Investors first and foremost

On Wednesday, British Gas raised gas bills by 35% with immediate effect, to restore "reasonable profitability".
Profits were £992m in the first six months of 2008 , £5m-per-day profits .
"This is a business that has got a million shareholders - a lot of pension funds and people have got their savings invested in British Gas shares and we have to look after them". Centrica's chief executive said.

One-in-three pensioners are likely to be in fuel poverty this winter Age Concern's head of public affairs said.

MINIMUM WAGE? FORGET IT!

1974 Vintage
"Hand crafted in 1974 this noble spirit of rare breeding has been cosseted and nurtured during its long maturation in the beachside warehouses. Undaunted, warmed and comforted by the finest sherry wood, the result is a spectrum of delight with flavours of chewy caramel, crushed hazelnuts, chocolate and warm hints of liquorice, cinnamon and orange peel.
At last this great masterpiece has been awakened for you to enjoy. Sip and savour the very heart of Jura and feel every beat of Island life…

Vintage 1974 / 648 bottles produced / 70cl / 44.5% ABV / £500.00" RD

BEHIND THE BRAVADO

"Washington - More than 22,000 veterans have sought help from a special suicide hot line in its first year, and 1,221 suicides have been averted, the government says. According to a recent RAND Corp. study, roughly one in five soldiers returning from Iraq and Afghanistan displays symptoms of post-traumatic stress disorder, putting them at a higher risk for suicide. Researchers at Portland State University found that male veterans are twice as likely to commit suicide as men who are not veterans. ...The VA (Veterans Affairs) estimates that every year 6,500 veterans take their own lives. The mental health director for the VA, Ira Katz, said in an e-mail last December that of the 18 veterans who commit suicide each day, four to five of them are under VA care, and 12,000 veterans under VA care are attempting suicide each year." (Yahoo News, 28 July)RD

DYING FOR WORK

"A Nigerian migrant's account of how his two children were thrown overboard after dying of thirst on their voyage to Italy has added fuel to a debate on whether illegal immigration is out of control. The father and 74 other migrants were rescued on Saturday after setting sail from Libya a week ago. They were picked up by the Italian coastguard a day after the government declared a state of emergency for illegal immigration. "The night we left Libya, the youngest one ... died in my arms and we were forced to throw him in the sea," the 30-year- old Nigerian said in comments carried in newspapers on Sunday, though an Ansa news agency report later said police had noted contradictions over some details of his story. A day later, his three-year-old daughter also died, he said. "She wanted water and something to eat. She suffered a lot, resisted a bit longer but didn't make it in the end," he said. Thousands of illegal African migrants arrive in Italy in flimsy boats each summer." (Yahoo News, 27 July) RD

JUNKYARD CAPITALISM

"Francis McConnell is a field supervisor for the Philadelphia Water Department, but lately he is acting more like an undercover police officer. Several hours a day, five days a week, he stakes out junkyards. Pretending to read a newspaper, Mr. McConnell sits near the entrances and writes down descriptions of passing pickup trucks and shirtless men pushing shopping carts. His mission is to figure out who is stealing the city’s manhole covers and its storm drain and street grates, increasingly valuable commodities on the scrap market. More than 2,500 covers and grates have disappeared in the past year, up from an annual average of about 100. Thieves have so thoroughly stripped some neighbourhoods on the city’s north and southwest sides that some blocks look like slalom courses, dotted with orange cones to warn drivers and pedestrians of gaping holes, some nearly 30 feet deep." (New York Times, 23 July) RD

THE PERFECT WORKER

"A Ugandan official has suggested to MPs that funerals should be limited to Saturday afternoons to stop people taking time off work to attend them. Speciosa Kazibwe, a former vice-president who now heads a state development agency, noted that Uganda's death rate was very high. (BBC News, 25 July)
Socialists used to say that the capitalist's idea of the perfect worker was one who left school at 15, worked 50 weeks a year for 50 years and dropped down dead the first day he went to collect his pension at the post office. We will have to amend this ideal blueprint in view of the Ugandan official's view. Ideally he would die on the Thursday so that his family could attend his Saturday funeral without missing out on a day producing surplus value for the owning class. RD

NATIONALISED REDUNDANCY?

Northern Rock unveils job losses
Northern Rock has announced that it expects to make about 1,300 staff redundant as part of its plan to restructure the troubled bank.
It hopes to limit the number of compulsory redundancies to 800, while 500 staff will leave voluntarily.
Northern Rock was effectively nationalised at the beginning of this year after it was hit by a shortage of funds as a result of the credit crunch.

IT’S AN ILL WIND

Comfort eating helps fuel Cadbury's profits

People treating themselves to chocolate and sweets as the economy worsens has helped fuel a 28pc jump in profits at Cadbury, according to its chief executive.
The London-based confectionery company, who makes Dairy Milk chocolate and Trident gum, reported pre-tax profits for the first half of £143m on revenues up 14pc to £2,653m.
However, the results were boosted by strong currencies, which increased the total profits growth from 12pc to 28pc. Cadbury's shares rose 1pc to 631.5p, as the company said it was on target to meet analysts' forecasts for full-year sales growth.
"No matter how bleak things look, people will always go for those small, affordable treats," Mr Stitzer said. "We see confectionery as a particularly robust category."

LUCKY WHITE HEATHER?

"A woman accidentally stabbed herself in the foot with a 3-foot-long sword while performing a Wiccan good luck ritual at a central Indiana cemetery. Katherine Gunther, 36, of Lebanon, pierced her left foot with the sword while performing the rite at Oak Hill Cemetery, police said. Gunther said she was performing the ceremony to give thanks for a recent run of good luck. The ceremony involves the use of candles, incense and driving swords into the ground during the full moon. Gunther said she was aiming to put the sword in the ground, but hit her foot instead." (Yahoo News, 22 July) RD

THEM AND US

"Cleaners, waiters and other low-paid workers from some of London's poshest hotels will launch a campaign for a `living wage` and better working conditions tomorrow. A coalition of trades unionists, students, faith healers and locals will join workers at a rally outside the Hyatt Andaz hotel in Liverpool Street tomorrow. Rooms at the hotel cost up to £640 a night - but many of its staff are struggling to scrape by on the national minimum wage of £5.52 per hour."
(Observer, 27 July) RD

HE SHOULD KNOW

"Gavis Snook is the billion-pound Rok construction boss who believes that home ownership is a `con` perpetrated by financial institutions, which are the only winners in Britain's property-owning democracy. ...And if that's not enough, the son of a scaffolder is not afraid to say on the record that the reason fatalities among construction workers are stubbornly high is because of the casualised work-force encouraged by the industry's biggest players. ... This year there were 72 deaths, compared with 60 two years ago. `Part of the reason why this industry killed more people is that it can't cope with the demand, so corners are cut`, Snook reckons."
(Observer, 27 July) RD

Picking Sides for Another Go?

World trade talks reportedly fail

Marathon talks in Geneva aimed at liberalising global trade are reported to have ended without agreement. The trade talks collapsed after China, India and the US failed to agree on import rules. This politely called "Failure to Agree",is indicative of the aggressive, competitive nature, of the capitalist system .When talks turn to trade war and ultimately real war.

WELCOME TO CAPITALISM

"Childhood is the happiest, most carefree of times. That is, unless your country has been torn apart by war. The United Nations estimates that children in 50 countries are currently growing up in the midst of war or its ugly aftermath. In the past decades, 2 million children have been killed and 6 million injured in war-torn places. And 23 million children have been forced from their homes." (Yahoo News, 18 July) RD

MINISTER UNDER FIRE

UCATT reacted angrily to a speech by Business Secretary John Hutton in which he ruled out further employment rights legislation. The Government minister said new rights would undermine "Labour market flexibility" and the Government should only set "minimum standards" in the workplace.
UCATT General Secretary Alan Richie said: "It is exactly this kind of subservience to business which is causing Labour to haemorrage grassroots support"

SELF EMPLOYED APPRENTICE?

Funeral collection for 20 year old scaffolder

£508 was raised in a bucket for the family of a young building worker killed at work who have been left to pay the funeral bill because he was supposedly "self-employed".

Apprentice scaffolder Sunny Holland, aged 20 died on 25 April, the day after he lost his footing and fell 20 feet while working on a site just a few hundred yards from the Houses of Parliament in London.

General Secretary Alan Richie (at the UCATT Delegates Conference)appealed to delegates to make donations. Holland, he explained, had disgracefully been classified as "self-employed" even though he was an apprentice, so he was not covered by funeral insurance.

The family, from St Mary Cray, Kent, could not afford a proper funeral without help, Richie explained.

It was another shocking case of bogus self-employment and the industry's callous neglect of its workers.

FAT CAT SALARIES

The pay packets of Britain's top company bosses has doubled in the past five years. When pensions, share options and other benefits are included, the cheif executives of Britain's top construction firms earn more on average in one week what many craft workers take home in a whole year. http://www.ucatt.info/

The crazy logic of capitalist economics

The Sunday Times has found that home-grown products are being transported thousands of miles overseas for processing before being put on sale back in Britain. Socialist Courier reported this market madness back here .

Scottish prawns are being hand-shelled in China, Atlantic haddock caught off Scotland is being prepared in Poland and Welsh cockles are being sent to Holland to be put in jars before going on sale in Britain.

Meanwhile, products grown overseas are taking circuitous routes to Britain. African-grown coffee is being packed 3,500 miles away in India, Canadian prawns are processed in Iceland, and Bolivian nuts are being packed in Italy.

“We are producing food in one corner of the world, packing it in another and then shipping it somewhere else. It’s mad.”

Dawnfresh, a Scottish seafood company that supplies supermarkets and other large retailers, cut 70 jobs last year after deciding to ship its scampi more than 5,000 miles to China to be shelled by hand, then shipped back to the River Clyde in Scotland and breaded for sale in Britain.

The company said it was forced to make the move by commercial pressures. “This seems a bizarre thing to do but the reality is that the numbers don’t stack up any other way,” said Andrew Stapley, a director. “We are not the first in the industry to have had to do this. Sadly, it’s cheaper to process overseas than in the UK and companies like us are having to do this to remain competitive.”

Haddock is one of the fish most commonly caught by British trawlers, but Tesco sends its Atlantic haddock for processing to Poland where labour costs are lower. It is then driven more than 850 miles to Tesco’s depot in Daventry, Northamptonshire.

Traidcraft coffee, sold at Sainsbury’s, is made from beans grown in Bukoba, Tanzania.

Once the coffee is cultivated, it is driven 656 miles to Dar-es-Salaam and then shipped 3,250 miles to Vijayawada in India where it is packed. The coffee is loaded back on the ships and transported another 5,000 miles to Southampton. It is then driven 330 miles to Gateshead and is finally driven to Leeds for distribution to Sainsbury’s stores.

Sainsbury’s organic fair trade rice, produced in the lush foothills of the Himalayas, is shipped to Lille, France, rather than Britain, to be packed. It then makes a second journey to end up on Sainsbury’s shelves.It is not just fair trade coffee that is sent from country to country. Instead of directly importing coffee beans from Costa Rica for their instant coffee, Sainsbury’s and Tesco first send them to Germany. The final product then undergoes another 500-mile lorry journey to get to Britain.Similarly, French-grown walnuts sold in Waitrose are sent to Naples to be packed. The retailer’s Brazil nuts from South America are also transported to Italy before being sent to Britain.

The industrialisation of the food chain means even small firms are being forced to ship their produce abroad for processing. Pilchard fillets, produced by the Pilchard Works in Cornwall, are sent on the overnight ferry to France because there is no suitable processing plant in England. The pilchards are canned in Douarnenez in Brittany, then returned to Cornwall. Similarly, Welsh cockles – produced by Van Smirren Seafoods – are driven across Britain to Dover and then transported to Yerseke in Holland. They are pickled and put in jars before being sent back to Britain.

Caroline Lucas, the Green party MEP, said: “Ultimately, the price is paid by all of us in the shape of higher greenhouse gas emissions, air pollution and congestion, and food that is both less tasty and less healthy.”

WORDS OF WISDOM

"I'd like people to be more aware of the use of fossil fuels. Hopefully [Barack] Obama will bring in some change, but really he is just a puppet. Any person that runs as president is a servant of the big corporations." Says Chaka Khan, singer. (Independent, 12 July) RD

A SCAREY FUTURE

"Israel will almost surely attack Iran’s nuclear sites in the next four to seven months — and the leaders in Washington and even Tehran should hope that the attack will be successful enough to cause at least a significant delay in the Iranian production schedule, if not complete destruction, of that country’s nuclear program. Because if the attack fails, the Middle East will almost certainly face a nuclear war — either through a subsequent pre-emptive Israeli nuclear strike or a nuclear exchange shortly after Iran gets the bomb." (New York Times, 18 July) RD

THE DIGNITY OF LABOUR ?

"We've come across a company who was actually using the swipe card system for staff to access the toilets, and then deducting the time spent from their wages," says Ian Tasker of the TUC, "We would argue that it is not so much the right of staff to take breaks, but the rights of any worker not only to a reasonable amount of privacy, but a reasonable amount of dignity at work." (Times, 23 July) RD