Monday, 21 May 2012

Just wrong headed

The Conservative government has made a double dip recession, they have smashed confidence, they have frightened people with alarmist claims, they have deflated the economy by cutting to far and too fast in a dash for austerity.

The cuts in the public sector and in public infrastructure has seen construction being a real drag on the real economy.

Full time new jobs are being replaced with part time and flexible work this coupled, even in rural Somerset, of individual debt, then it is hard to see how the economy is going to recover.

Faced with these facts, the Conservatives may well spend time thinking about the difficulties people are facing.

So today a report written by Conservative-supporting venture capitalist Adrian Beecroft is published.

Its proposals are expected to include:

An end to a mandatory 90-day consultation period when a company is considering redundancy programmes. Instead it will suggest a standard 30-day period and an emergency five-day period if a firm is in severe distress

A cap on loss-of-earnings compensation for employees who make successful unfair dismissal claims

Reform of the rights that workers are allowed to "carry" to new employers when their companies are the subject of a takeover

Scrapping provisions in the Equality Act which make employers liable for claims from employees for "third-party harassment", such as customers making "sexist" comments to staff in a restaurant

Shifting responsibility for checking foreign workers' eligibility to work in the UK from employers to the Border Agency or the Home Office

These proposals effectively allow companies to fire workers with limited compensation, with contracts being changed at the whim of a dominant employer.
So, this will compound the sense of insecurity, confirming the state of fear.
Companies should be inclusive, with all the talents of the workforce included, employers should be seen as long term members, with training to improve the individual for the benefit of the company, companies should free employees to perform and not workers need to be forced to work at the end of a whip.
The British disease is no longer strikes by militant workers.
The British disease is now short term thinking, this is being led by the Conservative government and their City backers.
The British economy needs a long term plan, an investment bank to raise capital for business investment, improved supply side measures, education and training and government being active in support of science and new technologies.
The only way to reduce the deficit is to grow the economy, to produce and create wealth, the way ahead is not dividing a shrinking cake or tax and spend, expanding the economy by some public investment and expanding lending and productivity of small and medium sized businesses.

Like any business you need to invest in people and product (including new tooling) and this should create profit, only by expanding companies that employ highly motivated well paid staff, will be earn our way out of this deficit, once the economy is growing, then, the deficit can be cut once tax revenues increase.

No comments:

Post a Comment