The latest on our economy

Whilst the rate of Inflation is finally falling, workers all over the country are still feeling the impact of the cost of living crisis as energy and food bills have jumped through the roof for a couple of years.?

Falling real wages, high prices, and the biggest cut to living standards in generations should not be the 'new normal'.?

Our researchers and forensic accountants at Unite Investigates are digging into the numbers, exposing the root of the broken economy.

This newsletter will summarise the latest from Unite the union's groundbreaking research and reports with links to full breakdowns on what's happening in our economy. And it will look at what we do about it - how Unite members are collectively challenging our broken system and organising for better jobs, pay and conditions.

"There is only one real check on their power. Our power, the power of the organised working class. This is why at Unite we have one clear aim, to rebuild the trade union movement. To rebuild the power to claim our share. That means restoring collective bargaining, that means organising across our industries and communities, that means restoring pride and strength in the collective. And then we can insist that other choices are taken." - Unite general secretary Sharon Graham

Unite’s latest profit reports reveals a crisis of profiteering

Unite Investigates latest report has analysed nearly 17,000 companies in the UK and found that average profit margins have soared by 30% compared to the pre-pandemic period.

This report, the most extensive post-pandemic study of UK profit margins, has brought to light a disturbing truth. Corporate profiteering, far from being an isolated phenomenon, has spread its roots deep into the fabric of our economy. It's not just the largest companies or those in a select few sectors, but profits have spiraled out of control everywhere.

The companies we analysed made a total ￡156 billion more profit over 2021 and 2022 than if margins had stayed at 2018's levels. That's equivalent to ￡5,500 extra spent by every UK household.

Our research shows how increased profits haven't gone into investment for future production and jobs – the UK lingers on the lowest investment rates of all advanced countries. Instead, they've been drained out into payments for investors. Shareholder payouts for the big FTSE 350 companies have jumped up 20% since the pandemic.

And this is why our economy is broken. Because of the choices of executives, investors, and politicians who choose short-term profits and fat dividends over investing to rebuild our industries and public goods.

Their choices are tearing apart the fabric of our economic and social commonwealth.

This report is the third in a series of contributions on profiteering. Our aim is simple: to uncover who has really profited from the pandemic and the inflationary pressures that have followed.

Read the report: https://online.flippingbook.com/view/750100216/

Cost of living

While headline inflation may be slowing, it's been over 3 years since inflation rose higher than the Government's 2% target, and prices are far higher than they were before the cost-of-living crisis began.

If inflation had kept to the Government's target, prices would now be just over 6% higher than in March 2021, instead of the reality of nearly 30% higher.

This is having an evident impact on real wages; as such, it is more urgent than ever that Unite members fight for RPI+ pay rises and resist the bosses' attempt to make workers pay the price.

Commenting on?June's employment and earning figures Unite's Sharon Graham said:

"We have a long way to go before wages catch up with the huge price rises inflicted on workers over the last two years. The outgoing Conservative government will not be missed, but if Labour is serious about making work pay, it is going to have to deliver on collective bargaining. Giving workers the power to negotiate over pay and conditions at the place of work, is the only tried and tested method of driving up falling wages.”?

Read more on the facts and figures for workers: https://www.unitetheunion.org/fandf

Outsourcing companies thrive while public services collapse?

Outsourcing company Mitie’s full year results in June showed their pre tax profits increased ￡156 million and the company undertook a ￡50 million share buyback, Unite general secretary Sharon Graham said:

“Mitie and its shareholders have been getting obscene profits from UK taxes which should be being used to support our collapsing public services and paying workers decently. The public sector is in desperate need of protection from profiteering outsourcers, whose only priority is to extract as much as cash as possible through a race to the bottom on jobs and services.”

Oil and Gas | No ban without a plan?

Unite has launched its campaign for a just transition with job security for oil and gas workers.

Currently, there are 30,000 offshore jobs, and seven or eight times that amount in the vast supply chain. We need a plan that puts workers at the heart of the programme for net zero, not consideration as an afterthought.?We cannot abandon fossil fuels until we know how we will replace them, and how the jobs and communities from the North Sea fields will be protected.

If there is to be a just transition, massive investment will be needed. At Unite, we are doing the work on our plan right now. The current plan is too vague. Put simply: The transition to net zero will only work if we put jobs at its very heart. We will have the facts to hand for what needs to be done, and we will not accept promises of jam tomorrow.

Find out more on Unite's Oil & Gas | No ban without a plan campaign

It is the potential for agitation, mobilisation, and for campaigns that organise communities — led by people for the people. Join Unite as Britain and Ireland's biggest union focuses on building popular, working-class power to change the system that is rigged against us.