Archives for category: Finance

People passing the illuminated Bournville factory buildings late at night will have noted its 24-hour operation – evidence of a thriving enterprise.

The factory buildings in 1932: unchanged exterior

The FT’s John Murray Brown (paywall) reports from Bournville that Mondelez has completed a two-year modernisation programme, investing £75m in the chocolate maker’s flagship factory: “Shiny new production equipment has been installed at the “factory in a garden” built by Quaker George Cadbury in 1879 alongside houses for its workers who had relocated from Birmingham’s industrial belt.

Under the agreement, 1,300 workers at Bournville and two other Cadbury factories in the UK will receive a pay rise of 3.2% in 2017-18, and an increase in line with inflation in 2018-19. Joe Clarke of Unite says this is considerably higher than other recent settlements in the food and drinks industry, which have been about 2.4%.

Mr Clarke highlighted the chocolate maker’s “strong ethical traditions: “Cadbury has a long history of good industrial relations. We’ve got records which go back to the tea break agreement of 1922.” Cadbury established works councils, with management and employee representative meeting to discuss company plans, back in the 1930s. It was also one of the first companies to offer sick pay and pension rights for women.

The improvement in industrial relations at Cadbury came after controversy when the company was bought by Kraft Foods of the US in 2010. The Takeover Panel, the custodian of UK rules on mergers and acquisitions, after reneging on a promise not to shut Cadbury’s Somerdale plant at Keynsham near Bristol but it was made clear that the original decision had been made by Cadbury in 2007.

There have been 200 voluntary redundancies at Bournville under the modernisation programme, bringing the manufacturing workforce down to about 800. The four new production lines have led to ‘dramatic’ productivity improvements closing the gap with Mondelez’ German plant. In an embedded video, David Bailey, professor of industrial strategy at Aston University business school, said, “We hadn’t seen significant investment at Bournville for a long time. It was pretty dilapidated. Old plant and equipment. The focus on productivity is the only way any company manufacturing in a relatively high-cost economy can survive in the long run”.

The changes at Bournville mean manufacturing is assured “for a generation not just for the short term”, according to Glenn Caton, president of Mondelez’s northern Europe operations.  

 

 

 

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Moseley Road Baths is one of the nation’s most significant heritage swimming pools – it is the oldest Grade II* Listed baths still open for public swimming. Last year nearly 80,000 people swam in this community pool.

The Baths were earmarked for closure last July but a community campaign and the support of heritage organisations led to Birmingham City Council granting a reprieve.

Next April Moseley Road Baths action group, who have formed a Community Interest Company (CIC), will take over the running of the baths from Council. The company’s business plan shows that MRBCIC can break even within three years but in the first year it needs to raise £75,000 to help to pay for essentials like staffing, heat, light and water. The company is seeking grant funding for some of this, but the group is also calling on support from anyone reading this appeal to add to this, helping us to meet two critical costs (swim trainers and lifeguard volunteers).

MRBCIC has nine months to develop a workable model for swimming, with the aim of taking over operational responsibility for water activity from April 2018. Since then it has been working hard – liaising with heritage partners, bringing in advisers, understanding the community swimming need and producing a business plan which shows that MRBCIC can break even within three years.  Click here to read the business plan.

Our initial target is to raise £13,552 to train 8 volunteers in lifeguarding and teaching as well as in customer service skills, health and safety, etc. Each volunteer must be trained so that  safe swimming can be offered at all times.  Crowdfunding is the first stage in raising the funds needed to ensure they have a fully trained team ready to go. Read more on their website.

Please spread the word – and if willing and able – donate by following the link.

 

 

 

 

 

Political Concern comments on Druids Heath and the role of the modern council

The presenter of this BBC radio programme, Adrian Goldberg, grew up on the Druids Heath council estate in Birmingham, the home of the ‘municipalism’ pioneered by Joseph Chamberlain when he was Mayor of Birmingham – summarised by Walsall MP John McShane in the Commons in 1930:

“A young person today lives in a municipal house, and he washes himself … in municipal water. He rides on a municipal tram or omnibus, and I have no doubt that before long he will be riding in a municipal aeroplane. He walks on a municipal road; he is educated in a municipal school. He reads in a municipal library and he has his sport on a municipal recreation ground. When he is ill he is doctored and nursed in a municipal hospital and when he dies he is buried in a municipal cemetery.”

Adrian is described as being an ideal candidate to judge the changing nature of the local council, because when he and his family moved there the local authority provided a range of services. He comments, “Today the situation is much more complex”- follow the link to read more.

Political Concern adds:

Inside Housing reports the housing minister’s description of sprinkler systems for high rise blocks as “additional rather than essential”, refusing a council’s request for funding offered after the Grenfell Tower tragedy.

And comments: “Strangely, the conservative Prime Minister expresses admiration for Joseph Chamberlain”.

Mayor of Birmingham in 1873, city MP in 1876, Joseph Chamberlain directed the construction of good housing for the poorest, libraries, municipal swimming pools and schools. Unlike Ms May and colleagues, he was not in favour of a market economy, arguing for tariffs on goods from countries outside the British Empire. He was also an ‘economic interventionist’ (see Lewis Goodall, Newsnight), described as a “gas and water socialist”. He took profit-making private enterprises into public hands, declaring that “profit was irrelevant”.

In no way is she following the example of her hero. Ms May’s government continues to implement a series of cuts affecting the lives of the country’s poorest and most disabled with might and main. Ironically the contemporary politician sharing Chamberlain’s principles is the opposition leader, Jeremy Corbyn, whose policies she echoes but does not implement.

 

 

 

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In 2015, Welfare Weekly reported that research by the Institute for Fiscal Studies (IFS) found that 2.6million working families on Universal Credit would lose £1,600 a year from the changes and 1.9 million would be £1,400 a year better off.

Analysis from the independent Office for Budget Responsibility suggested the changes to universal credit would save the chancellor close to £3bn by 2019-20 – a figure quoted by Public Finance.

Graph from House of Commons Library blog, last November, ‘Jam Tomorrow’

In March this year a study by the Child Poverty Action Group (CPAG) and the IPPR thinktank that a series of cuts and changes have left the government’s flagship welfare overhaul failing to meet its original aims.

Although universal credit was intended to boost household incomes by strengthening incentives for claimants to move into work or take on more hours, the study says that more families will be worse off than under the scheme’s original design.

Families with children are the biggest losers under the cuts made to universal credit since it was first established. Lone parent families will be on average £2,380 a year worse off, while families with two children lose £1,100 on average and those with three youngsters lose £2,540. Lone parents and couples where one parent works part-time to care for young children are hit particularly hard and face having have to find up to two days’ extra work a week to meet the shortfall in income from the cuts.

Currently just 450,000 people are on universal credit, which is not expected to be fully operational across the country until 2022. At that point, according to estimates by the Institute for Fiscal Studies, 2.1 million families will be worse off under the new system, and 1.8 million better off.

David Hencke quotes Catherine McKinnell, Labour MP for Newcastle North, who said:

“My office has been deluged with complaints from constituents about a Universal Credit system that is clearly struggling to cope and failing to deliver the support that claimants need in anything like an orderly or timely fashion”.

She reveals a very sorry picture. The new IT system means people can’t talk to a human. It has a verification process that requires claimants to produce photographic identification such as a passport or driving licence, “which many simply do not possess and certainly cannot afford”. She adds:

“There are numerous examples of Universal Credit claims being shut down before they should be; of documentation being provided to the DWP, at the constituent’s cost, and repeatedly being lost or even destroyed; and of totally conflicting, often incorrect, information being provided to constituents about their claims.” A list of other problems may be seen here.

Precisely the case seen repeatedly 20 years ago when the writer (David Hencke) was a volunteer in a local night-shelter.

Hencke ends, “What this shows to me is a growing disconnect between the people at the top – who are computer savvy, have nice centrally heated homes, no problems with bills, can afford expensive holidays, and can’t conceive of anyone not having a passport – designing a system for poor, dispossessed, desperate people without any understanding of how the world works for them.

 

 

 

 

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The BBC reports that, at a High Court hearing in London on Wednesday, Mr Justice Fraser dismissed the council’s argument that Mr Clancy had no authority to make a deal at ACAS with Unite.

He said that he was ‘more than satisfied’ there is enough evidence about what was referred to in court as the ‘Clancy Agreement’ to be tested at a full trial. He also dismissed a submission by Birmingham City Council’s legal team that a trial would not be in the public interest.

An interim injunction was granted against the bid – favoured by council officers – to make refuse collectors in Birmingham redundant.

The union is calling for Ms Stella Manzie, the authority’s interim chief executive, who had been leading the negotiating team, to stand down.

Justice Fraser said that documents made clear an internal rift at the council and read out an email sent on 15 August from the interim chief executive Stella Manzie to ex-leader Mr Clancy saying the council could not look weak and “as if it’s being walked over”.

On 11th August Cllr Lisa Trickett had corrected the impression that there will be job losses and cuts to basic pay for workers affected by the removal of the “leading hand” role  “one of the two supervisors in a three-person team: 

“Those supervisors will be offered other permanent roles within the council that their skills are broadly suited to, with training on offer to help ensure they could move into the jobs as easily as possible”.

John Clancy said in July that the council is ‘bending over backwards’ to reform the inefficient bins service inherited from the previous administration, without making job losses:

“We are giving the leading hands every opportunity to further their careers elsewhere in the city council with at least the same basic salary.”  He pointed out that 220 more permanent bin jobs will be created to replace the expensive agency staff currently used.

The conciliation service ACAS said on 16 August the council had accepted the workers’ case and restored the jobs of grade three workers, who are responsible for safety at the back of refuse vehicles. However, a council report said the deal struck by UNITE and the council was unaffordable.

Unite assistant general secretary Howard Beckett said refuse workers would now return to a full working day until the five-day court hearing.

 

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SUPPORTIVE COMMENTS ON THE BBC WEBSITE

  • So council bosses want to get rid of 120 binmen but not their huge wages and pensions. No surprise there then.
  • Why not scrap a couple of councillor jobs and pay for the service The council tax should cover bin collection costs, not pay rises for the suits
  • It’s costing the council more to pay for agency staff to clear the rubbish than it would for them to accept the deal brokered by ACAS with Clancy.
  • They could find £188 million to build a library, and no doubt have spent millions more on other vanity projects, but want to save money collecting peoples rubbish.
  • As with most councils, they have their priorities all wrong. https://www.letsrecycle.com/news/latest-news/sheffield-councillors-vote-to-end-35-year-veolia-contract/ I live in Sheffield & I can tell you first hand Veolia are 100% inadequately staffed and just as poorly managed and led by their corporate offices. Privatization of a service that should be ‘in house’ to any local authority is a huge financial gamble – as proven here.
  • That is the issue – tenders being brought in by councils that cost more in the long run to fund than staffing with their own paid employees. Look at Veolia – Google search to see the muck ups they make & their costs.
  • A simpler way to save the money would be to get rid of Stella Manzie, the interim CEO who has been sent to Birmingham by the government to do a hatchet job on our local authority. She is well known for being parachuted into ‘difficult’ local authorities who are not following Conservative government rules. She is the one who scuppered the agreement between Unite and the council leader John Clancy.
  • Birmingham City Council has behaved appallingly in this dispute. They did not consult properly with the bin men from the start. The council leader then agreed a deal that would change shift patterns but removed the threat of redundancy. The council then reneged on the deal. The interim CEO (a government stooge) was behind the report to scupper the deal. They then issued redundancy notices!
  • The right decision. Workers’ rights have been eroded to the core as it is but central government is the problem here. Birmingham, like most councils, has had its funding cut severely. If they don’t save the money here they will be forced, by the government, to save it somewhere else.

 

  • Be clear here. Bin men were not being made redundant to end up on the dole. Their jobs were being made redundant, & the men were offered replacement jobs elsewhere in the council work-places on the SAME PAY grade as they were on.

 

 

 

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Courage and principle. These are precisely what the Labour “moderates”, the heirs to Tony Blair’s “third way” politics, are said to lack. It was said they trashed principle in the pursuit of power”. So wrote former Conservative MP, Matthew Parris, in The Times last year.

Birmingham has lost a talented and caring leader due to its ‘moderate’ MPS, councillors and ‘support’ staff.

Earlier this month, Steven Walker blogged that councillors had denied the deal agreed with the Unite union and issued summary redundancy notices.

But an email from council leader John Clancy to depot managers confirmed the agreement and began its implementation. It may be seen in Walker’s article, republished on the BATC site.

Birmingham bin strike: cabinet DID support Clancy deal

A senior Birmingham Labour source told Walker that a cabinet meeting did take place on 17 August to discuss the deal, the day before Clancy’s email to the union went out. It was an official, formal ‘Part 2’ meeting and John Clancy’s proposed agreement with the bin workers was passed by cabinet with a clear majority in support.

Leave it to management – for how long?

The city’s equivalent of ‘Sir Humphrey’ is said, on returning from her holiday, to have applied ‘all kinds of pressure’ to the cabinet members to row back on the decision. A Mail article reports that the CEO told the elected leader of the council it was not appropriate for him to ‘interfere in a management disciplinary matter”.

The Labour councillors have now made a new statement saying: “A just settlement must be found as quickly as possible to the Birmingham bin dispute. Bin workers deserve justice on pay and our city deserves a high-quality service”.

But a just settlement was reached – along the very lines they now advocate – and they wrecked it. The Unite union is calling for the council to honour that deal struck by its able and honest council leader John Clancy in August.

 

 

 

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The government will decide, in November, whether to make a formal bid to host the Games.  Birmingham based its application around the city’s four indoor arenas and the Alexander stadium, currently the home of UK Athletics, which it plans to refurbish for the 2022 event and make it the UK’s largest permanent athletics stadium. It also put forward plans to run a business convention alongside the Games.

The Origin Sport Group was selected by the council to assess sporting facilities such as this

In the Birmingham Press (2012), the website that was first to call for Birmingham to try and stage the Commonwealth Games in either 2022 or 2026, Steve Beauchampé congratulates Councillor Ian Ward, Steve Hollingworth (lead officer for sport at the Council) and their colleagues at the Birmingham Commonwealth Games Bid Company, stating: “The government chose Birmingham because it offered a low risk, low cost Games fit for post-Brexit Britain”.

He points out that Birmingham’s cautious and (a word they used often) ‘compliant’ bid spoke to the government’s search for a low-cost, low-risk Games and adds: “It is telling that the Department for Digital, Culture, Media and Sport statement outlining why Birmingham’s name is the one that goes forward highlighted phrases such as ‘risk-minimisation’ and ‘value for money’”.

A Games for our times

“A Games for our times then, and a decision set against very real concerns that a further extended period of economic uncertainty for the UK lies ahead. A decision taken by a Government striving to reduce the annual budget deficit, yet confident that overseas competition for the right to host 2022 would be limited. An austerity Games perhaps; strong and stable, yet deliverable and placed in the hands of reliable and trustworthy organisers”.

Beauchampé adds that as Britain leaves the European Union, damaging relations with our closest neighbours in the process, it urgently needs to develop new trading links beyond Europe and counter Britain’s growing image as an insular, nationalistic and increasingly irrelevant island.

Yet despite the understandably positive response by many in Birmingham to Thursday’s news, he feels that a degree of perspective might not go amiss

He foresees that if Birmingham is eventually selected to host the 2022 Commonwealth Games it will not transform the city or its fortunes in the way that hosting in 2002 transformed Manchester. After listing the changes to be made to Birmingham’s sporting infrastructure he ends:

“Undoubtedly there will be some permanent new employment opportunities (along with considerably more temporary ones) whilst Birmingham’s national and international profile and image may undergo a degree of positive change. Fine as far as it goes, but should the city eventually be awarded the Games, it must use them as the starting point for long-term transformation, rather than the culmination of it. And that will require considerably greater ambition than we have witnessed thus far”.

Source: http://thebirminghampress.com/2017/09/commonwealth-games-2022-box-ticking-success-strategy/

 

 

 

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The city has at last gained a council leader who really cares for the 99% (search housing blogs) – the only one since Theresa Stewart was elected.  

Measures taken (2016-17) include:

Clancy also works effectively to maintain and increase economic prosperity for the city’s business community:

Does ‘Sir Humphrey’ resent his success?

Howard Beckett (Unite) points out: “Let no one lose focus here that this is a cuts agenda being forced through by a paid officer, Stella Manzie, who takes home £180,000 a year and in her last year at Rotherham claimed over £160,000 in expenses”. He stated:

“The Council have agreement with the unions for changes in a working week, shift patterns, increased waste revenue. The Labour Cabinet needs now to honour the Acas deal and in doing so do the right thing by workers and the people of Birmingham . . . the council needs to admit it did ratify it and stand by it – and if it doesn’t, it needs to be honest and admit it’s going back on its decision. This is a fair deal and the equal pay issues are made up”.

Is the civil service attempting to undermine the elected leader of the council? Technically no officers, including the interim chief executive, have the authority to overturn a cabinet vote  seven for three against according to a ‘senior Labour source’ at a council meeting on 17 August called to discuss the deal

Clancy’s ‘crime’: addressing a major overspend on the bins department which relied heavily on costly agency staff and overtime payments to fulfil its basic service and a potential equal pay liability that the Labour leadership inherited from the former Tory-Lib Dem council which oversaw the 2011 bin strike.

There will be a full council meeting on Tuesday, September 11 when two councillors with a minimal track record of achievement will table their vote of no confidence in the leader.

It should be overwhelmingly defeated.

 

 

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“DEBT AND ECONOMICS: EDUCATION FOR ACTION” WORKSHOP

The Jubilee Debt Campaign invites all to an interactive, informative, educational day-long workshop from 11 – 16.30 on Saturday 7th October at the Islamic Relief Academy, 22-24 Sampson Road North, Birmingham B11 1BL.

The registration page for this long awaited debt workshop now live. For further details click here  – (https://www.eventbrite.co.uk/e/debt-economics-education-for-action-tickets-36539325105 – or call Clare Walden, JDC on 0207 324 4729.

Most of the buses going towards Solihull and Shirley from the city centre (particularly numbers 37, 6 and 2) stop at the beginning of Stratford Road which is a few minutes’ walk from the IR Academy (below).

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This day-long workshop is totally FREE and is part of a series taking place in cities across the UK, to be delivered by debt expert and facilitator Fanny Malinen.

Inequality and debt are on the rise – eight men now own as much wealth as half the world’s population. The debt payments of impoverished countries are increasing rapidly and are at the highest level for a decade. Closer to home, PFI debt is having a huge impact on NHS finances and students leaving UK universities now face higher average debts than American students, with the average student graduating with more than £44,000 debt.

Come and discuss whether debts should always be paid and understand more about the historical and current connections between debt and inequality. Learn about why Ghana’s debt is higher now than it was in 2005 – even after a large write-off – and how NHS debt is linked to global south debt through Public Private Partnerships. Importantly, come and hear about debt resistance, positive alternatives and how you can be a part of a global and national movement for debt justice!

There will be a one-hour lunchbreak, and smaller breaks during the day. We will provide refreshments throughout the day but please bring your own lunch or money to buy lunch.

If you have any accessibility needs you would like to discuss please get in touch with clare@jubileedebt.org.uk. This venue is wheelchair accessible.

 

 

 

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Thursday 14th September, 5.30 for 6pm start.

UNISON Regional Office, 24 Livery Street, B32PA (next to the Old Contemptibles and opposite Snow Hill Station)

Lucy Seymour-Smith writes:

In times of austerity, services, organisations and communities are being starved of the funds needed to survive and grow.

We cannot regenerate or communities by relying on large organisations who can, and do relocate according to their own financially driven agenda.

Instead we need a new approach to regeneration framed around co-operative values of self-help, participation, social responsibility and democratic accountability that is led by organisations that have a genuine long-term stake in our communities.

In celebration of the Co-op Party centenary this event is an absolute must for all those interested in transforming the West Midlands region by reorganising local economies and supporting communities to help themselves.

First outing at the 2017 Durham Miners’ Gala

Panel speakers include:

Liam Byrne MP

Claire Campbell, UNISON Head of Local Government

Anna Birley, Coop party policy officer and Labour/Coop Party Cabinet Member in Lambeth

 *Spaces limited so sign up quickly*

nibbles and networking

https://www.eventbrite.co.uk/e/how-can-west-midlands-councils-build-community-wealth-tickets-37093770466

 

 

 

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