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National Bargaining and Disputes Support Unit
Facts and Figures
CHRISTMAS MESSAGE FROM SHARON GRAHAM - UNITE GENERAL SECRETARY Friends, As 2023 draws to a close, I want to express my gratitude for all that you do as a Unite Representative. I know it is a role that is not always an easy one. But it is critical. Without effective trade union activity at the workplace, millions of workers would be worse off. Whether that be in terms of putting pay in people’s pockets, workplace safety or other terms and conditions. The role of the shop steward is the foundation upon which trade unions are built. The foundation of working class organisation. It has been just over two years since you elected me to be your General Secretary and to refocus our Union on the Jobs, Pay and Conditions of Unite members. As part of that commitment I promised to improve the support available to you, our front line activists. And in that time we have made concrete progress and delivered new bargaining tools for collective bargaining. For the first time in our Union’s history we now have access to expert accountants to analyse “ability to pay”. To support that we have developed a new digital tool called Financial Insider, to give our Reps the opportunity to get a snapshot of a firm's finances in just a couple of minutes. We have also launched our new advanced monthly bargaining analysis report - Facts and Figures. 200 pages of industrial information reviewed for negotiators by our new team of experts. Now available by audio, Facts and Figures is the most comprehensive monthly bargaining update in the trade union world. But it’s not just better information that we are providing. The old hoops that our activists had to jump through to get legal support
National Bargaining and Disputes Support Unit
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Facts and Figures are gone. The 50/50 threshold is finished. Now, Unite Reps targeted by employers will get legal support when required. We have also introduced a new mental health support service and where our Reps have been targeted we have delivered serious campaigns to defend them. As was the case recently with the successful Murphy 4 campaign. There is still a lot to do, no doubt. But Unite is now a winning Union and a growing Union. Over the last two years, we have invested in practical support for our members when they need it most, paying out over £32 million in strike pay. Action that has helped put £430 million directly into 180,000 workers' pockets. This of course is just the tip of the iceberg, with many good deals being secured without the need for strikes. Once again demonstrating the real practical value of strong trade union organisation and collective bargaining. For the first time in Unite’s history we have recorded sustained increases to the paying membership – up 23,000 over the last two years. Bucking the trend across the trade union movement and proving that managed decline is not inevitable. Politically, we have maintained a consistent position with Labour. Holding their feet to the fire and being unafraid to challenge the status quo. We have made progress on steel, rights to access for trade unions, workers’ rights and Minimum Service Levels. In election year we will continue to push on with our own Workers’ Manifesto, both inside and outside of the Labour Party. The job of change and delivering the manifesto I was elected on will continue in the New Year. Crucially, it will be continuing to build a Union that wins and that everyone can play a part in. Thank you again. I wish you and your families a peaceful Christmas and a great New Year. Solidarity, Sharon
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National Bargaining and Disputes Support Unit
Facts and Figures
National Bargaining and Disputes Support Unit
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Facts and Figures
Table of Contents Christmas Message from Sharon Graham - Unite General Secretary 1.
What have we delivered through collective bargaining? 17
1.1
Unite members in buses, food distribution, offshore drilling, and utilities have won above-inflation pay increases this month17
1.2
Winning in the Workplace: Go North East secures 11.2% pay rise after industrial action and strikes+ campaign
20
Pay Round Review: Automotive supply chain coordination drives up pay!
24
2023 has been another big year of action for Unite members with 154 deals won through disputes
26
Unite members have secured a massive £430 million through industrial action since August 2021
30
Bus workers have been involved in 171 disputes since August 2021, securing a £3,170 average pay increase
31
2.
What other settlements have been reached?
37
2.1
Unite has won crucial legal cases against Vista Therm, Carey Glass and many others this month
37
Workers in other unions, including traffic wardens and air traffic controllers, have secured large pay increases this year
41
The Government needs to make different choices to reverse the 19% pay cut workers in the public sector have endured since 2010
42
1.3 1.4 1.5 1.5.1
2.2 2.3
6
3
2.3.1
Unite is campaigning for all NHS workers to receive the COVID19 payment they are due, and will support them in the fight to defeat minimum service legislation 44
2.4
The minimum and living wages are far too low, but it is up to organised workers to set the bar 45
3.
What's the cost of living? How fast is it rising?
3.1
Inflation remains high at 5.3% and a long period of high price rises has had a huge impact on real wages 51
3.2
Focusing on the annual percentage change in inflation is
National Bargaining and Disputes Support Unit
51
51
Facts and Figures
masking price rises that are now baked in 3.3
Prices of categories such as clothing and food are rising faster than headline inflation, at 12% and 9% respectively 53
3.4
Using the Consumer Price Index (CPI) as a measure of inflation – rather than the Retail Price Index (RPI) – disguises the extent of the cost-of-living crisis 55
3.5
Interest rate hikes are piling misery on millions who have relied on debt to partially fill the gap of real terms wage cuts 57
3.6
Government failure in housing policy has helped no-one but the ultra-rich, with the share of income families dedicate to housing doubling since 1980
58
Rental costs take up around 25% of workers' income and renters are struggling to get on the property ladder due to rising mortgage costs
59
Our members, whether renters or owners, need good pay deals to keep up with soaring costs
61
3.7
UK childcare costs are the highest in Europe
62
4.
What is driving inflation?
67
4.1
Profiteering is driving inflation, not wages
67
4.1.1
The five main forms of profiteering include monopolies and windfall profits
68
3.6.1
3.6.2
4.1.2
It may be Christmas...but food brands think 'tis the season for taking food from kids, with parents simultaneously struggling with the cost of clothes 70
5.
Is pay rising or falling in real terms?
75
5.1
Workers have suffered a generation of pay decline and get nearly 11% less today than in 1997
75
5.1.1
With government data failing, Unite is taking the lead on sourcing data to benchmark our members’ pay and conditions 77
5.2
For over a century real wage increases were the norm
78
5.3
Prices have been rising faster than wages for over a decade, leaving the average worker over £700 a month worse off in
80
National Bargaining and Disputes Support Unit
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Facts and Figures real terms compared to 2010 5.3.1
82
5.3.2
Savings are down, while household debt is up to an average of £71,000 per household 83
5.4
The lowest 10% of earners are making £9,000 a year or less, with a record number employed in low-paid jobs
83
5.5
Profits have grown twice as fast as income in the last year
84
6.
Are the rich getting richer?
89
6.1
The wealthiest 10% hold almost half of the UK's total wealth 89
6.1.1
The number of very rich people in the UK is forecasted to grow by nearly 50% from 2017 to 2027 90
6.2
The Autumn Statement comprehensively failed to deliver for workers, with £15.5 billion handed out to big business and £19 billion taken from public services 92
7.
Are Terms and Conditions getting better?
7.1
Bosses are squeezing 18 unpaid hours a year out of UK workers so negotiating solid working time agreements is crucial 97
7.1.1
Over the last 20 years most of Europe has reduced working time more than the UK
98
Workers are seeing attacks on their pensions with a 63% reduction in decent schemes over the last decade
100
A single person would require a £645,000 pension pot to achieve a comfortable lifestyle in retirement
101
How are different demographic groups being impacted?
107
8.1
On average, women are paid 14% less than men
107
8.2
Government pay data is failing to address systemic biases against Black and Asian Ethnic Minority workers
110
9.
What is happening to the economy as a whole?
115
9.1
The economy is worth £2.5 trillion and is growing, but bosses are reaping more rewards than workers 115
9.1.1
Growth doesn't necessarily mean higher living standards
7.2 7.2.1 8.
8
Household incomes are nearly £18,000 a year worse off over the same period
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97
117
Facts and Figures
9.2
Unite is producing tools and reports for reps to fight back against flawed economic arguments such as the 'growth is everything' mantra
118
9.3
Forecasts predict slow-but-steady growth to continue in 2024, but workplace power is needed to ensure workers benefit 119
10.
What is going on in the world of corporate finance?
125
10.1
Stock markets have risen in the last year, led by the US S&P 500 with a 16% rise
125
Unite is campaigning against the proposed merger of Three and Vodafone, which threatens 1,600 jobs and increases in mobile phone bills of up to £300 per year
126
As companies increase their wealth through mergers and acquisitions we must protect jobs, pay and conditions
128
10.2
10.3
10.3.1 The Saudi Arabia Public Investment Fund and Ardian have agreed a £2.4 billion deal for 25% of Heathrow, which could impact thousands of Unite members 130 10.3.2 The Cooperative Bank, which employs hundreds of Unite members, is exploring potential merger opportunities
130
11.
Where are workers on strike?
135
11.1
Unite members at 21 employers across Britain are due to take industrial action in December 135
11.1.1 Glasgow East Women's Aid members begin strike action following whistleblowing
136
11.1.2 Junior doctors in England have announced new strike dates as part of their pay dispute
137
11.1.3 Picket line report: Over 40 workers are set to go on strike at the East Lancashire Hospital Trust over the next three months in dispute over patient safety 138 11.2
Balloting Brief: Unite have run over 300 successful ballots for industrial action in 2023, with a further 23 workplaces preparing for action this month 141
11.3
Other union disputes: ASLEF train drivers have voted overwhelmingly to continue strike action in their national National Bargaining and Disputes Support Unit
143
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Facts and Figures dispute over pay 12.
Which negotiations take place this month?
147
12.1
Around 11,400 members will be negotiating with over 80 employers in December, including members at Stagecoach and Douwe Egberts
147
13.
Who do our members really work for?
153
13.1
480 publicly-listed companies ultimately employ around a third of our members
153
13.1.1 Ownership of the companies employing our members is highly concentrated, with eight investors together owning a combined 16% of these 480 companies 153 13.2
The biggest of these investors is BlackRock, which is the world's largest investment firm
154
13.2.1 BlackRock's enormous shareholdings make the company's billionaire boss, Larry Fink, one of the most powerful people on the planet 155 13.3
Over half of Unite's members are likely employed by companies headquartered outside the UK
157
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What market power do we have?
161
14.1
Collective bargaining has driven annual pay growth to between 7% and 8%
161
Demand for workers remains at historic highs, improving opportunities to push for large wage increases
163
14.2
10
14.3
Labour shortages are highest in the accommodation and food sector, while job growth is currently fastest in the water & waste and agriculture sectors 164
14.4
Just under a quarter of employees in the UK are trade union members, but Unite's membership is growing 166
14.4.1 Trade unions matter beyond the workplace: when workers organise, act, and win collectively, society benefits from reduced inequality
167
14.4.2 Actions speak louder than words: we grow membership where we take a stand
168
15.
173
What is happening to company profits?
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Facts and Figures
15.1 15.2
Companies are squeezing wages while enjoying huge increases in profits, which are up 175% compared to 2020
173
Utilities companies and banks are raking it in while food brands have been caught profiteering
174
15.2.1 BP and Shell have posted massive profits totalling £110 billion over the last two years 174 15.2.2 The CMA has reported that food producers are profiteering, but has taken no action 175 15.2.3 Profits of the big four banks are 79% higher than a year ago, and members should demand more in upcoming pay rounds 176 15.2.4 Water companies are raking it in, recording combined operating profits of £2.2 billion in 2023 15.3
UK companies invest far less than their peers, with investment levels averaging just 17.9% of GDP, compared to 20%+ in comparable countries 179
15.3.1 Economics Explainer: Investment is a collective bargaining issue 16. 16.1
177
182
How much of the pie is going to CEOs and shareholders?
187
FTSE 100 chief executive pay in 2022 was 118 times that of the average worker
187
16.1.1 Astrazeneca boss Pascal Soriot topped the CEO fat cat league in 2022, raking in over £15 million 187 16.2
Shareholders are enjoying a dividend bonanza, while workers' pay lags behind
188
16.2.1 Several companies have recently announced large dividend payouts, including €400 million for shareholders of Ryanair
190
16.3
UK companies paid out £55.5 billion in cash to shareholders in 2022 through share buybacks 191
16.3.1 Two 'aggressive' £8 billion share buybacks have recently been launched by RTX and General Motors 192 16.4
Accountant's Corner: Shareholder Benefits
National Bargaining and Disputes Support Unit
193
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Facts and Figures 17.
What is happening in the global economy?
199
17.1
Economic growth in the UK's largest export partners is expected to continue in 2024, including a 1.5% increase in the US
199
17.1.1 Exports are nearly a third of the UK's national income 17.2
Supply chain disruptions are close to normal levels, improving companies' ability to pay 202
17.2.1 Brexit has introduced trading frictions between the UK and EU, but it's not clear there has been any permanent change to exports to the EU 17.3
200
The cost of inputs is falling, which means more money available for paying staff
203 204
17.3.1 Global input prices have fallen in recent years and companies' borrowing is expected to get cheaper 206 17.4
The value of the British pound fell compared to the U.S. dollar, benefitting companies that export
208
17.4.1 The price of British exports relative to imports is at the highest level in years meaning more profits for exporters
209
18.
Is the workplace getting safer?
213
18.1
Work-related ill health is rising, with 722,000 new cases in 2021/22
213
Workers are the solution to health and safety hazards, not the cause
214
19.
Are there any new attacks on trade unions?
221
19.1
The Tory anti-strikes bill is a major attack on organised workers in key sectors
221
18.2
12
19.2
Unite will fight back by continuing to organise to win in all our sectors, and defending any worker who faces disciplinary action for non-compliance with Minimum Service Levels law 222
19.3
Facing down union victimisation: Murphy Four leverage campaign ends in victory
223
19.3.1 Tom Power, one of the Murphy Four: "To win and beat any employer, it's very simple; everyone has to stick together!"
225
20.
231
What tactics and arguments are employers using in National Bargaining and Disputes Support Unit
Facts and Figures
negotiations? 20.1 20.2
Employers continue to underestimate the seriousness of the cost of living crisis by using inaccurate inflation forecasts
231
Employers are hiding important bargaining information, meaning securing disclosure is a big issue for trade unions
233
20.2.1 Compensation data in the Finance sector is deliberately complex, making it harder to benchmark pay 21. 21.1 22.
234
How can Work Voice Pay tools help collective bargaining?
239
Bitesized Bargaining: Work Voice Pay has tools to improve holiday entitlement in your workplace
239
Are there any upcoming industrial committee meetings?
245
22.1
All of Unite's industrial and equalities committees have meetings scheduled throughout 2024, starting with NISCs in early January 245
23.
Appendix 1: Major Unite pay increases in 2023
24.
Appendix 2: List of other unions' 2023 pay deals above 10% 252
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National Bargaining and Disputes Support Unit
SECTION ONE
VICTORIES 1.
What have we delivered through collective bargaining? 17
1.1
Unite members in buses, food distribution, offshore drilling, and utilities have won above-inflation pay increases this month
17
1.2
Winning in the Workplace: Go North East secures 11.2% pay rise after industrial action and strikes+ campaign 20
1.3
Pay Round Review: Automotive supply chain coordination drives up pay!
24
2023 has been another big year of action for Unite members with 154 deals won through disputes
26
Unite members have secured a massive £430 million through industrial action since August 2021
30
Bus workers have been involved in 171 disputes since August 2021, securing a £3,170 average pay increase
31
1.4 1.5 1.5.1
National Bargaining and Disputes Support Unit
What have we delivered through collective bargaining?
Facts and Figures
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What have we delivered through collective bargaining?
Facts and Figures
16
Unite are winning more than we've ever won before. We've seen £430 million put back into members pockets through disputes alone in the last two years. This is the tip of the iceberg as Unite remains fully focused on the fight for better Jobs, Pay and Conditions. Sharon Graham, Unite General Secretary
National Bargaining and Disputes Support Unit
1.
1.1
What have we delivered through collective bargaining? Unite members in buses, food distribution, offshore drilling, and utilities have won above-inflation pay increases this month Unite members and Reps are leading the fight for jobs, pay and conditions, with a number of major victories in the last month. Backed by their members and the resources of their union, Officers and Reps have secured a number of significant wins on pay and conditions. Warehouse and distribution workers in Motherwell have led the way with a double-digit pay deal of up to 23%. Wins like this show how a committed focus on building power in the workplace leads to hard cash in our members' pockets.
Figure 1 Top 10 recent Unite wins, all above RPI inflation. Source: Unite
What have we delivered through collective bargaining?
Facts and Figures
analysis
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17
What have we delivered through collective bargaining?
Facts and Figures
18
Leading the way this month were 400 warehouse workers and distribution drivers employed by Brake Brothers in Newhouse, Motherwell, who have secured pay increases of between 19.3-23.2% on the basic hourly wage. Unite has also agreed to work with Brake Brothers on its development plans, which would see an additional £10 million invested on a site extension for 2026, and could see the creation of up to 100 new jobs.1 In the oil and gas sector, over 80 offshore drillers employed by Odfjell Technology Ltd. on TAQA installations have secured an effective 13% increase, fully consolidated into pensions, overtime, and future pay increases. This consists of a pay deal backdated to June 2023, which will increase basic salaries by 8%, as well as a fixed contract payment worth around 5% on top of basic monthly salaries, which will now be fully converted into the basic salary. A 15% retention bonus upon release from the TAQA contract was also negotiated as part of the pay deal. The threat of industrial action helped secure the deal, with industrial action ballots ongoing when the deal was announced.2
Figure 2 Oil rig in the North Sea
At Scottish Water, 500 Unite members have secured an 8% across the board pay increase, applied to all overtime, call out and standby rates worked since April 2023. Members also secured a reduction in the working week to 35 hours without loss of pay, and agreement that a controversial new grading structure would be decoupled and
National Bargaining and Disputes Support Unit
negotiated separately. Industrial action, which took place between 10-13 November, helped to secure the deal.3 Also in Scotland, around 40 Unite members employed by the Northern Lighthouse Board have secured sliding scale wage increases of up to 15%. In addition, members - including able seamen, base assistants, cooks, and technicians - have secured extra holiday entitlement, a consolidated overtime allowance, and a reduction in the working week from 42 to 38 hours. The deal came on the back of strike action in June and July 2023.4
Figure 3 Lighthouse operated by Northern Lighthouse Board5
In the road transport sector, HGV drivers based at ASDA's Rochdale distribution sector working on the outsourced Wincanton contract, have called off strikes following an improved pay off of 8.25%. Strikes were due to take place throughout December and January.6 At Manchester City Council, 120 housing and public building staff have secured an 8% pay rise. Further to an annual salary increase, which will be backdated from 1 April 2023, staff working on housing contracts for outsourced contractor Equans have achieved an additional £10 on their callout fee, taking it to £30 per callout. The improved pay offer was made by the company after the threat of industrial action.7
National Bargaining and Disputes Support Unit
What have we delivered through collective bargaining?
Facts and Figures
19
What have we delivered through collective bargaining?
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At Warrington Council, a long-running bin dispute has ended after Unite secured an improved deal from the council. The deal includes a dispute resolution payment, as well as improvements to terms and conditions and the creation of a number of permanent full time roles for those on temporary seasonal contracts.8 Unite members have also been winning recognition in their workplaces. Around 75 workers employed by Chartwells Catering at the University of Sussex, including waiting and kitchen staff, have secured collective trade union bargaining rights over pay and conditions.9 At the University of Glasgow, around 70 workers, including catering assistants, chefs and administrative support, have also secured collective bargaining rights over pay and conditions.10 Meanwhile, at aerospace firm GKN Aerospace, around 70 operations, logistics and facilities managers will now be eligible for union recognition at GKN's Filton site.11
1.2
Winning in the Workplace: Go North East secures 11.2% pay rise after industrial action and strikes+ campaign This month, over 1,300 drivers, engineers and administrators working for Go North East secured a headline 11.2% pay increase. The deal includes a backdated pay rise of 10.5% from 1 July 2023, a further 0.7% pay increase from January 2024, and another increase in July 2024 - which will be in line with RPI, subject to a minimum increase of 4%.
National Bargaining and Disputes Support Unit
Figure 4 Unite members at Go North East on the picket line12
Unite's tough negotiating stance ensured this was a "no strings attached" offer, with no changes to scheduling or conditions unless agreed separately.13 Members were balloted back in August 2023 after receiving a derisory, below-inflation pay offer that included cuts to terms and conditions - despite the parent company of Go North East, the GoAhead Group, generating profits of nearly £95 million in the last financial year.14 Prior to securing an 11.2% increase, the average wage at Go North East was nearly £3 less per hour than Go North West, despite both companies being part of the same corporate group - a loss of £105 per week on a 39-hour week or £5,475 per year. Unite research also showed that Go North East workers have not had a pay rise for over five years (when adjusted for inflation) and their salaries have actually fallen by 5% since 2018. Industrial action began in October, with workers at the Consett, Gateshead, Hexham, Percy Main (North Shields), Sunderland and Washington depots taking action, affecting vast swathes of North East England.15 National Bargaining and Disputes Support Unit
What have we delivered through collective bargaining?
Facts and Figures
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What have we delivered through collective bargaining?
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Figure 5 Go North East workers during the dispute16
Despite rock-solid industrial action, this alone could not move Managing Director of Go North East, Nigel Featham. Incredibly, Featham had been at the centre of a previous dispute with Unite in 2021 as Managing Director of Go North West and tried to fire and rehire our members. 17 Unite won that landmark dispute and Featham was eventually moved on to Go North East, but clearly didn't learn any lessons from his previous dealings with Unite! As a testament to the stubborn and arrogant approach of Featham and his management team, the cost of resolving the dispute was £238,000, 0.25% of the Go Ahead Group's 2022 profits.18 In response, Unite engaged in a 'strikes plus' campaign to increase pressure on the company to resolve the dispute. Go North East bus drivers and Unite officials travelled to Toronto to meet officials from the Ontario Public Service Employees Union (OPSEU). OPSEU's pension fund is the largest overall shareholder of Go-Ahead Group.19 As a result
National Bargaining and Disputes Support Unit
of the meetings, the Canadian union said it would use its "power" to "pressure this company to treat working people decently".20 OPSEU subsequently pressed its pension fund managers to intervene in the dispute on behalf of Unite members.
Figure 6 Unite travels to Canada to meet officials linked to Go-Ahead Group21
In Sweden, where Go-Ahead Group operates a bus company called Flexbuss, Unite warned local politicians that Go-Ahead Group was pushing down wages and conditions, and called on them to ensure that Flexbuss was abiding by local labour laws when making procurement decisions.22 In Spain, Unite contacted the CEO of the Spanish infrastructure and transport company Globalvia, which is co-owner of Go-Ahead Group, urging Globalvia to intervene to resolve the dispute.23 Across Canada, Sweden and Spain, Unite also used local media coverage to increase pressure on key decision-makers. The end result: Unite members at Go North East secured a significant no strings attached pay award. The Go North East dispute should serve as a clear message to the bosses: we will back members taking action every step of the way and we are prepared to work day and night across the globe to fight for jobs, pay and conditions!
National Bargaining and Disputes Support Unit
What have we delivered through collective bargaining?
Facts and Figures
23
What have we delivered through collective bargaining?
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24
"Go North East workers should be congratulated on their victory for better pay. They stood together in unity until their employer returned to negotiations and made an improved offer. Make no mistake, Unite is here to fight for workers. I will do whatever is needed to help workers secure good pay deals, that commitment has been clearly demonstrated during this dispute. Unite the Union keeps winning across the passenger transport sector and securing better pay for our members." - Unite General Secretary Sharon Graham
1.3
Pay Round Review: Automotive supply chain coordination drives up pay! Billions are being spent in the car industry on electric vehicles, but what does that mean for pay? Workers in the supply chain are showing their power through strikes and coordinated bargaining to win the pay rises they deserve. Jaguar Land Rover (JLR), the UK’s largest car maker, is ploughing £15 billion into electric vehicles as part of their ambitious "REIMAGINE" strategy. How is this strategy echoing down the supply chain? This is a critical question for Unite members across the West Midlands where JLR sustains 50% of jobs in the sector. For decades the big car companies have used pressure on the supply chain to cut costs. Will these companies manage to claw back their investments by holding down pay in the supply chain? Supported by Regional Officers and Organisers, Unite reps are responding to this threat with new levels of coordination. As the table for the 2023 pay round shows, Unite reps are beating pay suppression by securing inflation-busting pay rises. Company
2023 pay deal
IAC
13.5%
Mahle Engines
10.7%
Dräxlmaier
10%
Sertec
9%
Husqvarna
8%
Cab Auto
7.5%
Dellner (Percy Lane)
7%
Adient Seating
7%
National Bargaining and Disputes Support Unit
Company
2023 pay deal
Lear (Redditch)
7%
Lear Coventry
6%
ZF (Perry Barr)
4% (8% over 2 years)
Top of the table is IAC in Solihull, where members make interiors from dashboards to car boots. In October the members rejected a 6% increase and balloted for strike action – delivering 13.5%. In hot pursuit comes Mahle Engines in Kilmarnock where members took strike action over two months to secure 10.7% for the entire workforce. In Solihull, an Organising campaign at Dräxlmaier secured 10%, while four plants across the region coordinated their pay bargaining for the first time to achieve 9%. In Oxford, BMW is investing £600 million ahead of an all-electric production of the Mini in 2030. On the very same week that investment was announced, drivers delivering components to the plant were forced to ballot for strike action in the face of a 20% pay cut. BMW relies on ‘Just in Time’ delivery - a system which ground to a halt when the drivers began two weeks of strike action in November. Their employer, Imperial Logistics, is owned by DP World, the employer behind the brutal firing of 800 P&O workers in 2022. While Unite stands firm in facing down pay suppression, attention is also turning to the 2024 pay round. Many employers within the same supply chains share pay anniversary dates. To make the most of this opportunity, reps are coming together to benchmark pay and conditions, coordinate bargaining, and work together to raise the rate for the job. It’s time automotive bosses share the profits they stand to make with every worker in the chain!
National Bargaining and Disputes Support Unit
What have we delivered through collective bargaining?
Facts and Figures
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What have we delivered through collective bargaining?
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26
Figure 7 Unite's West Midlands Automitive Supply Chain Group meet every quarter to discuss and coordinate bargaining issues
1.4
2023 has been another big year of action for Unite members with 154 deals won through disputes Unite members have been on the front foot throughout 2023 to win inflation-busting pay deals. 154 deals have been won through dispute this year involving over 38,000 members. Hundreds of other deals involving improvements to pay, terms and conditions have also been made through collective bargaining without the need to go into dispute with the employer. This shows that workers can resist the cost of living crisis when they use their collective power. The experience that Unite members have gained over the last few year during a period of high inflation will be essential in the battles that are to come in 2024. Bosses will be keen to claw back any gains from workers that have won above-inflation increases and will likely use the context of low economic growth or recession to attack jobs, pay and conditions.
National Bargaining and Disputes Support Unit
Figure 8 Unite secured many wins that were significantly higher than the headline rate of inflation across our sectors and regions in 2023. Source: Unite
Celebrating and learning from our victories is a vital part of building confidence and increasing our power as a union. Above are some highlights of the top pay deals won by Unite members in 2023. In January, Luton airport staff employed by Menzies won a pay rise worth more than 28%. Over 200 workers, employed as baggage handlers and check in staff, will received a backdated pay rise of 20% from 1 October 2022. From 1 February, their pay increased by a further 8.5%. Overtime rates will also increase in February, from time and a third to time and a half. The deal was secured during annual pay negotiations and without the need for industrial action. Unite regional officer Jeff Hodge said: “This deal is another reminder that workers looking to better their wages and working conditions should become a Unite member and get their colleagues to do the same.”
National Bargaining and Disputes Support Unit
What have we delivered through collective bargaining?
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What have we delivered through collective bargaining?
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28
Figure 9 Menzies staff working at Luton Airport received a pay rise worth 28%
In March, our biggest pay victory was for our members at JW Suckling tanker drivers on the Phillips 66 contract delivering to Jet Garages, winning 26%. The increase was worth up to £11,000 a year for the drivers based in Essex, Grangemouth and West London. The deal also included improved overtime rates increasing at least 29%, bonuses increasing by a stunning 47%. as well as the introduction of callout payments and allowances. Before the dispute, drivers were being paid £5 an hour less than drivers employed by other hauliers on the same contract and having poorer terms and conditions. The threat of strike action alone was enough to force the employer’s hand and now JW Suckling drivers have achieved pay parity. Also in March, following a series of strikes against low pay and bullying, the absolute determination of Woolwich Ferry workers delivered a massive pay victory. The deal saw vessel crews receive an uplift of over 18% with an additional 10% allowance to recognise night working, while car park attendants received a 26% increase and an additional 7% to recognise weekend working. The latter group’s pay increased by over £6,000 a year as a result of their resolute action.
National Bargaining and Disputes Support Unit
Figure 10 Woolwich ferry crossing the Thames
In May, 450 lorry drivers employed by Wincanton on the Morrisons distribution contract across northern England and the Midlands, won a 24% pay rise. The workers, who operate from distribution centres at Gadbrook in Cheshire, Stockton-on-Tees and Wakefield and had recorded a 98% yes vote for strike action. As a result the overwhelming mandate for industrial action, fresh negotiations were held with management at the company and a new pay offer was proposed. The deal was for an 18% pay increase on basic pay and all allowances for the drivers at Gadbrook and Wakefield and 24.4% for those based at Stockton–on–Tees (in order to bring their pay rates in line with workers on the rest of the contract). Following a ballot of members the offer was accepted and the potential industrial action cancelled. The pay deal is backdated to August for the drivers at Gadbrook and Wakefield and from July for the drivers based at Stockton-on-Tees. Unite General Secretary Sharon Graham said: “By standing together in unity our members employed by Wincanton on the Morrisons contract have secured an exceptional pay increase. This deal further demonstrated how Unite as a union protects and enhances its members’ jobs, pay and conditions.”
National Bargaining and Disputes Support Unit
What have we delivered through collective bargaining?
Facts and Figures
29
What have we delivered through collective bargaining?
Facts and Figures
30
In September, industrial action by more than 250 workers at the City of London Corporation, the local authority for London’s Square Mile financial centre, ended after an improved pay deal of 20% was secured. The workers voted in favour of the pay deal, which saw most workers’ pay increase by more than 20%, with some workers’ wages increasing by 30%. The pay deal comprised of consolidating a previously one-off cost of living payment of £1,000 for 2022 into the workers’ wages as well as a consolidated £3,000 rise for 2023. The workers at the City of London Corporation are employed in a variety of roles including security, police staff, grounds maintenance and administrative functions. The workers took part in industrial action in May, with subsequent strikes postponed to allow for negotiations.
Figure 11 City of London
In October, one hundred Trent Barton bus engineers, across five sites in Nottinghamshire, Derbyshire and Leicestershire, secured a pay rise of between 20% and 25.8%. The deal, which was secured without the need for industrial action, was agreed without changes to the workers’ terms and conditions. Trent Barton apprentice engineers also benefited from the deal and will now receive 7% higher pay than the national minimum for apprentices. n See Appendix 1 for a full list of major Unite pay deals from 2023.
1.5
Unite members have secured a massive £430 million through industrial action since August 2021 Since Sharon Graham was elected General Secretary in August 2021, more than 180,000 Unite members have been involved in over 1,000 disputes. Unite's current win rate in these disputes is 81%, and has remained consistently close to this figure for the last two years. National Bargaining and Disputes Support Unit
The confidence and leadership of members, Reps and Officers, backed by the resources of the Union, has secured £430 million for the workers involved. This represents a huge transfer of cash from the bank accounts of employers directly to the pockets of the workers who generate this value. The biggest pay increase was in July 2022, when workers at Lerwick Port Authority (in Shetland) secured a 38% pay increase. Wins like this have shown that the employers' offensive against workers pay and conditions can be resisted.
Figure 12 Top 10 Unite wins since August 2021. Source: Unite analysis
By fighting back against employer greed in the face of the cost of living crisis, these reps and members have ensured workers at their companies are getting a fair deal. And they are showing that building and exercising workplace power, through collective bargaining and industrial action, is the only way of ensuring that workers get the pay rises they deserve.
1.5.1
Bus workers have been involved in 171 disputes since August 2021, securing a £3,170 average pay increase
What have we delivered through collective bargaining?
Facts and Figures
A total of 48,975 members in the bus sector have been involved in over 170 disputes since August 2021. These wins have delivered an average pay increase of £3,170 for each bus driver National Bargaining and Disputes Support Unit
31
What have we delivered through collective bargaining?
Facts and Figures
32
involved, showing how industrial action can secure substantial gains for our members. Not only has such action delivered big gains for the workers involved, but the rising tide of industrial action has lifted all boats across the sector: raising the 'rate for the job' by £2,000 since the pandemic.
Figure 13 Abellio bus drivers on their picket line
Major gains this year include an 18% pay increase for 1,800 Abellio bus drivers in London, following over 20 days of industrial action, and a 20% pay uplift for over 230 bus drivers employed by Lothian Country and East Coast Buses.24
National Bargaining and Disputes Support Unit
33
34
National Bargaining and Disputes Support Unit
SECTION TWO
OTHER SETTLEMENTS 2.
What other settlements have been reached?
37
2.1
Unite has won crucial legal cases against Vista Therm, Carey Glass and many others this month
37
2.2
Workers in other unions, including traffic wardens and air traffic controllers, have secured large pay increases this year 41
2.3
The Government needs to make different choices to reverse the 19% pay cut workers in the public sector have endured since 2010
42
2.3.1
Unite is campaigning for all NHS workers to receive the COVID-19 payment they are due, and will support them in the fight to defeat minimum service legislation 44
2.4
The minimum and living wages are far too low, but it is up to organised workers to set the bar 45
National Bargaining and Disputes Support Unit
What other settlements have been reached?
Facts and Figures
35
What other settlements have been reached?
Facts and Figures
36
Pay deals won by our members are higher than the average. This is the Unite Premium. Unite’s unrelenting focus on Jobs, Pay and Conditions is directly resulting in significant pay increases for our members and putting money in their pockets. Sharon Graham, Unite General Secretary
National Bargaining and Disputes Support Unit
2. 2.1
What other settlements have been reached? Unite has won crucial legal cases against Vista Therm, Carey Glass and many others this month Collective bargaining and building power in the workplace is the core business of any union. But Unite also fights for its members using whatever tools are available, including through the legal system. From securing the reinstatement of victimised workplace representatives to winning substantial compensation packages, Unite's expert legal team fights back against mistreatment by employers, and helps ensure that members receive what they are due under the law. Without trade union organisation, workers will be subject to viciously unlawful attacks by unscrupulous employers. The following cases provide examples of significant recent legal cases won for our members.
What other settlements have been reached?
Facts and Figures
Figure 14 Vista Therm workers campaigning against union busting and victimisation
National Bargaining and Disputes Support Unit
37
Facts and Figures
What other settlements have been reached?
Unite won unprecedented cases against Vista Therm and Carey Glass in Ireland for attempting to prevent union members from campaigning For possibly the first time in living memory, an employer has sought to use injunctive proceedings to prevent union members from campaigning across Ireland. The attempt comes after a concerted campaign put pressure on the company's owners and various supplier and customer sites. Without a proper hearing, injunctive relief was granted, preventing the campaigns from continuing. Thanks to Unite's intervention the campaign will now continue. A lifetime Unite member has received £280,000 in compensation after developing mesothelioma, the asbestosrelated cancer. The member worked in an aluminium processing plant where previously there had been no asbestos-related claims against the company. Due to decades passing since working at the site, he struggled to recollect work practices which could have resulted in asbestos exposure, and contacting former work colleagues proved difficult. Without this evidence, building a case was difficult. Fortunately, Unite's strong links within the community enabled evidence from former work colleagues and Unite representatives to be gathered, and a trial date was set. The employer eventually agreed to settle before trial. It is Unite's mission to ensure that victims and the families of asbestos-related diseases are properly compensated by employers who have exposed them to this deadly substance.
Figure 15 Aluminium processing plant worker
38
National Bargaining and Disputes Support Unit
A Unite member employed by Ball Beverage and Packaging has received £95,000 in compensation after he was subjected to appalling racial harassment, bullying, and physical assault by former work colleagues. Members of his team would graffiti racist terms onto company notice boards and toilet walls, and mocked-up racist newspaper articles were distributed around the shop floor. The only action that the company took was to ban newspapers from the premises. Due to the lack of intervention from the company, the situation escalated, with our member being physically assaulted by a colleague. The attacker was dismissed, but the company had taken action too late. The Unite member was unable to return to work due to psychological injuries, to which the company responded by terminating his employment. He was subject to this treatment for over a year. Despite raising his concerns with the HR department on multiple occasions, the company failed to act, and even discouraged him from raising further complaints. No one should be made to feel unsafe or face discrimination of any kind while at work, and Unite will continue to stand up for its members fighting for better conditions. Unite has successfully represented a bus driver and trade union representative who faced detrimental treatment from his employer due to his trade union activities. As a union steward, he would spend time on union matters, alongside his role as a bus driver. Just days before scheduled annual union training, his employer withdrew funding for the training. Undeterred, he secured alternative funding through Unite to continue with the training. However, the following week, he was unexpectedly summoned to a meeting addressing his health as well as allegations of "sleeping on the job", based on an incident three months prior.
What other settlements have been reached?
Facts and Figures
The representative suspected that the meeting was a result of his challenge to the employer regarding union training. He was suspended from the role shortly after. Unite's legal team stepped in, filing an employment tribunal case. The case soon reached
National Bargaining and Disputes Support Unit
39
Facts and Figures
What other settlements have been reached?
resolution and £5,000 was awarded in compensation - as well as securing full reinstatement.
40
A Unite member with over 30 years of continuous employment won £27,500 after being unfairly dismissed without statutory redundancy pay. Her job was subject to multiple TUPE transfers, which protected her rights of employment when the company changed ownership. Despite her long-term service to the company, however, she was made redundant. Prior to dismissal, she had rejected an offer from the employer as it no longer offered the enhanced rights she held in her previous job, making it an unsuitable alternative. As a result, a dispute arose as to whether she was entitled to statutory redundancy pay as well as an unfair dismissal payment. Unite's legal team filed an employment tribunal claim against the employer, resulting in £27,500 in settlement pay to the member. One of Unite's trade union representatives, who worked as a biomedical scientist at East Lancashire Hospitals NHS Trust, has won a dispute over holiday pay. Upon reviewing wage payments during the 2021 period, concerns emerged about various underpayments, particularly in holiday pay calculations. The NHS Trust asserted that holiday pay should be based on an annual calculation of 1/365 of the salary, following the Agenda for Change. Unite's investigations challenged this methodology under the Working Time Regulations, which eventually led to a favourable resolution for Unite's member. This case carries broader implications for NHS' holiday pay calculations. The NHS Trust has since lodged an appeal which is set to progress to a full hearing. Unite will continue to hold employers accountable to uphold employee rights and rectifying systemic flaws in employment practices.
National Bargaining and Disputes Support Unit
Figure 16 NHS campaign for fair pay
2.2
Workers in other unions, including traffic wardens and air traffic controllers, have secured large pay increases this year In 2023, workers in other unions have won pay deals that have made a big dent in or even beaten inflation. These victories show that decent pay rises are achievable when workers fight back. Two examples include: n In July, air traffic control workers at Birmingham Airport received a pay deal of 10.1% from Birmingham Airport Air Traffic Ltd. Prospect members were about to start action short of a strike when the offer was tabled.25 n In October, traffic wardens in Islington won a bumper pay rise of 39.7% across three years, including a 25% increase from April 2023, a 6.9% increase in April 2024, and a minimum of 4.5% or RPI - whichever is higher - in 2025. The deal was secured following the threat of industrial action by the GMB members.26
National Bargaining and Disputes Support Unit
What other settlements have been reached?
Facts and Figures
41
What other settlements have been reached?
Facts and Figures
42
Figure 17 Air traffic control tower in Birmingham
n See Appendix 2 for a full list of 10%+ pay deals submitted by other trade unions to LRD/Payline in 2023.
2.3
The Government needs to make different choices to reverse the 19% pay cut workers in the public sector have endured since 2010 Since 2009/10, average weekly earnings in the public sector have fallen by £152 (19%) in real terms.27 This is a choice that our political class has made, but it doesn't have to be that way. It would cost £61.4 billion to restore public sector pay to 2009/10 levels by 2027/28.2829 This figure is perfectly achievable if central government were to begin take positive action. Instead, the government is trying to punish public sector workers further by restricting their right to take industrial action through the Strikes (Minimum Service Levels) Act. While politicians think that public sector workers can be ground down by the law, workers have shown that the most effective way of reversing decades of pay cuts is to take to this picket line and fight back. 2023 saw inspirational action and victories by public sector workers in Unite and other unions across Britain and Ireland. Their example will raise the sights of other workers who want to fight for a public sector where decent jobs, pay and conditions are the norm rather than the exception.
National Bargaining and Disputes Support Unit
Figure 18 NHS Ambulance workers' picket line in January 2023
The Government has a number of levers it could pull if to begin to properly fund public sector pay: Raising tax levels so they are in line with the rest of the G7 could raise £139 billion. Straight away, that could bring in more than double what we would need to restore public sector pay.30
We could tax the rich in a variety of ways, from abolishing private school tax breaks to introducing a wealth tax on millionaires. A wealth tax alone could raise up to £390 billion a year.31
We could tax corporations properly. Between 2010 and 2017, corporation tax was cut from 28% to 19%. While it has since increased, we are still well below the 2010 rate.32
What other settlements have been reached?
Facts and Figures
The Government may also find that if it were to pay workers in the public sector more fairly, it might have less trouble attracting workers to fill the tens of thousands of vacancies that have opened up.33 Despite falling in recent quarters, total vacancies remain well above pre-pandemic levels. All evidence suggests that poor pay and National Bargaining and Disputes Support Unit
43
Facts and Figures
What other settlements have been reached?
conditions are key reasons why workers are leaving the public sector in droves.
44
Unite will campaign over the next year for fairer choices to be made by whoever the Government of the day is, so that public sector workers get a fair rate of pay as they drive forward the public services we all rely on.
2.3.1
Unite is campaigning for all NHS workers to receive the COVID-19 payment they are due, and will support them in the fight to defeat minimum service legislation Unite is continuing to fight to make sure everyone who works in the NHS receives the Government's promised lump sum payment. The payment is already barely a sticking plaster over an NHS which has been cut to the bone by successive Governments - but the fact it is only being offered to certain workers adds insult to injury. The Government has created a multi-tier workforce by deliberately excluding those who don’t have Agenda for Change contracts at private sector organisations, as well NHS bank staff - even though they are working alongside NHS colleagues in the same hospitals. We've already won this fight for some NHS workers, but will keep going until everyone who helped the NHS through COVID-19 is fairly rewarded. Unite General Secretary Sharon Graham said: “We need real investment in our NHS and for its staff, whoever employs them. And we need a change in government to one that truly values our health service workers. Unite will continue to support some of the lowest paid workers in the health sector in their campaign for better pay and safe staffing conditions.” The Government's legislation around minimum service levels is a threat that particularly affects the public sector. Unite is clear that we will do whatever we need to resist this law - even if that means we are forced to break it.34
National Bargaining and Disputes Support Unit
Facts and Figures
The minimum and living wages are far too low, but it is up to organised workers to set the bar In the UK, wages are protected by two statutory minimums: the National Minimum Wage (NMW) for those of at least school leaving age; or the National Living Wage (NLW) for those aged 23 and over.35 The rates change on 1 April every year. Even when the so-called 'major increase' in the NLW to at least £11 per hour is introduced in April 2024, these rates of pay are woefully inadequate for any worker, regardless of age or any other metric.36 The idea that this is a 'living wage' is nothing more than a cynical branding exercise. 'Minimum' and 'living' wages that are given, either by governments or voluntarily by employers, can in reality be removed with the stroke of a pen. We cannot rely on government or independent estimates to establish minimum wages and standards. Wages won and enforced through collective bargaining and union organising are the most effective way to eradicate poverty pay.
What other settlements have been reached?
2.4
Figure 19 Statutory minimum wage rates are increasing in April 2024, but are still too low. Statutory minimum wage rates by age for 2023 (in red) and April 2024 (in blue). Source: Gov.UK
National Bargaining and Disputes Support Unit
45
Facts and Figures
What other settlements have been reached?
While the minimum wage rates are completely inadequate, data from 2022 suggests that over half a million jobs are still not paying even this low level of remuneration. Younger workers and part-time workers are most likely to be affected.37 Self-employed people are not entitled to the NMW or NLW, and in 2019 the TUC found that more than half were earning less than the minimum wage. Many workers are wrongly classed as self-employed so that their de facto employer can avoid legal minimums.38 52% of platform workers in food delivery, private hire and data entry have reported earning less than the minimum wage.39
Figure 20 Deliveroo couriers campaigning for a living wage
It is clear that the legal minimums are too low and that enforcement is inadequate. However, alternative 'real living wage' estimates lack both the ambition and strategy we need to win pay rises. The Living Wage Foundation has set its 'Real Living Wage' for 2023/24 at £10.90 per hour, just 48p more than the current NLW. Their rate for London is £11.95, which has been endorsed by the Mayor of London as a reflection of the costs of living in the capital.40 One thing is clear: setting minimum pay rates is no replacement for collective bargaining and workers winning wage rises for themselves.
46
National Bargaining and Disputes Support Unit
47
48
National Bargaining and Disputes Support Unit
SECTION THREE
COST OF LIVING 3.
What's the cost of living? How fast is it rising?
51
3.1
Inflation remains high at 5.3% and a long period of high price rises has had a huge impact on real wages
51
3.2
Focusing on the annual percentage change in inflation is masking price rises that are now baked in 51
3.3
Prices of categories such as clothing and food are rising faster than headline inflation, at 12% and 9% respectively 53
3.4
Using the Consumer Price Index (CPI) as a measure of inflation – rather than the Retail Price Index (RPI) – disguises the extent of the cost-of-living crisis
55
3.5
Interest rate hikes are piling misery on millions who have relied on debt to partially fill the gap of real terms wage cuts 57
3.6
Government failure in housing policy has helped no-one but the ultra-rich, with the share of income families dedicate to housing doubling since 1980 58
3.6.1
Rental costs take up around 25% of workers' income and renters are struggling to get on the property ladder due to rising mortgage costs 59
3.6.2
Our members, whether renters or owners, need good pay deals to keep up with soaring costs
61
UK childcare costs are the highest in Europe
62
3.7
National Bargaining and Disputes Support Unit
What is the cost of living? How fast is it rising?
Facts and Figures
49
What is the cost of living? How fast is it rising?
Facts and Figures
50
With winter coming, millions of people face the prospect - yet again of choosing between heating and eating. The only way workers can fight for a better share of the pie is by building union strength and the power of collective bargaining. Sharon Graham, Unite General Secretary
National Bargaining and Disputes Support Unit
3. 3.1
What's the cost of living? How fast is it rising? Inflation remains high at 5.3% and a long period of high price rises has had a huge impact on real wages The Retail Price Index (RPI) measure of inflation currently stands at 5.3%, down from 6.1% the previous month. This annual figure is now being portrayed as a "good news" story by politicians. But falling inflation does not mean falling prices: the reality is prices are still continuing to rise on the back on some of the highest increases in a generation.
Figure 21 RPI continues to be at some of the highest rates in the last 30 years. Retail Price Index, All Items: Percentage change over 12 months, 1993 to present. Source: RPI, ONS
3.2
What is the cost of living? How fast is it rising?
Facts and Figures
Focusing on the annual percentage change in inflation is masking price rises that are now baked in It has been over two and half years since inflation rose above the Government's target of 2% and this is having a massive impact on
National Bargaining and Disputes Support Unit
51
Facts and Figures
What is the cost of living? How fast is it rising?
real wages. 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 for the profit-driven cost of living crisis.
52
This month you may have seen headlines about an actual drop in the price of fuel and light, but if we extend the period covered back to March 2021 we see that fuel and light leads a whole host of categories that have seen incredibly large increases.
Figure 22 We have seen huge price increases across all key categories. RPI percentage change March 2021 to November 2023. Source: RPI, ONS
As our latest Unite Investigates report shows, if energy had been in public hands, inflation would have been cut by almost a third and every household in Britain would be £1,800 per year better off.41 The ability of these few firms to benefit from the situation in Ukraine is a disgrace. Unite are continuing to shine a light on profiteering and through upcoming work such as the Workers' Manifesto will outline and campaign for fundamental changes to our broken economic system. If inflation had kept to the Government’s target, prices would now be about 5% higher than in March 2021, instead of the reality of over 27% higher.
National Bargaining and Disputes Support Unit
3.3
Prices of categories such as clothing and food are rising faster than headline inflation, at 12% and 9% respectively Overall inflation is just over 5%, but the vital categories of Clothing & footwear (over 12%) and Food (over 9%) are even higher than that. The cost of these items has a huge impact on workers' standard of living. Unite Investigates has shown that these increases are driven by profiteering in these sectors.42 Workers should not have to pay for the bosses' cost of greed crisis. By building power in the workplace and exposing employers' ability to pay, Unite members can continue to win at the bargaining table and mitigate the impact of high inflation.
Figure 23 Some categories are substantially higher than overall inflation. Retail Price Index, Selected detailed changes: Percentage change over 12 months, November 2023. Source: RPI, ONS
As we head into winter the cost of new clothes continues to rise to high levels. Women's outerwear is nearly 17% more expensive than a year ago and children's outerwear is not far behind at over 14%.
National Bargaining and Disputes Support Unit
What is the cost of living? How fast is it rising?
Facts and Figures
53
What is the cost of living? How fast is it rising?
Facts and Figures
54
Figure 24 Women's, children's and men's clothing have all seen a greater than 10% increase in the last year. Retail Price Index, Clothing and footwear categories: Percentage change over 12 months, November 2023. Source RPI, ONS
The price of food overall is rising by over 9% but some food products are rising by well over that. Oil and fats are nearly 21% more expensive than last year, pork has risen by nearly 16%, and milk products are nearly 15% more expensive.
National Bargaining and Disputes Support Unit
Facts and Figures
Figure 25 Many staple products are rising faster than the overall food change over 12 months, November 2023. Source RPI, ONS
At the same time, supermarket profits have been at record levels. Unite General Secretary, Sharon Graham, commenting on Unite research, said that:
“Despite the rise in wholesale prices, Tesco, Sainsbury’s and Asda still managed to increase their profits by an astonishing 97% in 2021. At the same time the 8 top UK food manufacturers made profits of £22.9 billion. Profiteering is happening right along the food supply chain and workers are paying the price."43
3.4
Using the Consumer Price Index (CPI) as a measure of inflation – rather than the Retail Price Index (RPI) – disguises the extent of the cost-of-living crisis You may have seen news articles that use CPI, rather than RPI, to report increases in the cost of living. Or, you may have had employers at the bargaining table use CPI when negotiating over wage increases during a pay round. That's not an accident. RPI more closely reflects the actual price rises experienced by Unite members, and is therefore a better standard to use for bargaining than the lower CPI figure. As such, Work Voice Pay's suite of bargaining tools are all linked to the current rate of RPI inflation. The RPI has been going since 1947 and is still used to decide prices such as mobile phone bills, rail fares, student loans and ‘sin’ taxes e.g. alcohol.4445 Businesses such as Virgin Media, O2, Train Operating Companies, and others use RPI to set price increases.
National Bargaining and Disputes Support Unit
What is the cost of living? How fast is it rising?
category. Retail Price Index, Selected food detailed changes: Percentage
55
What is the cost of living? How fast is it rising?
Facts and Figures
Figure 26 RPI+ deals are needed to ensure workers' pay meets the costof-living
But with the availability of different measures some employers go 'inflation measure shopping' and choose to use different measures (such as CPI or CPIH) which tend to produce a lower figure than RPI.46. CPI was introduced by the Government in 2004 at the behest of the European Union to allow it to compare macro-economic inflation across the continent. It was not designed to help understand changes in the cost of living. RPI includes some price rises that our members experience, but which aren’t covered by CPI such as47: n paying for mortgages n foreign holidays CPI includes the spending of groups not usually relevant to our negotiations, such as: n the top 4% of households by income n Pensioner-only households n Stockbrokers fees n Spending by foreign tourists So, if your boss tries to tie your pay negotiations to CPI, remind them that only RPI+ makes our members' pay stand up!
56
National Bargaining and Disputes Support Unit
3.5
Interest rate hikes are piling misery on millions who have relied on debt to partially fill the gap of real terms wage cuts At 5.25%, official interest rates are at their highest level in the last 15 years.48 Many forecasters, such as JP Morgan, HSBC and the British Chambers of Commerce, expect them to be at least as high into 2024.49
Figure 27 Central banks across the world have been hiking interest rates since 2022. Interest rates for UK (in red), Eurozone (in blue) and USA (in green). Source: CapitalIQ Pro
Households with mortgages up for renewal in the United Kingdom will face significantly higher monthly costs until 2026 because of the aggressive mortgage interest hikes since the beginning of 2022. The majority of mortgages up for renewal have effective rates of less than 2.5% - significantly lower than the current mortgage rates.
What is the cost of living? How fast is it rising?
Facts and Figures
As a result, about 1.25 million mortgage loans are projected to experience a monthly payment rise of up to £99 by the end of 2023. For the remaining 2 million mortgages, monthly costs will soar even higher. For example, by 2026,
National Bargaining and Disputes Support Unit
57
Facts and Figures
What is the cost of living? How fast is it rising?
the monthly payment for 600,000 mortgages is projected go up by over £500.50
58
Establishment monetary policy dictates that interest rate rises are necessary to reduce inflation. But the reality of the Bank of England's recent decisions is that banks have profited from interest rate hikes while workers feel the pinch as winter draws in. Work by the Joseph Rowntree Foundation has found that 2.3 million low-income families have taken out loans using credit to pay for everyday essentials during the cost-ofliving crisis.51 Even though the headline inflation rate is falling, there is the real risk of further suffering as millions of workers struggle to repay what they owe. As of August 2023, UK credit card debt is at £67.2 billion - a year on year percentage increase of 8%.52 Politicians need to wake up. It’s only by taking on runaway profiteering that we can end the cost of living crisis and its devastating impact on the lives of workers.
3.6
Government failure in housing policy has helped no-one but the ultra-rich, with the share of income families dedicate to housing doubling since 1980 The current state of the housing market is working for no-one but the ultra-rich. As the Resolution Foundation recently reported “The share of income families dedicate to housing has doubled since 1980. The rise has been largest for those on low incomes, whose home now costs them a third of their income. They increasingly rely on the private-rented sector, where costs are too high and quality too low”.53
National Bargaining and Disputes Support Unit
Successive Governments have failed to do anything to help. They haven't lifted a finger to address issues ranging from cladding to rogue landlords, from no-fault evictions to inadequate housing supply. Their lack of interest in a topic that affects millions is underlined by one statistic – 16 different Housing Ministers since the Tories took power.54 The failure of our political class to ensure decent, affordable housing, workers need to take their own action. The soaring cost of housing is therefore an important cost-of-living element to raise in pay negotiations. Even being able to understand what is happening across the housing market is ridiculously difficult. As the Government’s own analysts state, “Housing and homelessness are a devolved policy area across the four nations of the UK. Currently, more than twenty different departments and public bodies publish such statistics... This also means that, for any given topic area, statistics are not always comparable between UK countries”.55
3.6.1
Rental costs take up around 25% of workers' income and renters are struggling to get on the property ladder due to rising mortgage costs As shown above, the share of income families dedicate to housing has doubled since 1980. Recent trends are important, but we need to be ready to push back against bosses who may use short-term trends to low-ball us in pay negotiations. Drastic increases in rental prices have left those who don't own a property struggling to make ends meet, especially in London where rental prices are highest. With rental costs taking up around 25% of workers' income on average, it is vital that current and predicted future housing costs are factored into pay claims to match the economic reality of our members. Not only are rental costs already extremely high, but rents have shot up over the last year across all regions of the UK.
National Bargaining and Disputes Support Unit
What is the cost of living? How fast is it rising?
Facts and Figures
59
What is the cost of living? How fast is it rising?
Facts and Figures
60
Figure 28 Rents continue to rise across the country. Annual percentage change Oct 22 v Oct 23. Source: Experimental Index of Private Housing Rental Prices, ONS56
Whilst rental prices have seen sustained increases, house prices have seen stagnation over the last year. However this hasn't meant that housing is becoming more affordable, as interest rate rises have made borrowing prohibitive to many.
National Bargaining and Disputes Support Unit
Figure 29 Annual house price change seems to show a north / south divide, but the percentage changes are small. House price change, Sep 22 to Sep 23. Source: UK House price index, ONS.57
3.6.2
What is the cost of living? How fast is it rising?
Facts and Figures
Our members, whether renters or owners, need good pay deals to keep up with soaring costs Analysis from the English Housing Survey suggests just over a third of people own their property outright, and just under a third have a mortgage, with the remaining people split between social and private rent. What this means for bargaining is that even if bosses National Bargaining and Disputes Support Unit
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Facts and Figures
What is the cost of living? How fast is it rising?
point to improving conditions for one group, other groups of workers will be losing out. The bottom line is that housing is hugely expensive in the UK, and to address this members need to secure decent pay deals to keep up.
Figure 30 Housing tenure is almost equally split by those who own outright, those who have a mortgage and those who rent. Housing tenure 2022, Source English Housing Survey 2021/2258
Since 2013-14 there have been more outright owners than mortgagors. The increase in the number and proportion of outright owners is at least partly explained by population ageing, with large numbers of ‘baby boomers’ reaching retirement age, paying off their mortgages and moving into outright ownership. Back in the 1980s there were about three times as many social renters as private renters. These groups are now of a very similar size.59
3.7
UK childcare costs are the highest in Europe In 2022 the UK became the most expensive country for childcare in Europe.60 The cost of living crisis is being exacerbated by unsustainable childcare costs. Part-time nursery places in Britain cost around 6% more than a year ago.61 A survey by women's rights charity Pregnant Then Screwed found that over one in six parents have left their jobs due to the financial burden of childcare costs and a huge majority say
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the costs are creating financial anxiety at home.62 Women bear the brunt of this burden, so soaring childcare costs are also putting further pressure on gender inequality. A good childcare package is a vital part of any working parent’s life and employers have a duty to help them achieve a good work-life balance. Childcare is therefore a collective bargaining issue. Unite negotiators can use the Pay Claim Generator to include model language on childcare rights in pay negotiations.
Figure 31 Over one in six parents have left their jobs due to the financial burden of childcare costs Source: Pregnant then Screwed63
Local authorities highlight various pressures which are leading to price increases among childcare providers, including the cost of energy and the cost of food.64 Nearly one in five local authorities say childcare providers are at severe financial risk.65 The lack of support from the government in early years education is a choice which is leading providers to increase prices charged to parents, reduce numbers of staff, and reduce numbers of free places.66
National Bargaining and Disputes Support Unit
What is the cost of living? How fast is it rising?
Facts and Figures
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SECTION FOUR
WHAT IS DRIVING INFLATION? 4.
What is driving inflation?
67
4.1
Profiteering is driving inflation, not wages
67
4.1.1
The five main forms of profiteering include monopolies and windfall profits 68
4.1.2
It may be Christmas...but food brands think 'tis the season for taking food from kids, with parents simultaneously struggling with the cost of clothes
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What is driving inflation?
Facts and Figures
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What is driving inflation?
Facts and Figures
66
The weight of evidence shows that the UK is in the grip of a profiteering crisis. Workers’ wages and what they can buy are being squeezed by corporate wreckers pursuing runaway profits, quite literally at our expense. Sharon Graham, Unite General Secretary
National Bargaining and Disputes Support Unit
Facts and Figures
4.1
What is driving inflation? Profiteering is driving inflation, not wages There is little evidence for a wage-price spiral exacerbating inflation in the UK. Inflation has risen almost twice as fast as wages over the last 2 years. By contrast, profits and dividends have gone through the roof. Economists at the Bank of England even said in September that companies plan to grow their margins next year.67 And for all the false narratives about wages driving inflation, the National Institute of Economic and Social Research (NIESR) recently forecast that wages would increase at a rate of over 7%, but they "do not expect this to feed into higher price inflation as firms have space to absorb these increases by lowering margins".68 Unite's new Financial Insider tool shows the true financial state of companies and their ability to pay. This is just one weapon reps can use to win in the workplace and get our members their fair share.
What is driving inflation?
4.
Figure 32 Inflation (in blue) has risen almost twice as fast as wages (in red) since inflation first exceeded the Government's target in Spring 2021. Monthly average weekly wage versus monthly RPI, indexed to March 2021. Source: RPI and AWE, ONS.
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Facts and Figures Even as the 12-month inflation figure comes down, these smaller increases are on the back of historically high prices increases. Since the Spring of 2021 prices have increased nearly twice as fast as wages. It would be no surprise if companies attempted to low-ball workers by making the tired and inaccurate wage-price spiral argument at the next pay round. But it can be easily dismissed.
What is driving inflation?
A so-called wage-price spiral occurs when a shock which raises prices leads workers to demand higher wages. This then raises wage costs and prices, leading workers to demand higher wages again, and the process repeats. 69 But in reality British workers have experienced the opposite: wages have been trailing inflation for over a decade. In fact, real wages are lower now than they were in 1997. And, as the NIESR report above makes clear, there is plenty of room in firms' profits for them to raise wages without raising prices.
4.1.1
The five main forms of profiteering include monopolies and windfall profits Many companies have taken full advantage of the high-inflation environment created in the wake of the Covid-19 pandemic, using it as an opportunity for price gouging and corporate profiteering.70 Unite will continue to expose profiteering in all its forms to reveal the worst elements of our broken economy, highlight employers' ability to pay, and arm our negotiators with all the facts, figures and arguments needed to beat the bosses' narratives. Exhibit number one: the profits of the 350 largest listed companies (the FTSE 350) were 89% higher in the first half of 2022 than they were in the same period in 2019, before the pandemic took hold.71 Price rises in three sectors – domestic energy, food, and motoring costs – are responsible for 57% of inflation – and profiteering in these sectors has been particularly rampant72 n The world’s 10 largest oil companies made combined profits of £174.5 billion in 2021, while Britain’s petrol refineries saw their profit per barrel rise 366% in 202273 n The top three supermarkets doubled their profits in 2021 compared to 2019, while the world’s four largest agribusinesses saw profits jump 255% over the same period74
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Facts and Figures
In other sectors profits rose rapidly too: the world’s top 10 semiconductor manufacturers’ profits jumped 96%, while the eight largest shipping companies saw their profits rise 20,650% (i.e. 200 times) in 2021 compared to 201976Such exorbitant profits are made possible by a rigged economy that sees wealth flow into the hands of bosses and investors at the expense of workers and consumers77 Companies profiteer through five main channels. Reduced supply: Demand chases reduced supply, allowing companies to jack up prices and profits.
Higher demand: Increased demand while supply remains stable or falls gives companies the opportunity to lift prices.
Market windfall: Centralised market pricing structures help companies score “windfall” profits – where a market-wide price jumps due to factors unrelated to many companies’ costs.
What is driving inflation?
n The Big 4 energy providers (Centrica, E.ON, EDF and Scottish Power) made combined profits of £9.5 billion in 2021, up 84% on 201975
Market concentration: A few large companies dominate an industry, giving them power to increase mark-ups.78
State-licensed monopolies: In some key industries like energy and water, companies are granted government concessions which give them enormous power to set prices.
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Facts and Figures 4.1.2
It may be Christmas...but food brands think 'tis the season for taking food from kids, with parents simultaneously struggling with the cost of clothes
What is driving inflation?
Food costs are 25% higher than they were in Christmas 202179, and a recent report by the Competition and Markets Authority has backed up Unite's analysis from earlier in the year, showing that 75% of branded food manufacturers pushed up prices by more than they needed to.80
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Even more damningly, they pointed to the fact that the worst offenders were baby formula producers, who funnelled the extra cash they'd taken from the mouths of babies into over £350 million in dividends to their rich shareholders.81 Section 15.2 on page 174 Meanwhile, anyone hoping for a new pair of socks this Christmas may be disappointed. Clothing and footwear is up by 28% since December 202182 and big companies' profits are driving the increase: M&S' most recent half-year results showed clothing and home profits up 30% compared to the same period a year before.83
Primark also boosted profits by 30%, 'thanks to selective price increases'.84
For H&M, the figure is obscene. Their third quarter profit results showed an increase of 425% compared to the same period a year before.85
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SECTION FIVE
REAL TERMS PAY 5.
Is pay rising or falling in real terms?
75
5.1
Workers have suffered a generation of pay decline and get nearly 11% less today than in 1997 75
5.1.1
With government data failing, Unite is taking the lead on sourcing data to benchmark our members’ pay and conditions
77
5.2
For over a century real wage increases were the norm
78
5.3
Prices have been rising faster than wages for over a decade, leaving the average worker over £700 a month worse off in real terms compared to 2010 80
5.3.1
Household incomes are nearly £18,000 a year worse off over the same period 82
5.3.2
Savings are down, while household debt is up to an average of £71,000 per household
83
5.4
The lowest 10% of earners are making £9,000 a year or less, with a record number employed in low-paid jobs 83
5.5
Profits have grown twice as fast as income in the last year
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Is pay rising or falling in real terms?
Facts and Figures
84
73
Is pay rising or falling in real terms?
Facts and Figures
74
The drop in the value of wages shows just how important it is for unions like Unite to defend workers’ pay. We will continue to do whatever it takes to defend our members’ Jobs, Pay and Conditions. Sharon Graham, Unite General Secretary
National Bargaining and Disputes Support Unit
Facts and Figures
5.1
Is pay rising or falling in real terms? Workers have suffered a generation of pay decline and get nearly 11% less today than in 1997 In real terms, workers are paid less now than they were in 1997. The median weekly wage in 2023 was just £682, nearly 11% below where its real equivalent stood in 1997.86 The term 'real wages' refers to wages that have been adjusted for inflation. It allows us to accurately compare pay over many years. Compared to their peak in 2009, real wages have fallen nearly 21%, from £861 in 2009. This means workers are nearly £180 per week worse off.87 This will be the second year in a row where real wages have fallen by around 5%. These falls are due to wages failing to keep up with rising prices, driven most recently by a rise in corporate profiteering.88 The fact that millions of workers are now substantially worse off shows why it is vital to win RPI+ pay rises to gradually claw back our previous living standards. Unite is working across sectors, via industrial combines, to bring workers together and use their collective power to drive up pay and conditions.
Is pay rising or falling in real terms?
5.
Figure 33 The average weekly real wage is lower than in 1997. Median weekly wage, full-time employees, 1997 to 2023, Source: ASHE, ONS
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Facts and Figures
Is pay rising or falling in real terms?
Just looking at the last decade, well after the shock of the global financial crisis, real terms pay for full-time workers has declined across every region and nation in the UK. The national average has seen a fall of nearly 10% since 2014. The largest declines were in the North-East of England and London - both down nearly 13%.89
Figure 34 Pay has declined across the UK in the last decade. Change in real median weekly pay, 2014 versus 2023, Source: ASHE and RPI, ONS
According to analysis by the Resolution Foundation, “This will be the worst Parliament on record (1966 onwards) for income growth across most of the income distribution.”90
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Facts and Figures
With government data failing, Unite is taking the lead on sourcing data to benchmark our members’ pay and conditions Collecting quality data is not an easy task, but it is also not an impossible one. With the correct resources and application it should be possible to collect data that helps us to understand and, more importantly, change the world around us. Over the last couple of months it has been revealed that the government has been failing in its attempts to collect the data necessary to fully understand the economy. In October the Office for National Statistics was forced to delay the release of its monthly Labour Force Statistics overview. Later in the month the Annual Survey of Hours and Earnings was not released in the detail that we have seen in previous years. Experienced practitioners have aired their concerns and fears: “What this means is that we can’t really trust either of the main sources of labour market stats - ASHE on earnings, or LFS on employment”. Xiaowei Xu, Senior economist, Institute for Fiscal Studies
"Given that this data is central to the Bank’s decisions on interest rates, this uncertainty is a serious problem”. Nye Cominetti, Principal Economist, the Resolution Foundation Whilst the headline figures put out by government sources are likely to be approximately correct, the problems really begin when we dig into the detail. Disparities in specific groups, whether that be gender and race or regions and occupations, are going to have to come with some big health warnings.
Is pay rising or falling in real terms?
5.1.1
As we well know, in the Trade Union movement we cannot rely on the government to do what is necessary for workers. Over the last few months our Bargaining and Disputes team were asked by the General Secretary to work with Unite Regional
National Bargaining and Disputes Support Unit
77
Facts and Figures
Is pay rising or falling in real terms?
Secretary for Ireland Susan Fitzgerald, and colleagues, to pilot a new project where we will centrally collect the pay data and other relevant bargaining information of our members. This pilot builds on earlier work undertaken in Finance, Buses, Energy.
Figure 35 An example of the type of data visualisation we can do once we have collected quality data
The purpose of this is to collect consistent information and allow us to develop a central repository of pay data of our members. This will help us benchmark pay and conditions and allow us to support advanced pay claims for those workplaces that want to pursue them. After reviewing the pilot, we will look to roll out a similar collection across the Union in 2024. With the right data we will be able to tackle inequality and injustice wherever we find it. The engagement of Unite negotiators in this task is vital if our Union is to keep winning for its members.
5.2
For over a century real wage increases were the norm Back in August colleagues at the TUC responded to a Twitter question.
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And they were right. For over a century, in fact pretty much back to the industrial revolution, real pay went up nearly every year.
Figure 36 Real Average Weekly Wages saw consistent growth for over a century Source: Bank of England (2017)
Some people got filthy rich over this period, but at least the rest of us saw real improvements in our pay. So how has it become the bosses' starting position that a real terms (RPI+) pay increase is unaffordable - while at the same time profits are high and some people are still getting filthy rich?
National Bargaining and Disputes Support Unit
Is pay rising or falling in real terms?
Facts and Figures
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Facts and Figures 5.3
Prices have been rising faster than wages for over a decade, leaving the average worker over £700 a month worse off in real terms compared to 2010
Is pay rising or falling in real terms?
As shown in section 5.1, prices have been rising faster than wages. To show the impact this has on our members' pockets, let's use the example of 'Sam', a full-time worker who earns the national average wage:
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n In 2010, Sam made approximately the average monthly wage of £2,000 and had monthly expenses of £2,000. They were basically breaking even. n In 2014, they were still making the average monthly wage, but this had seen little growth (less £100 per month), and their expenses had increased to nearly £2,400 - leaving them with a hole of £300 per month. n The mid-2010s was a period of very low inflation, but pay rises were similarly low. This meant that whilst the gap was broadly static, the standard of living in 2017 had become over £300 per month worse than 2010. n After a decade of average annual wage increases only once getting over 3%, 2021 (over 4%), 2022, (over 5%) and 2023 (over 6%) saw increasing values. But these were dwarfed by the inflation rates of 2022 and 2023. This has left Sam needing over £700 a month extra to equal their living standards of 2010.
National Bargaining and Disputes Support Unit
Figure 37 The average wage has not been increasing in line with RPI. Median monthly wage (in blue) versus monthly costs of £2000 being increased in line with RPI (in red), January 2010 to September 2023. Source: ASHE and RPI, ONS
Some people may be able to use savings to subsidise their living standards, but many of our members do not have significant reserves. They may be forced to choose to give up certain discretionary spending, like trips away or visits to local restaurants. But the example above uses the average wage. Those further down the wage ladder would have had fewer opportunities to make changes. When wages lag behind price rises, people will, and in some cases already do, decide between heating and food. They certainly won’t have the funds to account for a broken boiler or car MOT. Each time a pay rise does not match increases in the cost of living, a worker’s options are reduced and eventually there is nothing left to cut. But the onus should not be on individuals to 'cut their cloth' when prices rise. The only way workers can truly address increases in the cost of living is by bargaining collectively to make sure pay and conditions match reality.
National Bargaining and Disputes Support Unit
Is pay rising or falling in real terms?
Facts and Figures
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Facts and Figures
Is pay rising or falling in real terms?
5.3.1
Household incomes are nearly £18,000 a year worse off over the same period Pitiful growth in earnings, along with welfare cuts, have eroded rises in living standards in the UK since the financial crisis. Annual disposable household incomes (which takes into account taxes and benefits) rose from around £15,000 in 1977 to over £38,600 in 2007/08 in real terms.91 But, since the financial crisis, growth in real household incomes has stagnated and households are nearly £18,000 worse-off per year than if the pre-crisis trend had continued. This deterioration in living standards has taken place whilst companies increase their profits and pay-outs to shareholders. But Unite members have shown it is possible to fight back and reverse these recent trends by winning over £430 million over the last two years through industrial disputes alone.
Figure 38 Household income rose consistently for thirty years, but the upward trend never recovered post the financial crash. Mean average household income 1977 - 2022 (in red), plus trend-line (in blue) based on 1977-2007. Source: ONS
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Facts and Figures
Savings are down, while household debt is up to an average of £71,000 per household The most obvious way in which households can accumulate wealth is by saving part of their income. When real wages decline and real household income stagnates, there is less money to put into savings. The Office of Budget Responsibility predicts that the household savings rate - the percentage of disposable income that is saved - will "drop to around zero in 2023 and 2024" as consumers spend down their savings to keep up with rising prices. The OBR predicts that the savings rate may rise to about 1% "as cost-of-living pressures ease", but even that increase would be half the average rate in the period following the financial crisis.92 While household income has flatlined, household debt has been growing rapidly since the pandemic. At the start of the year the total stock of consumer debt, including mortgage debt, exceeded more than £2 trillion for the first time. This is the equivalent of £71,000 per household, and close to the size of the entire UK economy.93 Within this, credit card borrowing is growing at some of the fastest rates since the financial crisis.94 High levels of household debt can create "negative wealth" for some - when the amount they owe surpasses the amount they have in savings and other assets.
5.4
The lowest 10% of earners are making £9,000 a year or less, with a record number employed in low-paid jobs According to PAYE data from August 2023,10% of payrolled employees earned equal to or less than £751 per month.95 This is the equivalent of just over £9,000 per year.
Is pay rising or falling in real terms?
5.3.2
The Office for National Statistics’ (ONS) 2023 Low and High Pay bulletin found that 23.4% of workers are in low-paid jobs based on weekly earnings, the lowest on record.96 The fall is attributed to increases in the National Minimum Wage (NWM) and National Living Wage (NLM). But these statutory minimums still fall a long way short of a 'union wage' that is bargained and enforced collectively. Meaningful gains and improvements
National Bargaining and Disputes Support Unit
83
Facts and Figures to pay will only be brought about at the negotiating table, rather than through changes to the law. Low pay employees, defined as those earning two-thirds of median earnings, tend to be part-time, younger, more likely to be women, and more likely to work in industries such as hospitality:
Is pay rising or falling in real terms?
n 39% of hospitality workers are low paid. n 11% of women are low paid compared to 7% of men.
5.5
Profits have grown twice as fast as income in the last year Most of the income generated in the economy flows to either workers, in the form of wages, salaries and employers' social contributions; or to bosses, in the form of profits: the so-called 'labour share' and 'profit share' of GDP. You wouldn't know from listening to politicians and bosses that profits are growing far more quickly than wages. Workers' demands for decent pay are not behind the economic crisis, and Unite will continue to fully back our reps and members in winning their fair share.
Figure 39 Profits (in blue) have grown by twice the rate of wages and salaries (in red) over the past 12 months. Source: ONS
At the moment, the profit share is growing at the expense of workers. The most recent period we have data for (Q3 2023)
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Facts and Figures
Looking at the longer term, there was a major shift from labour to capital during the 1980s-1990s, and a smaller shift back in the late 1990s, meaning workers are still getting a smaller share of national income than they did before the Thatcher era, after anti-trade union laws were introduced.98 Clearly there is plenty of scope in coming pay rounds for undoing some of the shift of income away from workers ' pockets that has taken place in the last fifty years.
National Bargaining and Disputes Support Unit
Is pay rising or falling in real terms?
saw the labour share falling below 49% of GDP, with the profit share rising to 22.5% (compared to 21.6% in 2022).97
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Facts and Figures
WEALTH 6.
Are the rich getting richer?
89
6.1
The wealthiest 10% hold almost half of the UK's total wealth
89
6.1.1
The number of very rich people in the UK is forecasted to grow by nearly 50% from 2017 to 2027 90
6.2
The Autumn Statement comprehensively failed to deliver for workers, with £15.5 billion handed out to big business and £19 billion taken from public services 92
National Bargaining and Disputes Support Unit
Are the rich getting richer?
SECTION SIX
87
Are the rich getting richer?
Facts and Figures
88
The richest 10% of people in this country now control more than 12 times the wealth of the poorest 50% . We need to look at how we divide the pie, not just how to make it bigger. Sharon Graham, Unite General Secretary
National Bargaining and Disputes Support Unit
Facts and Figures
6.1
Are the rich getting richer? The wealthiest 10% hold almost half of the UK's total wealth The top 10% of individuals control nearly half of all the UK's wealth. Including the next ten percent shows that the top 20% hold over two-thirds of the UK's wealth. Meanwhile, the bottom 50% of individuals hold just 6% of the wealth.99 Workers cannot wait for a benevolent government to address this obscene wealth disparity. The most effective way of levelling the playing field is through collective bargaining, building workers' power and winning in the workplace.
Are the rich getting richer?
6.
Figure 40 Wealth in the UK is vastly unequal, with the top 20% of the population controlling 68% of all wealth. Meanwhile, the bottom half holds just 6% of the wealth. Source: ONS
"Wealth" is not just the ability to buy fancy things. It is the security of knowing that your household has the resources to deal with the unexpected, to save for the future, and to invest in the things you need. The two most important drivers of household wealth – home
National Bargaining and Disputes Support Unit
89
Facts and Figures ownership and private pensions – have been in decline in recent years, further widening the wealth gap:
Are the rich getting richer?
n Property wealth is the largest component of household wealth in Britain, but home ownership rates have been in decline since 2003. That year, 71% of households were either owned outright or had a mortgage, but this had declined to 64% by 2021/22.100 Younger people have seen the steepest declines in home ownership, dropping from 59% in 2003 101 to 41% in 2021/22 102.
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n Private pensions are the second-largest source of wealth, but more than 20% of all workers, and a quarter of private sector workers, have no workplace pension of any kind.103A third of workers do not expect to have any retirement savings other than the state pension when they retire.104 Even when pension savings exist, only 7% of private sector workers have a defined benefit pension, which offers the most secure form of retirement income.105 Pension wealth is also yet another marker of huge inequality. As of 2020 (the latest available data) the richest 10% of the population held almost twice as much private pension wealth as the other 90% of the population combined.106
6.1.1
The number of very rich people in the UK is forecasted to grow by nearly 50% from 2017 to 2027 When we go into pay negotiations we are often told there is no money and that the economy is struggling - and yet the numbers of ultra high net worth individuals (those with a net worth of over $30 million) continues to grow at a record pace.
National Bargaining and Disputes Support Unit
Figure 41 The number of very rich people in the UK is forecast to grow by nearly 50% from 2017 to 2027. Ultra high net worth individuals in the UK 2017, 2022 and forecasted for 2027. Source: statista.com.
There are over 21,000 people in the UK with over $30 million in wealth, around 3,600 more than before the pandemic. It isn't just the very rich in general who have done exceptionally well in recent years - billionaires in particular have taken even more of the pie. Looking back to the pandemic, a time when millions were struggling, British billionaires saw their wealth soar by more than a fifth. Inequality experts warned of a “dangerous gap” between the richest and poorest in society as the number of billionaires in the UK reached a total 177. While the economy shrunk at its fastest pace in three centuries, and millions of people were put on taxpayerfunded furlough, the number of billionaires jumped 24 per cent, and their combined wealth increased 22 per cent.
Are the rich getting richer?
Facts and Figures
Sir Jim Ratcliffe, owner of Ineos the chemicals giant, climbed to second in the UK rich list rankings with just under £30 billion.107 Petroineos, which is partially owned by Sir Jim, recently revealed plans to shut down its Grangemouth oil refiniery, with hundreds of jobs put at risk.108 Our members have gone to ballot for action.109
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Are the rich getting richer?
Facts and Figures
Figure 42 Sir Jim Ratcliffe, billionaire owner of Ineos
So, while Sir Jim fattens his pockets, he is putting the lives of many Unite members at Grangemouth in an uncertain situation. Unite will continue to support our members at Grangemouth billionaires will not get richer while our members suffer.
6.2
The Autumn Statement comprehensively failed to deliver for workers, with £15.5 billion handed out to big business and £19 billion taken from public services The Autumn Statement demonstrates that once again, the Government is choosing to help their friends in big business rather than working people. What's more, the Labour Party are going along with it. After receiving a windfall of £27 billion ahead of the Autumn Statement, the government decided to spend it on £11 billion of tax cuts and £4.5 billion in handouts for big businesses.110. At the same time, the value of spending on public services has been reduced by around £19 billion, compared to previous forecasts. These cuts are effectively paying for the aforementioned tax breaks.111 Labour have said they'll back these plans, making it obvious that both Labour and Tories are planning more cuts to public services, to the detriment of the people who use them.112 All this shows, once again, how the government loves to redistribute wealth - as long as that wealth is redistributed to bosses. The handouts come with no strings attached: there are no guarantees for jobs or workers.113
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Figure 43 Chancellor Jeremy Hunt on his way to deliver his anti-worker Autumn Statement114
The Government's big policy for 'helping' working people was it's 2p cut to National Insurance. However, 80% of the benefits from this tax cut will go to the richest half of the population. What's more, this is massively outweighed by the government's refusal to move tax thresholds. That's left a hole in households' budgets of £1,200.115 In another callous attack, the Government has said it will be forcing disabled people into work - and has effectively admitted that this is to loosen the labour market. The Government are literally forcing the most vulnerable people in society to go to work - just so that they can weaken workers' power to win pay rises.116
National Bargaining and Disputes Support Unit
Are the rich getting richer?
Facts and Figures
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SECTION SEVEN
TERMS AND CONDITIONS 7.
Are Terms and Conditions getting better?
97
7.1
Bosses are squeezing 18 unpaid hours a year out of UK workers so negotiating solid working time agreements is crucial 97
7.1.1
Over the last 20 years most of Europe has reduced working time more than the UK
98
7.2
Workers are seeing attacks on their pensions with a 63% reduction in decent schemes over the last decade 100
7.2.1
A single person would require a £645,000 pension pot to achieve a comfortable lifestyle in retirement 101
National Bargaining and Disputes Support Unit
Are Terms and Conditions getting better?
Facts and Figures
95
Are Terms and Conditions getting better?
Facts and Figures
96
There was a time when we created defined benefit pension schemes. And it was about social responsibility and employers understanding that this was deferred pay. We must not allow profiteering employers or a negligent state to push our people into pension poverty. Sharon Graham, Unite General Secretary
National Bargaining and Disputes Support Unit
Facts and Figures
7.1
Are Terms and Conditions getting better? Bosses are squeezing 18 unpaid hours a year out of UK workers so negotiating solid working time agreements is crucial Workers are putting in an average of 18 hours of unpaid work a year, a recent study has found.117 The study also found that of people who regularly work overtime, 68% do not receive pay.118 The issue is especially prevalent for those working in legal services and education, and younger (25-31 year old) workers.119 The TUC also indicated earlier this year that the value of free labour worked in 2022 was £26 billion. Between 2018 and 2022, the cumulative value is an astounding £144 billion.120 Trade Unions will need to act so that we can reverse this worrying and dangerous trend, which could mean that workers are earning less than the minimum wage, and employers could be breaking the Working Time regulations.121Trade Union members and representatives should never accept any time working without pay - and should ensure that non-union colleagues are also aware if they are working too many hours.
Are Terms and Conditions getting better?
7.
Figure 44 Working time is an essential collective bargaining issue
National Bargaining and Disputes Support Unit
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Are Terms and Conditions getting better?
Facts and Figures The issue of working time will become even more crucial as Reps face the challenge of defending jobs, pay and conditions in industries in transition. Without the intervention of trade unions employers will use transition as an opportunity to cut jobs instead of working time. But there is precedence for the demand of reducing the working week without loss of pay. In 2017, for example, Bentley workers negotiated a two-hour reduction in basic hours a week, a 6.5% and improvements to sick and holiday pay.122 This shows that trade unions can ensure that any transition is a just one by taking the initiative and drawing clear lines in the sand.
7.1.1
Over the last 20 years most of Europe has reduced working time more than the UK The UK's average weekly hours worked is currently at 36.6 hours. Before the pandemic, there was minimal change in this statistic, with workers averaging around 37.5 hours per week. During the pandemic, hours fell and have not risen back to their former levels.123 It's likely that this is because people saw the opportunity to reduce their hours to improve their work-life balance, and seized it. These working conditions won't change unless we fight for them, and we will need to fight to keep the gains made following the pandemic.
Figure 45 UK weekly average hours of work for full time employees by quarter, Q1 2000 to Q2 2023. Source: ONS
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Compared to similar European countries, we stand in stark contrast. With the exception of a few countries which already had lower average working hours than the UK, the length of the working week has tended to fall significantly. In fact, since 2000, we've gone from having the fifth shortest working week, to the 12th shortest.124 This shows the UK is failing to improve on the conditions of its workers, even as our peers do.
Figure 46 Change in average working hours between 2000 (blue) and 2020 (2019 for the UK) (red) for selected European countries (2020 values less than 38 hours)
Many workers are also not able to take the time off that they are entitled to, most likely due to overworking. In the UK, full time employees are statutorily entitled to 28 days of paid holiday a year.125 This has been the case since 1998 when we adopted the same rules as the European Union, plus the UK's 8 bank holidays. However, this has not changed since then. 126
Are Terms and Conditions getting better?
Facts and Figures
While holiday entitlements have tended to increase recently, a lot of employees are not taking the leave that they are entitled to. In fact, even as actual holiday entitlements rose by 16.5% between 2020 and 2022, the number of days taken by employees has actually
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Are Terms and Conditions getting better?
fallen by 113,000 hours. What's more, the number of days taken has fallen across all sectors.127 This shows that workers are coming under more pressure to do work outside of their contracts. This is most likely due to overworking and trade union representatives will be vital to ensuring that their members are able to take the time off that they are entitled to.
7.2
Workers are seeing attacks on their pensions with a 63% reduction in decent schemes over the last decade Bosses are failing to pay their fair share into our pension schemes and very few defined benefit schemes are open to new members.128 Active private sector defined benefit (DB) and hybrid scheme memberships in the UK have fallen by nearly 63%, from 2.1 million to under 786,000, since 2012. Pensions are not a gift from bosses but are deferred wages that should allow workers to live a good life in retirement. Collectively bargaining for a good workplace pension is as important as a pay deal and, under Sharon Graham's leadership, Unite will fight to reopen defined benefit schemes.
Figure 47 Private sector defined benefit and hybrid scheme membership pension numbers March 2012 versus March 2022. Source: The Actuary129
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Facts and Figures
There is enough money in the economy for employers to be contributing their fair share to pensions (see Section 1 on page 1). Workers create the wealth in society, and we need a much larger share of that wealth to live comfortably in our old age.
7.2.1
A single person would require a £645,000 pension pot to achieve a comfortable lifestyle in retirement The most extensive existing benchmark is the Pensions and Lifetime Savings Association’s (PLSA) Retirement Living Standards (RLS).131132 Since 2021, PLSA has produced Retirement Living Standards for three categories: Minimum, Moderate, and Comfortable. Based on these figures, a single person would require an income of £37,000 a year and a pension pot of £645,000 to achieve a comfortable lifestyle in retirement, .133 The 2022 report gave the following benchmark figures:134
Are Terms and Conditions getting better?
With the UK state pension one of the lowest in the OECD, workers need their employers to pay into a good workplace pension scheme if they are not to be at risk of pensioner poverty.130
Figure 48 PLSA's 2022/23 Retirement Living Standards benchmarks
There is huge inequality in pension savings: analysis by Age UK found that almost a third of pre-state pension age National Bargaining and Disputes Support Unit
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Facts and Figures
Are Terms and Conditions getting better?
households have savings of less than £5,000 and one tenth have savings of less than £250, or no savings at all.135
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Meanwhile, BAEM pensioners are 24% worse off and women’s pensions are about half the size of men’s.136 The cost of living crisis has also pushed many to opt out of pension schemes to cover costs in the here and now.137 The median pension wealth for the 55-64 age group is £70,000, a level which would only meet the PLSA's 2022/23 'comfortable' retirement standard for less than two years.138 Although the RLS seems to be the current industry standard on this issue, there are some major areas that could be improved using Unite’s own analysis. For example, social care and dependents' costs are not included in the current RLS. This all points to the necessity of Unite collecting its own data on this vital issue if we are to fight for pensions that truly reflect our members' contribution to society.
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SECTION EIGHT
EQUALITIES How are different demographic groups being impacted?
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8.1
On average, women are paid 14% less than men
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8.2
Government pay data is failing to address systemic biases against Black and Asian Ethnic Minority workers 110
8.
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How are different demographic groups being impacted?
Facts and Figures
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How are different demographic groups being impacted?
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I was elected in 2021 to do what it says on the trade union tin – to fight for Jobs, Pay and Conditions and to take equality into the heart of our members’ workplaces. Sharon Graham, Unite General Secretary
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8.
8.1
How are different demographic groups being impacted? On average, women are paid 14% less than men Though the gender pay gap has been declining slowly over time, it was still 14.3% for all workers in 2023. Among full-time employees the gender pay gap in 2023 was 7.7% compared to 9.0% in 2019 before the pandemic. Equalities issues are collective bargaining issues and go far beyond the matter of pay equality alone. Unite reps have a key role in ensuring that progress is made towards closing the gender pay gap by securing better parental leave, childcare options, flexible working, and part-time options.
Figure 49 The gender pay gap has been slowly falling but is still substantial. Gender pay gap for median gross hourly earnings (excluding overtime), UK, April 1997 to 2023 Source: ASHE, ONS.
The gender pay gap is higher for all employees than it is for fulltime employees or part-time employees. This is because women fill more part-time jobs, which in comparison with full-time jobs have
National Bargaining and Disputes Support Unit
How are different demographic groups being impacted?
Facts and Figures
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How are different demographic groups being impacted?
Facts and Figures
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lower hourly median pay. Approximately 40% of women are in part-time roles, compared to 15% of men. The gender pay gap is a measure of what women are paid relative to men. It is a measure across all jobs in the UK, not of the difference in pay between men and women for doing the same job. So whilst the gender pay gap has been closing over the last twentyfive years, the pace is slow. If it continues at the same rate as we have seen for the past 25 years then we may see the end of a gap in 2051. But women should not have to wait another few decades for equality! By putting equal pay at the centre of collective bargaining we can speed up this fight for justice.
Figure 50 At the current rate the gender pay gap will not disappear until 2051. Gender pay gap for full-time median gross hourly earnings (excluding overtime), UK, April 1997 to 2023, with trend-line 1997-2051. Source: ASHE, ONS.
There is a large difference in the gender pay gap between those over and below 40 years of age. For groups aged under 40, the gender pay gap for full-time employees is much lower, at 3.2% or below. However, for age groups aged 40 and older, the gender pay gap for full-time employees is much higher, at over 10.9%. The impact of age is likely to be tied to caring responsibilities.
National Bargaining and Disputes Support Unit
Figure 51 There is a clear split between those over 40 (in red) and those under 40 (in blue). Gender pay gap for full-time median gross hourly earnings (excluding overtime), by age-group, UK, April 1997 to 2022. Source: ASHE, ONS.
Men are paid more than women among full-time employees in each of the nine main occupation groups.
Figure 52 The gender pay gap is highest in the administrative and secretarial occupational group. Gender pay gap by occupation groups, top
How are different demographic groups being impacted?
Facts and Figures
five shown, 2022. Source: ASHE, ONS.
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How are different demographic groups being impacted?
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The gender pay gap also varies substantially between regions and countries. Northern Ireland is the only place where women are currently paid more than men (4.6%). Some regions have seen substantial reductions in the last 25 years, including Wales, Scotland, and the North East, whereas London has seen a far smaller change.
Figure 53 Regional changes over the last 25 years have been very different. Gender pay gap for median gross hourly earnings (excluding overtime) for full-time employees, by work region, UK, April 1997 (in blue) and 2022 (in red). Source: ASHE, ONS.
8.2
Government pay data is failing to address systemic biases against Black and Asian Ethnic Minority workers It is crucial that official data helps rather than hinders the fight against racism, inequality and systemic biases in the workplace. As things stand, however, government data is failing Black and Asian Ethnic Minorities (BAEM) by failing to make a useful contribution to this struggle. It is already a statutory requirement for employers with at least 250 employees to measure and report gender pay gaps. In May the government finally issued guidance which sets out a consistent approach to measuring ethnic pay differences, but they said that they will not make it mandatory.139 This
National Bargaining and Disputes Support Unit
is a complete reversal of their commitment to make ethnicity pay gap reporting mandatory in 2022.
Lutfur Ali, senior Equality Diversity and Inclusion adviser at the Chartered Institute of Personnel and Development, cautioned that the choice indirectly continues "systemic biases" and hinders progress "towards achieving greater equality of outcomes for all ethnic minority individuals." He also highlighted the effectiveness of mandatory gender pay gap reporting in addressing disparities between men and women as a precedent. Ethnicity Pay Gap (EPG) reporting is more complex than Gender Pay Gap reporting. There may be decisions about how to combine different ethnic groups to ensure their results are reliable, statistically sound and protect confidentiality. But it is not an impossible job. The ONS has previously released an analysis of earnings and employment statistics for different ethnic groups – where they used regression analysis to provide more insight into factors that affect pay. However, the last report is over three years old.140 Unite can help Reps conduct an Equal Pay Audit to help scrutinise pay rates and jobs more openly, to identify pay gaps and measures to close them. As discussed in Section 5, we are working on our own data collection projects, to pick up the slack from government failures. With your help these will become powerful tools in the fight for equality.
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How are different demographic groups being impacted?
Facts and Figures
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SECTION NINE
UK ECONOMY 9.
What is happening to the economy as a whole?
9.1
The economy is worth £2.5 trillion and is growing, but bosses are reaping more rewards than workers 115
9.1.1
Growth doesn't necessarily mean higher living standards
117
Unite is producing tools and reports for reps to fight back against flawed economic arguments such as the 'growth is everything' mantra
118
Forecasts predict slow-but-steady growth to continue in 2024, but workplace power is needed to ensure workers benefit
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9.2
9.3
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What is happening to the economy as a whole?
Facts and Figures
113
What is happening to the economy as a whole?
Facts and Figures
114
Workers earn less today in real terms than they did in 1997 and the divide between the rich and the rest of us is growing ever wider. We need to fix our broken economy right now and not allow growth targets to be used as an excuse for delay or a smokescreen for fresh rounds of austerity. Sharon Graham, Unite General Secretary
National Bargaining and Disputes Support Unit
9. 9.1
What is happening to the economy as a whole? The economy is worth £2.5 trillion and is growing, but bosses are reaping more rewards than workers The government's and bosses' favourite statistic to describe the state of the economy is GDP growth. In the latest month for which there is data (October 2023) monthly GDP fell by 0.3%, following growth of 0.2% in September 2023. They may use this to say there is not enough money for pay rises, and use it as an excuse to low-ball us at the negotiating table. Reps can hit back against this narrative with economic arguments and statistics that show the economic 'pie' is big enough for decent pay rises, if less of it went towards employers' profits.
Figure 54 The pattern for overall GDP since the recovery from the pan-
What is happening to the economy as a whole?
Facts and Figures
demic has been neither much growth nor a recession but essentially stagnation. 100 = 2019 levels of GDP. Source: ONS
One reason for the sluggish recovery is that the numbers of hours worked has not recovered to its pre-Covid trend (see Figure 55 ).
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What is happening to the economy as a whole?
Though the headline unemployment rate has not risen, there are more and more people now considered 'economically inactive' due to ill-health: a result of record NHS waiting lists.
116
Figure 55 The number of hours worked (in millions) is below its pre-pandemic trend due to widespread ill-health. Source: ONS.
The UK is the sixth largest economy in the world. UK GDP is a staggering £2.5 trillion.141 Instead of overall growth rates, Reps can point to this immense amount, then ask how it is being shared. To do this, they can use figures on the share of the economy going to labour versus profits. Income across the economy can be divided into wages and other labour-related income (the 'wage share' or 'labour share') and profits. This isn't a recent issue, it's a long-term phenomenon. As the chart below shows, over the last 50 years the labour share of the economy has fallen compared to profits.
National Bargaining and Disputes Support Unit
Figure 56 The long-term picture is that bosses are taking a greater share of national income than they were before the 1970s. Compensation of employees (in red) versus Gross Operating Surplus (in blue), 1955 to present. Source: ONS.
9.1.1
Growth doesn't necessarily mean higher living standards Politicians and bosses often parrot the claim that we need GDP to grow in order to have higher living standards. For example, Jeremy Hunt recently said he was announcing 100 policies to raise growth, including a massive tax cut for businesses, while Keir Starmer claimed that "growth is everything" and promised an "obssession" with growth.142 But reps can also argue that wages are not directly linked to GDP. The average UK GDP growth rate between 1950-2010 was around 2.5% a year, a similar rate to other large European economies. This only translated into a bigger slice of the pie for workers when workplace power was strong.143
What is happening to the economy as a whole?
Facts and Figures
Since 2010, the UK economy has grown at around 1.5% a year. But at the same time we have had falling real wages, falling household income, growing inequality, declining public services, and a total failure to invest in a sustainable future. These are the measures that really matter to working people.
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What is happening to the economy as a whole?
9.2
Unite is producing tools and reports for reps to fight back against flawed economic arguments such as the 'growth is everything' mantra Through our various tools and reports, Unite is arming reps with the information and confidence to push back against flawed arguments about growth. Recent research by Unite Investigates shows that: n GDP growth is not the real issue, workers' incomes and workers' household incomes are; n GDP growth has slowed over the last 50 years due largely to low business investment and the role of financialisation (the increasing, out-of-proportion influence that banks and other financial institutions have on the economy); n There has been a 'decoupling' of pay and productivity since the 1980s in many countries, with productivity growing far quicker than the pay of the workers who drive that productivity; n The decline in workers' power is closely linked to this decoupling - the labour share has fallen since the 1970s, and pay inequality has grown since the 1990s All of the above signal deep underlying issues with our broken economy. Unite says there is an alternative: The Real Economy. Jobs: dignified, meaningful work, with good conditions.
Pay: the money in our pockets.
Living standards: our ability to afford a decent life for ourselves and our loved ones.
Public services: including health, education, care, and public space.
A liveable future: making sure there is a decent world to live in for ourselves and our children and grandchildren
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Power: having decision-making power in our own lives, including in our workplaces and communities. Economic growth will not be a magic guarantee of a decent life for all. The real problem is distribution: where the money goes. And power: who gets to decide.
9.3
Forecasts predict slow-but-steady growth to continue in 2024, but workplace power is needed to ensure workers benefit GDP has been higher than expected in 2023. Back in late 2022 many forecasts were for a recession in the following year, which employers may have used as an excuse for limiting pay deals however, GDP looks set to grow this year after all, avoiding recession.144 A variety of official and market forecasts show consumer and business confidence is not as low as employers might like to suggest, and that the economy will perform positively over the next year. The OECD Consumer Confidence Index has been consistently higher in 2023 than it was the previous year.145 Reps can use the figures below in negotiations and to call out employers using a 'doom and gloom' economic narrative to justify low pay deals. Overall, forecasts for 2024 predict that the UK economy is likely to continue to grow in 2024, so there will be more income for workers and bosses to bargain over: n 0.7% (Office for Budget Responsibility, November 2023)146 n 0.5% (NIESR, November 2023)147 n 0.5% (average of independent forecasts for October 2023) ranging from -0.5% to 1.9%.148 A number of private sector surveys give an insight into the current confidence of consumers and businesses:
What is happening to the economy as a whole?
Facts and Figures
n The GfK Consumer Confidence indicator is around 20 points higher than a year ago: this is good news for businesses which sell to the public.149
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Facts and Figures
What is happening to the economy as a whole?
n Deloitte's Consumer Tracker found confidence in Q3 2023 at its highest level since Q4 2021.150
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n According to the Lloyds Business Barometer, Business confidence rose to 42% in November, a three-point increase, to reach the highest level since February 2022, before the energy crisis which followed the outbreak of the war in Ukraine.151
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SECTION TEN
CORPORATE FINANCE 10.
What is going on in the world of corporate finance?
125
10.1
Stock markets have risen in the last year, led by the US S&P 500 with a 16% rise
125
10.2
Unite is campaigning against the proposed merger of Three and Vodafone, which threatens 1,600 jobs and increases in mobile phone bills of up to £300 per year 126
10.3
As companies increase their wealth through mergers and acquisitions we must protect jobs, pay and conditions
128
10.3.1 The Saudi Arabia Public Investment Fund and Ardian have agreed a £2.4 billion deal for 25% of Heathrow, which could impact thousands of Unite members 130 10.3.2 The Cooperative Bank, which employs hundreds of Unite members, is exploring potential merger opportunities
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What is the latest from the stock market?
Facts and Figures
130
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What is the latest from the stock market?
Facts and Figures
124
Put simply: rising stock prices show us that many firms have the ability to pay. Sharon Graham, Unite General Secretary
National Bargaining and Disputes Support Unit
Facts and Figures
10.1 Stock markets have risen in the last year, led by the US S&P 500 with a 16% rise The major stock markets of the Western world have all risen in the past year. The US S&P 500 was the fastest growing of the major markets with a 16% rise, followed by the global MSCI World with a 14% rise. The UK's FTSE 350 rose by 1%.152 Rising share prices are an indication of investors' confidence in future profits and the ability to pay for companies listed on stock exchanges.
Figure 57 Index level stock prices for the S&P 500 (in blue), FTSE 350 (in
What is the latest from the stock market?
10. What is going on in the world of corporate finance?
red) and MSCI World (in green) have all grown since last September. Hang Seng - Hong Kong (in purple), EuroStoxx 600 - Europe including UK (in orange) also shown. Source: Capital IQ Pro.
The S&P 500 index tracks the share price of 500 of the largest companies listed on stock exchanges in the United States. The MSCI World does the same for 1,500 of the largest listed companies in the world. However, in reality, 70% of its constituents are
National Bargaining and Disputes Support Unit
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Facts and Figures
What is the latest from the stock market?
US based.153 The FTSE 350 tracks the 350 biggest companies on the London Stock Exchange.
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The positive performance of listed companies is a good sign across many sectors when it comes to pay negotiations. While rising stock price does not typically put more money directly into a company's pockets, it does signal a vote of confidence in a company's prospects and, to some extent, in the economy as a whole. Stock prices matter because around a third of our members are ultimately employed by a company listed on a stock exchange, and stock prices outside the UK matter because so many of our employers are parts of multinational groups based overseas. Unite's analysis indicates that over half of our members are employed by groups head quartered outside the UK.
10.2 Unite is campaigning against the proposed merger of Three and Vodafone, which threatens 1,600 jobs and increases in mobile phone bills of up to £300 per year One major merger on the horizon is the proposed combination of the UK operations of the mobile operators Three and Vodafone. This is a classic example of a merger posing major risks to workers and consumers, with only the campaigning of Unite to ensure that their interests are protected. For the companies, the merger represents an opportunity to boost profits by enabling job cuts and huge price increases. Research by Unite has revealed that the merger could result in up to 1,600 job losses and the price of mobile bills increase by £300 per year. Unite is building a growing campaign in opposition to the merger, with over 40 MPs supporting us. The merger was criticised at a debate in parliament in September, and a Unite researcher exposed the risks posed by the merger at a session of parliament's Business and Trade Committee in October.
National Bargaining and Disputes Support Unit
Figure 58 Logo for Unite's campaign against the proposed Three-Vodafone merger
It was the anti-worker actions of Three's parent company, the Hong Kong-based conglomerate CK Hutchison, which brought the merger to the attention of Unite in the first place. During legal industrial action by Unite members at the Port of Felixstowe in 2022, the company sacked four Unite reps on trumped up charges. Prior to being victimised, the Felixstowe Four had worked at the port for a combined total of over 100 years. This was a straightforward attempt to break workers' organisation at the port through intimidation. Unite will always defend our Reps, and the victimisation of the Felixstowe Four is being actively resisted by the Union.
National Bargaining and Disputes Support Unit
What is the latest from the stock market?
Facts and Figures
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What is the latest from the stock market?
Facts and Figures
Figure 59 Unite raising the victimisation of the Felixstowe Four at the Business and Trade Committee
This type of anti-union management, coupled with job cuts, will be a hammer blow for Three and Vodafone workers if the merger goes ahead. Without Unite's campaigning, politicians wouldn't care about the risks posed by the merger, and the treatment handed out to the Felixstowe Four would go unchallenged. Only collective action by Unite members can ensure that mergers don't threaten the interests of workers, and that anti-union activity by bad employers is resisted. n You can follow the development of the campaign against the merger via the following Twitter/X account: https://twitter.com/StopThreeVoda
10.3 As companies increase their wealth through mergers and acquisitions we must protect jobs, pay and conditions Mergers and acquisitions are often bad news for workers at the companies that are involved. These business deals invariably come with risks to jobs or significant changes to industrial relations within a company – developments that require the active engagement of union members to ensure our rights, jobs, pay and conditions are protected. A merger occurs when two companies voluntarily decide to join forces and become a single entity. Acquisitions on the other hand
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Facts and Figures
Mergers and acquisitions should be a red flag for workers to organise to protect the gains they have made, secure job protection agreements, and make sure our union has a voice in any coming changes. If an employer is making acquisitions it can also be a sign that they have a clear ability to pay or are moving into new business sectors.
When a company combines with a competitor – either through a merger of equals or by snapping up smaller players in the industry – it hopes to enjoy a number of advantages: n Access to new customers, new technology, and new markets n A larger market share, which might help them to control and raise prices n The ability to combine certain types of operations (sales, human resources, financial, etc.) and subsequently cut jobs. In corporate-speak, these are often referred to as "economies of scale"
What is the latest from the stock market?
occur when one company buys another, gaining control over its operations, assets and brand.
n Better access to financing.
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Facts and Figures
What is the latest from the stock market?
10.3.1 The Saudi Arabia Public Investment Fund and Ardian have agreed a £2.4 billion deal for 25% of Heathrow, which could impact thousands of Unite members There has been an ownership shake-up of the UK's busiest airport, Heathrow - with the Saudi Arabia Public Investment Fund (PIF) taking 10% and the French private equity firm Ardian taking 15%.154 At the end of November, Spanish group Ferrovial announced that they were selling their remaining 25% stake in Heathrow to PIF and Ardian for £2.4 billion. 155 With some estimating the price paid 70% over its valuation.156 PIF is one of the largest and most active sovereign wealth funds with almost $800 billion in assets - making it the fifth largest in the world.157158 The takeover by PIF and Ardian is still subject to regulatory approval, but would see the already complex ownership structure of Heathrow become even more dense. Those owners include, among several others, the Qatar Investment Authority, which has a 20% stake, as well as Singapore’s GIC sovereign wealth fund and the Australian Retirement Trust, which each own over 11%.159 Unite has thousands of members who could be directly or indirectly affected by any corporate restructuring or change of strategy at Heathrow. We will ensure that in any deal, our members pay and terms and conditions are not eroded away.
10.3.2 The Cooperative Bank, which employs hundreds of Unite members, is exploring potential merger opportunities One of Britain's most well known and long running retail and commercial banks, The Cooperative Bank, is currently eyeing up its future options.160 The Cooperative Bank, which split from the Cooperative Group in 2020, has been considering potential mergers & acquisitions as well as an initial public offering (IPO). Most recently, the UK's third largest building society by assets, Coventry Building Society, has submitted a bid for The Cooperative Bank for an undisclosed fee. Combined, the deal would result in combined assets of £90 billion.161
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Facts and Figures
The Cooperative Bank has 2,700 staff, hundreds of whom are Unite members.164 The banking services offered by The Coop Bank are vital for millions of workers up and down the country - where previous technical issues left many unable to buy food or pay their rent.The Cooperative Bank has 2,700 staff, hundreds of whom are Unite members.165 Whoever ends up acquiring The Cooperative Bank, must ensure pay and conditions are defended and no workers are thrown to the scrapheap due to restructuring. Unite will be there every step of the way to hold them to account for our members.
National Bargaining and Disputes Support Unit
What is the latest from the stock market?
In August, specialist lender Shawbrook Bank reached out to The Coop Bank proposing a £3.5 billion merger deal - valuing them at £800 million162 163
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SECTION ELEVEN
STRIKES 11.
Where are workers on strike?
11.1
Unite members at 21 employers across Britain are due to take industrial action in December 135
11.1.1 Glasgow East Women's Aid members begin strike action following whistleblowing
135
136
11.1.2 Junior doctors in England have announced new strike dates as part of their pay dispute 137 11.1.3 Picket line report: Over 40 workers are set to go on strike at the East Lancashire Hospital Trust over the next three months in dispute over patient safety 11.2
11.3
138
Balloting Brief: Unite have run over 300 successful ballots for industrial action in 2023, with a further 23 workplaces preparing for action this month
141
Other union disputes: ASLEF train drivers have voted overwhelmingly to continue strike action in their national dispute over pay
143
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Where are we on strike?
Facts and Figures
133
Where are we on strike?
Facts and Figures
134
We will be attacked by those with much to lose. It won’t stop us. Whatever hurdles they put in our way, we will jump them. If they tax our strike pay, we will add the tax on. If they try and force people to break our strikes, we will use strikes plus. If they fiddle with thresholds and notice periods, we will change our tactics. Sharon Graham, Unite General Secretary
National Bargaining and Disputes Support Unit
Facts and Figures
11. Where are workers on strike? In 2023, over 86,500 Unite members have together entered into more than 552 disputes. Eight out of every 10 results have been a success and Unite has delivered an extra £430 million for members. That is the Unite premium, the benefit of being a member of the UK’s leading union. Unite is currently engaged in 358 live disputes involving over 46,000 members. Every dispute, whether it lasts one day or one year, is a chance to put money in the pockets of our members. Unite has committed more than just words to winning in the workplace. We know the sacrifices our members make by taking to the picket line to defend their jobs, pay and conditions. That is why we have bolstered our strike fund and have spent over £30 million on strike pay since Sharon Graham was elected in August 2021. This stance has not only helped win disputes but has also grown our Union. Thousands more Unite members at 21 workplaces are set to take industrial action in December and beyond. The table below shows those where strike dates have been announced. Dispute
Dates
Alexander Dennis
4-17 December
Where are we on strike?
11.1 Unite members at 21 employers across Britain are due to take industrial action in December
Baxter Storey 4-18 December (Drax Power Station) DS Smith
11-23 December
Haringey Council 18 to 24 December (National LA dispute) London Transit
22 and 23 December
4-8, 11-15, 18-22, 25-29 December East Lancashire Hospital 1-5, 8-12, 15-19, 22-26, 29-31 Trust January
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135
Facts and Figures Dispute
Dates
Where are we on strike?
1-2, 5-9, 12-16 February Klarius
6 November to 1 December
Altrad Babcock
4, 5, 11, 12 December
Maen Karne
Continuous action
Imperial Logistics / DP World
4, 6, 8 December
ArcelorMittal
4, 5 and 8 December
GXO Runcorn
6-8 December
GXO Wiltshire (Iceland)
14-18 December 27-30 December
Wincanton Rochdale
2 December
Kaefer
27 November to 4 December
NEU
21, 22, 6, 7, 13,14 December
CHC Scotia
6, 7 15, 16 December 4, 8, 11, 15, 18 December
Mitie (NHS)
5, 8, 12, 15, 19, 22, 26, 29 January 2, 5, 9, 12, 16, 19, 23 February
2gether Support Solutions (NHS)
11, 15, and 18 December
Synergy (NHS)
4,6,7 December 1, 4, 8, 11, 15, 18, 22, 29 December
Glasgow East Women's 5, 8, 12, 15, 19, 22, 26, 29 January Aid 2, 5, 9,12, 16 February
11.1.1 Glasgow East Women's Aid members begin strike action following whistleblowing Unite members at Glasgow East Women's Aid have voted 100% in favour of strike action.166 The decision comes after 13 members of staff were wrongfully suspended for whistle blowing due to concerns of bullying in the workplace. Five members have since been dismissed, but Unite has secured interim relief on their behalf. The major legal victory marks an important first step in
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Facts and Figures
delivering Unite's commitment of zero tolerance towards bullying and victimisation in the workplace.167
Glasgow East Women's Aid's main office in Easterhouse has been closed for 12 weeks following the mass suspension of staff.168 A further 21 days of strike action has been announced by all members between December 1 and February 16 2024. Unite members are resolute in standing up for their jobs and providing vital services to the community. Unite is calling on the funders of the organisation, including Glasgow City Council and the Scottish Government, to step in and take a clear stand against bullying in the workplace .
“The situation facing Unite's members at Glasgow East Women's Aid is shocking and deeply worrying. Whistleblowing staff have been victimised for raising concerns about bullying in the workplace. They are currently suspended which exactly proves the point that our members have been making." Unite General Secretary, Sharon Graham
11.1.2 Junior doctors in England have announced new strike dates as part of their pay dispute
Where are we on strike?
All workers are highly trained to provide lifesaving services for women and children fleeing domestic abuse in one of Scotland's most economically deprived communities.
In December, the British Medical Association's (BMA) junior doctors committee, which represents junior-grade qualified doctors, voted unanimously for further strike dates in December and January. Strike action will take place from 20-23 December, and from 3-9 January.169
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Where are we on strike?
Facts and Figures
Figure 60 Junior doctors on the picket line170
The strike dates were called after the Government failed to put forward a credible offer to end the dispute. Junior doctors are campaigning for a substantial pay increase, to make up for 15 years of declining real-terms pay.171 This comes after strike action in September and October, when junior doctors and senior doctors took joint strike action. Senior doctors are currently voting on the separate pay offer the government has made to them.172
"A year after our dispute started, we are still too far from turning the tide on plummeting pay, morale, and retention of doctors. Rather than waste more time and money and have further disruption to patient care, the Health Secretary needs to make a credible offer now.” - Dr Robert Laurenson and Dr Vivek Trivedi, BMA junior doctors committee co-chairs
11.1.3 Picket line report: Over 40 workers are set to go on strike at the East Lancashire Hospital Trust over the next three months in dispute over patient safety 44 workers at the East Lancashire Hospital Trust (ELHT) will take 30 days of strike action over the next three months.
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Facts and Figures
The first round of action will take place from the 4-8, 11-15, 18-22 and 25-29 December, with the last round taking place in February.
Biomedical scientists have been escalating their dispute with ELHT since earlier this year and have been promised increased staffing levels that have failed to materialise. The situation is now so bad that workers have reported their own employer to the Medicines and Health Regulatory Authority (MHRA). A survey in March by the MHRA found low levels of staffing which the ELHT acknowledged but failed to rectify. Staff have also lodged unhappiness at the lack of training and career opportunities as well as an ever-increasing workload. Examples of unsafe practices at ELHT include: Training and competencies not being kept up to date due to lack of staff available and no training officer;
The issue of lack of indemnity raised to the trust for over a year presenting a significant risk in regard to liability
Where are we on strike?
The dispute centres on Unite holding ELHT to account over patient safety. This specifically relates to dangerously low staffing levels of biomedical scientists in the Blood Science Department who provide vital blood sample analysis and blood products for the entire hospital and wider GP services in East Lancashire.
Staffing below recommended minimum levels
Commitments made in 2019 regarding training and support have not been fulfilled
High sickness levels due to stress and overwork
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Where are we on strike?
Facts and Figures
Figure 61 ELHT workers will strike over Christmas
Despite the government's empty rhetoric about minimum service levels, it is Unite members who are standing up for our NHS by taking action to get a fair deal and secure a safe workplace for workers and patients. Unite will be with them every step of the way to secure a win to right this wrong. "Our members are highly skilled biomedical scientists performing a critical role for patients. But for more than 10 years. ELHT has failed to review staffing levels and patients’ lives are now at risk. Despite repeated appeals for action nothing has been done and our members have been left with no choice but to down tools and head to the picket line." Imran Akram, Unite Regional Officer
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Facts and Figures
11.2 Balloting Brief: Unite have run over 300 successful ballots for industrial action in 2023, with a further 23 workplaces preparing for action this month
In 2023, Unite have run over 300 successful ballots for industrial action, putting employers on the back foot and helping to win major pay increases. From Construction to Finance, Health to Aerospace, Unite members are showing that they are prepared to face down bad bosses. Employer
Sector
Ballot notice
Altrad Employment Services
Construction
10/11/2023 07/12/2023
Bilfinger UK Ltd
Construction
13/11/2023 07/12/2023
Arriva London North Ltd - Edmonton, Enfield and Tottenham
Passenger Transport
09/11/2023 07/12/2023
GXO Logistics UK Ltd - Ardagh Glass Ltd, Barnsley
RTCWL
16/11/2023 07/12/2023
Cheshire West Recycling Ltd
Local Authorities
03/11/2023 11/12/2023
Lucozade Ribena Suntory Ltd
FDA
20/11/2023 11/12/2023
Altrad Employment Services Ltd
Construction
10/11/2023 11/12/2023
Closing
AGGREGATE - Abellio West London Passenger TransLtd & Abellio London Ltd port
08/11/2023 11/12/2023
ArcelorMittal Distribution Solutions UK Ltd
EMS
21/11/2023 12/12/2023
Greenwich Leisure Ltd
Local Authorities
02/11/2023 13/12/2023
The City of Edinburgh Council
Local Authorities
22/11/2023 13/12/2023
Royal Mail Group Ltd - Swansea Mail Centre
Services
17/11/2023 13/12/2023
Laker Vent Engineering Ltd
Construction
21/11/2023 14/12/2023
Dalkia Operations Ltd
Construction
21/11/2023 14/12/2023
National Bargaining and Disputes Support Unit
Where are we on strike?
Unite members are fighting for better jobs, pay, and conditions with fair and decent pay rises being essential during this cost of living crisis. This will continue over December with members at 23 workplaces balloting for action.
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Where are we on strike?
Facts and Figures
142
Employer
Sector
Ballot notice
TMD Friction UK Ltd
Automotive
23/11/2023 14/12/2023
Mitie Ltd
Construction
13/11/2023 18/12/2023
LEL Nuclear Ltd
Construction
13/11/2023 18/12/2023
Altrad Employment Services Ltd
Construction
13/11/2023 18/12/2023
Shepley Engineers Ltd
Construction
13/11/2023 18/12/2023
Kaefer Ltd
Construction
13/11/2023 18/12/2023
Hard Rock Scaffolding Ltd
Construction
13/11/2023 18/12/2023
Morgan Sindall Group Plc
Construction
13/11/2023 18/12/2023
P.C. Richardson & Co (Middlesborough) Ltd
Construction
13/11/2023 18/12/2023
PPS Electrical Ltd
Construction
13/11/2023 18/12/2023
Jacobs Field Services Ltd
Construction
13/11/2023 18/12/2023
Nuvia Ltd
Construction
13/11/2023 18/12/2023
Booker Retail Partners (GB) Ltd
RTCWL
20/11/2023 18/12/2023
Closing
Lockheed Martin UK, Strategic Sys- Aerospace & Shiptems Ltd ping
24/11/2023 18/12/2023
Atomic Weapons Establishment Plc
Aerospace & Shipping
24/11/2023 18/12/2023
Phinia Delphi UK Ltd
Automotive
16/11/2023 18/12/2023
Bank of Baroda (UK) Ltd
Finance
01/12/2023 21/12/2023
De La Rue Ltd - Bolton, Lancashire
GPM&IT
04/12/2023 02/01/2024
Airbags International Ltd
Automotive
29/11/2023 03/01/2023
AGGREGATE - Hitachi Rail Ltd - IPS
Docks, Rail, Ferries and Waterways
01/12/2023 04/01/2024
Mid Ulster District Council
Local Authorities
04/12/2023 04/01/2024
Guy's & St Thomas' NHS Foundation Trust
Health
01/12/2023 04/01/2024
Northern Ireland Railways Company Ltd
Docks, Rail, Ferries and Waterways
07/12/2023 08/01/2024
AGGREGATE - Junior Doctors in England
Health
28/11/2023 09/01/2024
National Bargaining and Disputes Support Unit
Facts and Figures
11.3 Other union disputes: ASLEF train drivers have voted overwhelmingly to continue strike action in their national dispute over pay
The dispute has been ongoing for 18 months, and 20 one-day strikes have already taken place. Mostly recently, ASLEF took industrial action across different train operating companies on 2, 3, 6, 7 and 8 December.174
Figure 62 ASLEF plaque outside their London central office175
ASLEF are in dispute with 16 companies in England, which are contracted to the Department for Transport.176
Where are we on strike?
In December, members of ASLEF, the train drivers' trade union, voted overwhelmingly to continue strike action in their national dispute over pay.173
The union has successfully struck pay deals with passenger train companies in Scotland and Wales, where transport is devolved. However, in England, the government and the train companies have failed to make an adequate offer. Train drivers have not had a pay increase since 2019.177
"We will continue to take industrial action until the train companies – and/or the government – sits down and negotiates with us in good faith." - Mick Whelan, ASLEF General Secretary
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SECTION TWELVE
NEGOTIATIONS 12.
Which negotiations take place this month?
12.1
Around 11,400 members will be negotiating with over 80 employers in December, including members at Stagecoach and Douwe Egberts 147
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147
Which negotiations take place this month?
Facts and Figures
145
Which negotiations take place this month?
Facts and Figures
146
Collective bargaining is still the tried and tested method of pushing up pay. Sharon Graham, Unite General Secretary
National Bargaining and Disputes Support Unit
12. Which negotiations take place this month? 12.1 Around 11,400 members will be negotiating with over 80 employers in December, including members at Stagecoach and Douwe Egberts Unite's Pay and Anniversary Date database, part of the Work Voice Pay suite of tools, can help us co-ordinate action across employers and sectors. By coordinating anniversary dates, we can benchmark pay rises and build power across our industries. While April, the start of the new financial year, is the most common time for pay agreements, thousands of members are negotiating every single month. This December there will be over 11,400 members at over 80 different employers negotiating their pay and conditions.The graph below shows the top 10 employers, by Unite membership numbers, where negotiations are due to take place in December 2023.
Which negotiations take place this month?
Facts and Figures
Figure 63 Top 10 employers (by approximate membership numbers) negotiating pay deals in December 2023, Source: Unite WVP
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Facts and Figures
Which negotiations take place this month?
High quality information is vital for coordinating action across industries. Unite is currently working on several projects to gather information and data to help our members win, as well as projects to make use of the data we already have.
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n Please submit details of your anniversary date to Work Voice Pay.
Figure 64 Manchester Stagecoach workers won a 16% pay rise in August this year after taking strike action and will hope to achieve another big win for 2024
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SECTION THIRTEEN
UNITE EMPLOYERS 13.
Who do our members really work for?
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13.1
480 publicly-listed companies ultimately employ around a third of our members
153
13.1.1 Ownership of the companies employing our members is highly concentrated, with eight investors together owning a combined 16% of these 480 companies 153 13.2
The biggest of these investors is BlackRock, which is the world's largest investment firm
154
13.2.1 BlackRock's enormous shareholdings make the company's billionaire boss, Larry Fink, one of the most powerful people on the planet 155 13.3
Over half of Unite's members are likely employed by companies headquartered outside the UK
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Who do our members really work for?
Facts and Figures
151
Who do our members really work for?
Facts and Figures
We need to understand who really makes the decisions that impact our members. Knowing where the power lies in a firm helps us understand who we need to move to win.
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Sharon Graham, Unite General Secretary
Facts and Figures
13.1 480 publicly-listed companies ultimately employ around a third of our members It is crucial for us to know who we are really bargaining with. While a company might claim that the site manager in Derby is the key decision maker, in reality it is the CEO in Detroit who ultimately holds power. Recent Unite research has uncovered the range of companies our Reps and Shop Stewards negotiate with. This month, we looked at which companies our members work for, and identified the ultimate owners of those companies. We then looked at which of these ultimate owners are listed on a stock exchange. We found that 480 publicly-listed companies ultimately employ around a third of Unite's members.
13.1.1 Ownership of the companies employing our members is highly concentrated, with eight investors together owning a combined 16% of these 480 companies We then looked at the top ten shareholders for each of the 480 listed companies. We found that ownership is highly concentrated: across these 480 companies, the top ten shareholders own 44.5% of total shares. We then looked at who the top ten shareholders for these companies are. We found that eight shareholders in appeared in the top ten list for multiple companies.Overall, these eight shareholders own shares in more than 96 (20%) of the listed companies our members ultimately work for, controlling a huge 15.5% of these 480 companies.
National Bargaining and Disputes Support Unit
Who do our members really work for?
13. Who do our members really work for?
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Facts and Figures Total shareholding Investor name
Who do our members really work for?
across the 480 companies
154
BlackRock Inc.
5.0%
Vanguard Group Inc.
4.7%
Capital Research & Management Co.
1.5%
State Street Global Advisors Inc.
1.3%
FMR LLC
1.1%
Norges Bank Investment Management
0.8%
Dimensional Fund Advisors LP
0.7%
Geode Capital Management LLC
0.4%
Total
15.5%
As is visible from the above table, BlackRock Inc. and Vanguard Group Inc. are particularly influential: together owning 10% of the 480 listed companies our members work for. What this means is that a small number of global investors wield tremendous influence over the companies our members are bargaining with.
13.2 The biggest of these investors is BlackRock, which is the world's largest investment firm BlackRock is the world’s largest investment firm, with a massive $9.4 trillion assets under management.178 To put that figure into context: it's larger than the pre-pandemic GDP of Germany and Japan combined.179 BlackRock is headquartered in New York, and has offices in 38 countries worldwide.180 The company manages the assets and makes investment decisions on behalf of pension schemes, insurance companies, and other investors.
National Bargaining and Disputes Support Unit
Figure 65 BlackRock global headquarters in New York181
BlackRock is predominantly a "passive" asset manager, which means that the investments it makes on behalf of others "passively" track particular markets. Unlike "active" funds, passive funds don't have a fund manager deciding which companies to invest in. So, for example, a particular BlackRock investment fund might invest in a representative sample of the FTSE 100, which is a list of the 100 largest corporations listed on the London Stock Exchange. A passive fund purchases shares in all of the 100 companies that are proportionate to their value in the FTSE 100 index. In doing so, it will "passively" replicate the performance of the FTSE 100. Under this model, if the combined share price value of the FTSE 100 grows by 5%, then the value of the passive fund will also grow by 5%.182183
13.2.1 BlackRock's enormous shareholdings make the company's billionaire boss, Larry Fink, one of the most powerful people on the planet
Who do our members really work for?
Facts and Figures
BlackRock isn't just faceless corporation - real people control it and benefit from it. The key decision-maker at BlackRock is the company's founder, CEO and Chairman: Larry Fink.184
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Who do our members really work for?
Facts and Figures
Figure 66 BlackRock CEO and Chair Larry Fink185
Larry Fink makes a killing from his role in BlackRock: in 2022 he received a pay package of $25.2 million, and his overall net worth is $1 billion.186 But BlackRock's vast shareholdings also allow Larry Fink and other BlackRock decision-makers to wield huge power over the companies BlackRock is invested in including many companies which our members work for. The kinds of decisions BlackRock have influence over include mergers and acquisitions, major investment decisions, and the appointment of company leaders. As Bloomberg have written, BlackRock and its leaders are "potentially the most powerful force over a huge swath" of the corporate world.187 The likes of Larry Fink could use this power for the benefit of our members, for example by encouraging collective bargaining at the companies it holds stakes in, or intervening in disputes to encourage a fair resolution. In reality, however, they prefer not to act. In recent years BlackRock has become increasingly hesitant about using its influence to take action on environmental and social issues.188 When we are negotiating with employers, we should remember the actors who really make the key decisions: the likes of powerful individuals like Larry Fink.
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Facts and Figures
We estimate that less than half (40.8%) of Unite members are known to be employed by companies headquartered in the UK - meaning the majority are likely employed by companies headquartered overseas. In a global capitalist system, employers of Unite members may be based anywhere in the world. While it may seem like we are bargaining with a local employer, the reality may be that we are dealing with a huge multinational.189 When we know who really owns the companies we work for, we can often identify additional pots of money that can be used for pay rises and learn the identity of the key decision makers we need to move. Unite's new Financial Insider tool has been set up to help reps better understand the financial story of their employer from the workers' perspective.
Who do our members really work for?
13.3 Over half of Unite's members are likely employed by companies headquartered outside the UK
Figure 67 Less than half of Unite's members are known to be employed by companies whose headquarters are in the UK. Country location of headquarters of Global Ultimate Owner. Source: Fame and Unite membership data.
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SECTION FOURTEEN
MARKET POWER 14
What market power do we have?
161
14.1
Collective bargaining has driven annual pay growth to between 7% and 8% 161
14.2
Demand for workers remains at historic highs, improving opportunities to push for large wage increases
163
14.3
Labour shortages are highest in the accommodation and food sector, while job growth is currently fastest in the water & waste and agriculture sectors 164
14.4
Just under a quarter of employees in the UK are trade union members, but Unite's membership is growing 166
14.4.1 Trade unions matter beyond the workplace: when workers organise, act, and win collectively, society benefits from reduced inequality
167
14.4.2 Actions speak louder than words: we grow membership where we take a stand
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What market power do we have?
Facts and Figures
159
What market power do we have?
Facts and Figures
160
Demand for our labour remains at historic highs. This gives us a clear opportunity to build power in the workplace: let's use it. Sharon Graham, Unite General Secretary
National Bargaining and Disputes Support Unit
Facts and Figures
14.1 Collective bargaining has driven annual pay growth to between 7% and 8% Newly-released figures from the Office for National Statistics show pay across the economy rose by 7.2% in August-October 2023 compared to the same period in 2022, or 7.3% excluding bonuses.190 This is far quicker than pay growth than before Covid. The collective action of workers has driven this rise, with Unite members in the vanguard. Double-digit pay deals such as those described in Section 1 on page 17 have pushed up the overall pay growth rate and inspired other workers to build their own workplace power.
What market power do we have?
14 What market power do we have?
Figure 68 Pay is increasing far more quickly than before the pandemic. Growth in average earnings for three months ending: regular pay (red), total pay (orange), average pay settlement (blue). Source: ONS and Income Data Research
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Facts and Figures
What market power do we have?
The impact Unite members' collective power and action has had on driving up wages is a major part of the picture. Unite's recent victories show how a committed focus on building power in the workplace leads to hard cash in our members' pockets. Evidence of the 'Unite Premium' that comes as a result continues to grow. Since Sharon Graham was elected General Secretary in August 2021, Unite members have secured over £430 million for members, winning over 80% of disputes.
"The ONS data is firm proof that collective bargaining with employers reaps rewards for working people, day in, day out.The stark reality is that millions of workers will still be looking at their payslips and wondering how they’re going to afford rising rents, mortgage payments and bills. The battle to push up pay is far from over and we will continue to fight hard, because, as we’ve seen, it works.” Unite General Secretary, Sharon Graham Policy-makers and bosses are already using the recent wage growth to justify punishing workers. The BBC's Economics Editor recently speculated that the Bank of England may use it as cover to hike interest rates again, inflicting further pain on workers with mortgages and loans.191 But the veil was lifted even more dramatically when a CEO’s comments went viral after he called for a rise in unemployment to “put arrogant workers in their place”.192 Tim Gurner, a multi-millionaire property developer, called for unemployment to rise by 50%. Besides showing his ignorance as to what such a dramatic and destructive effect such a policy would have on the economy, it also showed what many in the management class truly think. Only through collective action can workers protect themselves from these individuals who only care about their own power and money. ONS data on employment is currently under review due to concerns over its accuracy, but the latest semi-official data show the:193 n Employment rate was down by 0.1 percentage points to 75.7%; n Unemployment rate unchanged at 4.2%, which is still fairly low by historical standards; and n Economic inactivity rate unchanged at 20.9%.
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Facts and Figures
Labour shortages, as measured by the ratio of vacancies to jobs, remains high, which presents opportunities for workers in companies that are hiring. The vacancy ratio has been pushed higher since Covid by the number of workers currently outside the workforce due to long-term illness, with so-called 'economic inactivity' having risen by around 600,000 since 2019.194 Across the economy as whole, there are three vacancies for every 100 jobs (September-November 2023). Whilst this is down on the peak of around four vacancies witnessed during late 2021 and early 2022, demand for labour remains high195 compared to the last decade. A 'tight' labour market, where there are a high number of vacancies, can be leveraged by trade unions to increase workers' bargaining power and drive up pay and conditions.
What market power do we have?
14.2 Demand for workers remains at historic highs, improving opportunities to push for large wage increases
Figure 69 The rate of vacancies to jobs remains above its historical average, indicating that workers' bargaining power is strong. Source: ONS
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Facts and Figures 14.3 Labour shortages are highest in the accommodation and food sector, while job growth is currently fastest in the water & waste and agriculture sectors
What market power do we have?
A fast rate of job growth is often a sign of a fast-growing sector of the economy and one where workers are in the highest demand. Over the past year, the number of jobs has grown most rapidly in the 'water' sector, which includes sewage, waste management and recycling. Reps can use rising job growth and vacancies as an opportunity to make sure that all new jobs are trade union jobs that come with decent pay, conditions and collective bargaining rights.
Figure 70 There has been a 12% rise in water, sewage and waste jobs over the past twelve months. Source: ONS
It can also be useful to take a longer view to see where the demand for labour has been growing most quickly over the past ten years, as this may indicate industries where workers can demand larger pay increases. Looking at the past decade, it's clear that the current growth in water, sewage and waste jobs is part of a longer-term trend, but that hospitality and IT workers have also seen strong demand for labour in their industries.
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Figure 71 The past decade has seen rapid growth in water & waste jobs but also in hospitality, including pubs and restaurants. Source: ONS
Vacancies are also high in hospitality and high by historical standards for extractive and public administration jobs. High vacancy rates present immediate collective bargaining opportunities drive up pay, conditions and standards. These opportunities can vary sector by sector. For example, the vacancy rate in Hospitality presents the opportunity to organise and increase collective bargaining within a sector with low union density.
What market power do we have?
Facts and Figures
Figure 72 Vacancy ratio by sector, Top 10. Source: ONS
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Facts and Figures
What market power do we have?
It can also be useful to compare vacancy ratios to their historical average: how much higher or lower is the vacancy ratio than it normally is in that sector. Figure 73 below shows how much higher vacancy ratios are compared to their levels before the pandemic: extraction (mining & quarrying, including North Sea oil) and public administration (which includes defence) staff are in a much stronger bargaining position at the moment than they were 2015-2020.
Figure 73 Vacancy ratio by sector relative to average vacancy ratio 20152020, Top 10. Source: ONS
14.4 Just under a quarter of employees in the UK are trade union members, but Unite's membership is growing Unite is at the vanguard of the fight to rebuild union power by arresting the overall decline in union membership. For the first time since its foundation in 2007, Unite has recorded membership growth in back-to-back quarters. In fact, Unite's membership grew in 5 consecutive quarters between Q3 2022 and Q3 2023.196 The level of union membership – both at individual workplaces and in the country as a whole – is a key factor in the ability to drive up pay and improve conditions. The more we can grow our membership, the stronger we will be at the bargaining table.
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Facts and Figures
Unite's membership growth stands in contrast to a small overall membership decline across the wider UK trade union movement in the last year. Overall, the proportion of UK employees who were trade union members was 22.3% in 2022, the latest year statistics are available. This amounts to a total of 6.25 million union members across the UK, down by 200,000 compared to the previous year.197
Figure 74 UK trade union membership 2016 to 2022. Source: ONS
14.4.1 Trade unions matter beyond the workplace: when workers organise, act, and win collectively, society benefits from reduced inequality
What market power do we have?
This growth correlates with the renewed focus on winning industrial disputes and building workers' power since the election of Sharon Graham as General Secretary in August 2021.
Over the last 50 years, the UK has seen a general decline in union membership. This has been accompanied by a huge increase in inequality, which remains high to this day. What that effectively means is that as workers' bargaining power declines, employers take a bigger piece of the pie and working people lose out.
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Facts and Figures
What market power do we have?
Attacks on trade unions by politicians and employers since the 1980s haven't just hurt members, they've hurt the whole country. This is shown in the chart below.
Figure 75 As union density (in red) started to decrease in the 1980s, inequality (in orange) grew. It has remained elevated ever since. Source: ONS and Government Trade Union Statistics.198
In the post war years, inequality in the UK declined, as trade union membership grew.199200 Just as in the 1980s, working people lost out as the union movement declined in power; in the 50s and 60s workers' lives improved as trade unions grew more powerful. We need to organise to increase our membership and collective bargaining coverage, not just for union members but also for everyone else in the country.
14.4.2 Actions speak louder than words: we grow membership where we take a stand So far, Unite's three fastest-growing industrial sectors this year are Civil Air Transportation, Aerospace & Shipbuilding, and Community, Youth Workers & Not for Profit. It is no coincidence that these sectors have seen important pay and organising victories that have grown our membership and power. Civil Air Transportation has seen the largest increase this year, with membership up a whopping 13%. This is a result of workers at airports across the country standing up and demanding better deals.
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Facts and Figures
One example of success is when members at Menzies Aviation won a 9% raise in September, accompanied by temporary staff moving onto permanent contracts.
The Community, Youth Workers and Not for Profit sector has also seen a 5% membership increase so far this year - an active year for our members in the sector. Wins at St Mungo's and Magenta Living have been accompanied by securing national recognition agreements at the likes of Mears. Actions like these drive confidence across our movement, growing our membership and our power.
National Bargaining and Disputes Support Unit
What market power do we have?
Aerospace and Shipbuilding saw a 5% increase in membership. In June, workers at Babcock Devonport won a 13% pay rise: another example of action leading to membership growth.
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SECTION FIFTEEN
PROFITS 15.
What is happening to company profits?
173
15.1
Companies are squeezing wages while enjoying huge increases in profits, which are up 175% compared to 2020 173
15.2
Utilities companies and banks are raking it in while food brands have been caught profiteering
174
15.2.1 BP and Shell have posted massive profits totalling £110 billion over the last two years 174 15.2.2 The CMA has reported that food producers are profiteering, but has taken no action
175
15.2.3 Profits of the big four banks are 79% higher than a year ago, and members should demand more in upcoming pay rounds
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What is happening to profits?
Facts and Figures
15.2.4 Water companies are raking it in, recording combined operating profits of £2.2 billion in 2023 177 15.3
UK companies invest far less than their peers, with investment levels averaging just 17.9% of GDP, compared to 20%+ in comparable countries
15.3.1 Economics Explainer: Investment is a collective bargaining issue National Bargaining and Disputes Support Unit
179 182 171
What is happening to profits?
Facts and Figures
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Workers’ wages, and what they can afford to buy with them, are being squeezed by corporate profits. Workers create a firm's value and we can win our fair share of it through collective bargaining. Sharon Graham, Unite General Secretary
National Bargaining and Disputes Support Unit
Facts and Figures
15.1 Companies are squeezing wages while enjoying huge increases in profits, which are up 175% compared to 2020 In the aftermath of the pandemic, many companies have enjoyed huge profits, while pay has failed to keep up with inflation. Annual pre-tax profits hit £328 billion in 2022. These profits show that bosses have a clear ability to meet Unite members' pay demands. Unite has a number of Work Voice Pay tools that can help identify the sometimes hidden profits of employers.
What is happening to profits?
15. What is happening to company profits?
Figure 76 Profits have quickly recovered, and now exceed pre-Covid levels. Pre-tax profits of selected UK companies (in £). Source: CapitalIQ
Our analysis of the combined profits of around 750 UK companies shows that while profits dipped during the pandemic, by 2022 they had more than recovered - rocketing ahead of the levels recorded in the immediate pre-pandemic years. Combined pre-tax profits at these companies have grown by 51% since 2019, reaching a
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Facts and Figures
What is happening to profits?
whopping £328 billion in 2022. When compared to their low point in 2020, pre-tax profits have grown by 175%. Cumulative RPI inflation during the period 2019 to 2022 was 18%. Even when this inflation is factored in, the combined profit figure for 2022 was £72 billion more than in 2019. The huge profits these companies have enjoyed have come at the expense of workers' pay, which has failed to keep up with inflation. These eye-watering profits show that many employers have the ability to pay, making a mockery of the narrative being put forward that it is workers who should pay for the crisis. Even figures within the financial world are admitting that 'greedflation' - companies taking advantage of the cost of living crisis to boost their profit margins - exists. The Bank of England, no less, admitted in September that 45% of the companies it surveyed said they were planning to increase their margins in the next 12 months. That could mean that inflation remains higher for longer.201 Not content with driving up prices over the last 18 months, the profiteers are now plotting another smash and grab at workers' expense.
15.2 Utilities companies and banks are raking it in while food brands have been caught profiteering 15.2.1 BP and Shell have posted massive profits totalling £110 billion over the last two years As we head into winter, people's fuel costs will rise. Inflation over 12 months may make it look like things are improving, but prices are still 81% higher than they were in March 2021202, and are set to increase again in January. Those price increases go straight into the pockets of big oil companies and their shareholders.203, When energy prices rose around the start of the war in Ukraine, it unleashed a profit bonanza for the UK's two biggest oil companies. Since the start of 2022, Shell has raked in £79 billion, while BP has earned £31 billion.204 Shell's average profit in 2022-2023 was almost 9 times higher than in the preceding 3 years. Meanwhile, BP have been more than making up for the modest losses they were making in 2019-2021.205 These two companies should have no hesitation in meeting our members' pay demands.
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Figure 77 Profits at Shell and BP were multiple times higher on average in 2022 and 2023 (in red) than the preceding 3 years (in blue). Comparing the first three quarters of each year as Q4 2023 is not yet available. Source: Unite analysis of company accounts.
These two companies' profits are 'earned' without the companies needing to take any action. But when energy prices go up, so do the prices of everything that uses energy. These two companies sit at the root of the profiteering crisis, driving up prices across the economy while the companies' shareholders hoard their wealth.
15.2.2 The CMA has reported that food producers are profiteering, but has taken no action
What is happening to profits?
Facts and Figures
Three quarters of branded food manufacturers have been pushing up the prices they charge by more than their costs increased, according to the CMA (Competition and Markets Authority).206 This confirms what Unite has been saying all along, that companies, not workers, caused the inflationary crisis.207 The worst offenders identified by the CMA report were baby formula companies. Parents were forced to swallow price rises of 25% due to a lack of competition in the market. Nestle and Danone, who control 85% of the UK market, paid out over £360 million is dividends in 2022.208
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Facts and Figures However, the CMA is once again showing its lack of ability to act against profiteering. The so-called 'regulator' responsible for strengthening business competition and preventing and reducing anti-competitive activities will not be following up or acting on its findings, other than to 'examine further' whether the cost of baby formula was driven by poor competition.209
What is happening to profits?
What they're essentially saying is that they don't care about profiteering, only whether it's driven by a toothless regulator. Unite General Secretary, Sharon Graham, said:
15.2.3 Profits of the big four banks are 79% higher than a year ago, and members should demand more in upcoming pay rounds
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“Shockingly, the CMA is failing to take any real action to deal with these companies who have caused food prices to spiral by 30 per cent over the last three years. Unite will campaign for a new people’s regulator with the power to set fair prices and cap fat cat pay, in other words, a regulator that can act in the interests of the public.”
The big four high street banks have reported combined profits of £41 billion for the first 9 months of 2023.210 This is 79% higher than they reported for the same period in 2022, when profits were £23 billion. A company recording massive profits is solid evidence of an ability to pay for members in their bargaining round. Workers in companies recording eye-watering profits such as these should be demanding pay increases at least in line with inflation.
Figure 78 Profits have increased on the same period last year. Q1-Q3 2022 (in blue), Q1-Q3 2023 (in red). Source: Unite analysis of company accounts
What is driving these higher profits? The increased interest rates which we are paying on our mortgages, loans and credit card bills are playing a major role in increasing profits. While the banks enjoy better returns, those with savings will be seeing the value of these savings drop, as inflation will wipe out any extra interest payments. It is the banks themselves that are winning from the hike in interest rates - as their profits show.
What is happening to profits?
Facts and Figures
15.2.4 Water companies are raking it in, recording combined operating profits of £2.2 billion in 2023 The eight largest water companies reported combined operating profits of £2.2 billion in 2023. Over the last ten years they made an average operating profit margin of 30% - higher than most other industries would make - and average profits after interest costs was £1.3 billion.211 This shows there is major scope for workers at these companies to negotiate significant pay increases - the companies can certainly afford to pay.
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Facts and Figures Water companies often argue that they need to secure high profits so they can finance infrastructure improvements - however 90% of infrastructure investment has been financed by debt over the last five years, and the companies' assets are 84% funded by debt.212
What is happening to profits?
What this means is that rather than using their high profits to pay for infrastructure investment, they're financing this investment through debt - which means the profits are going elsewhere. In fact, we know exactly where these profits are going: to shareholders. An average of 78% of profits have been paid to shareholders over the last five years, with £1.4 billion paid out in 2022/23 alone. Yorkshire Water, for example, has paid out a massive 173% of profits to shareholders over the last five years.213 And who are these shareholders? International investors. The following map shows how the biggest shareholders of English water companies are scattered all over the world:214
Figure 79 Countries where owners of English water companies are based
This situation is the direct result of rampant privatisation - in Scotland and Wales water companies are run on a 'not-for-profit' basis, while all seven English companies are either privately owned or listed on the London Stock Exchange. Clearly, these companies should be run for public need, not corporate greed. On top of their huge payouts to shareholders, UK water companies have been seriously criticised in recent months for discharging raw sewage into seas and rivers, with the water regulator - Ofwat coming under fire for failing to robustly challenge them.215 Commentators have raised concerns about a 'revolving door'
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Facts and Figures
In short, water companies are recording massive profits and using these profits to pay out huge dividends instead of using them to invest in the water network or in their workforce. The result: underpaid workers and continual discharges of raw sewage into seas and rivers. Unite members at these water companies can use collective bargaining to demand that, instead of profits flowing to international investors, they should be reinvested in a fair deal for workers and the public.
15.3 UK companies invest far less than their peers, with investment levels averaging just 17.9% of GDP, compared to 20%+ in comparable countries Investment rates have been declining internationally for decades. This is particularly true for the UK, where investment is now significantly lower than other countries in the Organization for Economic Co-Operation and Development (OECD) group of advanced economies.216
What is happening to profits?
between the top management of the water companies and Ofwat officials.
Figure 80 Investment in the UK as a percentage of GDP is lower than in other highly industrialised countries. UK (in red), US (in blue), OECD (in orange), France (in green), Germany (in light purple), 1970 to present. Source: World Bank
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What is happening to profits?
At the bargaining table, company bosses will often say that they need to make profits in order for firms to be able to invest for the future. This might be a more convincing argument if companies actually used the profits they make for investment. While dividend payouts have risen, between 1970 and 1990, UK annual investment levels averaged 23.7% of GDP, but after 1990 this fell by a quarter, to an annual average of just 17.9%. In contrast, other major OECD economies have, on average, kept their investment levels above 20% of GDP, significantly ahead of what the UK is investing, as the above chart illustrates.217 Investment in industry matters because without it, communities are torn apart- as can be seen across many deindustrialised areas across the UK. Lack of investment means lack of opportunities and well paid jobs.Unite will continue to push for investment and rebuild our left behind communities. Some of the explanations of why investment has declined in the UK since the 1980s include:218 Globalisation: investment may have shifted away from rich countries into new developing economies with lower costs and fast 'catch-up' growth rates.
Decline of the public sector: the rise of free market politics and economic arguments have meant politicians have shrunk public investment, focusing on reducing fiscal deficits. This has meant declining public investment; but also, declining state support for business investment.
Management short-termism: some writers see a change in business cultures away from long-term planning and towards an emphasis on short-term profit returns for shareholders. This is incentivised by, for example, executive pay linked to share price movements.
Financialisation: Since the 1980s there has been dramatic growth of the financial sector, including banks, but also newer financial institutions such as fund managers and so-called 'shadow banks'.
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Facts and Figures
All of these possible causes point to two conclusions: our economic system is not set up to encourage investment; nor is it able to direct investment where it is most productive. Unite will keep pushing back against politicians who are failing to deliver public investment - including the Labour Party, who seem hell bent on getting into bed with big business at all costs. Labour's Shadow Chancellor, Rachel Reeves, recently announced that for every pound of public investment a Labour government would put into their proposed national investment fund, they'll need £3 from the private sector.219 For the reasons outlined above, it's unrealistic to rely on the private sector to deliver this - let alone to deliver the kind of strategic investment needed to turn British industry around. Sharon Graham responded at the time of the speech by saying:
"Labour is trying to dress this up as a new strategy, but for decades successive governments have relied on the private sector to invest. All it’s achieved is chronic underinvestment and crumbling infrastructure. To change people’s lives following thirteen years of Tory chaos, Labour needs to make different choices.” - Sharon Graham, Unite General Secretary
What is happening to profits?
But at the same time as finance has ballooned, it has been failing in its traditional role of directing savings into productive investment. Instead, many argue the swollen finance redirects capital into short-term profit-seeking and speculative bubbles.
Unite is also pushing hard for public investment in specific industries, most notably in steel. We're demanding £12 billion for the industry, and our calculations show that this would pay itself back in as little as 10 years. But not only would it be fiscally neutral: it would turn the UK into the global green steel capital and, most importantly, save thousands of jobs. n Join the Fight for UK steel here
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Facts and Figures 15.3.1 Economics Explainer: Investment is a collective bargaining issue
What is happening to profits?
When we talk about investment, we don’t mean it in the general sense of ‘investing in Britain’ or financial investing. We’re talking about when companies add to the stock of what’s measured as ‘capital’: the tools workers have at our disposal on the job – whether it’s a crane, an assembly line, a bus or a laptop.
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Investment can be great for workers. It can make our jobs easier or more pleasant. It can mean we produce things more quickly. In a workplace with a strong union, this increased productivity should translate into higher wages – if we can bring in 50% more revenue to the company we should be paid 50% more. There are alternative ways to benefit from more investment: instead of producing more, union members might negotiate a shorter working week if investment means it now takes less time to produce the same amount of output. Investment may also be good news for bosses: they can expand operations, produce more things and make more profit. But they can also use investment make employees redundant: look at the reduction in supermarket till staff since automated check-outs have been rolled out. The last decade has seen weak levels of business investment: with wages kept down, employers have preferred to take on low-paid, often part-time staff on zero-hours contracts rather than investing in hardware to make existing employees work more efficiently. So investment is good news for staff if it’s a route to better and higher-paid work, but not if it leads to redundancies. A low investment economy hasn’t delivered for workers, but the key is workplace power and organisation, high trade union density and putting company investment strategy on the bargaining table.
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SECTION SIXTEEN
CEOs AND SHAREHOLDERS 16. 16.1
How much of the pie is going to CEOs and shareholders?
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FTSE 100 chief executive pay in 2022 was 118 times that of the average worker
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16.1.1 Astrazeneca boss Pascal Soriot topped the CEO fat cat league in 2022, raking in over £15 million 187 16.2
Shareholders are enjoying a dividend bonanza, while workers' pay lags behind
16.2.1 Several companies have recently announced large dividend payouts, including €400 million for shareholders of Ryanair
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UK companies paid out £55.5 billion in cash to shareholders in 2022 through share buybacks
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16.3.1 Two 'aggressive' £8 billion share buybacks have recently been launched by RTX and General Motors
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Accountant's Corner: Shareholder Benefits
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16.3
16.4
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How much of the pie goes to CEOs and shareholders?
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CEOs are being highly rewarded for overseeing greedflation and shareholders are getting rich from it. Unite research has repeatedly shown that profiteering is a key cause of higher inflation. We have to ask ourselves, who is the economy for? Workers and communities merely existing isn't good enough. Sharon Graham, Unite General Secretary
National Bargaining and Disputes Support Unit
16. How much of the pie is going to CEOs and shareholders? 16.1 FTSE 100 chief executive pay in 2022 was 118 times that of the average worker Whenever management says a decent pay rise isn't affordable, reps are entitled to hit back: "well, how much are you getting?" More than likely, the answer will be "a damn sight more than you!" The average FTSE 100 chief executive was paid well over £3 million in 2022, or 118 times more than their average worker. CEO pay has been surging in the last few years, jumping 16% in 2021 to the highest level since 2017. By comparison, the average wage increased by just 6.7% in that time.220221 The disparity in income has reached ridiculous proportions: it would take just 30 hours for a FTSE 100 CEO to earn what a typical UK worker earns in a year. Too much money is going into the pockets of the bosses and pay claims need to be making clear it is time for workers to get their fair share.222
16.1.1 Astrazeneca boss Pascal Soriot topped the CEO fat cat league in 2022, raking in over £15 million According to the Annual Survey of Household Earnings (ASHE), the highest paid group of workers are ‘Chief executives and senior officials’, with annual median income of £79,835, comfortably more than double that of all other groups of employees.223
National Bargaining and Disputes Support Unit
How much of the pie goes to CEOs and shareholders?
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How much of the pie goes to CEOs and shareholders?
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Obscene executive salaries are a sure sign that a company has the ability to meet our members pay demands. The top ten highest paid CEOs or directors in the FTSE 100 are listed below. Company
CEO
Pay (£m)
AstraZeneca
Pascal Soriot
15.32
BAE Systems
Charles Woodburn
10.69
CRH plc
Albert Manifold
10.38
BP
Bernard Looney
10.03
Experian
Brian Cassin
9.94
Shell plc
Ben van Beurden
9.70
British American Tobacco
Jack Bowles
9.62
Anglo American plc
Mark Cutifani/ Ducan Wanblad
9.54
Endeavour Mining
Sebastien de Montessus
8.99
GSK plc
Emma Walmsley
8.45
16.2 Shareholders are enjoying a dividend bonanza, while workers' pay lags behind Between 1987 and 2007, dividend payments across British firms averaged just under 20% of annual profits. Since 2008, they have averaged almost 35%.224 Every pound that is gifted to shareholders is a pound taken out of a worker's pocket. Profits generated by workers are lining the pockets of shareholders rather than boosting pay. Unite members in companies that are paying out handsome dividends should be demanding this money goes into a pay increase that at least meets the cost of living.
National Bargaining and Disputes Support Unit
Figure 81 Companies are paying a huge share of their profits to shareholders in dividends. Percentage of profits paid out in dividends in the UK by non-financial corporations (in red), with selected averages (in blue), 1987-2022. Source: National Accounts, ONS.
While dividends as a share of the total earnings of non-financial corporations in the UK declined from 42.2% to 30.8% between 2015 and 2022, this remains well above historical levels. In 1987, for example, the share was comparatively small, at just 11.9%.225 During the pandemic in 2020, there was a so-called ‘dividend drought’. But the drought appears to be well and truly over: the top 100 listed companies that constitute the FTSE100 index paid out £79.1 billion in dividends in 2022. Market analysts forecast their shareholders will have enjoyed another £78.7 billion by the end of 2023.226 It is no coincidence that some of the sectors that have paid out the largest dividends recently were in parts of the economy that explicitly profited from the cost of living crisis:227 n Banks accounted for one-quarter of the total increase in 2022;
How much of the pie goes to CEOs and shareholders?
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n Oil companies paid out 20% more than the previous year;
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n Mining companies paid out record sums in the first half of 2022, accounting for £1 in every £6 distributed to investors. Companies that are forecasting the largest dividends per share in 2023 - most of whom are Unite employers - include:228 n Financial services firms Phoenix Group, M&G, Legal & General, Aviva and HSBC; n Tobacco firms British American Tobacco and Imperial Brands; n Telecoms firm Vodafone; n Commodities trading firm Glencore; n Construction firm Taylor Wimpey. Use Work Voice Pay's new Financial Insider tool to find out how much your employer is paying out in dividends.
16.2.1 Several companies have recently announced large dividend payouts, including €400 million for shareholders of Ryanair In the last month, several companies have announced large dividend payouts, including: Ryanair, which outlined plans to pay a regular dividend for the first time, as the company cashed in on its busiest ever summer. The regular dividend would start with €400 million paid out to shareholders over the next year.229
Easyjet, which announced a dividend per share of 4.5p, amounting to a total payout of £34 million.230
Commodity trader Trafigura, which will pay out a record $5.9 billion dividend to the company's 1,200 shareholders, amounting to a whopping $4.9 million per share.231 When companies are returning so much cash to shareholders, the workers who generate that cash should be demanding that they get their fair share.
National Bargaining and Disputes Support Unit
16.3 UK companies paid out £55.5 billion in cash to shareholders in 2022 through share buybacks Share buybacks are another way for companies to splash out cash to their shareholders instead of their workers. According to the Financial Times, European companies have been “buying their own shares in spades.”232 In the UK, share buybacks reached £55.5 billion in 2022. Share buybacks globally were 52% of the size of dividends in 2012, but in 2022 they were almost 94%.233 A share buyback happens when a company 'buys back' its own shares from its shareholders. Shareholders receive hard cash in return for a number of shares, which the company then cancels. This means shareholders' overall stake in the company has not changed as the total number of shares has gone down in the same proportion as their individual holding.234 Share buybacks are important for bargaining as they highlight a company's ability to pay. The cash should be going into a pay rise for workers instead.
Figure 82 Share buybacks have almost doubled in the last decade. Share
How much of the pie goes to CEOs and shareholders?
Facts and Figures
buybacks, as a percentage of dividends, 2012 versus 2022. Source: FT
Buybacks tend to reflect exceptional rather than sustained profits.235 So, if a company is celebrating an exceptionally National Bargaining and Disputes Support Unit
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How much of the pie goes to CEOs and shareholders?
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good year, workers need to ensure they are demanding their share of the rewards at the bargaining table rather than shareholders enjoying another pay day. Across the economy, profiteering companies are using their bumper profits to boost the riches of wealthy shareholders rather than reinvest in operations or their workers: n Shell and BP alone accounted for £22 billion of share buybacks in 2022, while big banks like Lloyds, Natwest and Barclays gave away £5.5 billion to shareholders in buybacks.236 n Shell has committed to return up to 30% of its cash flow to shareholders through dividends and share buybacks.237 n On the back of spiralling food prices, Tesco has also committed to a major share buyback programme worth £750 million by 2024, bringing the total amount of share buybacks since October 2021 to £1.8 billion.238
16.3.1 Two 'aggressive' £8 billion share buybacks have recently been launched by RTX and General Motors In the last two months alone, two huge £8 billion ($10 billion) share buyback programmes have been announced. The Wall Street Journal has described the buyback programmes as "aggressive", on account of their size and speed.239 Aerospace and defence company RTX announced that it was buying back stock under an accelerated purchase programme.240
Auto manufacturer General Motors also announced an identical share buyback programme, as well as increasing its dividend. Analysts described the buyback as "massive".241 Shell also announced another £2.8 billion ($3.5 billion) in share buybacks over the three months from November.242 If companies have cash to spare for "aggressive" share buybacks, then they certainly have cash available for wage increases, and workers can use this evidence when negotiating with their employers.
National Bargaining and Disputes Support Unit
16.4 Accountant's Corner: Shareholder Benefits Companies are owned by their shareholders, and the rewards for ownership are plentiful and come in many forms. Knowing the difference between them can help identify evidence of a company's ability to pay. Dividends are probably the best known reward for shareholders. Dividends are a share of the company’s profits, and can be paid out to shareholders annually or less frequently. When dividends are paid, this means that there is less money remaining in the company for investment (for instance in new plant or equipment), or to cover any loss-making years. Dividends can only be paid out of profits, but they can be paid out of previous years’ profits as well as the most recent year’s profit. So, in a loss-making year, a company could still pay a dividend if it had not paid out all of its profit in dividends in earlier years. When a company has cash to spare, they often carry out a share buyback of their own shares. Buybacks reduce the number of shares in circulation, so shareholders end up with a larger stake in the company, and higher dividends in future (because the profits are then divided between fewer shares). Buybacks usually push up the share price.
How much of the pie goes to CEOs and shareholders?
Facts and Figures
Figure 83 Shareholder rewards are on the up
Where shares are traded on a stock exchange, a lot of attention is paid to the share price. This is because shareholders will gain from National Bargaining and Disputes Support Unit
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How much of the pie goes to CEOs and shareholders?
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a price increase – as they can sell their shares for a higher price than what they paid for them, and pocket the profit. Where a company is privately owned, shareholders can see huge gains if the company is sold (or partly sold) to different owners. If a company’s profits or market share are growing over time, there will also likely be an increase the value of the company. This means that if the company is bought by different owners, the old shareholders will end up with far more money that they originally invested. The gains from this can be very large, which is why private equity firms can deliver huge profits to their investors. Shareholders often make loans to the companies they own, and then charge interest way above the going rate. Interest on loans can provide a stable income stream for investors, as it will be paid whether a company makes a profit or not. Shareholders can even benefit when the company they own is making a loss. This is because losses made by one company can be used to offset profits made by a different company they ownto reduce the tax bill at the profitable company. Greedy bosses will always try to plead poverty in pay negotiations, but Unite is fully committed to exposing a company's true ability to pay, especially when it chooses to reward shareholders over those that create the wealth: the workers.
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SECTION SEVENTEEN
GLOBAL ECONOMY 17.
What is happening in the global economy?
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17.1
Economic growth in the UK's largest export partners is expected to continue in 2024, including a 1.5% increase in the US 199
17.1.1 Exports are nearly a third of the UK's national income 200 17.2
Supply chain disruptions are close to normal levels, improving companies' ability to pay
202
17.2.1 Brexit has introduced trading frictions between the UK and EU, but it's not clear there has been any permanent change to exports to the EU 203 17.3
The cost of inputs is falling, which means more money available for paying staff 204
17.3.1 Global input prices have fallen in recent years and companies' borrowing is expected to get cheaper
206
The value of the British pound fell compared to the U.S. dollar, benefitting companies that export
208
17.4
What is happening in the global economy?
Facts and Figures
17.4.1 The price of British exports relative to imports is at the highest level in years meaning more profits for exporters 209
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For many of our employers, sales markets are growing and input costs are falling: this gives us power at the negotiating table. Sharon Graham, Unite General Secretary
National Bargaining and Disputes Support Unit
17. What is happening in the global economy? 17.1 Economic growth in the UK's largest export partners is expected to continue in 2024, including a 1.5% increase in the US The UK exports the most to the United States.The US economy has proven more resilient than widely forecast in 2023, and GDP is expected by the International Monetary Fund (IMF) to grow by 2.1% in 2023 and 1.5% in 2024.243 In addition to many services, among the largest goods commodities the UK exports to the US are machinery & transport equipment, chemicals and mechanical machinery.244
Figure 84 The UK's largest export markets (red bars )with, on the right,
What is happening in the global economy?
Facts and Figures
their projected GDP growth rates for 2024 (in blue text). Source: ONS; GDP forecasts taken from International Monetary Fund, October 2023 Economic Outlook
According to the IMF, all of the UK's top export partners will see their economies grow in 2024, including over 3%+ growth in Ireland and China.245Strong growth rates in an export partner
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Facts and Figures
What is happening in the global economy?
suggest that the demand for UK-produced goods and services may increase, meaning more money available at the bargaining table for workers in those exporting firms. Most of the UK's top export partners are among the richest countries in the world, which also suggests some stability in export demand. Information on global economic health and key markets for international and multinational companies can help Reps push back against the bosses' argument that "we don't have the money to give you a decent pay rise". Work Voice Pay tools like Unite's Financial Insider can help reveal the truth about where your employer's money and power lie.
17.1.1 Exports are nearly a third of the UK's national income Even though the UK runs a trade deficit overall - buying more from abroad than we sell abroad - exports still make up nearly a third of GDP, i.e. a third of national income in a year comes from selling things to other countries.246
Figure 85 The UK's trade balance (green line) has been negative for most of the last few decades. Trade in goods balance, excluding precious metals (blue columns), Trade in services balance (red columns). Source: ONS
The UK imports the most from the United States, Germany, China and the Netherlands, which together account for over £300 billion in imports.247
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Figure 86 Largest export countries for UK imports 2022. Source: ONS
There are only a handful of the UK's top trading partners where the amount we export is larger than the amount we import (a trade surplus). China, Norway and Germany stand out as nations where the value of UK imports from that country far exceed the value of our exports, i.e. a trade deficit.248
What is happening in the global economy?
Facts and Figures
Figure 87 With most of our top trading partners, the UK imports more than it exports. The chart represents the value of trade balance: UK exports minus imports from that country for 2022. Source: ONS
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What is happening in the global economy?
17.2 Supply chain disruptions are close to normal levels, improving companies' ability to pay Over recent years, exiting the European Union, the pandemic, higher energy and commodity prices, and other events have led to supply chain disruption. These disruptions affect workers in terms of the prices we pay for goods, but they also affect workers who may lose hours if the lack of a key component stops or slows production or the delivery of services. Bosses are often keen to use disruption as negative context for offering less in pay negotiations. But supply chain disruption is now below normal levels, according to the New York Fed’s Global Supply Chain Pressure Index (see Figure 88 ), which looks at delivery times, backlogs and inventories from manufacturing purchasing managers’ indices across the world.249 Global supply chain pressures were close to their historic average levels - indicated by a zero reading - in November 2023: well below the peak supply chain disruptions of late 2021.
Figure 88 Global supply chain pressures have eased since 2022. Source: Federal Reserve Bank of New York Global Supply Chain Pressure Index
The proportion of UK businesses reporting supply chain disruptions has been falling from the highs of the past few years. Less than 5% of businesses with 10 or more employees reported disruption in the
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Facts and Figures
Figure 89 The percentage of British businesses reporting supply chain disruptions has been falling steadily. Source: ONS
17.2.1 Brexit has introduced trading frictions between the UK and EU, but it's not clear there has been any permanent change to exports to the EU It is no secret that Brexit put the UK's trade relations into a state of uncertainty. Making firm conclusions about the long-term impact of Brexit is difficult, because the post-Brexit period has also coincided with Covid-19 and the war in Ukraine, both of which affected trade in energy and energy-intensive goods. However, in regular ONS trade publications, quarterly trade by goods is divided into EU and non-EU which means we can look at what's happened to these two areas since Brexit. Unfortunately, services trade is not published separately.251
What is happening in the global economy?
second half of October 2023.250 The data clearly shows that employers can no longer say that supply chain disruption is impacting their ability to pay.
Total trade with the EU fell in the first quarter of 2021, after the Brexit transition period ended. However, it is not clear from the graph of goods trade below that there has been any permanent National Bargaining and Disputes Support Unit
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What is happening in the global economy?
Facts and Figures change to goods imports from the EU, which have held up more strongly lately than imports from outside the EU, implying that British firms overall have not struggled with obtaining supplies from Europe. Exports to the EU have been weak in recent quarters, but so have exports to the Rest of the World, so it's not clear that goods producers can blame Brexit for any poor deals they offer our members.252
Figure 90 UK monthly imports (red) and exports (blue) with the EU (solid lines) and the rest of the world (dotted lines), £billion. Source: ONS
A recent report in the Financial Times suggested that small and medium-sized firms are not prepared for changing EU regulations, which would suggest that many employers ought to be paying more attention and should not be making workers pay for unexpected costs they find.253
17.3 The cost of inputs is falling, which means more money available for paying staff Input cost inflation was -2.6% in November 2023 – significantly below the peak level of 24.5% inflation in June 2022. This shows goods manufacturers' inputs actually falling in price compared with a year ago. A reduction in costs for companies reduces the pressure on a firm's day-to-day operations and can be used by workers as another
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Facts and Figures
Figure 91 Input Producer Price Index (in red) annual inflation has been in decline since summer 2022. Output Producer Price Index (in blue), 2017 to present. Source: ONS
The main source of data for manufacturing companies' input costs is the ONS Producer Price Index (PPI). It includes input prices (those paid by manufacturers) and output prices (those charged for manufactured products at the factory gates) for UK companies.254 Input costs rose sharply in 2022 due to the increase in energy prices, but the rate of inflation has fallen since the summer of 2022 and turned negative (i.e. 'deflation', or prices lower than a year earlier) in June 2023.255 The table on the next page shows annual inflation/deflation for selected producer inputs.256
National Bargaining and Disputes Support Unit
What is happening in the global economy?
argument for decent pay rises and against the argument that employers can't afford to give them.
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Facts and Figures Input prices
12-month inflation rate
Food (Imported)
8.1%
Other Inputs
2.5%
Fuel
2.4%
Other Parts/Equipment
1.6%
Food (Domestic)
-2.6%
Metals and Non-Metallic Mineral Products
-2.6%
Other Produced Material
-4.8%
Crude Oil
-6.3%
Chemicals
-8.3%
In particular, ONS data shows that the cost of inputs overall is being helped down by falling prices of chemicals, metals, domestically-produced food and crude petrol and gas: in other words companies which buy these things are paying less than they did a year ago.257 Inflation for services sector inputs is measured less frequently: every three months.258 The most recent quarter, Q3 2023, shows services input inflation falling for the fourth quarter in a row to 3.4%, again indicating that employers can't blame rapid price rises for belowinflation pay offers.259
17.3.1 Global input prices have fallen in recent years and companies' borrowing is expected to get cheaper Other indices also show that input prices are falling. One global index of commodity prices, the S&P GSCI, weights commodity prices across markets across the world, not specifically the prices paid by UK firms. It shows a sharp rise in commodity prices during the first half of 2022, but shows them falling back significantly after that to 2021 levels.260 An alternative index, the Bloomberg Commodity Index, gives less weight to energy prices. It also shows a similar pattern of falling costs since Summer 2022. 261 Another input cost that is important to UK firms is shipping. Those costs, as measured by a variety of indices, have also been declining from their peak: n For container shipping, for example, the Shanghai Containerized Freight Index is the most widely used index for sea
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Facts and Figures
n For dry bulk shipping, a common index of shipping costs is the Baltic Dry Index, which is around $2,200: well below its 2021 peak of approximately $6,000.263 Generally it appears that prices have fallen back closer to historic levels for global shipping, which will reduce input costs for companies. In principle, as shipping costs fall back closer to historical norms, consumer prices should also fall as a result.264 But as Unite demonstrated in its profiteering report, companies may choose to take advantage of heightened prices to boost profits. Many Unite members across differing sectors will be impacted by this drop in shipping costs which can help our bargaining demands. While interest rates have risen they are expected to fall in 2024, reducing borrowing costs for firms. With the official interest rate currently at 5.25%, market expectations are for this to fall the next two years, meaning more money available for pay.
What is happening in the global economy?
freight rates for import from Asia worldwide. It has declined substantially, from over 5,000 in early 2022 to around 1,000.262
Figure 92 Market expectations of Bank of England base rate, next two years. Source: Bank of England, overnight index swaps
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What is happening in the global economy?
17.4 The value of the British pound fell compared to the U.S. dollar, benefitting companies that export The value of the British pound fell against the dollar and, to a lesser degree, the euro during 2022 – meaning the amount of dollars/euros a pound could buy fell. This made exports cheaper but imports more expensive - good news for exporters. The decline was particularly marked in the weeks after the Truss-Kwarteng government’s ‘mini-Budget’. Since then, sterling has recovered some of these losses against the dollar. Our members' pay claims need to consider, especially where we know that the employer sells a lot of their output to other countries. Forecasting exchange rates is notoriously inaccurate but the latest NIESR forecasts are for the pound to fall against the dollar over the coming years, which would be further good news for exporting firms.265
Figure 93 The cost of one pound in dollars (in blue) and euros (in red) the two dominant currencies for global trade - fell in 2022, making exports cheaper and imports more expensive, but has recovered some of its dollar losses during 2023. Source: Capital IQ Pro
The value of the British pound compared to other currencies can have important effects on the economy. A weaker pound (one that is worth less compared to other currencies such as the U.S. dollar) is good for companies which export abroad, but bad for businesses
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17.4.1 The price of British exports relative to imports is at the highest level in years meaning more profits for exporters The war in Ukraine led to a rise in the cost of imports to the UK, which was followed by a rise in the price of British exports to a lesser degree. However, this effect has unwound and the price of British exports relative to imports is at the highest level in years (see the blue line in Figure 94 ). This is good news for both firms who import and export: overall the last year has seen their costs fall more than sales prices have fallen, which can boost profits and therefore their ability to pay our members more.
Figure 94 The negative energy price shock of 2022 has more than
What is happening in the global economy?
which import. A weak pound also benefits British firms which get much of their earnings overseas in foreign currencies.
unwound. Import prices (solid red line), export prices (dotted red line), terms of trade (solid blue line). Source: ONS.
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SECTION EIGHTEEN
WORKPLACE SAFETY 18.
Is the workplace getting safer?
18.1
Work-related ill health is rising, with 722,000 new cases in 2021/22 213
18.2
Workers are the solution to health and safety hazards, not the cause 214
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Is the workplace getting safer?
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The main cause of injury and illness in the workplace is failures by management in health and safety, not in the failings of workers. We need full recognition of trade union safety reps and their full involvement with safety management systems. Sharon Graham, Unite General Secretary
National Bargaining and Disputes Support Unit
Facts and Figures
18. Is the workplace getting safer? According to the Health and Safety Executive (HSE), 1.8 million people suffered from a new or long-standing illness which they believed was caused or made worse by work in 2021/22, making up 5.4% of the workforce.266 Of those, 722,000 workers were suffering a new case of work-related ill health.267 Strong collective agreements and fully empowered health and safety reps are the most effective means of removing work-related illness from our workplaces. Unite’s Collective Agreements Database can be used by reps to see examples of model language and best practice in other workplaces.
Is the workplace getting safer?
18.1 Work-related ill health is rising, with 722,000 new cases in 2021/22
Figure 95 1.8 million people suffered from a new or long-standing illness which they believed was caused or made worse by work in 2021/22. Source: HSE, data from Labour Force Survey268
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Facts and Figures Other notable findings from the HSE include:
Is the workplace getting safer?
n 914,000 workers were suffering work-related stress, depression, or anxiety, making mental health the biggest cause of ill health.269 Rates of stress, depression, and anxiety are rising. The 2021/22 rate of 2,750 cases per 100,000 workers (2.7%) was higher than pre-COVID-19 levels.270 23% of UK adults say that work causes them stress.271 n 477,000 workers were suffering from a work-related musculoskeletal disorder.272 The current rate is similar to preCOVID-19 levels.273 n 123,000 workers were suffering from a COVID-19 infection which they believed they may have been exposed to at work.274 The rate of work-related ill health has increased since the COVID-19 pandemic, mostly driven by worsening mental health.275 Workers are overwhelmingly the ones bearing the costs. The total costs of self-reported workplace injuries and ill health in 2019/20 was £18.8 billion. Ill health caused 60% of total costs, and injury 40% of total costs. Over three-fifths of this cost in borne by the individual worker (£11.5 billion) whereas the rest is split between the government (£3.8 billion) and the employer (£3.5 billion).276 This highlights the importance of having collective agreements that force employers to fully compensate workers who suffer work-related injuries or ill-health.
18.2 Workers are the solution to health and safety hazards, not the cause Unite opposes the use of any health and safety scheme that looks to ‘blame the worker’. The main cause of injury and illness in the workplace is in the failings of the management of health and safety, not in the failings of workers. Errors are the symptom of poor organisation and poor systems, not the cause. Unite knows from our experience dealing with safety in thousands of workplaces that hazards and unsafe conditions cause injury and illness. When hazards are properly identified and fixed, injury and illness decrease. Unite’s latest Health and Safety Guide is an
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essential tool for reps dealing with these issues every day in the workplace. Unite calls for:
Robust risk assessment process that identifies and corrects workplace hazards and unsafe/unhealthy conditions
Recognition of the full range of hazardous conditions to address, including biological, chemical, ergonomic, physical, psychological, work organisation and safety hazards
Correct use of the hierarchy of controls to address hazards, including: accident/incident/near miss investigations that look for the root causes; workers’ rights to identify hazards without fear of retaliation; the right to refuse to carry out unsafe work; full reporting and recording of all injuries, illnesses and near misses Safety reps need to be involved in all decision making processes around health and safety so that they can bring their expertise to any discussions on what is needed to improve health and safety in their workplace. It is important that workers and unions achieve the fundamental goals of the union – achieving safer, healthier and more hazard-free jobs.277
Is the workplace getting safer?
Full recognition of trade union safety reps and full involvement with safety management systems
Workers cannot rely on the Health and Safety Executive to enforce safety in the workplace. In 2020/21, a TUC survey of safety reps found that less than one quarter (24%) of respondents said their workplace had been contacted by a Health and Safety Executive inspector, or other relevant safety inspectorate in the last 12 months.278 Last year, Unite research found that HSE construction site visits were down by a third compared to 2014.279
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Is the workplace getting safer?
In March, more than 100 Unite members at housing association Magenta Living won a new deal on safe working with asbestos after striking.280 This win demonstrates that workers can win on health and safety issues even when regulators like the HSE won’t step in.
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Figure 96 Magenta Living housing workers striking for a decent asbestos agreement in March 2023
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SECTION NINETEEN
NEW ATTACKS ON TRADE UNIONS 19.
Are there any new attacks on trade unions?
221
19.1
The Tory anti-strikes bill is a major attack on organised workers in key sectors 221
19.2
Unite will fight back by continuing to organise to win in all our sectors, and defending any worker who faces disciplinary action for non-compliance with Minimum Service Levels law 222
19.3
Facing down union victimisation: Murphy Four leverage campaign ends in victory
223
19.3.1 Tom Power, one of the Murphy Four: "To win and beat any employer, it's very simple; everyone has to stick together!" 225
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Are there any new attacks on trade unions?
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220
Rather than tackling the cost of living crisis, the government is attacking trade unions. This attempt to shut down industrial action will be resisted. Sharon Graham, Unite General Secretary
National Bargaining and Disputes Support Unit
19. Are there any new attacks on trade unions? 19.1 The Tory anti-strikes bill is a major attack on organised workers in key sectors The new Strikes (Minimum Service Levels) Act was passed in July, and is expected to come into force by the end of 2023.281 It is a clear attempt to undermine workers’ collective power in key sectors. The bill is a violation of the right to strike and is undemocratic and unworkable in practice.282 Withdrawing our labour is the most powerful weapon workers have to bring employers to the negotiating table and win our demands, and the Government knows this. The sectors covered by the Act are: Health; Education; Fire and rescue; Transport; Border security; and Nuclear decommissioning and radioactive waste management services.283 The Act gives Ministers the power to dictate service levels to undermine strikes in these sectors. Employers will issue work notices specifying who must cross the picket line. The anti-strikes bill means strikers could be sacked for breaching a work notice, and unions will lose protections against law suits from employers.284 It is not clear yet how the Act will be enforced, and the Scottish Government has indicated that it will not issue or enforce work notices.285 The Act will mean train operators will have to have at least 40% of their normal timetable in operation. Ambulance workers will also be restricted.286 On top of restricting workers' right to strike, the courts can now fine the biggest unions found undertaking unlawful strike action up to £1 million, up from £250,000.287 Ministers are hoping this legislation can be put into effect before Christmas, with Rishi Sunak making clear that they "are doing everything in our power to stop unions derailing Christmas for millions of people."- with Scottish ministers coming out in opposition for implementing the Act.288289
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Are there any new attacks on trade unions?
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222
Figure 97 Protest against the second reading of the Minimum Service Bill before it became law
19.2 Unite will fight back by continuing to organise to win in all our sectors, and defending any worker who faces disciplinary action for non-compliance with Minimum Service Levels law As far as Unite are concerned, the Minimum Service Levels Bill is a straightforward attempt to place trade unions outside the law. Why are they doing this? Simply because they don't like workers fighting back and winning, as Unite's members have been doing. Unite and other unions must continue to organise to win. If, in doing so, we are placed outside the law, then the government will have to own the consequences of that. We won't accept any attempts to force reps to cross picket lines, and we will support any worker who faces disciplinary action for taking this stand. Recent ambulance and hospital strikes demonstrate that workers will not allow our industrial power to be legislated away.290 Such disputes also show that workers are quite capable of ensuring that critical services continue during industrial disputes, without the law mandating this. During these disputes, Unite reps negotiated 'life and limb' cover with local managers to ensure that critical services could continue. They did this without legal compulsion and because their disputes were as much about fighting for our NHS as they were a decent wage.
National Bargaining and Disputes Support Unit
At the end of the day, the first concern of healthcare and other emergency workers is patient safety. By contrast, the government fails to deliver minimum staffing levels across the NHS on a daily basis. The picture this paints is perfectly clear: the Minimum Service Levels bill isn't remotely concerned with public safety - it's purely concerned with undermining workers' power. As such, Unite will push back against the bill with all its power: robustly defending the right to strike in all our sectors, and fighting for any worker who faces disciplinary action or dismissal for not complying with the law.
"Trade unions are the last line of defence for workers and their communities, so we say, loud and clear, that we will fight this iniquitous legislation with all the power we can muster." - Sharon Graham, Unite General Secretary
19.3 Facing down union victimisation: Murphy Four leverage campaign ends in victory After a year-long campaign, Unite’s support for the Murphy Four has been vindicated. The four Unite members were offered reinstatement, and when this was turned down, compensation was agreed to be paid to each member by the Murphy Group. The dispute began in August 2022, when the Londonheadquartered construction and engineering company Murphy Group sacked a Unite rep and three members at its Irish subsidiary. The Four had worked at the company for a combined total of 50 years. Unite argued that the dismissals were due to being involved in trade union activities.
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Are there any new attacks on trade unions?
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Figure 98 Unite takes its leverage campaign to Murphy's joint venture partner, Bouygues
Unite argued that the Murphy Group's anti-worker track record dated back to 2013, and that the company’s approach to pay was unfair, especially considering its financial position. Unite will stop at nothing to defend our reps and members from victimisation, and a leverage campaign was initiated to deliver justice for the four. After intervention by the General Secretary, a carefully structured campaign was pursued involving forensic analysis of company accounts, and a campaign across the country to highlight the activities of the company to all relevant third parties, including Murphy customers. The campaign progressed and built considerable pressure on the company, including across international borders. Unite’s message was that responsible companies and politicians should not award major contracts to a union-busting employer. Unite even brought a giant inflatable rat to Paris to protest outside the head offices of Bouygues, a joint venture partner of Murphy. Throughout the campaign, the Murphy Four stood firm and were steadfast in demanding justice. Eventually the campaign brought the company back into negotiations and has confirmed how far Unite will go to support its reps and members, and when required, to use leverage as a strategy.
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“Unite left no stone unturned to secure the vindication of our members in Ireland who were dismissed by the Murphy group of companies on what Unite believed to be spurious grounds. This outcome totally vindicates Unite’s approach of never backing down – but instead giving total and unwavering support to our Unite reps. Using Unite Leverage we took the fight to Murphy’s - at the heart of their operation at home and abroad. My thanks and congratulations goes to our members and reps, the four, who stood firm and fought for justice." - Sharon Graham, Unite General Secretary.
19.3.1 Tom Power, one of the Murphy Four: "To win and beat any employer, it's very simple; everyone has to stick together!" "When I joined Murphy Group in 2010, they offered me a wage that was below the union rate, but I had no choice but to accept the job as we were in the middle of a recession. After a couple of years there were more jobs out there, so I thought I could push Murphy Group to give us a bit more. With the support of Unite, we fought to get the proper union rate. As soon as the lads were seen to be organised through Unite, the company tried to sack the 'ringleaders', including me. We contacted Unite, and they told us to stick with it. Eventually the company backed down, and we got the union rate at the site. However, from that day on, I believe that they were going after me to get rid of me. They seemed to see me as a problem within the workforce. If they got rid of me, they would get rid of the problem of the workers looking for the proper rate. When we challenged Murphy Group's failure to honour national pay agreements last summer, they saw their chance to get rid of me. We organised a meeting to answer questions from the other workers, and the company suspended 14 of us. The company then sacked me and three other lads.
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Are there any new attacks on trade unions?
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Figure 99 The Reinstate the Murphy 4 campaign in action
From the moment we were suspended, the support we got from Unite was unbelievable. The Irish construction branch were there for us every day, nearly every hour at times. The day we were initially suspended I contacted Regional Officer James McCabe, and he was down first thing the following morning to negotiate with the company. He was unbelievable. He was there every minute, for every one of the lads. We also turned up the following morning, but our cards to get into the site were blocked. We couldn’t believe what they were trying to do to us. At first, we thought the company might come to their senses, that they wouldn't just sack us. We soon realised they were serious, and that they were going to make life as hard as possible for us. They made us attend disciplinary meetings at offices over two hours from where some of us lived, and we were sacked. We couldn’t sign on for social welfare because the company said we were the cause of our own sackings. For nine weeks we didn’t have a single euro coming in.
National Bargaining and Disputes Support Unit
Figure 100 The Murphy 4 celebrate their win
Unite advised us on a daily basis what our next steps should be. The support was unbelievable. We were perhaps a bit naïve at the start of the campaign, bearing in mind how long the employer ended up holding out. We soon realised it was going to be a long process. For each demo we went to, we got used to the idea that it was just another day in pursuing the campaign against the company. Some of the highlights for me were the four of us attending meetings with politicians around Limerick, and doing demos outside the plant we used to work at. It was an incredible campaign to get us to where we are today. Whatever the weather or location, Unite’s team did the research and the hits at different sites, and were there for us throughout.
Are there any new attacks on trade unions?
Facts and Figures
That’s the only way of winning a campaign like this. Everyone has to try and see the light, and understand the benefits of sticking together. To win and beat any employer, it's very simple; everyone has to stick together!" Tom Power, one of the Murphy Four
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SECTION TWENTY
EMPLOYER TACTICS 20.
What tactics and arguments are employers using in negotiations?
231
20.1
Employers continue to underestimate the seriousness of the cost of living crisis by using inaccurate inflation forecasts 231
20.2
Employers are hiding important bargaining information, meaning securing disclosure is a big issue for trade unions 233
20.2.1 Compensation data in the Finance sector is deliberately complex, making it harder to benchmark pay 234
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What tactics and arguments are employers using in negotiations? 230
Facts and Figures
Too often pay levels are obscure, designed to confuse and weaken us. We can take the initiative to change this by collecting information on pay ourselves, to use next time management try to pull the wool over our eyes. Sharon Graham, Unite General Secretary
National Bargaining and Disputes Support Unit
20. What tactics and arguments are employers using in negotiations? 20.1 Employers continue to underestimate the seriousness of the cost of living crisis by using inaccurate inflation forecasts One tactic that employers use in negotiations with Unite reps is referring to forecasts which show that inflation is expected to drop over the coming months and years. This, they argue, shows that workers should accept smaller pay increases. However, forecasts have been proven to repeatedly underestimate the scale of inflation. Reps should be ready to push back against the use of such forecasts, insisting that pay deals meet the reality of rising inflation and the cost of living crisis, now and the future.
Figure 101 The Treasury’s collection of independent forecasts for RPI Q4 2022, which consistently underestimated the actual rate of RPI
In the last year, even bodies such as the Bank of England and the Office for Budget Responsibility (OBR) have admitted their inflation forecasting models are flawed. Meanwhile, the Treasury's collection
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What tactics and arguments are employers using in negotiations? 232
Facts and Figures of independent forecasts show that they have vastly underestimated the reality of inflation.291 The above chart shows the Treasury's collection of independent forecasts for RPI inflation in Q4 2022, compared to the actual inflation rate in Q4 2022 and at the time of the forecast. Throughout most of 2021 and 2022, the forecasts significantly underestimated inflation. Even in April 2022, when inflation had reached 11%, forecasters believed that by the end of the year it would be 9%. That’s a 35% error, just 6 months away from the point they were forecasting.The Bank of England and the OBR have blamed flaws in their models on shocks to the economy, such as COVID-19 and the war in Ukraine - however such models were still underestimating inflation after COVID-19 had struck, and energy prices had already shot up before the war in Ukraine began.292 If bodies like the Bank of England, the OBR and the Treasury are using flawed models which repeatedly understate inflation, then any inflation forecasts wheeled out by employers should be treated with extreme scepticism. The cost-of-living crisis is a real crisis affecting Unite members, while inflation forecasts are just that - forecasts. Ensuring pay deals keep up with prices in the here and now must be the priority when it comes to collective bargaining.
Figure 102 The governor of the Bank of England, Andrew Bailey, who in 2022 asked workers not to demand pay rises
National Bargaining and Disputes Support Unit
20.2 Employers are hiding important bargaining information, meaning securing disclosure is a big issue for trade unions To help deliver on the General Secretary’s commitment to improve support for collective bargaining it is vital that we have all our relevant industrial data to hand. From our collective agreements, latest pay rises and base rates of pay, to a whole variety of other terms and conditions, holding this information will allow us to provide real analysis to support negotiators. To this end, over the last 6 months we have been collecting data from pilot areas. This exercise has already thrown up many questions, one of which is the potential importance of information disclosure. We already have several examples of sectors where pay structures are anything but transparent. We have identified cases where employers have intentionally created complex pay scales that are not directly linked to occupations. This of course gives bosses the opportunity to engage in dishonest behaviour. But it also makes it difficult for us to work out the real impact of proposed settlements on our members and puts another obstacle in the way of working towards common bargaining strategies across sectors. See the example in the next section to see just how complex some pay structures can be. That is why we must not forget the potential of information disclosure and, more importantly, the possibility for it to become a core collective bargaining issue. As you know, trade unions have a right to “disclosure of information” under the Trade Union and Labour Relations (Consolidation) Act 1992. The ACAS Code states the following: “The information to be disclosed is that without which a trade union representative would be impeded to a material extent in bargaining and which it would be in accordance with good industrial relations practice to disclose for the purpose of collective bargaining.”293 So we have a solid base from which to proceed and are always able to table specific demands for disclosure at any round of collective bargaining. The real point here is we won’t always
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What tactics and arguments are employers using in negotiations? 234
Facts and Figures need to fall back on the law to get transparency if we start to see the issue as something to organise around.
20.2.1 Compensation data in the Finance sector is deliberately complex, making it harder to benchmark pay Unite has been collecting data from across the finance sector, with the aims being to: n Develop a centralised repository of the pay data of our members n Help us with benchmarking pay and conditions n Help support coordinated pay claims for those branches that want to pursue them We have interviewed Reps from major banks and insurance firms asking them questions on: bargaining units; pay anniversaries; their latest settlement; comparator roles and any other issues they think might be relevant. We have also asked for copies of their pay scales and rates of pay. Initial analysis has started with the 'Big Four' banks and three large insurance companies. We have found that their data is often quite different. All were able to give us minimum pay levels, but not necessarily upper pay bands. Some were able to supply mid-points for their different pay levels, but others gave us the far more interesting pay medians. One bank was able to give us headcount by pay point. When trying to look at comparator roles, for example how much does a branch manager get paid, it often wasn't possible. Some institutions organise their pay by role, but others by job family, or in some cases just by levels (so nothing about role or job family).
National Bargaining and Disputes Support Unit
Figure 103 The availability and consistency of pay scale data appears arbitrary. Selected pay scale data from three major insurance companies. Source Unite data collection.
Now that we understand what data we have and its complexity, it will allow us to ask better questions. If one bank can give us a certain type of data, why can't they all? If one Rep has access to information that allows them to make a more robust claim, why can't they all?
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SECTION TWENTY-ONE
BITESIZED BARGAINING 21. 21.1
How can Work Voice Pay tools help collective bargaining?
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Bitesized Bargaining: Work Voice Pay has tools to improve holiday entitlement in your workplace
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How can Work Voice Pay tools help collective bargaining?
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How can Work Voice Pay tools help collective bargaining?
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Along with coordinating our pay bargaining, researching key workplace issues, building strike-ready workplaces and developing ‘leverage’ campaigning, an essential part of Work Voice Pay is providing support and tools to help Unite reps with your work. Sharon Graham, Unite General Secretary
National Bargaining and Disputes Support Unit
21. How can Work Voice Pay tools help collective bargaining? 21.1 Bitesized Bargaining: Work Voice Pay has tools to improve holiday entitlement in your workplace Paid holidays are a cornerstone of workers rights. While unions fought hard for the statutory holiday entitlement, it's vital that this is seen as a floor and that we fight for more. The minimum entitlement for full-time employees in the UK is 28 days, including bank holidays - with this figure reduced pro rata for part-time workers.294 This is a low figure compared to many other countries. In Finland, for example, workers receive a minimum holiday entitlement of 34 days.295 Research this year has shown that between 2020 and 2022, the number of annual leave days taken fell by 113,000.296 This shows that unless trade unions push for improvements, employers will push us backwards. Collective bargaining is the best way to win more generous holiday entitlements. To support this, Work Voice Pay has developed tools to help Unite reps and shop stewards win better terms and conditions. The Pay Claim Generator allows you to enter the number of days you want to add to your holiday entitlement.
If you select this option, the Pay Claim Generator creates model language which you can use as part of pay talks to secure a better deal:
National Bargaining and Disputes Support Unit
How can Work Voice Pay tools help collective bargaining?
Facts and Figures
239
How can Work Voice Pay tools help collective bargaining?
Facts and Figures
240
Work Voice Pay's Collective Agreements Database also allows you to search other collective agreements for holiday clauses. This can give you a sense of what holiday agreements other workers have bargained for, and allow you to re-use text included in other agreements. You can also upload your own collective agreements for others to learn from:
If you navigate to a particular collective agreement, it will show you the language included in the agreement, demonstrating that far better holiday than the legal minimum can be achieved through collective bargaining. We cannot rely on the legal system to set minimum standards. By sharing knowledge and best practice and making holiday entitlement a core bargaining issue, we can raise standards collectively and force employers to give us the time off that we need and deserve. n To access the Pay Claim Generator and Collective Agreements Database, plus other Work Voice Pay tools, go to: https://www.unitetheunion.org/work-voice-pay
National Bargaining and Disputes Support Unit
241
242
National Bargaining and Disputes Support Unit
SECTION TWENTY-TWO
INDUSTRIAL COMMITTEES 22. 22.1
Are there any upcoming industrial committee meetings?
245
All of Unite's industrial and equalities committees have meetings scheduled throughout 2024, starting with NISCs in early January 245
National Bargaining and Disputes Support Unit
Are there any industrial committees meeting this month?
Facts and Figures
243
Are there any industrial committees meeting this month?
Facts and Figures
244
Employers operate in coordinated groups and across workplaces. We need to do the same. Combines can bring all our reps together by industry or sector to create collective bargaining at the level of whole industries or sectors. Sharon Graham, Unite General Secretary
National Bargaining and Disputes Support Unit
22. Are there any upcoming industrial committee meetings? 22.1 All of Unite's industrial and equalities committees have meetings scheduled throughout 2024, starting with NISCs in early January Below are dates from the Unite Constitutional Calendar for 2024 by quarter. The committees will be meeting to discuss key issues affecting our members. Committee
Q1
Q2
Q3
Q4
Executive Council
11-15 Mar
3-7 Jun
7-11 Oct
2-6 Dec
National Equalities Committees
22-26 Jan
22-26 Apr
22-26 Jul
21-25 Oct, 1 Nov
1-12 July NISC/NLPLC
2-12 Jan
Regional Committee
2-10 Apr
15-19 Jan
11-19 Apr
(but not 18 Jan)
(but not 18 Apr)
29 Jan - 28 29 Apr- 31 Feb May RISC & Regional Equalities Committees (but not 8 (but not 16 Feb)
May)
30 Sep,
(but not 11 Jul)
4 Oct
15-19 Jul
14-18 October
4- 29 Nov 29 July 31 Aug
(but not 14 or 18-21 Nov)
National Bargaining and Disputes Support Unit
Are there any industrial committees meeting this month?
Facts and Figures
245
Appendix 1: Significant Unite pay increases in 2023
Facts and Figures
246
23. Appendix 1: Major Unite pay increases in 2023 The following table details major 2023 pay deals won by Unite members: Company
Sector
Result
GH Luton Airport
Civil Aviation
19%
NHS Scotland (Multiple)
Health
7.5% - 11.24%
Veolia
Local Authorities 18%
Shelter
CYW&NFP
7% + £1,250
Fuel Transport Logistics
CPPT/RTC
12.2%
Valero Pembroke Refinery (NAECI Agreement)
Construction
11%
Metroline (Engineers)
Passenger Trans10% port
Menzies (Luton Airport)
Civil Aviation
28%
Multi-packaging solutions (BelGPM&IT fast)
9%-13.5%
Harsco Metals Group Ltd
14%
Construction
Joseph Rowntree Foundation CYW&NFP
Recognition
Serco (Parking Ealing)
Local Authorities 9%-11.94%
Serco (Parking Ealing)
Local Authorities 10.7%
Continental Landscapes Limited
Local Authorities 13% £16,500 (unpaid holiday pay)
Dundee University
Education
Abellio
Passenger Trans18% port
Odfjell Technology (UK) Ltd (BP Clair and Clair Ridge)
CPPT
Three weeks paid time off work per year.
NAECI agreement
Construction
A supplementary pay-
National Bargaining and Disputes Support Unit
Company
Sector
Result ment of an extra £1 for every hour worked between now and 30 June. After that date the supplementary payment will become 75 pence an hour.
Faiveley Transport Birkenhead DRFW Drax Power Station
Energy & Utilities
15% 16%
Bidvest Noonan (First Bus Glas- Services / Pas9.5% gow) senger Transport Bidvest Noonan (Aberdeen)
Services / Pas9.5% senger Transport
Hovis
FDA
13.5%
Edrington Distillers
FDA
12%
Serco (Hounslow Parking SerLocal Authorities 18% vices) JW Suckling Transport (Phillips 66 / Grangemouth)
CPPT / RTC
26%
JW Suckling Transport (Phillips 66 / London & Essex)
CPPT / RTC
26%
Woolwich Ferries
DRFW
18%-26%
Highlands and Islands
Civil Aviation
7%
Drax Hydro
Energy & Utilities
8%
National Express
Passenger Trans16.2% port
DHL Jaguar Land Rover Halewood
Automotive/RTC 12.5%
National Bargaining and Disputes Support Unit
Appendix 1: Significant Unite pay increases in 2023
Facts and Figures
247
Appendix 1: Significant Unite pay increases in 2023
Facts and Figures
248
Company
Sector
Result
AB AGRI
FDA
13%
UK Power Networks
Energy & Utilities
18%
NG Bailey
Construction
9.4%
Atomic Weapons Establishment (AWE)
Construction
9%
Imperial Logistics (BMW Oxford)
Automotive
13.4%
Chessington World of AdvenServices tures
13.53%
Arriva Newcastle and Northumberland
Passenger Trans12% port
Whirlpool
EMS
10%-18%
Morrisons (Fuel Transport & Logistics )
RTCW&L
24%
CNOOC
CPPT
New recognition
Menzies Aviation (Glasgow Airport)
Civil Aviation
11%
DHL Northampton
RTCW&L
New recognition
British Veterinary Union (BVU) FDA in Unite and Valley Vets,
New recognition
Trelleborg Gloucestershire and Somerset
CPPT
11%
Creative Composites
EMS
13%
Glasgow Airport
Civil Aviation
7%
ICTS (Glasgow Airport)
Civil Aviation
11%
Falck firefighters (Glasgow AirCivil Aviation port)
£3,200
Edinburgh Airport
Civil Aviation
12%
Bilfinger (North Sea)
CPPT
10%
Coca Cola
FDA
18%
Survitec
Aerospace and Shipbuilding
10%
National Bargaining and Disputes Support Unit
Company
Sector
Result
YM Group Yorkshire
GPM&IT
£2.5 million
Equans FM, Sullom Voe, ShetCPPT land
8.1%
TotalEnergies
CPPT
15.5%
BP Petrofac
CPPT
9%
Manchester Metrolink
Passenger Trans6.5% port
Mahle Engine Systems
Automotive
10.7%
Heathrow Airport
Civil Aviation
15.5%-17.5%
Manchester Airport
Civil Aviation
17%
North Air Glasgow Airport
Civil Aviation
7.8%
ABM Glawgow Airport
Civil Aviation
11.1%
Urbaser Welwyn and Hatfield Local Authorities 13.5% ICTS Gatwick
Civil Aviation
16%
OCS Glasgow Airport
Civil Aviation
11.1%
HTS Harlow
Local Authorities
£1,500 Cost of Living payment
Bristol Waste
Local Authorities 8.5%
Wood TAQA
CPPT
25%
Stork
CPPT
10%
Suez Somerset
Local Authorities 9%
RCPCH
Health
10%
Yorkshire Ambulance Service
Health
Lump sum payment: £1,655 and £3,789
DHL Gatwick
Civil Aviation
15%
ACS Gatwick
Civil Aviation
13%-17%
Menzies Gatwick
Civil Aviation
13%
Leicester Trelleborg
CPPT
8%
Birmingham Airport
Civil Aviation
13.25%
GSK
CPPT
6.5%
National Bargaining and Disputes Support Unit
Appendix 1: Significant Unite pay increases in 2023
Facts and Figures
249
Appendix 1: Significant Unite pay increases in 2023
Facts and Figures
250
Company
Sector
Result
Suez South Gloucestershire
Local Authorities 10%
Gatwick GCS
Civil Aviation
10.3%
British Airways
Civil Aviation
13.1%
Stanlow oil refinery
Construction
Hourly bonusrate increased from 80p to £2.37 (300%)
Menzies Aviation (Birmingham Airport)
Civil Aviation
9%
Fawley oil refinery
Construction
£1.63 hourly bonus payment
Allerdale Waste Services
Local Authorities 8.3% - 13.6%
First South
Passenger Trans- £600 cost of livport ing payment
St Mungos
CYWNFP
Urbaser (Selby)
Local Authorities 15.1%
Stagecoach (Manchester)
Passenger Trans16% port
Brighton and Hove bus company
Passenger Trans10% port
Metrobus Crawley
Passenger Trans10% port
Stagecoach Warwickshire
Passenger Trans12.4% port
First Manchester (Oldham)
Passenger Trans18% port
Greater Manchester Accessible Transport (GMAT)
Passenger Trans10% port
Akzo Nobel
CPPT
6%
Wood Group (Shell offshore platforms)
CPPT
10%
City of London Corporation
Local Authorities 20%
Newham Council
£750 in additional to Local Authorities national pay offer
10.74%
National Bargaining and Disputes Support Unit
Company
Sector
Result
Tower Hamlets
£750 in additional to Local Authorities national pay offer
Greencore
FDA
15.25%
Hedin Automotive
Automotive
10%
IAC Solihull
Automotive
13.5%
Browns
FDA
13.2%
DHL (East Mids Airport)
Civil Aviation
Recognition
Lincat
EMS
12%
Stadler Rail
Passenger Trans7% port
Odfjell Technology (UK) Ltd (Taqa)
CPPT
COSLA (Craft)
Local Authorities 5.5% - 9.6%
Brake Brothers
FDA
19.3% - 23.2%
Northern Lighthouse Board
DFR&W
15%
Scottish Water
Energy & Utilities
8%
Go North East
Passenger Trans11.2% port
Wincanton: ASDA (Rochdale)
RTCW&L
8.25%
GXO (Greene King)
RTCW&L
8% - 9.4%
EQUANS (Manchester City Council housing contracts)
Local Authorities 8%
13%
National Bargaining and Disputes Support Unit
Appendix 1: Significant Unite pay increases in 2023
Facts and Figures
251
Appendix 2: List of other 2023 pay deals above 10%
Facts and Figures
252
24. Appendix 2: List of other unions' 2023 pay deals above 10% The following table details 2023 pay deals for other unions above 10% taken from Labour Research Department/Payline data: Employer
Date
Pay increase
NSL (London Borough of Islington)
01/04/2023
25.5%
NSL (Royal Borough of Kensington & Chelsea)
01/07/2023
21.1%
CNC Speedwell
01/04/2023
20%
DHL (Sainsbury's) Rugby
15/01/2023
19.9%
NSL (Camden parking enforcement)
01/04/2023
18.1%
G4S HMP Five Wells Prison
01/01/2023
18%
Stagecoach South (Andover) Drivers
30/04/2023
15.2%
Stagecoach South (Andover) Engineering
30/04/2023
15.2%
B&M Distribution (Lesmahagow)
01/01/2023
15%
Mitie Care & Custody (Gatwick) Overseas Escort Staff
01/03/2023
14.7%
Wightlink
01/01/2023
14.3%
N Brown Logistics
01/04/2023
13.1%
Cadent Gas (Field Force)
01/07/2023
12.84%
Cadent Gas (Staff)
01/07/2023
12.84%
B&M Distribution (Warehouse) Speke Vault/ Qube/ Knowsley/ Runcorn/ Middlewich
01/04/2023
12.83%
Bluestar
01/01/2023
12%
Primark (England/ Wales/ Scotland)
01/04/2023
12%
G4S (PSNI)
01/03/2023
11.6%
DHL Inside Track
01/04/2023
11.1%
Nottingham Community Transport (CT4N)
01/04/2023
11%
Stagecoach East Midlands (Mansfield/Worksop)
01/03/2023
10.7%
Evtec Automotive
01/04/2023
10.5%
National Bargaining and Disputes Support Unit
Employer
Date
Pay increase
Findel Education
01/04/2023
10.3%
14forty (Compass Group) Capita contract
01/04/2023
10.1%
Birmingham Airport Air Traffic Ltd (BAATL) Air Traffic Operations
01/04/2023
10.1%
Co-operative Group (Customer Team Members/Post Office Counter Assistants)
01/04/2023
10.1%
Swiss Post Solutions (SPS) - BT Contract
01/04/2023
10.1%
Veolia (Harlow)
01/04/2023
10.1%
Co-operative Group (Team Leaders/Post Office Supervisors)
01/04/2023
10%
Financial Times (Financial Times Group)
01/01/2023
10%
G4S (Northern Ireland Courts & Tribunals Ser01/05/2023 vice)
10%
Greggs (Retail)
01/01/2023
10%
JCB
01/01/2023
10%
Joseph Walkers Shortbread
01/04/2023
10%
Methodist Homes (MHA)
01/04/2023
10%
Poundstretcher
01/04/2023
10%
Premier Foods (Ashford
01/05/2023
10%
Sainsbury's Distribution (Waltham Abbey)
05/03/2023
10%
Savencia Fromage & Dairy
01/01/2023
10%
Southern Vectis
01/06/2023
10%
Wincanton (Asda) Doncaster
01/04/2023
10%
Windermere Lake Cruises
01/02/2023
10%
National Bargaining and Disputes Support Unit
Appendix 2: List of other 2023 pay deals above 10%
Facts and Figures
253
Facts and Figures
Endnotes 1https://www.unitetheunion.org/news-events/news/2023/november/unite-
secures-inflation-busting-brake-brothers-wage-deal-in-motherwell 2https://www.unitetheunion.org/newsevents/news/2023/november/offshore-odfjell-drillers-strike-pay-deal 3https://www.unitetheunion.org/news-events/news/2023/december/500unite-members-accept-scottish-water-improved-pay-offer and https://www.unitetheunion.org/news-events/news/2023/november/strikeaction-goes-ahead-at-scottish-water-as-unite-says-talks-waste-of-time 4https://www.unitetheunion.org/newsevents/news/2023/december/scotland-lighthouse-workers-agree-wage-offersettling-troubled-waters 5Alamy, December 2023 6https://www.unitetheunion.org/news-events/news/2023/december/asdahgv-drivers-in-rochdale-put-brakes-on-strike-action-after-securing-pay-deal 7https://www.unitetheunion.org/newsevents/news/2023/december/manchester-housing-workers-celebrate-payincrease 8https://www.unitetheunion.org/newsevents/news/2023/december/warrington-bin-strikes-off-after-unite-securesimproved-deal 9https://www.unitetheunion.org/news-events/news/2023/november/unitehails-recognition-agreement-for-sussex-university-hospitality-staff 10https://www.unitetheunion.org/news-events/news/2023/december/unitehails-recognition-agreement-for-glasgow-university-caterers 11https://www.unitetheunion.org/news-events/news/2023/december/newunion-recognition-for-management-at-leading-uk-aerospace-firm 12https://twitter.com/UniteNEYH/status/1730242698450284591/photo/1 13https://www.unitetheunion.org/news-events/news/2023/december/unitesecures-significant-pay-victory-for-go-north-east-workers 14https://find-and-update.companyinformation.service.gov.uk/company/02100855/filinghistory/MzM3NTQwMTYwN2FkaXF6a2N4/document?format=pdf&downloa d=0, p. 12. 15https://www.unitetheunion.org/news-events/news/2023/october/go-northeast-bus-workers-step-up-strike-action-with-all-out-strike 16https://twitter.com/UniteSharon/status/1723018721126478000/photo/1 17https://tribunemag.co.uk/2021/05/how-manchesters-bus-drivers-beat-fireand-rehire 18https://www.unitetheunion.org/news-events/news/2023/november/gonorth-east-talks-break-down-after-employer-refuses-to-improve-offer
254
National Bargaining and Disputes Support Unit
Facts and Figures
19https://www.go-ahead.com/investors/ownership;
https://www.wearekinetic.com/our-company/our-shareholders and https://www.globalvia.com/en/we-are-globalvia/financial-information/ 20https://www.bbc.co.uk/news/uk-england-tyne-67473233 21https://www.bbc.co.uk/news/uk-england-tyne-67473233 22https://www.jp.se/2023-11-29/fackets-radsla-precis-som-tesla-sverige-ochelon-muskc 23https://www.lavanguardia.com/vida/20231122/9399217/sindicato-unitepide-globalvia-solucione-huelga-conductores-go-north-eastagenciaslv20231122.html 24https://www.unitetheunion.org/news-events/news/2023/july/unite-drivingup-wages-for-bus-workers-on-scottish-east-coast and https://www.unitetheunion.org/news-events/news/2023/february/longrunning-abellio-london-bus-dispute-ends-as-workers-receive-major-payboost 25https://prospect.org.uk/news/prospect-wins-improved-pay-deal-atbirmingham-airport 26https://www.gmblondon.org.uk/news/islington-traffic-wardens-winbumper-40-per-cent-pay-rise 27Unite analysis of ONS data 28Unite analysis of ONS, OBR and Treasury data 29https://www.theguardian.com/politics/2022/dec/11/how-much-would-apublic-sector-pay-rise-really-cost-the-uk-government 30Unite analysis of OECD data 31https://www.wealthandpolicy.com/wp/WealthTaxFinalReport_ ExecSummary.pdf p. 6 32https://news.sky.com/story/budget-2023-corporation-tax-set-to-rise-from19-to-25-in-april-12827274 33
https://www.ons.gov.uk/employmentandlabourmarket/peoplenotinwork/un employment/datasets/vacanciesbyindustryvacs02 34https://www.theguardian.com/commentisfree/2023/dec/08/unionsworkers-tories-anti-strike-laws-resist-tuc 35https://www.gov.uk/national-minimum-wage-rates 36https://www.gov.uk/government/news/chancellor-announces-majorincrease-to-national-living-wage 37Table 1a: https://www.ons.gov.uk/file?uri=/employmentandlabourmarket/peopleinw ork/earningsandworkinghours/datasets/jobspaidbelowminimumwagebycat egory/current/jobsbelownmw2022combined.xls 38https://www.tuc.org.uk/blogs/almost-half-self-employed-are-poverty-pay National Bargaining and Disputes Support Unit
255
Facts and Figures 39https://www.theguardian.com/global-development/2023/may/11/half-of-
uk-gig-economy-workers-earn-below-minimum-wage-study-reveals 40https://www.london.gov.uk/programmes-strategies/business-andeconomy/london-living-wage 41https://www.unitetheunion.org/what-we-do/uniteinvestigates/unplugging-energy-profiteers-the-case-for-publicownership/unite-investigates-renationalising-energy-costs-and-savings-fullreport 42https://www.unitetheunion.org/media/5442/profiteering-across-theeconomy-march-2023.pdf 43https://www.unitetheunion.org/news-events/news/2023/march/foodprices-the-british-public-are-hostages-to-greedflation/ 44https://www.which.co.uk/news/article/rpi-inflation-reform-what-it-meansfor-pensions-student-loans-rail-fares-and-more-aPSks1x3edLp 45https://www.which.co.uk/news/article/what-the-budget-means-for-pintscigarettes-and-sugary-drinks-aQt1k4I4V1L3 46https://obr.uk/box/the-long-run-differences-between-the-cpi-and-rpi/ 47
https://www.ons.gov.uk/economy/inflationandpriceindices/methodologies/c onsumerpriceinflationincludesall3indicescpihcpiandrpiqmi 48https://www.bbc.co.uk/news/business-57764601 49
https://assets.publishing.service.gov.uk/media/652fa548697260000dccfa12/F orecomp_October.pdf p. 8, Table 5 50https://www.statista.com/statistics/1399938/monthly-cost-increase-of-ukmortgages/ 51https://www.jrf.org.uk/blog/cost-debt-low-income-households-cost-livingcrisis 52https://www.statista.com/statistics/286416/united-kingdom-ukoutstanding-balance-value-on-credit-cards/ 53https://economy2030.resolutionfoundation.org/wpcontent/uploads/2023/12/Ending-stagnation-final-report.pdf p. 21 54https://news.sky.com/story/16-housing-ministers-in-13-years-has-itstopped-the-job-getting-done-13008296 55https://analysisfunction.civilservice.gov.uk/government-statistical-serviceand-statistician-group/user-facing-pages/housing-and-planning-statistics/ 56
https://www.ons.gov.uk/economy/inflationandpriceindices/datasets/indexof privatehousingrentalpricesreferencetables 57https://www.gov.uk/government/statistics/uk-house-price-index-forseptember-2023/uk-house-price-index-summary-september-2023 58https://www.gov.uk/government/statistics/english-housing-survey-2021to-2022-headline-report/english-housing-survey-2021-to-2022-headlinereport 256
National Bargaining and Disputes Support Unit
Facts and Figures
59https://www.gov.uk/government/statistics/english-housing-survey-2021-
to-2022-headline-report/english-housing-survey-2021-to-2022-headlinereport 60https://www.euronews.com/next/2023/03/06/childcare-puzzle-whichcountries-in-europe-have-the-highest-and-lowest-childcare-costs 61
https://www.familyandchildcaretrust.org/sites/default/files/Resource%20Libr ary/Childcare%20Survey%202023_ Coram%20Family%20and%20Childcare.pdf p. 5, Table 1 62https://pregnantthenscrewed.com/press-release-nearly-a-fifth-of-parentshave-had-to-leave-their-jobs-because-of-the-cost-of-childcare/ 63https://pregnantthenscrewed.com/press-release-nearly-a-fifth-of-parentshave-had-to-leave-their-jobs-because-of-the-cost-of-childcare/ 64
https://www.familyandchildcaretrust.org/sites/default/files/Resource%20Libr ary/Childcare%20Survey%202023_ Coram%20Family%20and%20Childcare.pdf p. 6 65
https://www.familyandchildcaretrust.org/sites/default/files/Resource%20Libr ary/Childcare%20Survey%202023_ Coram%20Family%20and%20Childcare.pdf p. 32, Chart 24 66
https://www.familyandchildcaretrust.org/sites/default/files/Resource%20Libr ary/Childcare%20Survey%202023_ Coram%20Family%20and%20Childcare.pdf p. 33, Table 25 67https://www.theguardian.com/business/2023/sep/09/now-even-the-bankof-england-admits-greedflation-is-a-thing 68https://www.niesr.ac.uk/publications/low-middle-income-householdsfacing-seven-years-falling-living-standards?type=uk-economic-outlook 69https://www.bis.org/publ/bisbull53.pdf, p3. 70https://www.unitetheunion.org/media/5452/unite-investigatesprofiteering-across-the-economy-its-systemic-march-2023.pdf, p11. 71https://www.unitetheunion.org/media/5452/unite-investigatesprofiteering-across-the-economy-its-systemic-march-2023.pdf, p11. 72https://www.unitetheunion.org/media/5452/unite-investigatesprofiteering-across-the-economy-its-systemic-march-2023.pdf, p 12. 73https://www.unitetheunion.org/media/5452/unite-investigatesprofiteering-across-the-economy-its-systemic-march-2023.pdf, p 15-16. 74https://www.unitetheunion.org/media/5452/unite-investigatesprofiteering-across-the-economy-its-systemic-march-2023.pdf, p. 19. 75https://www.unitetheunion.org/campaigns/unite-for-a-workers-economycampaign/latest-campaign-news/take-the-powerNational Bargaining and Disputes Support Unit
257
Facts and Figures back#:~:text=The%20Unite%20profiteering%20report%20revealed,%C2% A36.3%20billion%20in%202021 76https://www.unitetheunion.org/media/5452/unite-investigatesprofiteering-across-the-economy-its-systemic-march-2023.pdf, p. 12-13. 77https://www.unitetheunion.org/media/5452/unite-investigatesprofiteering-across-the-economy-its-systemic-march-2023.pdf, p. 15. 78https://www.unitetheunion.org/media/5452/unite-investigatesprofiteering-across-the-economy-its-systemic-march-2023.pdf, p 14. 79
https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/chba/ mm23 80https://www.opendemocracy.net/en/baby-formula-prices-inflation-profitsmillions-shareholders-competition-market-authority-nestle-heinz-marsdanone-food-prices/ 81https://www.opendemocracy.net/en/baby-formula-prices-inflation-profitsmillions-shareholders-competition-market-authority-nestle-heinz-marsdanone-food-prices/ 82
https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/chbj/ mm23 83https://corporate.marksandspencer.com/sites/marksandspencer/files/202311/M-S-Half-Year-Results.pdf 84https://www.just-style.com/news/primark-profits-rise-in-2023-as-shopperscontinue-to-spend-despite-price-hikes/?cf-view 85https://www.drapersonline.com/news/hm-profits-soar-as-sales-stay-flattish 86Unite analysis of ASHE 2023 data from ONS 87Unite analysis of ASHE 2023 data from ONS 88https://www.unitetheunion.org/media/5442/profiteering-across-theeconomy-march-2023.pdf 89Unite analysis of ASHE 2023 data from ONS 90https://www.resolutionfoundation.org/app/uploads/2023/01/LivingStandards-Outlook-2023.pdf Figure 33, p. 70 91Note: this is adjusted for inflation by the ONS using CPIH rather than RPI. There would be an even greater fall in real disposable household incomes using RPI. 92https://obr.uk/efo/economic-and-fiscal-outlook-march-2023/#chapter-2 93https://www.pwc.co.uk/press-room/press-releases/household-debt-topsp2-trillion-for-the-first-time-as-new-data-s.html 94
https://www.bankofengland.co.uk/boeapps/database/fromshowcolumns.asp ?Travel=NIxSUx&FromSeries=1&ToSeries=50&DAT=RNG&FD=1&FM=Jan&FY =1990&TD=31&TM=Dec&TY=2023&FNY=&CSVF=TT&html.x=142&html.y=40 &C=NZU&C=O3D&C=122&Filter=N, (Time series LPMVVUZ) 258
National Bargaining and Disputes Support Unit
Facts and Figures
95
https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earni ngsandworkinghours/bulletins/earningsandemploymentfrompayasyouearnr ealtimeinformationuk/october2023#pay-distribution 96
https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earni ngsandworkinghours/bulletins/lowandhighpayuk/2023 97
https://www.ons.gov.uk/file?uri=/economy/grossdomesticproductgdp/datas ets/uksecondestimateofgdpdatatables/quarter3julytosept2023firstestimate/ firstquarterlyestimateofgdpdatatables.xlsx tab D, tab D. 98
https://www.ons.gov.uk/file?uri=/economy/grossdomesticproductgdp/datas ets/uksecondestimateofgdpdatatables/quarter3julytosept2023firstestimate/ firstquarterlyestimateofgdpdatatables.xlsx tab D, tab D. 99
https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhous eholdfinances/incomeandwealth/bulletins/distributionofindividualtotalweal thbycharacteristicingreatbritain/april2018tomarch2020 100https://www.gov.uk/government/statistics/english-housing-survey-2021to-2022-headline-report/english-housing-survey-2021-to-2022-headlinereport 101
https://researchbriefings.files.parliament.uk/documents/SN03668/SN03668.p df, p. 3 102https://www.gov.uk/government/statistics/english-housing-survey-2021to-2022-headline-report/english-housing-survey-2021-to-2022-headlinereport 103
https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/work placepensions/bulletins/annualsurveyofhoursandearningspensiontables/202 1provisionaland2020finalresults#participation-trends, Section 3 104
https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhous eholdfinances/incomeandwealth/bulletins/pensionwealthingreatbritain/apri l2018tomarch2020 105
https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/work placepensions/bulletins/annualsurveyofhoursandearningspensiontables/202 1provisionaland2020finalresults#participation-trends, Section 3
National Bargaining and Disputes Support Unit
259
Facts and Figures 106
https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhous eholdfinances/incomeandwealth/bulletins/pensionwealthingreatbritain/apri l2018tomarch2020, Figure 1 107https://www.thetimes.co.uk/sunday-times-rich-list 108https://www.heraldscotland.com/news/23940097.grangemouth-jobs-risksir-jim-ratcliffe-backed-refinery-shut/ 109https://www.unitetheunion.org/newsevents/news/2023/september/grangemouth-refinery-construction-workersballot-for-strike-over-pay 110https://obr.uk/docs/dlm_uploads/E03004355_November-Economic-andFiscal-Outlook_Web-Accessible.pdf p. 5 111https://ifs.org.uk/sites/default/files/2023-11/Public-service-spending-aneven-bigger-squeeze-B-Boileau.pdf slide 3-4 112https://www.bbc.co.uk/sounds/play/m001smkp 113
https://assets.publishing.service.gov.uk/media/655df827544aea000dfb3277/E 02982473_Autumn_Statement_Nov_23_Accessible_v2.pdf p. 70, 82 114Alamy, December 2023 115https://www.resolutionfoundation.org/app/uploads/2023/11/A-preelection-Statement.pdf p. 24 and https://www.resolutionfoundation.org/press-releases/pre-electiongiveaways-arrive-early-with-biggest-tax-cuts-since-1988-but-taxes-are-upnot-down-rising-by-4300-per-household/ 116
https://assets.publishing.service.gov.uk/media/655df827544aea000dfb3277/E 02982473_Autumn_Statement_Nov_23_Accessible_v2.pdf p. 44 - 45 117https://www.peoplemanagement.co.uk/article/1833724/average-ukemployee-clocks-18-days-unpaid-overtime-year-research-shows 118https://www.ciphr.com/unpaid-overtime-statistics-2023/ 119https://www.peoplemanagement.co.uk/article/1833724/average-ukemployee-clocks-18-days-unpaid-overtime-year-research-shows 120https://www.tuc.org.uk/news/uk-workers-put-ps26-billion-worth-unpaidovertime-during-last-year-tuc-analysis 121https://www.peoplemanagement.co.uk/article/1833724/average-ukemployee-clocks-18-days-unpaid-overtime-year-research-shows 122https://www.am-online.com/news/people-news/2017/06/28/bentleyworkers-secure-multi-year-pay-deal-with-unite 123
https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earni ngsandworkinghours/timeseries/ybuy/lms 124https://www.europeandatajournalism.eu/cp_data_news/in-which-euregions-do-people-work-less-and-get-paid-more/ 125https://www.gov.uk/holiday-entitlement-rights 260
National Bargaining and Disputes Support Unit
Facts and Figures
126https://www.andertonlaw.co.uk/our-services/employment-law-no-win-
no-fee/holiday-pay 127https://www.peoplehr.com/en-gb/resources/blog/uk-annual-leave-reportby-industry/#Key 128https://www.theactuary.com/2022/12/13/private-sector-defined-benefitpensions-continue-decline 129https://www.theactuary.com/2022/12/13/private-sector-defined-benefitpensions-continue-decline 130
https://researchbriefings.files.parliament.uk/documents/SN00290/SN00290.p df p. 13 131https://www.theguardian.com/money/2023/apr/15/uk-pensions-howmuch-retire-cost-of-living-inflation-income and https://www.retirementlivingstandards.org.uk/details 132https://www.retirementlivingstandards.org.uk/ 133https://www.ftadviser.com/pensions/2023/01/13/pension-pot-of-645kneeded-for-comfortable-retirement-lifestyle/ 134https://www.retirementlivingstandards.org.uk/ 135https://www.unitetheunion.org/why-join/membership-types/retiredmembers-retired-from-work-but-not-the-fight/68-is-too-late-dont-raise-thestate-pension-age-unite 136https://www.theguardian.com/money/2020/jan/30/ethnic-minoritypensioners-are-24-worse-off-than-others-of-their-age 137https://ffnews.com/newsarticle/over-a-quarter-of-large-businessesreport-increase-in-employees-opting-out-of-pension-scheme-due-to-cost-ofliving-crisis/ 138Calculations based on PLSA standards and data here: https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhous eholdfinances/incomeandwealth/bulletins/pensionwealthingreatbritain/apri l2018tomarch2020#building-pension-wealth-over-a-lifetime, Section 4. 139https://www.gov.uk/government/publications/ethnicity-payreporting-guidance-for-employers/introduction-and-overview 140
https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earni ngsandworkinghours/articles/ethnicitypaygapsingreatbritain/2019 141https://blog.ons.gov.uk/2023/09/13/measuring-gdp-revisions-arefact-of-statistical-life/ 142https://www.independent.co.uk/money/hunt-promises-110-measures-forgrowth-as-he-seeks-to-boost-tory-election-hopes-b2451629.html and https://labourlist.org/2023/12/keir-starmer-full-economy-speech-resolutionfoundation-today-policy-spending-public-services/ and National Bargaining and Disputes Support Unit
261
Facts and Figures https://www.politicshome.com/news/article/keir-starmer-says-labourgovernment-bring-new-era-obsession-growth 143
https://www.ons.gov.uk/economy/grossdomesticproductgdp/timeseries/abm i/pn2 144https://www.resolutionfoundation.org/events/preparing-the-pitch/ 145https://data.oecd.org/leadind/consumer-confidence-index-cci.htm 146https://obr.uk/docs/dlm_uploads/E03004355_November-Economic-andFiscal-Outlook_Web-Accessible.pdf, p 40 147https://www.niesr.ac.uk/wp-content/uploads/2023/11/JC760-NIESROutlook-Autumn-2023-UK-v10.pdf, p. 6 148
https://assets.publishing.service.gov.uk/media/652fa548697260000dccfa12/F orecomp_October.pdf, p. 3 149https://www.gfk.com/press/nov-uk-consumer-confidence-stages-end-ofyear-rally 150https://www2.deloitte.com/uk/en/pages/consumerbusiness/articles/consumer-tracker.html 151https://www.lloydsbankinggroup.com/media/press-releases/2023/lloydsbank-2023/november-2023-business-barometer.html 152Unite analysis of data from Capital IQ Pro 153https://www.msci.com/documents/10199/178e6643-6ae6-47b9-82bee1fc565ededb 154https://www.ft.com/content/33a3dc42-ecc4-4e44-8ab07e0332c5bac3 155https://www.ft.com/content/f45e2c55-3727-4ba7-b8f3-9fe8754e0152 156https://www.livemint.com/news/world/saudi-arabia-eyes-majoritycontrol-of-london-s-heathrow-airport-11702205485157.html 157https://www.swfinstitute.org/profile/598cdaa60124e9fd2d05bc3b 158
https://globalswf.com/countries Sorted by SWF($b) column 159https://www.ft.com/content/f45e2c55-3727-4ba7-b8f3-9fe8754e0152 160https://www.independent.co.uk/business/coop-bank-exploring-strategic-
opportunities-b2443771.html 161https://www.ft.com/content/4fd3d6e2-277f-4938-9b9700431523c989 162https://www.fintechfutures.com/2023/12/coventry-building-societyreportedly-eyeing-co-operative-bank-takeover/ 163https://news.sky.com/story/shawbrook-plots-3-5bn-merger-with-cooperative-bank-12934027 164https://www.statista.com/statistics/508453/average-employee-numbersfor-cooperative-bank-united-kingdom/ 262
National Bargaining and Disputes Support Unit
Facts and Figures
165https://news.sky.com/story/co-op-bank-offers-to-compensate-customers-
left-without-wages-due-to-processing-system-issue-12928341 166https://www.unitelegalservices.org/news-stories/unite-members-atglasgow-east-women-s-aid-start-strike-action-after-major-legal-victory 167https://www.unitelegalservices.org/news-stories/unite-members-atglasgow-east-women-s-aid-start-strike-action-after-major-legal-victory 168https://www.unitelegalservices.org/news-stories/unite-members-atglasgow-east-women-s-aid-start-strike-action-after-major-legal-victory 169https://www.bma.org.uk/bma-media-centre/junior-doctors-in-englandannounce-new-strike-dates-after-government-fails-to-make-credible-offerto-end-the-dispute 170Alamy, December 2023 171https://www.bma.org.uk/bma-media-centre/junior-doctors-in-englandannounce-new-strike-dates-after-government-fails-to-make-credible-offerto-end-the-dispute 172https://commonslibrary.parliament.uk/research-briefings/cbp-9775/ 173https://aslef.org.uk/publications/members-vote-overwhelmingly-morestrikes 174https://aslef.org.uk/publications/aslef-train-drivers-union-sets-morestrikes 175Alamy, December 2023 176https://www.theguardian.com/uk-news/2023/dec/01/nine-days-of-raildisruption-aslef-industrial-action-overtime-ban-rolling-strikes 177https://aslef.org.uk/publications/aslef-train-drivers-union-sets-morestrikes 178https://www.blackrock.com/corporate/newsroom/pressreleases/article/corporate-one/press-releases/blackrock-reports-secondquarter-2023 179https://jacobin.com/2022/03/index-funds-blackrock-vanguard-stocksownership-democracy-concentration 180https://www.blackrock.com/corporate/about-us/contacts-locations 181Alamy, December 2023 182https://jacobin.com/2023/05/our-lives-in-their-portfolios-interview-assetmanagement-society-infrastructure and https://jacobin.com/2022/09/blackrock-passive-investment-climate-change 183https://www.raisin.co.uk/investments/passive-funds/ 184https://ir.blackrock.com/board-of-directors 185Alamy, December 2023 186https://www.bloomberg.com/news/articles/2023-04-14/blackrock-cutsfink-s-pay-30-to-25-2-million-for-past-year and https://www.forbes.com/profile/larry-fink/?sh=6762114620f4 National Bargaining and Disputes Support Unit
263
Facts and Figures 187https://www.bloomberg.com/news/articles/2023-04-14/blackrock-cuts-
fink-s-pay-30-to-25-2-million-for-past-year 188https://www.ft.com/content/a76c7feb-7fa5-43d6-8e20-b4e4967991e7 18913% of Unite members work for employers ultimately owned in an unknown country. If we assume that they are distributed as the other 93% – and in reality this is likely to overestimate UK ownership – it remains the case that less than half of Unite members are employed by companies owned in the UK. 190
https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/empl oymentandemployeetypes/bulletins/averageweeklyearningsingreatbritain/d ecember2023 191https://www.bbc.co.uk/news/business-66778178 192https://www.independent.co.uk/news/world/americas/tim-gurnerproperty-developer-australia-b2411998.html 193
https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/empl oymentandemployeetypes/bulletins/uklabourmarket/latest 194
https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/empl oymentandemployeetypes/datasets/x10adjustedemploymentunemployment andeconomicinactivity 195Unite analysis of ONS vacancy data: https://www.ons.gov.uk/employmentandlabourmarket/peoplenotinwork/un employment/datasets/vacanciesbyindustryvacs02 196Unite membership statistics. Quarters based on data provided to Executive Council. (Feb-Apr is Q1, etc.) 197
https://assets.publishing.service.gov.uk/government/uploads/system/uploads /attachment_data/file/1158789/Trade_Union_Membership_UK_1995-2022_ Statistical_Bulletin.pdf p. 1 198
https://www.ons.gov.uk/employmentandlabourmarket/peopleinwor k/employmentandemployeetypes/timeseries/mgrz/lms, https://www.gov.uk/government/statistics/trade-union-statistics2022and https://www.ons.gov.uk/peoplepopulationandcommunity/personala ndhouseholdfinances/incomeandwealth/bulletins/householdincome inequalityfinancial/financialyearending2022 199https://equalitytrust.org.uk/how-has-inequality-changed Table 4.4, p. 8 200
https://assets.publishing.service.gov.uk/government/uploads/system/uploads /attachment_data/file/1158252/Trade_Union_Membership_Statistics_Tables_ 2022.ods 264
National Bargaining and Disputes Support Unit
Facts and Figures
201https://www.theguardian.com/business/2023/sep/09/now-even-the-bank-
of-england-admits-greedflation-is-a-thing 202
https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/chbg/ mm23 203https://www.theguardian.com/business/2022/nov/16/shareholders-reaprecord-payouts-from-price-surge-during-energy-crisis 204Unite analysis of BP and Shell results - profit before tax Q1-Q3 2019-2023. 205Unite analysis of BP and Shell results - profit before tax Q1-Q3 2019-2023. 206https://www.opendemocracy.net/en/baby-formula-prices-inflationprofits-millions-shareholders-competition-market-authority-nestle-heinzmars-danone-food-prices/ 207https://www.unitetheunion.org/media/5442/profiteering-across-theeconomy-march-2023.pdf 208https://www.opendemocracy.net/en/baby-formula-prices-inflationprofits-millions-shareholders-competition-market-authority-nestle-heinzmars-danone-food-prices/ 209https://www.opendemocracy.net/en/baby-formula-prices-inflationprofits-millions-shareholders-competition-market-authority-nestle-heinzmars-danone-food-prices/ 210Unite analysis of Big Four banks Q3 2022 and 2023 profit before tax results: HSBC: pgs 6-7, Barclays: pg 4, Natwest: pg 3 and Lloyds: pg 2. Conversion rate from HMRC at 0.8202 used for HSBC. 211Unite analysis of CapitalIQ 212Unite analysis of CapitalIQ 213Unite analysis of CapitalIQ 214Unite analysis of CapitalIQ 215https://www.bbc.co.uk/news/explainers-62631320 and https://www.ft.com/content/1ecfc49d-d46c-4d36-bf1f-fd34fb53adcf 216World Bank data https://data.worldbank.org/indicator/NE.GDI.TOTL.ZS?contextual=default&e nd=2021&locations=GB-DE-US-FR-CNIN-OE&start=1970 217Unite analysis of World Bank data 218Unite Investigates, 'Growth and Productivity Briefing', March 2023. 219https://labour.org.uk/updates/press-releases/rachel-reeves-speech-atlabour-conference/ 220https://highpaycentre.org/ftse-100-ceos-get-half-a-million-pound-payrise/ 221https://www.incomesdataresearch.co.uk/ 222Unite analysis of High Pay Centre data from: https://highpaycentre.org/ukpay-database/ National Bargaining and Disputes Support Unit
265
Facts and Figures 223
https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earni ngsandworkinghours/bulletins/annualsurveyofhoursandearnings/2022 224 Unite analysis of ONS data from: https://www.ons.gov.uk/economy/nationalaccounts/uksectoraccounts/datas ets/ukeconomicaccounts 225Unite analysis of ONS data from: https://www.ons.gov.uk/economy/nationalaccounts/uksectoraccounts/datas ets/ukeconomicaccounts 226https://moneyweek.com/investments/investment-strategy/incomeinvesting/604871/ftse-100-ten-highest-dividend-yields and https://www.ajbell.co.uk/articles/investmentarticles/254997/ftse-100dividends-forecast-hit-new-record-2023-slowing-profit 227https://www.ft.com/content/f983434c-dbec-425b-8f20-e20ec5fa74b6 228https://moneyweek.com/investments/investment-strategy/incomeinvesting/604871/ftse-100-ten-highest-dividend-yields 229https://www.ft.com/content/69ca6773-d0ce-4420-b86400c3202c0d1b#post-1ab34be5-80be-446a-af15-ae8840eb497b 230https://www.ft.com/content/3f022001-acb1-4113-bff3-26c7fd0de4ed 231https://www.ft.com/content/e7e5afb3-4927-4ef5-975a55edad50563b#post-3f9a5a10-5315-4463-b03d-a4c62d68f6bf 232https://www.ft.com/content/635c6a36-a4ab-4645-ab54-6256f0cccf61 233https://www.investmentweek.co.uk/news/4114577/2022-record-breakingshare-buybacks-inflation-flatten-trend 234https://www.santander.com/en/stories/share-buyback 235https://www.ft.com/content/635c6a36-a4ab-4645-ab54-6256f0cccf61 236https://www.ft.com/content/635c6a36-a4ab-4645-ab54-6256f0cccf61 237https://www.ft.com/content/34175764-f7b3-432f-93ba-05cdd1b5bc19 238https://www.tescoplc.com/investors/shareholder-centre/share-buybackprogramme/ 239https://www.wsj.com/finance/stocks/an-aggressive-style-of-sharebuyback-is-having-a-moment-ef54d41e 240https://www.morningstar.com/news/dow-jones/202310244356/rtx-sets10-billion-accelerated-stock-buyback 241https://www.ft.com/content/934a25ba-d0cb-4530-b977-a320afccb974 242https://www.ft.com/content/33d85337-9ea5-4303-a9ce-7278770d5c0a 243https://www.imf.org/en/Publications/WEO/Issues/2023/10/10/worldeconomic-outlook-october-2023 Full report p. 14 244
https://www.ons.gov.uk/economy/nationalaccounts/balanceofpayments/dat asets/uktradecountrybycommodityexports 245https://www.imf.org/en/Publications/WEO/Issues/2023/10/10/worldeconomic-outlook-october-2023 Full report, p.40 266
National Bargaining and Disputes Support Unit
Facts and Figures
246Unite analysis of ONS data from:
https://www.ons.gov.uk/economy/grossdomesticproductgdp/datasets/uksec ondestimateofgdpdatatables Table C2 247 Unite analysis of ONS data 248Unite analysis of ONS data 249https://www.newyorkfed.org/research/policy/gscpi#/interactive 250Unite analysis of ONS data from: https://www.ons.gov.uk/economy/economicoutputandproductivity/output/d atasets/businessinsightsandimpactontheukeconomy 251
https://www.ons.gov.uk/economy/nationalaccounts/balanceofpayments/bull etins/uktrade/august2023 252Note that the graph of goods trade is in inflation-adjusted terms which is why there is no large rise in imports (or exports) when gas prices rose rapidly in 2022. 253https://www.ft.com/content/0472b02a-089c-4a19-b735-3271c254a7ea 254
https://www.ons.gov.uk/economy/inflationandpriceindices/methodologies/p roducerpriceindicesqmi 255Unite analysis of GB7S and GHIP 256
https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/produc erpriceinflation/november2023 257
https://www.ons.gov.uk/economy/inflationandpriceindices/datasets/produce rpriceindexreferencetables Tables 5 and 5a 258
https://www.ons.gov.uk/economy/inflationandpriceindices/methodologies/s ervicesproducerpriceinflationqmi 259
https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/produc erpriceinflation/september2023includingservicesjulytoseptember2023 260https://www.spglobal.com/spdji/en/indices/commodities/spgsci/#overview 261https://www.marketwatch.com/investing/index/bcom?countrycode=xx 262https://en.sse.net.cn/indices/scfinew.jsp; https://container-news.com/scfi/ 263https://tradingeconomics.com/commodity/baltic 264https://fbx.freightos.com/ 265https://www.niesr.ac.uk/wp-content/uploads/2023/11/JC760-NIESROutlook-Autumn-2023-UK-v10.pdf p77 266https://www.hse.gov.uk/statistics/history/historical-picture.pdf p. 6 267https://www.hse.gov.uk/statistics/history/historical-picture.pdf p. 6 National Bargaining and Disputes Support Unit
267
Facts and Figures 268https://www.hse.gov.uk/statistics/overall/hssh2122.pdf 269https://www.hse.gov.uk/statistics/causdis/index.htm and
https://www.hse.gov.uk/statistics/?utm_source=press.hse.gov.uk&utm_ medium=referral&utm_campaign=annual-stats-22 270https://www.hse.gov.uk/statistics/history/historical-picture.pdf p. 9 271https://www.ciphr.com/workplace-stress-statistics/ 272https://www.hse.gov.uk/statistics/?utm_source=press.hse.gov.uk&utm_ medium=referral&utm_campaign=annual-stats-22 273https://www.hse.gov.uk/statistics/history/historical-picture.pdf p. 8 274https://www.hse.gov.uk/statistics/?utm_source=press.hse.gov.uk&utm_ medium=referral&utm_campaign=annual-stats-22 275https://www.hse.gov.uk/statistics/history/historical-picture.pdf p. 6 276https://www.hse.gov.uk/statistics/cost.htm 277https://resources.unitetheunion.org/media/2802/original/(JN8367)(2)_A4_ Health_and_Safety_Guide_Brochure.pdf pp. 12-14 278https://www.tuc.org.uk/research-analysis/reports/union-health-andsafety-rep-survey-202021 279https://www.theconstructionindex.co.uk/news/view/hse-visits-downnearly-a-third-since-2014 280https://www.unitetheunion.org/news-events/news/2023/march/wirralhousing-worker-strike-over-after-asbestos-agreement-struck/ and https://www.insidehousing.co.uk/news/lengthy-strike-action-kicks-off-atnorth-west-landlord-over-asbestos-safety-fears-80135 281https://www.gov.uk/government/news/strikes-bill-becomes-law 282https://www.unitetheunion.org/news-events/news/2023/january/uniteslams-second-reading-of-anti-strike-bill-as-preposterous/ 283https://www.clydeco.com/en/insights/2023/05/strikes-minimum-servicelevels-bill-the-story-so-f 284https://www.tuc.org.uk/blogs/governments-anti-strikes-bill-defeatedhouse-lords 285https://www.clydeco.com/en/insights/2023/05/strikes-minimum-servicelevels-bill-the-story-so-f 286https://www.gov.uk/government/news/strike-laws-to-be-passed-toprotect-vital-public-services-over-christmas 287https://www.gov.uk/government/news/strike-laws-to-be-passed-toprotect-vital-public-services-over-christmas 288https://www.independent.co.uk/business/minimum-service-level-strikelaws-extended-to-ambulance-rail-and-border-workers-b2442577.html 289https://www.bbc.co.uk/news/uk-scotland-67344306 290https://www.unitetheunion.org/newsevents/news/2023/june/unite-announces-new-ambulance-andhospital-strikes-as-nhs-pay-and-safe-staffing-dispute-intensifies/
268
National Bargaining and Disputes Support Unit
Facts and Figures
291https://www.theguardian.com/business/2023/oct/19/uk-fiscal-watchdog-
obr-admits-errors-inflation-forecasting-high-energy-prices and https://www.ft.com/content/b972f5e3-4f03-4986-890d-5443878424ac and Unite analysis of Treasury forecast documents: https://www.gov.uk/government/collections/data-forecasts 292https://www.theguardian.com/business/2023/oct/19/uk-fiscal-watchdogobr-admits-errors-inflation-forecasting-high-energy-prices and https://www.ft.com/content/b972f5e3-4f03-4986-890d-5443878424ac and https://obr.uk/download/october-2021-economic-and-fiscal-outlooksupplementary-fiscal-tables-expenditure/?tmstv=1699442982 inflation tab, RPI Q4 2024 and https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/czbh/ mm23 and https://www.ofgem.gov.uk/energy-data-and-research/dataportal/wholesale-market-indicators Gas and electricity day ahead contracts 293https://www.acas.org.uk/acas-code-of-practice-on-disclosure-ofinformation-to-trade-unions-for-collective-bargaining/html 294https://www.cipd.org/uk/knowledge/employment-law/holidays/ 295
https://www.etui.org/sites/default/files/EEEPB%2003%202007%20BBA.pdf p. 2 296https://www.peoplehr.com/en-gb/resources/blog/uk-annual-leave-reportby-industry/
National Bargaining and Disputes Support Unit
269
270
National Bargaining and Disputes Support Unit