TUC warns of mass job losses in 2009
The head of the trade union, TUC has warned that 2009 will be a year of mass unemployment.
In his new year message to trade union members published today (Tuesday), TUC General Secretary Brendan Barber said:
“This is going to be a grim year. Unemployment will increase every month. Some predict it will hit three million, but in truth no-one knows.
“First because we have little experience of a recession driven by a financial collapse, and secondly because we do not know how bold our Government – and as importantly, other governments meeting together as the G20 in April in London – will be.”
Calling on the government to ensure that the mistakes that led to the financial collapse are not repeated and to focus on emerging from recession as a fairer, greener and more sustainable economy; Mr Barber added:
“The roots of this recession lie in the failure of the finance and banking sectors, and while the Government deserves praise for setting the international pace on the bail-out of banks, we do not yet have a banking system that is truly serving the interests of business or household borrowers. Banks are putting building up their own balance sheets and paying back government loans as their top priorities. But they also still hold high levels of ‘toxic’ debts which prevent them from dealing with other banks in a normal way. The Government and the Bank of England must therefore consider injecting even more support into the financial system to get credit flowing again.”
Figures released by TUC show that the unemployment rate amounted to six per cent of the working age population by the middle of December. The number of people claiming unemployment benefit increased by 75,700 in one month between November and December. The unemployment benefit claimant count rose by four per cent in September, 5.5 per cent in October and by 7.6 per cent in November.
The motor industry is particularly vulnerable to job losses as a result of the wider economic downturn and falling car sales. Vauxhall are currently in talks with trade unions over pay cuts and a reduction of the working week to just four days for its plant in Ellesmere Port while Honda, Mini, Ford have all announced extended breaks in their UK factories in an attempt to cope with economic difficulties.
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