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Posts Tagged ‘strikes’

Thoughts from Wonkfest 2010: Monday 4th

Tagged: Conference 2010, Conservative Party, strikes

8:30 Monday Morning

A terrible omen begins the day: I have misplaced my cornflower blue, and left my lilac (on the breakfast table), handkerchiefs and will have to settle for richer, darker, more garish shades. Mr Johnson’s additional bus provisions made it possible to reach Marylebone overground, so contributing, by my successful journey, to the eventual defeat of the Luddites who have stymied the flow of loyal workers ’round the nation’s heart.
              I wonder whether it would be legal (and, if not, whether it would be practical to make it legal) to introduce a form of “lifeblood” public service contract by which public sector workers who so chose could opt-out of union memberships, and vow not to work through their colleagues’ strikes, in return for incrementally higher pay & perks. Presumably the definitions involved would have to be subtle enough to uphold their fundamental right to strike, whilst preventing the barons from simply operation union strikes in a way that allowed “Lifeblood” workers to join them without breaching the special contracts.
             That appelation brings me to the second difficulty of the policy: portraying it for the move towards public-private solidarity that it is, rather than a matter of government ‘buying scabs’. Now, I do not understand where the term ‘scab’ comes from (perhaps a commentator could help me), but it seems to me that, by adopting this organic imagery, we may be able to invert the rhetoric of the Socialists. If a ‘scab’ is someone who prevents the capitalist parasite from bleeding his property back out to workers (and this explanation strikes me as somewhat tenuous), then to call our special contracts “Lifeblood Contracts” would be to emphasize the essential continuity and interdependence of the sectors. When Mammon is wounded, Leviathan does not feed and grow stronger, but is weakened too by the lack of a strong provider; when Leviathan is starved, Mammon is threatened, for its protector has no belly for the fight.
           The policy would need to be wrapped in the rhetoric of organic and established structure. London is the heart of the Kingdoms; the ‘public services’ their lifeblood, which carry and distribute the proceeds of growth, their meal. Just as it is the duty of every businessman and craftsman to use his gains for the sake of his neighbour, so it is the duty of every tube-driver to man the post the public purse had paid him to man. Economic policies of governments must be opposed at the ballot box, at the expense of the party that practised them: not in the streets and tunnels at the expense of fellow subjects.

16:45 – Not as many conference-goers seem interested in economics as ought to be, given our situation.

21:15

I attended a meeting with Mr David Gauke MP, Exchequer Secretary to the Treasury (i.e. Grand High Taxman), Michael, Lord Forsyth, and a very-well-qualified and insightful professional economist. What struck me was the realisation that the rift in the Party between Whigs and Tories (or Thatcherites and Disraelians/Cameroons) has been greatly amplified by our pernicious mediums. Lord Forsyth gave a cut-and-dried Thatcherite warrior’s speech about cutting top rates of taxes to raies the yield and increase growth, and so benefit the poorest – and Mr Gauke did not object: rather, in stressing the priorities of this government, welfare reform, despite its expense, was wrapped up entirely and wholeheartedly with the need for cuts.
              Having said this, we shall have to see if Mr Cameron is, in the long term, upset enough with Dr Fox to consider bringing forward a repeal of the hunting ban to this Parliament (har-har).
            I have just eaten a near-perfect gammon steak in the Holiday Inn. The house red is less good. Matthew and I will be, on a certain diminutive brunette’s advice, retiring to a reception with Open Europe. I shall try and keep my mind open, also – which is not to say the same thing as that I will try to pay attention.

Privatise the post

Tagged: competition, deregulation, monopoly, privatisation, Royal Mail, strikes, unions

Postal strikes begin tomorrow.

As a result of the strikes, Royal Mail have lost several lucrative contracts. Customers switch from Royal Mail during strikes, and plenty of them don’t switch back. It used to be fax machine sales that jumped during strikes — and people still used them after the strikes were over. Now scanner sales are up 25%. It is just like when Paris Metro, fed up with strikes, decided to replace train drivers with robots.

The strikers are shooting themselves in feet. They are sowing the seeds of their own destruction. Instead of getting higher wages, the workers may just end up unemployed. It is a sad thing when an unsound company is driven into the ground by above-market wage demands.

Of course, this is the problem. Royal Mail wages aren’t set by the market. In competitive markets, wages are set by the market. But where there is only one big state-owned company, wages have to be set by “national pay deals” and the like.

So you might say to the strikers: fair enough. If the only way you can raise your wages is to lobby the government, then you’ll have to lobby the government. But surely we should instead change the system so that their wages are set by the market. Then they wouldn’t have to go on strike. Private companies suffer far less from strikes that state-owned companies. And when they do, you, the customer, can use someone else. Unions flourish in the public sector where competition is not allowed: they are rent seekers out for a cut of the monopoly profit.

The proposed privatisation of Royal Mail is really a distraction. If we had competition, it wouldn’t matter who owned Royal Mail.

Currently, any firm can collect and distribute post, but Royal Mail has a monopoly on the delivery of all post weighing less than 350 grams or costing less than £1 to send. Other firms must turn post over to Royal Fail for delivery (the “last mile”). Far from being “completely deregulated”, the postal market is only “somewhat deregulated”. It’s not enough.

Royal Mail’s monopoly must be ended.

The Universal Service Obligation could be maintained to placate subsidised voters living in remote places. The government could simply insist that new firms could only enter the market if they also fulfilled the Universal Service Obligation.

(A few final points: Royal Mail should not be confused with the Post Office. Planning laws should be relaxed to allow competitors to build post boxes. And while privatisation of Royal Mail is not necessary, the money it raised would help pay off the government’s debt.)

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