Thursday, March 12, 2009

Campaign for higher statutory redundancy pay - there is still time to email your MP.

On the eve of a key House of Commons stage of a bill that would boost redundancy pay for three out of every four UK workers, Uk unions are warning the government not to miss the chance to give a helping hand through rough times.

They are concerned that the government looks set to oppose the bill, meaning its chances of making it into law are next to zero.

Unions claim that the drop in value of statutory redundancy pay (SRP) is punishing workers at a time of desperate financial need, and is upholding the UK's status as an EU nation where it is cheap to sack workers.

They want the government to seize the opportunity presented by a private member's bill to stop the rot in redundancy pay, and say that this would show working people that the government is on their side.

The Statutory Redundancy Pay (Amendment) bill, sponsored by Lindsay Hoyle MP and backed by the country's leading unions, has its vital second reading in the House of Commons tomorrow (Friday 13th March, 2009). The bill would remove the cap on - and increase the value of - the state basic for redundancy pay to bring it into line with average earnings.

Support for the measure is growing with many backbench Labour MPs joining the unions in arguing that now more than ever, it is vital that the government honours its manifesto and Warwick commitments to working people to increase redundancy pay.

Tony Woodley, joint general secretary of Unite and chair of the Trade Union Liaison Organisation (TULO), said: "It is a disgrace that UK workers can be so cheap to sack. One of my members, a skilled worker with 16 years service, was shown the door with only £4,500. How can that be expected to help him to keep a roof over his family's head and food on the table until he's back at work?

"This rot must be stopped. If money can be found to bail out the bankers who created this crisis, then it can be found to help ordinary people who are struggling most.

"Workers will not forgive the government if they fail to grab the clear chance now of helping them through tough times this bill presents."

Derek Simpson, joint general secretary of Unite, the UK's biggest union, added: "People understand that this is about social justice, about making sure that workers get a fair deal when facing hard times.

"Redundancy pay which is caped at around only half of average weekly earnings is an insult to hard-working people. Action now by government to drag redundancy pay back into line with the real cost of living would be right and popular, it would ensure Labour makes good on an outstanding commitment and with political will, could be in place before the summer.

"Now, more than ever, working people need a helping hand. They expect a Labour government and Labour MPs to be the first to offer it and will be entitled to ask searching questions if they do not."

According to the unions, SRP has drifted so far away from real wages in value that it is now worth around only half of earnings, compared to the 200 per cent it represented when introduced in 1965. The result is that workers are losing out on thousands of pounds at the very time they need it most.

Workers have been contacting the unions to report dramatically low redundancy pay packages, including:

One energy worker with 45 years experience who ,when made redundant soon, will receive SRP equivalent to only two months' wages;
A manufacturing worker made redundant after 17 years who received only £4,500 calculated on SRP;
A construction worker who received £5,775 in SRP but had it been brought into line with earnings would have received £8,448, a difference of £3,073;
A charity worker made redundant after eight years and paid only SRP, denying him thousands of pounds.
Lindsay Hoyle MP was third in the private member's ballot and a Commons motion supporting his bill has been signed by over 130 Labour MPs, making it second only to postal privatisation plans in the list of MPs' concerns.

Lifting redundancy pay was a 2004 Warwick commitment and a 2007 manifesto pledge. Without government backing, however, this bill which would deliver on these commitments, cannot succeed.

The bill is backed by Unite, Aslef, Community, CWU, GMB, TSSA, Ucatt, Usdaw, Unison, TULO and the TUC.

Email your MP at

http://www.unionstogether.org.uk/page/speakout/fairplay

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