a fact of corporate life.

Regular readers of Socialist Courier will be aware that we have been high-lighting the generous incomes paid to those in the commanding heights of industry and commerce , now we read that the chairman of Sainsburys , Philip Hampton , yesterday brushed aside concern over soaring directors' pay, declaring that annual rises in excess of inflation are now "simply a fact of corporate life".

Last month, it emerged that chief executive , Justin King , is to reap the rewards of the failed private equity approach to the supermarket group by receiving a hefty pay rise and other adjustments to a pay packet that topped £2m last year. King will receive a 17% rise in his basic salary of £725,000 - taking it to £850,000 - plus an award of shares

It was also revealed that the Qatari royal family own a quarter of Sainsburys .

Meanwhile at Boots The Chemist , Richard Baker , the chief executive of Alliance Boots , and Scott Wheway, managing director of Boots the Chemists step down . Baker made £6.5m when he exercised his share options as the company was taken private. Wheway cashed in £1.19m.

Another Capitalist Windfall

Although it posted a slowing in sales growth Marks and Spencers , chief executive Stuart Rose received £3.6 million in salary and bonuses last year, up 68 per cent on a year ago .

Who owns the North Pole part 3

We warned here and here that due to the global warming and the increased accessibility of the Arctic Ocean and thus to the natural resources in the region that a new rivalry for sovereignty has begun in the Arctic .

Canada has announced plans for six naval patrol vessels and deep-water port in the north to assert its claim to territorial waters in the Arctic , all at a cost of $3bn (£1.5bn) .

Prime Minister Stephen Harper says the time has come to re-assert Canada's claim to the north to remind other countries - including the US - of Canada's claim to the waters off its northern coast.

The claim could also have serious economic implications. Natural resources including oil, gas and diamonds are thought to lurk - perhaps in abundance - under the Arctic ice. And then there is the North-West Passage - the northern shipping route between the Atlantic and Pacific oceans that European explorers sought for centuries. With a warming climate, the route may just become viable and lucrative.

CHARITY AS A STATUS SYMBOL

The immense wealth enjoyed by the British capitalist class is well illustrated by their charity donations. "Two tycoons have in the past few days earmarked stupendous sums for charity: hedge fund manager Chris Hohn, a prime mover in the fight to take over ABN Amro, is giving away £230m, and Peter Crudas, the founder of CMC Markets, is donating £100m. ... The rich have complex motivations for their philanthropy; a real desire to do good may be mixed with wallet-waving competition between Masters of the Universe. Some hope to disarm critics who are uneasy at the gap between rich and poor. Others have so much money they genuinely don't know what to do with it." (Observer, 8 July) RD

WHISKY AS A STATUS SYMBOL

Another example of how crazy capitalism has become in a world where millions are surviving on a dollar a day is this item. "Rare malt whisky has become the badge of success for wealthy City bankers. Trendy bars and clubs in London are reporting record sales of expensive whiskies. The most sought-after whisky on offer at the gaming club Fifty in St James’s is Johnny Walker 1805, which costs £1,000 for a dram or £14,000 a bottle. City of London staff were paid £21 billion in bonuses last year." (Times, 9 July) RD

CLAYMORE CHOPS WORKERS

Today’s exclusive by Norman Silvester in the Sunday Mail reveals plans for the possible stopping of production at the former Motorola semiconductor plant at in East Kilbride under the codename Operation Claymore. Employees were told on Friday that the new Texan owners, Freescale, were putting the giant plant up for sale.
The plant was opened up in 1969, it is thought that Freescale will only keep their research and development arm which would save about 300 jobs at most. However, 900 workers are set to lose employment.
The profit motive has lead to the closure of other fairly long established businesses in East Kilbride such as the Bruce Hotel, which suddenly was closed causing havoc for clients with wedding arrangements as well as staff, the Co-operative opened in the town centre 1970 closed recently and the uncertainty for many families with a mortgage, has MSP Andy Kerr urging the Scottish Executive to act as the closure will have a major blow on the town of East Kilbride and beyond.
Local MP Adam Ingram says he has been told nothing officially by Freescale and would be demanding answers tomorrow.
However, most electronics work is now located in Eastern Europe and Asia where costs and wages are much lower, so the crisis society that is capitalism continues to disorganise the plans and desires of communities, it always has and it always will, lets get rid of it and replace it with a society that doesn’t have a profit motive, Socialism.

THE CHURCH GOES COMMERCIAL

"A prominent Polish cleric known for preaching against communism and for his anti-Semitic remarks said on Tuesday he planned to launch perfumes, clothing and cafes branded with his image. Father Henryk Jankowski took part in strikes which led to the end of communism in 1989 as part of Solidarity movement. He was later suspended from preaching for a year after insulting remarks about Jews. ... Jankowski, who already has a wine branded with his image under the name "Monsignore," said he would be on the panel for "castings" of waitresses for the 16 cafes he plans to open in major Polish cities." (Yahoo News, 3 July)
Wine making? Cafe owners? What about that story about Jesus casting money changers from the temple? On Sunday mornings priests can preach against materialism but capitalism rules the rest of the week. RD

Drug Pushers

Which? surveyed 200 doctorsDrug companies are bombarding GPs with promotional materials and inducements . GPs received four visits per month on average from drug reps.
They also received five promotional mailings about new drugs a week, and inducements to attend conferences.

25% of the GPs questioned had been sponsored to attend a conference, seminar or training event in the UK in the last 12 months and 5% had been sponsored to attend an event abroad. In just one month, one GP was offered nine conference places and 13 meals, and received nine visits from drug reps, 10 letters, 21 leaflets, two patient information booklets and one training DVD. This amounted to 22 companies contacting her about 31 drugs.

Yet doctors still report a lack of information from independent sources and just only 7% trusted the information they received from drug firms.

Lets not make any bones about it - those in the pharmaceutical industry are in business to make profits and to compete with their commercial rivals .Drug companies will waste resources with duplication of effort for the marketing of their own particular product and leave doctors and other health workers no wiser when the information they receive proves so partisan .

What a world this is

Nearly a third of newly qualified nurses had not found a job six months after qualifying, figures show. And over half of physiotherapist graduates were unemployed, along with one in five midwives, according to a government census in March 2007.

9,000 nurses qualified between May and September 2006, but only 69% were employed six months later, meaning nearly 3,000 were unemployed.

Dr Peter Carter of the Royal College of Nursing, said: "I am hearing worrying stories from recently qualified nurses who are unable to get jobs because trusts are freezing entry level posts to save money...it is a waste of new and much needed nursing talent."

Meanwhile,

A group of stressed-out people in Spain have been given a chance to let off steam by demolishing a hotel in Madrid. The 30 winners of a contest were given sledgehammers to smash up the bedrooms and bathrooms of the 146-room hotel in the capital. The participants were selected by psychologists from more than 200 stressed applicants.

And our Fly the Flag Prime Minister

Elsewhere

Under the five-year plan, initiated by EU Agriculture Commissioner Mariann Fischer Boel, winemakers in EU countries will get cash rewards for producing less wine by abandoning some or all of their poorer quality vineyards.

Money goes to money

We have already mentioned the good fortune of Brian Souter of Stagecoach but lo and behold The Herald reports he has added a further £6.4 million to his vast personal wealth after exercising share options in the Perth transport giant. Souter this week bought 4.36 million shares at between 27p and 85.75p apiece under options granted between 2002 and 2004. The exercise netted Souter a paper gain of £6.4m, this being the difference between what he paid for the shares - £2 million - and the value of that holding now, which is £8.4 million .

He recently pocketed more than £100 million when the company returned £700 million to shareholders, and was last week granted deferred bonuses worth nearly £800,000.

Souter retained the shares bought this week and now holds a 14.72% stake in Stagecoach worth £201 million. Souter's sister, fellow Stagecoach founder Ann Gloag, has an 11% stake in the company and pocketed more than £70 million from the recent return of cash to investors .

Souter and Gloag rocketed from ninth to fourth in the league table of Scotland's wealthiest individuals, with an estimated combined fortune of £770 million.

More migrants die at sea -and ignored

Further to an earlier story , an UN refugee agency official has said 210 illegal migrants were reported drowned or disappeared in the Strait of Sicily in June while attempting to cross from northern Africa into Europe. Migrants from northern and sub-Saharan Africa often attempt the treacherous journey in small, rickety boats after paying large sums to smugglers.

Paolo Artini, an official with the UN High Commissioner for Refugees office in Italy stated:-

“When it is a matter of saving lives at sea, a narrow interpretation of what constitutes a distress call, and any protracted discussion on search-and-rescue responsibilities should not be considered ethically acceptable,” .

He criticised “gaps in the legal framework concerning rescue at sea, and insufficient cooperation among states who often hold different views.”
Disputes have erupted recently over which country should take responsibility for migrants rescued in the international waters between Italy, Malta and Libya.

House Prices

Savills , the estate agent and consultancy group said demand for “super prime” houses continued to rise strongly, with interest coming from international as well as UK purchasers.

The super prime residential market – houses costing £5m or more in London and large country houses – was continuing to benefit from City bonuses but was also “heavily influenced” by international buyers who accounted for about half of purchases.

They are , of course , the people who are largely unaffected if the interest rate goes up . But for the rest of us mere mortals there has been a “a cooling of the UK mainstream” market and some oversupply of new homes, especially flats, in provincial cities .

For a fuller analyse of the property boom and the probability of the bubble bursting read here

THE FAILURE OF REFORMISM

"Social mobility is more difficult for children in Britain than for those in most other wealthy countries. A study by the London School of Economics found that poorer children born in 1970 had less opportunity to improve their economic and social status as adults than those born in 1958." (Times, 3 July) Fifty years of reforming British capitalism and the end result is abject failure! RD

BIBLICAL WEATHER FORECASTING

The owning class spend a great deal of money in keeping the Meterological Office running but a reverend gentleman has come up with a super wheeze to save that expenditure."The floods that have devastated swathes of the country are God's judgment on the immorality and greed of modern society, according to senior Church of England bishops. One diocesan bishop has even claimed that laws that have undermined marriage, including the introduction of pro-gay legislation, have provoked God to act by sending the storms that have left thousands of people homeless. ... The Rt Rev Graham Dow, Bishop of Carlisle, argued that the floods are not just a result of a lack of respect for the planet, but also a judgment on society's moral decadence." (Sunday Telegraph, 1 July) Simple really - read your bible, do what the bishops say and you can close the metrological offices! RD

And not before time

A memorial to workers killed during the construction of the Forth Bridge is set to be officially unveiled. Work began on the one-and-a-half mile bridge in 1883 and at its peak 4,600 worked on it.

The memorial will honour the known 71 men and boys who died during the seven years it took to build the bridge. It is believed the actual figure is much higher. Research into the exact number who lost their lives is still being carried out. The Queensferry History Group has been working to uncover the true extent of the death toll.

MISSION IMPROBABLE

John Travolta and Tom Cruise are famous film stars who are Scientologists. This is a religion dreamt up by former science fiction writer and con man Ron L. Hubbard. It is difficult to deal with their ideas as they keep them a secret. "Since the full knowledge of the faith is reserved for those who complete the course, there can be no official confirmation to outsiders of what they ultimately believe. According to popular culture Scientology teaches that 75 million years ago the intergalactic tyrant Xenu brought millions of space aliens to earth." (Times,23 June)
It isn't only poor exploited workers that are victims of religious nonsense, even well-heeled people can be conned too! RD

Terror at Glasgow Airport

No matter how much Socialist Courier condemns such indiscriminate attacks as the attack at Glasgow airport , we cannot simply resort to the hypocrisy of the tabloid and broadsheets and condemn without endeavouring to understand the motivation of why members of our own class are prepared to slaughter their fellow workers .

This month's Socialist Standard just happens to carry an article called Suicide Bombers - Heroes or Villains .

We can only paraphrase its conclusion :-

That those behind the terror , have their sights on political power and are intent upon replacing the existing elite , encourage and facilitate others to carry out acts of murder which they themselves are unwilling to undertake.
In effect they are attempting to emerge as a new ruling class by clambering through the blood and over the bodies of our class.

Stagecoach Returns

Brian Souter of Stagecoach pocketed another £100m recently following the company's decision to return cash to investors is on his way to making another £1m. Souter was yesterday granted deferred bonuses worth nearly £800,000 at last night's closing share price of 182.75p. Souter had been granted 141,526 deferred shares under the 2005 executive participation plan with a paper value of £260,000. He also got 294,129 "incentive units" under the firm's long-term incentive plan.

Another beneficiary of awards granted yesterday was Martin Griffiths, the finance director. He got 70,677 deferred shares under the EPP, notionally worth more than £129,000, plus a 199,170 LTIP units worth nearly £365,000. These awards also vest in 2010. Four other executives, including rail chief Ian Dobbs and Les Warneford, managing director of Stagecoach UK Bus, were granted deferred shares under the EPP plan. Dobbs got 42,710 and Warneford 39,501.

Education and class division

Dr Elliot Major said: "This analysis shows that the school you attend at age 11 has a huge impact on your life chances, and particularly how likely you are to reach the top of your chosen profession. We are still to a large extent a society divided by wealth, with future elites groomed at particular schools and universities, while the educational opportunities available to those from non-privileged backgrounds make it much more difficult for them to reach the top."

Lee Elliot Major of the Sutton Trust, an educational charity, compared the school and university background of 500 people currently at the top of their fields with 500 similarly successful people 20 years ago.

Tesco - greedy , miserly and indifferent

Tesco at its AGM today had Ben Birnberg, company secretary for the anti-poverty charity War on Want, put forward a resolution calling for Tesco's supplier factories to undergo independent auditing to ensure decent pay and conditions for developing world workers.

Birnberg, however, said Tesco's opposition to the resolution reflected badly on the top retailer.'There's nothing that lowers a company in the estimation of right thinking people than a public display of executive greed in the affluent world going hand-in-hand with a public display of corporate miserliness and indifference to those at the bottom in an impoverished world, who contribute so magnificently to corporate wealth,'

Garment workers in Bangladesh, the majority of them women, were being paid just 5 pence an hour and regularly worked 80 hours a week to make cheap clothes for Britain's largest retailer, Birnberg said. His resolution called on Tesco to take appropriate measures, independently audited, to ensure workers in the developing world are guaranteed decent working conditions, a living wage, job security, freedom of association and collective bargaining including the right to join a trade union.

'The irony of the board recommending shareholders vote against our resolution to increase the meagre pay of its outsourced workers while recommending they vote for an incentive plans which will augment the already absurdly generous re-numeration packages of its top executives -- boosting the chief executive's take-home pay by up to £11.5 million on top of last year's £4.62 million-- may be lost on the board..." said Susan Seymour of the Joseph Rowntree Charitable Trust