Unions slam Tory council loading Southampton with £100 million black hole but still attacking jobs

30 September 2011

Workers get ready for action on 6 October

Unite and Unison have demanded to know why one of the country's biggest Tory councils, Southampton, is planning to raise nearly £100 million of unsecured borrowing for unnecessary capital projects, such as the Titanic Museum and Civic Centre refurbishments, yet remains determined to cut workers' jobs and wages.

The unions question why the council has forced through 5.5 per cent wage cuts and is expected to press on with more budget cuts this autumn - but is borrowing tens of millions of pounds. Unite and Unison say that borrowed money must be ploughed into saving the city's jobs and services.

The call comes as Unite announces a full membership walk out at Southampton on 6 October, the date when the city's Unison members in social care will also take strike action.

Minutes of Southampton city council meetings reveal plans to double unsecured borrowing to £78 million this year and then to raise it year on year over the following three years to £96 million. The borrowing increase runs alongside the council's aggressive strategy of cutting the pay of more than 4,000 of its workforce, which has plunged the authority into months of industrial unrest.

Papers presented to the council earlier this month detail repayments of interest alone of £4.8 million this year, money which the union say ought to be used to maintain services for the needy.

Ian Woodland, regional industrial officer, said: “So much for Tory councils being financially responsible. Yes, borrowing money is one way to combat the cuts, but if the council is levering in substantial sums yet failing to use these to secure jobs, communities and the very stability of our city, then what is this money for?

"Royston Smith must come clean. This £100 million must be used to support the jobs and services Southampton's people pay for and want.

"It is not the rubbish collectors, or dinner ladies or librarians who are ’maxing out’ Southampton's credit card. This Tory administration now needs to tell Southampton's people why they are borrowing big with their money."

Mark Wood, Unite convenor, added that the workers' resolve to challenge the council's cuts’ strategy remains high: “Months into this dispute and workers are still prepared to take action to defend their jobs and this community against cuts. That shows you their determination to get this council to do the right thing”.

Mike Tucker, Unison branch secretary, said: “Next week it will be three months since these cuts were imposed on our members and they are still up for the fight. The council must realise that the only way to resolve this dispute is through negotiation.”

More than a thousand workers in social care, refuse collection, street cleansing, parking, building works and port health and from all services throughout the council, are poised to take strike action on 6 October. Members of Unite and Unison have been taking strategic strike action over the summer in an attempt to convince the council to think again on imposed wage cuts of up to 5.5 per cent.

To date, the industrial dispute has already cost the local authority millions of pounds. Since November 2010 the unions have proposed wage freezes and temporary pay cuts as a means of balancing its budget while retaining services. The council has consistently rejected this, forcing the industrial action which began this summer.

ENDS

For further information, please contact the Unite Press Office on 020 3371 2065 or Pauline Doyle on 07976 832861 or Ian Woodland on 07707 704480


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