The current crisis provides an opportunity to create a new economic architecture that reconnects a strong, flexible economy to the living standards of all, not just to residents of the penthouse.
STUC's Agenda for Rebuilding Collective Prosperity calls for policies and interventions, both immediate and longer term, which can achieve these aims. It is essential that governments at Scottish, UK and European level grasp this opportunity. It is vital that wider civic Scotland and its communities are fully engaged in the formation of a new vision for collective prosperity in Scotland and across the UK.
Rebalancing the economy
Scotland and the UK require a reinvigoration of the equalising institutions such as strong trade unions, redistributive taxation and higher minimum wages that in the past moderated the tendency of a laissez faire economy to produce an income distribution of extremes. Deregulation of labour and product markets cannot be reconciled with aspirations for broadly shared prosperity.
An economy run for and by economic elites leaves society not just less equal and less democratic but also much more vulnerable to systemic shocks and risks and less efficient as a matter of economics. An alternative approach to globalisation and competitiveness will include policies to rebalance, to invest in new technologies that generate high-quality domestic manufacturing employment, and to promote environmental and labour market policies to ensure globalisation benefits working people in both developed and developing nations.
Manufacturing industry helps cement communities with middle income/middle status jobs and is therefore a force for social cohesion in a way that services are not. A new policy agenda, including a low carbon industrial strategy for Scotland, is required to sustain and grow manufacturing employment.
Gender segregation in work is a major contributor to our currently unbalanced economy and a barrier to sustainable economic growth.
Equality and justice
Income inequality is widespread and continues to be the main cause of social breakdown. With an ageing population, now is the time to reinforce the social safety net to meet the challenges of the future. Fair pay, with a living wage for all should be the primary drivers for tackling poverty and fair levels of benefits are necessary to address rising wealth and income inequality. The majority of the lowest paid in society are women – income inequality cannot be tackled without effect action to achieve equal pay.
The current crisis provides an opportunity to address the complexity and manifest unfairness in the UK taxation framework. A fair and progressive tax system must be a key element of any viable attempt to address the massive inequality that persists in the UK and Scotland.
To achieve justice, people need access to justice – irrespective of status or income.
Defending jobs and people during the current recession
We must not repeat the mistakes of previous recessions. Scotland needs a coherent response to the current recession which invests in our people to limit both the extent and the effects of unemployment. This means defending jobs, providing short-term support for companies in difficulties, additional investment in skills and a commitment to healthy and secure jobs free from discrimination on the grounds of disability. Scotland must unite against the racists who seek to feed from the current economic insecurity.
Investing in public services
Public spending and public service workers were not the cause of the current crisis. Public services play a crucial role in our society, building community cohesion and collective responsibility’. A positive agenda to revitalise Scotland’s public services will be based on the principles of democracy, fairness, partnership, investment and excellence. It can only be achieved with well resourced, motivated, trained and rewarded staff.
A just transition to meet the challenge of climate change
The targets for emissions reduction contained in the Climate Change (Scotland) Bill are the most stretching in the developed world. Trade unions support action to tackle climate change but do not shrink from the difficult decisions and trade-offs necessarily associated with such stretching targets. We must ensure that the transition to a low carbon economy is fair and just; to ensure that the economic and employment benefits from emerging environmental industries are maximised to the advantage of all Scotland's communities; to ensure that a credible transitional skills strategy is developed and to develop trade union initiatives to green the Scottish workplace.