better place and help bring about greater income equality in our society, which will make it a better world for all.

Thank you please support this motion (orignal motion similar to this)

UNISON and Family Mosaic agree to talks at ACAS

Hat tip UNISON press release " A planned ballot for industrial action by UNISON members at Family Mosaic Housing Association has been postponed after both parties agreed to hold talks at ACAS (Advisory, Conciliation and Arbitration Service).

The talks will aim to resolve the dispute over Family Mosaic’s proposals to increase working hours for all front-line staff and substantially
reduce the pay of many social care and support staff.

Family Mosaic has already issued letters of dismissal to all staff members who have not signed new contracts agreeing to the changes. It is anticipated that that threat of dismissal will be postponed whilst talks at ACAS take place.  

London UNISON regional organiser, Colin Inniss stated: “UNISON is genuinely committed to trying to resolve this dispute and we welcome ACAS’s intervention. But any agreed resolution has to be an equitable one. As things currently stand, a large number of our members will have pay cuts ranging from £3,000 to £8,500; a figure which will leave them and their families facing financial misery. Meanwhile, senior management are facing no salary cuts whatsoever. If we cannot get agreement at ACAS, UNISON will be left with no alternatives other than to conduct a formal ballot for strike action and to pursue legal action". Good news - but check out here and here.

A Christmas Carol 2011

This is a modern day “A Christmas Carol” tale. Christmas this year must be looking pretty bleak for the 1000 carers and their families employed by Family Mosaic Housing Association. Their employer is trying to cut their wages by up to 35% in some cases. According to their own figures 242 carers will lose up to £2000 pa; 58 between £2000 and £4000 and 107 over £4000 pa.

Many of these carers are already relatively poorly paid. They work with the mentally ill and other vulnerable adults doing a demanding job that they love but which most people would run a mile away from doing themselves. A large number are single mums who rely on working weekends and shifts' allowances in order to raise their wages to a decent level to look after their kids.

While it seems that the Senior Management team at Family Mosaic are not going to suffer any cut in their pay: 25 of whom earn over £60,000 pa, while 4 earn over £100,000 a year. Its Chief Executive, Brendan Sarfield, on £172,000 pa is also safe. Family Mosaic made a surplus of £34 million pounds last year.

Yesterday morning in my Councillor’s post I received a glossy magazine (Winter 2011) from Family Mosaic wishing me “A very Happy Christmas and New Year”. There was also a letter from the CEO saying how wonderful his organisation is doing. In the magazine there was no mention whatsoever about the cuts to carers' pay and conditions. Nor that staff are balloting for strike action. With no apparent sense of irony, Mr Sarfield in an editorial criticised others for not facing up to “Challenging” issues!

Is it not too late for the modern day equivalent of Jacob Marley to pay a visit to Mr Sarfield to remind him about the real meaning of Christmas? Or will he continue to say to his staff facing desperate financial straits "I'm alright Jack" and “Bah, Humbug!”.

Family Mosaic UNISON members vote for Strike Ballot

"UNISON members at Family Mosaic Housing Association have voted overwhelmingly in favour of a formal ballot for strike action. The consultative ballot result comes shortly after Family Mosaic’s senior management issued letters of dismissal to all staff members who have not signed new contracts agreeing to substantial cuts in pay and an increase in working hours. 

To date Family Mosaic have refused to revise their current drastic proposals and have shown little regard for the significant impact the proposed pay reductions will have on staff members and their families.

London UNISON Regional Organiser, Colin Inniss stated: ‘The pain of these pay cuts and increased working hours will only be experienced by front line staff, senior management have exempted themselves and protected their pay from any reductions. All care and support and general housing staff will be contemplating a difficult 2012; whilst for senior management it will be a case of business at usual, a point which highlights the opportunistic nature of their proposals. This is something which should worry Family Mosaic’s service users. Imposing harsh changes demoralises a workforce and cannot but affect the quality of service delivery. Whilst UNISON remains committed to achieving negotiated change, management’s intransigence has left us with no alternatives other than to conduct a formal ballot for strike action and to pursue legal action.’

The ballot will involve all UNISON members employed by Family Mosaic in both London and Essex.

For Further information or comment please contact: UNISON Regional Organiser, Colin Inniss on 07703 194 127 / C.Inniss@unison.co.uk
Notes for Editors
1. UNISON’s represents over 60,000 members in the Community and Voluntary sector.
2. Family Mosaic own and manage 23,000 properties across, 27 London Boroughs and in Essex. It has a significant Supported Housing business providing nursing, care and support services to around 4,000 people.
3. Family Mosaic’s operating surplus rose from 19% in 2009/10 to 26% in 2010/11. The Group’s net surplus increase to £34 million in 2010/11, a rise of 4% on the previous year.
4. In July 2011, Family Mosaic finalised the purchase of Hyde Housing’s £14 million-turnover subsidiary, In Touch, which provides services to 4,200 people and includes 120 contracts.
5. In 2010/11, Family Mosaic’s Chief Executive, Brendan Sarsfield’s, annual salary increased from £165,000 to £172,000".

Why Income Equality at work is better for everyone

Further to the outrageous pay cuts to low paid staff proposed by the Loadsofmoney CEO of Family Mosaic. This motion has been submitted

to the UNISON Community Conference next year.

Why Income Equality at work is better for everyone
This conference notes the gross inequality in pay at many Housing Associations. “Inside Housing” reports that 58 Chief Executives earn more than the Prime Minster, while the highest earner, Jane Ashcroft of Anchor (established in 1968 by “Help the Aged”) received £331,250 - up 14 per cent on last year.

At the same time many workers in the sector existed on the minimum wage rate of just £5.93 per hour. This means that the most highly paid Executive got £26,605 per month while many of the lowest paid got just £949. This is nearly 30 times more.

The book “The Spirit Level” by research scientists Professors Richard Wilkinson and Kate Pickett demonstrate that excessive income inequality in society results in premature death, greater levels of mental illness, drug abuse, poor education attainment, imprisonment, violence and obesity. Societies that are more equal such as Sweden and Japan are more successful for everyone in all measurable ways. Both the rich and the poor benefit.  This conference believes:-

That Housing Associations should recognise that internal income inequality is as bad for its workers and residents as it is for the wider society. It is corrosive, divisive and destructive. Profiteering for the few threatens the raison d’être for the entire sector. It results in poor staff morale and industrial relations, mistrust from residents and a reputational political risk to the whole sector.

If Housing Associations believe that they need to reduce their cost base to compete for contracts they should firstly cut the pay of their Senior Management Team.

We support the recommendations of the Hutton report on Fair Pay that “every public body should annually publish the multiple of top to median pay in a clear and presentable way” and that employee representatives should be on the Executive Remuneration Committees.

Every single worker whether directly employed or subcontracted should receive at least a Regional living wage rate. This conference calls on:-

Our Service Group Executive to campaign for greater Income Equality, using the press and media, working with the National Housing Federation if possible, and lobbying Government.

The Service Group Executive to explore affiliating to the Equality Trust

To request Labour Link campaigns for statutory regulation of pay multiples in Housing Association’s, increased public spending to combat poverty and fair progressive levels of income taxation.

(there is an amendment adding an action point which might cause problems with standing orders) 

Panorama - All Work and Low Pay

Check out last night's BBC TV Panorama expose here of UK work exploitation and pay cuts.  The picture right is a frame from the programme which featured the recent strike by Scottish "Charity"
Quarriers over a 20-25 pay cut for their staff.

In probably one of the worlds worse PR performances the TV presenter asked the Quarriers CEO why he wasn't having a 20% pay cut himself? He responded that it would not make any difference if he cut his own pay.

No difference...hmmm... apart from the obvious arguments about leadership and setting an example, surely it would make a difference to costs if the management senior management team were to "share the misery" equally and take 20-25% cuts in their pay (and perks)?  Don't CEO's "get it" that organisations were there is such blatant inequalities end up being "failing" organisations in the same way as the book "The Spirit Level", argues (convincingly in my view) that countries that are more equal are more successful in every aspect.

The programme is on BBC iPlayer until 16 October 2011.