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AN ALTERNATIVE PLAN – Using resources and technology that is people centred and respects the environment

by Brian Salisbury, former Lucas Aerospace Combine Chairman,
on behalf of surviving Combine members

January 2022

ABSTRACT

The following statement was compiled by former Lucas Aerospace Combine shop stewards. We are proposing that an Alternative Plan for the U.K., is developed by a combination of peace and environmental groups and trade unionists that has socially useful production at its core, is people-centred and in tune with the environment. We put forward this proposal based on the belief that the above groups are opposed to the Government using technology to manufacture armaments that threaten life at home and abroad. We realise that such an initiative will require the organisations involved to step up their current campaigning work by combining together; then develop and promote a vision of a future U.K. which would include the necessary measures to address the climate crisis.

 We believe that the considerable experience and expertise that exist in the above groups and the trade unions, qualifies them to produce such a plan.

 Most if not all of the groups referred to are aware of and support the Lucas Aerospace workers efforts in the 1970’s to oppose job loss by developing an alternative corporate plan, which not only proposed their company manufacturing socially useful and environmentally sustainable products but identified the process of how the plan was developed, with workers, the community and academics collaborating. This resulted in championing a worker/consumer led alternative industrial culture; not only proposing alternative products but less alienating ways of producing them that empowered designers, engineers and shop floor workers.

It advocated a circular economy that encouraged re-cycling and repair and long- term sustainability in everything rather than the short-term throw away culture that a system built on continual growth and private profit breeds.

We are of the opinion that the proposed plan for the U.K. should be based on the same principles.

The statement’s aim is to highlight the government’s lack of urgency in tackling the climate crisis and its policy of pursuing confrontation with nations rather than cooperation, resulting in the ever increasing manufacture and export of armaments. It highlights the financial and human cost of the Arms Industry (2&3) and the means by which Transition (4) can take place allowing the workers to switch to socially useful production.

Reference is made to the Government’s inadequate response to the Climate Crisis (5&6) and the failure of COP26 (7) to deliver - whilst Pandemics (9) are best prevented rather than cured! It’s proposed that the Alternative Plan (8) has the Socially Useful (10) use of technology at its core and would be best developed in a Centre (11).

While emphasis is centred on the arms industry, the same philosophy can be equally applied to other sectors of the economy.

We consider that a Plan for the U.K. that tackles the climate crisis with peace and justice at its core, is people centred and in tune with the environment, is in line with public opinion and therefore would get their support

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NEW POST AN ALTERNATIVE PLAN – using resources and technology that is people centred and respects the environment

1.Introduction 

 The Climate Crisis is the biggest threat ever faced by the world’s population and the Planet’s survival is at stake. Unless dealt with urgently large areas of the world will become uninhabitable. Given that the threat will impact on all countries, there is need for a world-wide cooperated effort to tackle it. Yet there’s reluctance by world leaders, whose countries are mainly responsible for global warming, to take the necessary action to resolve the crisis.

Meanwhile the countries of the Global South who have contributed least to global warming are suffering the most, and a continuation of the rise in global temperatures will detrimentally affect one billion people in those countries. Yet the use of fossil fuels, which is the main cause of global warming, continues to be used to generate energy.

Given the need to tackle the Climate Crisis you would expect the U.K. Government to prioritise and concentrate the majority of its available resources in that direction; but that is not the case!

 

2. U.K. Arms Industry

 While 0.01% of G.D.P. is being spent on addressing issues relating to the climate, 2% is being spent on the Defence budget. The Government justify this expenditure, based on what they see as the twin threats of Russia and China.

 In 2020 the Governments Defence Review increased spending by £24bn over the next 4 years. This increased the annual expenditure in 2020 to £55 billion. This extra funding is justified to give a “technological advantage” over would be aggressors. Although lacking in detail, “new capabilities such as electronic warfare and drones” have been referred to.

 Furthermore, the increase in nuclear warheads from 180 to 260 leaves the Government open to accusations of escalating the nuclear arms race.

As a follow up to the Defence Review the Government   announced that a trilateral military security pact named AUKUS, involving the U.K., U.S. and Australia, is being established. The aim is to provide Australia with the technology to build nuclear submarines to equip its naval forces. The agreement allows for the exchange of sensitive “naval nuclear propulsion information”.

 China has expressed anger about the agreement, describing it as an “extremely irresponsible” threat to the region’s stability.

A further escalation of the arms race will result from an agreement about to be reached between the U.K. Government and Ukraine on the provision of armaments. The aim is to supply Brimstone missiles to Ukraine to meet what is regarded as the Russian “threat” to the integrity of Ukraine.

The above examples of the export of U.K. technology and armaments adds to the ongoing sale of bombs, missiles and aircraft to Saudi Arabia which, according to Government figures, amounted to a total value of £6.7 billion since 2015. This figure is disputed by the Campaign Against the Arms Trade (CAAT) their research revealed that the true value of sales amounted to £20 billion, taking into account the use of an “open licence system” which is used to hide the true sales value!

Further research undertaken by CAAT revealed that B.A.E. Systems, the main UK arms exporter, had sales amounting to £17 billion.

 The sale of arms to Saudi Arabia continues despite an Appeals Court decision in June 2019 that sales should be halted!

 Meanwhile the people of Yemen are suffering the consequences of the U.K. arms sales to Saudi Arabia. The U.N., in a report of 2020, says the civil war has resulted in shocking levels of suffering including a death total of 233,000. This figure includes 17,500 civilians killed and injured since 2015, with a quarter of those killed in air raids being women and children.

Human Rights Watch have documented at least 90 Saudi-led coalition air strikes that appeared to been deliberate attacks on civilians, which they regard as a violation in the laws of war!

 Along with other countries, the U.K. exports armaments to Israel. Since 2015 the Government has licenced over £400 million worth of arms to the Israeli forces. In addition, according to CAAT, under an indefinite, unlimited Open General Export Licence the U.K. produces components for the US F-35 stealth fighter. Again, according to CAAT, an Israeli government spokesman stated that their F-35s had taken part in recent attacks on Gaza.

As the second largest exporter of armaments in the world, the U.K. Government justifies it by arguing that it needs to protect high skilled manufacturing jobs. Yet as a consequence of increasing technological involvement in the design and manufacturing process, overall employment in the arms industry is in decline.

 CAAT estimated that in 2020 there were 170,000 directly employed in the U.K. arms industry, 115,000 at the Ministry of Defence and 55,000 in company arms exports.

 Arms exports in 2019 amounted to be worth £11 billion, making a contribution of only 1.4% to the total export market.

The Watson Institute of International & Public Affairs based at Brown University in the U.S. carried out research into job creation and found that military spending created less jobs than education, healthcare and renewable energy. This was mainly due to those sectors being more labour intensive than the increasingly capital intensive nature of the military sector.

 The research showed that $1 billion in military spending created approximately 11,200 jobs, compared with 26,700 in education, 17,200 in health care and 16,800 in clean energy.

Given that arms exports do not make a major contribution to the overall U.K. export market and more job creation can be achieved through other sectors, the Governments emphasis on promoting the manufacture for export of arms raises a serious question: why?

 It can only be that the Government is clinging on to its imperial past as a Global Power by taking part in military interventions in countries who are ill-equipped to resist and sabre rattling with countries which have a nuclear capability. Given the U.K.’s historical role in the slave trade and it’s past colonial domination it could be said that the country should be concentrating its efforts to compensate for its past misdemeanours by promoting peace, justice and in helping countries in the global south to combat the climate crisis.

The manufacture of arms for export have consequences resulting in the deaths and injury of innocent people; as in Yemen and Gaza.

 

3.Corporate Welfare and the Arms Industry

 According to a Stockholm International Peace Research Institute report, direct Government subsidies for U.K. arms exports were estimated to be between £104 and £142 million. In an effort to further increase arms sales the Government included £1 billion within the 2020 budget available for countries to borrow, to enable them to purchase U.K. manufactured bombs and surveillance technology.

The use of taxpayers’ money to subsidise the Private Sector was first revealed back in 2012/13 by Corporate Welfare Watch, a York University based research unit. They revealed that while £41.3billion had been paid to the Treasury in Corporation Tax, £58.2billion was paid out in subsidies.

BAE have particularly benefitted from Government financial support. As the largest arms producing company in the U.K., designing and manufacturing aircraft, bombs and missiles, the company employ 34,800 in the U.K. out of a world-wide workforce of 90,000. As a result of 304 Ministry of Defence contracts BAE were paid £9.24 billion, while sales direct to Saudi Arabia between 2015/19 amounted to £17 billion. In apparent appreciation of the service provided, BAE benefitted from Government subsidies of £44,782,000, according to the Corporate Welfare Watch data base. (2016 figures)

Based on figures made available in February 2021 revealing the 2020 BAE Systems full year financial results, sales had increased by 4% to almost £21 billion with profits increasing by £31 million to £1.93 billion.

 These results show that the manufacture of arms is a very profitable business backing up the argument that there is a vested interest in promoting ongoing “threats” from other countries by the military – industrial complex.

As an indication of very little material change in attitude taking place in the last 230 years the following statement was made in 1791 by Thomas Paine in ‘Rights of Man’

That there men in all countries who get there living by war, and by keeping up the quarrels of nations, is as shocking as it is true; but when those who are concerned in the government of a country, make it their study to sow discord and cultivate prejudices between nations, it becomes more unpardonable’

 

4. Transition From Armaments to Products that meet Social Need 

Given the Government’s record there’s no foreseeable chance of a shift away from prioritising continuing armaments manufacture and unfortunately there’s minimal parliamentary opposition to Government policies under the present leadership of the Labour Party, who up to now have shown no obvious difference in approach to that of the Government.

 It therefore seems that only pressure from the “bottom up” will bring about a shift away from arms manufacture to address the real threat of the climate crisis.

Any alternative to the Governments obsession to promote arms manufacture will have to deal with the thorny issue of rapid industrial conversion from manufacturing armaments to products that are suited to a low carbon economy. However there are historical precedents: Conversion of the economy has taken place in the past when a national emergency has demanded it.

 Prior to the second world war, there was a shift in production away from domestic market products to those of a military nature to deal with the war effort.

A more recent example is the health crisis brought about by the Covid -19 Pandemic. The NHS was very nearly overwhelmed as a result of a lack of preparedness by Government in dealing with the outbreak, despite forewarnings from the World Health Organisation (WHO). There was an inadequate stock of Personal Protection Equipment (PPE) and Ventilators, resulting in many needless deaths amongst patients, NHS staff, and the residents and staff in Care Homes. To meet the shortfall, manufacturers, designers and engineering workers rose to the challenge and switched production to make the equipment needed. Of the many examples which exist, one in particular stands out.

Airbus workers were faced with the problem of lack of demand for their aerospace work due to the Pandemic curtailing flights. At the request of Government, management and workers, with the active involvement of the trade union UNITE, stepped up to the plate and designed and manufactured ventilators. This was an excellent example of switching production to meet social need. People were dying because of a shortage of medical equipment to keep them alive. The Government could only identify the need but they could not answer it. Airbus management responded positively;  but it was the workers at all levels, from the design office to the shop floor, who delivered the goods, following agreement between the management and unions to operate a three shift system to maximise production in the shortest possible time.

 This is a good example of Government, management and a unionised workforce working together to answer social need.  This example of people profiting from answering a social need is a far more embracing interpretation of profit rather than the narrow definition manufacturers, with the active and financial support of government, arrive at. Producing armaments to export, while being very financially profitable, could not by any stretch of the imagination be described as answering social need - in fact quite the opposite!

Usually the best ideas do not come from above. A 2018 report by the Nuclear Education Trust “Defence Diversification: International learning for Trident jobs” pointed out that innovative ideas often come from the workers and affected communities forming a partnership to successfully tackle the issues. It should then broaden out to involve a coalition of the stakeholders, such as the former arms companies, national and local government, trade unions, academia and other interested parties. Any such coalition would need support in putting the workers ideas into practice by organising as a body, carrying out analysis, research, planning and finally implementation of the plan.

It’s not just manufacturers that would have to adapt; the workers themselves would need to retrain as a consequence of changes to their jobs, a process which would necessitate financial support for the workers for both the training and loss of earnings.

 As can be expected workers will only accept and campaign for arms cuts if they know that alternative work exists. At the moment they are faced with two options: weapons production or the dole. In the event of a Government decision to reduce the scale of arms production that decision would have to be accompanied by a mechanism to re-employ the workers affected. Otherwise they would suffer the same fate as the miners when the U.K. Government closed the pits – mass and long term unemployment.

 In the past, consideration has been given to the establishment of an Arms Conversion Agency. Back in the mid-1970s a huge amount of work was undertaken on the idea in the U.K. and  internationally, resulting in detailed proposals for a National Arms Conversion Unit in the U.K. and a federal Defence Economic Adjustment Act (DEA) in the United States. The DEA proposal, sponsored by presidential candidate George McGovern in 1977, involved establishing a council made up of equal representation from the unions, non-defence business and cabinet members. This would have encouraged state and local governments and other agencies to prepare concrete plans for non-military projects.

The DEA Act would also have established an alternative use committee at every military facility consisting of management, unions and members of the community. Together they would have drawn up conversion plans and have funding provided. Additionally, the workers converting would have been provided with a salary and benefits for up to two years by a federal Workers Economic Adjustment Reserve Fund – financed by a 1.25% levy on defence contracts.

The above is an indication of how skills and resources can be re-purposed in times of emergency, showing that skilled engineering workers employed in the arms industry can switch production when there is urgent need and there is a close relationship between the skills applied in the arms industry and those needed to combat the climate crisis.

 The arms industry employs teams of highly skilled engineers working to tight timescales to answer the problem solving needs of the defence sector, thus providing potential to bring peoples brainpower and available physical resources together to catalyse innovation for a rapid transition to a green economy.

The trade union UNITE have identified the Lucas Aerospace Combine Shop Stewards attempt in the 1970s to protect jobs by shifting production from armaments to those that answered social need as a model for the transformation to a green economy. The Combines Alternative Plan foresaw the need to address the use of technology in a people centred manner that respected the environment. In addition to the products identified, the process involved in their design and manufacture was questioned, related to the deskilling of the workers involved through the introduction of new technology within the workplace. The 150 product suggestions put forward by the workforce all related to social need, based on the workers own experience and related to their skills and existing workplace technology. The workforce suggesting the products they could design and manufacture provided them with the opportunity to think as both producers and consumers. While the economic system they were employed to work under normally operated solely on the basis of the financial profit margin, the Combines Alternative Plan introduced the social profit element into the equation.

So given that skills and resources can be re-purposed in times of crisis, and that skilled engineering workers from the arms industry can transfer their skills to production that answers social need, the contribution workers can make is to take the initiative by drawing up plans that address the climate crisis in their own facility and negotiate their implementation.

5. The Climate Crisis

No corner of the globe is immune from the devastating consequences of climate change. Rising temperatures are bringing about environmental degradation with the arctic melting and forests burning. The UN Secretary General has pointed out “the climate emergency is a race we are losing but it is a race we can win” According to a ten year summary of UNEP Emission Gap reports, we are on track to maintain a “a business as usual” trajectory with billions of tons of CO2 being released every year as a result of coal, oil and gas production while human activity is producing greenhouse gas emissions at a record high and showing no signs of slowing down. The result is that the last four years have been the hottest on record.

This shows that the biggest threat that the U.K.is currently facing is not from China or Russia but the climate crisis, which unless resolved could make huge areas of the planet   uninhabitable, bring about the destruction of the environmental balance and result in on going pandemics.   Global warming is a problem that requires a world wide solution and can only be resolved by co-operation between nations.

 Solving the climate crisis is a priority, making it necessary for any perceived external threat from Russia or China to be addressed through dialogue and compromise rather than an escalation of the arms race. The U.K. will need to cooperate with all countries if the two related issues identified below threatening humanities survival are to be successfully addressed.

Unfortunately as shown below the Government is not rising to the challenge!

6. U.K. Government response to the Climate Crisis

The Governments Committee on Climate Change (C.C.C.) in its 2021 report states that “While the Government has made climate promises it has been slow to follow these with delivery. The UKs climate credentials have been marred by uncertainty and delay. Those that have emerged have often missed the mark. With every month of inaction, it is harder for the UK to get on track” it goes on to say “Only 5 of 34 sectors assessed have shown notable progress in the past two years, and no sector is yet scoring highly in lowering its level of risk”

An indication of the Governments lack of urgency is in its allocation of funding, with just 0.01% being made available for dealing with the Climate Crisis. This is despite the CCC indicating that 1% per annum is required to meet Government targets.

On current form, the government’s claim of achieving a carbon free economy by 2050 - a target which environmentalists say is not bold enough - will not be met and the Global South will, while contributing the least to global warming, suffer the most.

The 50 least developed countries contributed just 1% of global emissions - yet are the most affected: that’s unjust and deserves to be rectified through compensation. However, although £100 billion was promised to the countries most affected by the global emissions, those countries most responsible have failed to deliver on that promise.

7. C.O.P.26  

A significant lack of progress was made at the Glasgow based 26th meeting of the Conference of the Parties (C.O.P.26). While promises were made, action was not forthcoming to back up those promises. An illustration of this was the research carried out by the organisation Climate Action Tracker during the course of the conference based on commitments from the 197 countries involved, which predicted that the world is heading for 2.4 degrees above pre industrial level by the year 2100.

This despite the need to achieve a maximum of 1.5 degrees which was a temperature previously agreed upon.

 As a consequence, it’s estimated that 1 billion people would be adversely affected in the year 2100, due to the land they currently occupy becoming uninhabitable.

8. An Alternative Plan for the U.K.

 Given the government’s poor record on addressing Climate Change and their current emphasis on the manufacture and export of armaments it’s important that an alternative approach be pursued and fought for. In the absence of any meaningful parliamentary opposition it’s necessary to call upon those best placed and sufficiently experienced enough to develop and promote a plan to address the climate crisis. Those best placed are an alliance of Environmentalists, Trade Union activists, the Peace Movement and like-minded supporters who have the knowledge and expertise to undertake that task. This is necessary given that there’s no sign of an alternative view being advocated by parliamentarians on either side of the House.

Many of the aforementioned groups have been in existence for many years and have experienced success and failure in equal proportions as they have campaigned for a better world. Their campaigning experience has provided them with a vast breadth of knowledge in their given field. Building up this bank of knowledge means they are more likely to be aware of the issues involved than the parliamentarians. Another advantage is, that as the groups are campaigning on an ongoing basis they are not subject to the constraints imposed on them as the government or opposition of the day who, before making decisions, consider what such decision would affect their success come the next General Election!

Whereas all of the campaigning group’s current focus is to attract support from the general public for their individual causes, combining their efforts to produce an alternative vision for the U.K. which is people centred and in tune with the environment should not be beyond them. Once the framework of “another Britain” has been drawn up then the “full picture” can be completed as a result of the groups involved in the “combine” encouraging their supporters to be active in their own communities to develop their own local plans. This could serve as a model for a future “bottom up” participating democracy.

Running alongside the development of the “Alternative Plan for the U.K.” there would need to be a publicity drive to involve the general public, which  would possibly need to be  financed through a Crowdfunding appeal, given the Main Stream Media’s antipathy to anything remotely radical.

If a breakthrough is made in communicating to the U.K. population as a whole, which will be no easy task, then public opinion would need to be galvanised to influence government policy.     

 A parliamentary back bench initiative which at first sight has merit and could be part of an alternative plan is a people centred Green New Deal (GND) Bill, which has been drawn up on a cross party basis.  The Bill addresses the environment problems arising from the Climate Crisis, along with achieving socially just aims such as secure job creation and economic equality. The Bill is linked to a grass roots movement, mainly supported by the younger generation, under the heading of Green New Deal Rising. This movement is pursuing support/donors for the Bill within Parliament and the community at large.

Another Parliamentary initiative is the Climate & Ecology Bill which while gathering more M.P. support, is less ambitious than the GND Bill. Although at this stage it does not seeming to be linked into any grass roots movement it is seeking donor support.

Either Bill, with the necessary Parliamentary support, could proceed to become government policy if enough pressure is applied from the “bottom up”. That will not be easy given that pressure from those that favour “the business as usual” brigade have the ear of the Government!

Other initiatives exist including a parliamentary Private Members Bill titled “Power for People” which if passed would enable electricity to be generated and traded directly at community level. So far the Bill has the support, across parties, of 291 MPs.

 9. Pandemics – as a result of destruction of the natural world 

Up to now over 150,000 have died in the U.K. from Covid-19; nearly 4 times more than the number of U.K. civilians in the 6 years of the 2nd World War!  World-wide there have been over 5 million deaths. Many of the UK deaths were avoidable, given that the recommendations arising from a Pandemic simulation programme called Exercise Cygnus in 2016 were not acted upon, especially the need to increase the availability of necessary equipment: including ventilators! While the lack of vaccine availability in the Global South has had a detrimental effect on the overall world death rate and will continue to do so unless all on the planet are vaccinated.

Its suggested that a more proactive approach is required to deal with the threat of Pandemics, rather than reacting to them when they are upon us with lockdowns and vaccines. It’s the opinion of a coalition of environmental and health groups, under the name of Preventing Pandemics at Source, “That there’s a need to tackle the root cause of Pandemics” They consider that the ongoing destruction of nature will result in Pandemics reoccurring on a regular basis.

While they welcomed the increased expenditure on human welfare to combat Covid-19, far less expensive measures to halt deforestation and an end to the illegal wildlife trade are considered vital.

The increasing destruction of nature by farming, logging and the wild animal trade in recent decades, has brought people and their livestock into closer contact with wildlife and led to a great increase in diseases crossing from animals to people.

 A recent study estimated that spending approximately £20bn a year on the environment would substantially reduce the risks of other pandemics in the future. Given that global expenditure in response to Covid-19 is believed to exceed £14.45tn, the expenditure on rebalancing the environment makes good sense economically, puts far less strain on health providers and prevents millions of deaths worldwide. If the environmental balance is not restored then pandemics will be reoccurring on a regular basis.

10. Socially Useful Production

 As indicated above, it would be more beneficial to the U.K. population and those in the wider world if our resources, energy and technology were spent on tackling the Climate Crisis and related Pandemics - rather than the manufacture and export of weapons that kill and maim civilians.

Investing in sustaining our environment and creating socially useful employment is the only way to deal with the threat of global warming, while accelerating the arms race results in ongoing confrontation between nations when there’s an urgent need for cooperation.

 The peaceful use of technology and resources was the ethos of the Lucas Aerospace Combine Shop Stewards’ Alternative Plan (Lucas Plan).  Those who were involved in the 1970s and still take an active role in promoting the same “bottom up” philosophy, are calling on those groups, organisations and supporters who are critical of the Governments current policy to COMBINE and -

 

“Put together an Alternative Plan for the U.K. which is people centred and in tune with the environment alongside the conversion of harmful technology to socially useful production in order to address the threats of the Climate Crisis and related Pandemics”

 

11. Centre for Socially Useful Production

Developing an Alternative Plan for the U.K. will be more easily undertaken if it’s based in a centre with paid workers to assist in its operation. This suggestion is based on the experience gained from the Lucas Combine establishing the Centres for Alternative Technological Systems (C.A.I.T.S) and the Unit for the Development of Alternative Products (U.D.A.P.) Both centres were invaluable in providing much needed support to the Combine in promoting the philosophy of people centred technology, through research advice and socially useful product development. To establish such a centre in, for example, a university would require funding for its ongoing operation and staffing. Based on the Combine’s experience raising funds for such a centre is achievable; both of the Combines centre’s being funded by charitable trusts. Given that the terms of reference of a proposed centre would be similar to C.A.I.T.S and U.D.A.P. then it should be possible to attract funding.

12. In Conclusion

As former members of the Combine Committee we see the development and promotion of the U.K. Alternative Plan as a progression of the work we carried out in establishing the original Lucas Plan and more recently our own website,

Click here to go to thelucasaerocombineshopstewardscommitte.org

The website registers the Combine’s account of what was achieved in the 1970s and acts to encourage a new generation to produce their own plans that are people centred and in tune with the environment. An Alternative Plan for the U.K. fits into that category.

While we would not be playing an active role in developing the plan, we would be more than willing to assist in an advisory capacity; instead, we are handing over the baton to a generation who are more aware of the issues involved in pursuing a green, people centred economy.

Given the failure of the Government to address the climate crisis in a positive fashion its essential that pressure is applied from the “bottom up” to influence decision making.

As Lucas Aerospace shop stewards we learned that simply reacting to management decisions was insufficient to prevent job losses and the company’s decline. The Combines’ Alternative Plan, while it was never adopted, took the initiative from the company resulting in stabilisation of both the manning levels and the company for 10 years, preventing all threatened compulsory redundancies. The plan became an international cause celebre of the labour, peace and environmental movements and is still widely discussed today.

Based upon that experience, we are now calling on the groups who are campaigning on a daily basis, against military aggression and the ongoing destruction of the natural world, to combine and produce an Alternative Plan for the U.K. which will, in tackling the climate crisis, promote peace and justice for people world- wide and restore a balanced environment.

 

Brian Salisbury, January 2022, on behalf of surviving Combine members


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Democracy within the workplace


by Brian Salisbury, 8 January 2020

Whilst we may consider we live in a democratic society the opposite applies when it comes to the workplace. As soon as you enter the world of work you leave democracy behind. You may be able to state an opinion, but the real decisions are made at board level and handed down through the chain of command to the workers. While there appears to be political consensus on devolving power to local communities, maintaining the status quo within the workplace is at odds with that approach.
 My argument is that the workforce, as the wealth creators, should have the same rights as the investors in the decision making process at the companies where they work. Democratic decision making should be applied throughout, from the workplace through to board level.
Worker representation on company boards may seem to be a radical move and in the U.K. it certainly is viewed that way, but elsewhere, especially in Europe, it is common place and has been for a number of years. Generally known as codetermination it is widespread in developed democracies such as Sweden, France and the Netherlands who have worker representatives sitting on their company boards.
 Other countries such as Germany and Austria have two tier company boards. In Germany worker representatives sit on the supervisory board and elect representatives to sit on the main board. Most codetermination laws are arrived at according to the numbers of people employed at a company and vary from country to country.
The German model of codetermination is unique. Formulated at the end of World War 2, it was first applied to the coal and steel industries of West Germany and gradually expanded to all other sectors. Codetermination in Germany, as a whole, is practiced at every level, from individual worker, through to the local plant and company headquarters.
 While codetermination was being introduced abroad, let us remind ourselves what legislation was being introduced in the U.K.
 During the 1960s and 70s, trade union organisation at grass roots level had developed to the point that shop stewards, when faced with management decisions which were against the interests of the workforce, reacted to those decisions. When management proposed, to reduce workforces, drive down wages or generally undermine existing conditions of service, workers took action to protect their own interests. While not being able to influence the decision making process, the workers through their trade unions reacted by taking action, such as striking, in an attempt to prevent management getting their way. Sometimes they were successful, other times they were not. Overall this industrial unrest had a detrimental effect on workers, industrial development and the U.K. economy as a whole.
 As a result, Governments felt it necessary to intervene by introducing legislation. They had two options, the first being to control the unions sufficiently enough to prevent them causing   disruption to the industrial process. The second option was to introduce democracy into the workplace and so enable the workforce through its elected representatives, to play a part in the decision making process.
 They pursued the option of controlling the unions.
The first attempt to control the unions was by the Labour Government in 1969 when a White Paper was introduced entitled “In Place of Strife”. After opposition from the Trade Unions it was withdrawn.
 The second attempt was by a Conservative Government in 1971. The Industrial Relations Act aimed to weaken the unions by insisting that all disputes went through an Industrial Relations Court which had powers to grant injunctions and so prevent industrial action being taken. It was opposed by the unions who refused to recognise the Court. The Industrial Relations Act was subsequently repealed when a Labour Government was elected in 1974.
In 1975 a Committee of Inquiry was set up by the Labour Government with the aim of introducing more democracy into the workplace. This was in response to the European Commission wanting to harmonise worker participation in the management of companies across Europe. The Government used the offer of industrial democracy as part of a Social Contract in exchange for low wage increases. The Committee of Inquiry included representatives of the unions, industry and the wider community and was chaired by Professor Alan Bullock. The term of reference being:
“Accepting the need for a radical extension of Industrial Democracy in the control of companies by means of representation on Boards of Directors and accepting the essential role of trade union organisations in this process and to consider how such an extension can be achieved”
The Committee of Inquiry came up with a majority report recommending:
“That every company employing 2000 or more should ballot those employees and if 50% or more were in favour, then employees, elected through the trade union machinery, should have representation on Unitary Boards equal to shareholder representation. Other board members, which would be jointly agreed, would represent the wider community”
The C.B.I and the T.U.C rejected the proposals and the Bullock Report and its recommendations were shelved. The Social Contract collapsed leading to the renewal of unrestrained collective bargaining. The so called Winter of Discontent followed and this in turn led to the election of the Thatcher Conservative Government in 1979.
Anti-trade union legislation was introduced during the Thatcher years and continue to this day, drastically reducing the trade unions ability to function effectively to the benefit of working people. It is now recognised that the U.K. has the most anti-union legislation in Europe.
The decision not to introduce democracy into the workplace came at a time when workers through their trade unions, started not only to protect their jobs but also the industries they worked in. This positive step of changing from re-acting to initiating positive resulted in a number of examples, some of which are laid out in a UNITE paper on diversification, see unitetheunion.org                                                                                                                                                                                                                                                                                                  Looking back, if democracy in the workplace had been introduced in the period following The Bullock Report, the initiatives identified in the UNITE paper could have been financially supported within a legislative framework and prospered, serving as examples for others to follow.
At Lucas Aerospace we would have had a better opportunity to bring about changes within the company, in the areas of product development, investment policy and its future direction. We would have been aware of the dangers of being involved in decision making   at board room level knowing that they operated within the constraints of the market economy. But I consider we had the organisation and the individuals within the Combine to have operated at board level without losing sight of our ambition to bring about change within Lucas Aerospace. That change was contained within the philosophy of the Combines Corporate Plan which took a holistic view of how a company should operate rather than a market driven approach. In other words the effect the company activities have on its workforce, the wider community, and the taxpayers who have to foot the bill when people are made redundant. There would have been dangers in being involved at that level, but as Combine shop stewards we negotiated on a day to day basis, giving us sufficient experience and political nous to operate at board level. Like all negotiations the outcome may have resulted in compromise, to my mind that would have been a risk worth taking.
However that was 40 years ago and much has changed since then. Anti-trade union legislation has weakened the unions in the workplace. Managing Directors or their representatives now rule the roost, treating their workers with very little respect. They can hire and fire at will, using redundancy legislation to rid themselves of workers they don’t see eye to eye with. Also the nature of employment has changed, with less being employed in the old   traditional industries.
Therefore given the above, should we welcome that the Labour Party, when next in Government, intends to introduce democracy into the workplace. Given that we live in a modern democracy the answer has got to be yes. At the moment workers leave democracy behind as soon as they walk through the factory gates, having no part to play in the decision making process at personal, plant or board level.  As wealth creators that cannot be right.
In saying yes, I will qualify it by saying that it depends on what a future Labour Government legislates. If one third of the boards are to be worker representatives, then the composition of the other two thirds will be crucial. If it is based on the results of the Bullock Inquiry, one third will be shareholder representatives and the other third from the wider community. If Labour want to bring about radical change in the ways that Boards operate in future, the make up and role of the wider community representation is important.
Legislation could make sure that board decisions take account of wider social issues rather than just those based on the market economy. With Government financial incentives only being made available if a company operated on the basis of observing those wider social issues.
My other reservation concerns whether the worker representatives would be equipped to deal with the task of playing a positive role on the board. If the company operated on a multi-site basis, based on our own experience in Lucas Aerospace, the trade union organisation would have to reflect that, in other words, a multi-union Combine shop stewards committee would have to be established. Given that trade union power has been severely weakened by laws introduced by Government, the step change involved in being under the cosh of employers now, to being Board members when legislation is introduced, would be too difficult to manage. I am not saying that the worker representatives will not be capable in time, but I fear without support they will be going into the boardroom like lambs to the slaughter. Therefore trade union legislation needs to be repealed, also promised by Labour, and trade union education programmes will be needed to equip the worker representatives to operate at that level.
Taking account of the above reservations, the introduction of democracy within industry will a long waited addition to our democracy bringing us in line with most other modern European democracies.
Given that, the Labour Party should be congratulated for including Industrial Democracy proposals in a future programme for Government.


Corporate Welfare 
by Brian Salisbury  29 January 2020

Corporate Welfare is used to describe governments’ financial  support for private companies either with money grants, tax breaks or other special favourable treatment. The definition of corporate welfare is sometimes restricted to direct government subsidies of major corporations, excluding tax loopholes and all manner of regulatory and trade decisions, which in practice could be worth much more than any direct subsidies.
The term corporate welfare was reportedly first used in 1956 by Ralph Nader during his career as an American political activist, author, lecturer and attorney, when he pointed out how American private business was subsidised by the government.
In the U.K., through lobbying the government for assistance, corporations gain financial support and pass along losses to the rest of society. This is commonly known as “privatising profits and socialising losses”
When we hear the word welfare most of us think about  struggling individuals and families who receive supportive benefits from the state.  Anyone who has been in the unfortunate position to pursue those benefits knows how difficult it is to qualify for them and the stigma attached. In fact, private businesses receive as much support from governments as do citizens in need, and for private business its a lot easier to achieve and far less transparent to the general public.
 Government support for private business is in many forms, both direct and indirect. Direct forms include subsidies, grants, loans and public shares which allow businesses to emerge, expand, and profit.  While indirect forms of corporate welfare are more hidden, less obvious and more diverse. Many are not thought of as being important or beneficial to private business. But often, they are more important to businesses and the economy than they are to individual citizens. For example:
·     *   The availability of publicly subsidised road, rail, shipping and air transport systems as well as centrally funded advice and state insurance services.
·      *  Education and training services help to ensure that workers have the skills and qualities demanded by employers.
·     *   The National Health Service helps to ensure that workers remain healthy and productive.
·    *  Working tax credits effectively subsidise employers' wage costs.

While the government provides the above publicly funded indirect support to meet the needs of private business, the net effects of such support  is to socialise business risks and maximise profits. Not all companies need corporate welfare but most receive it in one form or another as shown in the research carried out by Dr Kevin Farnsworth and his team at the University of York. Their website corporate-welfare-watch.org.uk provides a wealth of information on the funding of private business.
A comprehensive study of the total amount of tax payers money paid to private business, as reported in 2015 by Dr Farnsworth, was in the region of £93bn. This was equivalent to £3,500 from each household in the U.K. The analysis showed that many of the companies receiving the largest grants paid little or no corporation tax.  They included some of the best known companies in the U.K., such as Amazon, Ford and Nissan.
The £93bn total break down is as follows:
·      *  Tax breaks of £44bn
·      *  Procurement subsidies of £15bn
·      *  Additional transport subsidies of £15bn
·      *  Direct subsidies of £8bn
·      *  Capital grants of £6.5bn
·      *  Hidden energy subsidies of £4bn
·       * Insurance, advocacy and advice services £0.5bn

The above figures were a calculation for the financial year 2012-13. In the same year Corporate tax amounted to 13 percent of corporate profits, which is the lowest in the G7 nations.

The government funding of Nissan U.K. was one piece of research carried out by Dr Farnsworth and his team. It showed that Nissan first invested in the U.K. in the early 1980s following protracted negotiations with the government. The original deal was worth £124m in 1984 made up of regional development grants, selective financial assistance and heavily discounted land. Fast forward 30 years and Nissan has amassed £800m in corporate welfare. Yet despite this generosity of the British taxpayer and the dedication of the Sunderland workforce, Nissan is using Brexit as leverage to extract more from the taxpayer.
Today, Nissan is the largest private sector employer in North East England employing over 7,000 people at its Sunderland plant. Furthermore, Nissan's production volume indirectly supports about  28,000 people in the North East's auto manufacturing supply chain. Obviously, the loss of Nissan would be catastrophic for the North East community. The company and the U.K. government are aware of that and there lies the problem.
 So while Brexit presents risks to Nissan through increased trade barriers and uncertainty, it also dramatically strengthens the company's  hand in bargaining with the U.K. government, given that other E.U. countries have put in place attractive incentives to entice the likes of Nissan away from the U.K.
Nissan is just one example of a company benefiting from Corporate Welfare. F.T.S.E. 100 companies received £583,854,691 in government subsidies, again according to research carried out by Corporate Welfare Watch (February 2019), with the financial sector receiving most of the subsidies.  Away from banking, notable recipients included B.A.E. Systems (£44,782,094), Tesco (£10,396,037) and Unilever (£8,044,494).
Corporate welfare is not just a recent occurrence. It has taken place over a very long period.  When, as an active shop steward in the Lucas Aerospace  Combine Committee, I carried out a close examination of the Lucas Industries company accounts it revealed that between 1971 and 1977 the company made profits of £251,400,000. As a consequence of government grants of £10,150,000 and £10,620,000 paid in taxes the amount the government received was only £470,000. You could say that as a workforce we should have been appreciative that government support had helped to keep us employed, however  that was not the case. During the same six year period the number of Lucas Aerospace employees reduced from 18,000 to 12,000!
Certainly, from the point of view of the jobs lost and the cost to the taxpayer, the subsidising of the company did not make sense. This seems to be a very good example of “privatising profits and socialising losses”
Its interesting to make a comparison between corporate welfare and Social welfare. Whereas Corporate welfare lacks transparency, social welfare is very much in the public eye. Benefits to individuals and families are not the easiest to access and the recipients of such benefits are, at times, vilified in the “popular press” as shirkers and skivers. While the benefit seekers may have  “rights” within the social welfare system they are constantly reminded of their “responsibility” to the taxpayer.
While its right that the taxpayers' interests should be protected, those receiving government money should be treated equally. That at the moment is certainly not the case.  While information on social welfare benefits paid is made available by government, benefits paid to private business ie corporate welfare is not made available. Its interesting that during these times of austerity the debate is so stifled. You may wonder why you hear so little about the amounts of taxpayers' money that is paid by government to private business, when you are bombarded daily by stories of welfare scroungers. Stories about corporations that make huge financial claims on the state, whilst they assiduously avoid taxes are never mentioned.
First of all there needs to be transparency. Whilst we should be appreciative of the research carried out by Corporate Welfare Watch, it should be the government who publishes the amounts of money that finds its way into the coffers of private business. The U.K. taxpayers should be fully informed of where and how their hard earned money is spent.
This should be followed by a debate on whether private business should benefit from being subsidised by the taxpayer. After all private business operates on the basis of profiting those who invest in the business. As it stands the taxpayers do not see a return on their “investment” when the dividends are handed out.
I think there is a case for the government funding of private business - but only made under laid down criteria. Funding should only be allowed if such funding was of benefit to, for example:
* The well being of the U.K. economy
* The government's industrial strategy
* Protecting and promoting employment
* The government's environment targets
* The government's ethical policies
* A diversification of its product range and workforce retraining programm (see Red Pepper article by Phil Asquith under the Links tab)

These are just examples of what could be required within any such “planning agreement” reached between private business and the government.
However I consider that any such arrangement could be arrived at if the private business sector was more accountable to both its workforce and the community where its located. So only in the circumstances of private businesses being democratised, as laid out in my paper Democracy in the Workplace and taking account of the above examples, would I consider that taxpayers' money, in whatever form, should be paid to private businesses.
The present policy of financial benefits, funded by the taxpayer, ending up in private business as a result of government lobbying is, in my view, unacceptable practice. It makes me wonder what the taxpaying general public would make of it if there was sufficient transparency available to make them fully aware of how their hard earned money is being spent. At least they should have the opportunity to have an opinion and make it known.


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