Work Related Pensions

Public Service Unions have called for and a majority of their members have voted to strike on the 30th of November 2011.  This is in response to the UK government's plan to increase public sector workers contributions towards their employment pensions,  the age at which they can retire and reduce the value of their pensions.  The government argues that this is already the case in the private sector and they are creating a level playing field.

This is true to a certain extent but is this right?  There is already a discrepancy between employees pensions in both the public and private sectors.  Management staff have better pension arrangements in both sectors, as well as, having bigger pay packets and higher annual pay increases.  They can also retire earlier.  In the private sector the gap between management pensions and employees pensions is even more pronounced.

In my opinion, all employees have a right to decent employment pension.  They should not rely on or expect the state to subsidise their pensions through "old age pensions".  They should also not have to wait to receive their pensions until they are to old to enjoy the fruit of their labour.  Otherwise, any pension they receive will only go towards paying their "care home bills".

Employment pensions, particularly in the private sector, have in the main failed because of abuse of pension funds by some private sector companies and pension fund managers.  During the 1980s and 1990s many private companies misused pension funds as capital investments or used it as loans to bail themselves out during financial difficulties.  Very often they were not able to put the funds and interests back in the pension pot.  Even now, pension fund managers are not only earning extremely large sums but also taking increasingly larger sums in bonuses regardless of the performance of pension funds being managed.  [One such person appearing on UK television, this week, claimed she is worth more than the pension fund contributors.]  They are, therefore, receiving proportionally higher returns on the investments than the people contributing toward their pensions.  Pension contributors have lost out in the past and they are still losing out; and this, particularly, include public sector workers and lower to middle earners in the private sector.  They are subsidising the state through taxes, subsidising pension fund managers luxurious lifestyles and disproportionately boosting private sector profits and entrepreneurs and shareholders dividends. 

The current proposed system of employment pensions, whether in the private or public sector is both unjust and highly regressive.  There is a rational solution, but it is unlikely to be adopted as most governments have and share monetarist views and are supported in their position of power by capitalist funds.  The solution is simple.  Employment pensions and pension funds for both the private and the public sectors should be managed and regulated by the state. There should also be a truly independent audit system in place.  It should not be abused or misused and fund managers should only receive adequate, not exorbitant, remunerations.  Employees should contribute an agreed percentage of their salaries, with a similar arrangement for employers.  The retirement age should be the same for managers and other employees.  The pension to salary ratio should also be comparable.

To put it simply, there should be a universal employment pension system for all.  It should be a right and enshrined in law. And similarly everyone should have a right to employment.  However, this is unlikely to happen in the UK.  The UK government is hell bent on punishing public sector workers for the financial problem created by greedy bankers who are going scot free and still enjoying huge wages and bonuses.  This is lunacy. Is it because senior politicians in the UK government come from banking and financial institution background?  Readers you can be the judge.

Good luck and good bye until the next time.

Knight Owl

Eurozone Crisis; What Crisis?

The so called economic and financial demise of several European countries continues on a downhill trend like a motorcars with faulty brakes.  It started with the Republic of Ireland, then Spain and Portugal were threatened.  However, Greece and Italy seems to have slipped even further.  Quantitative easing and bale-outs are being pledged by the governments but the economy is slip sliding regardless.

However, in the UK it is difficult to accept that their is an economic downturn especially if you live in London or the South-East.  Some Londoners are still buying second home as the two home lifestyle continues to grow.  Luxury goods traders, such as Burberry, are also seeing increasing profits as the sales in luxury goods is increasing.  I am sure the same applies in other European countries and the USA and the rest of the world that has been affected by the economic crisis.  This suggests that the wealth is there but it is not being distributed in a fair and equitable manner.  Some have most of the world resources and riches and most have very little.  Even the bankers who contributed to the economic disaster are still enjoying a lucrative lifestyle and huge bonuses.

The austerity measures that are being legislated by the governments are in the main hitting the less well off and reducing their meagre income.  The greedy rich however, continue to amass wealth by raising commodity prices and playing monopoly with the world's economy.  Will the governments even dare take a penny off them?  Wait and see!  The governments have not legislated to regulate the banks or reform the banking system as proposed at the height of the banking crisis and that was over 3 years ago.  Many wealthy people continue to avoid paying taxes and they are legally allowed and encouraged to do so.  At the time of writing our British Chancellor of the Exchequer is reported to be contemplating cutting the top rate of tax.  Therefore those who even feel guilty enough to pay their taxes will be helped to pay even less.

It is difficult to judge whether we are having an economic crisis or not.  The wealth is still there; few have most of it, some have have just enough, the majority have very little or nothing.  So what is this crisis about?  What are the austerity measures about?  Upon the requirement of the International Monetary Fund (the wealthy), the governments (the instruments of the wealthy) are directed to pawn off or hand over public services (public sector industries) to the wealthy.  To what effect?  To reduce public funding of these services or increase private profiteering?  I'll let the readers be the judge of that.

Good luck and good bye until the next time.

Knight Owl

Rights and Responsibilities

Do people have a right to protest and are they responsible enough to do so.  In Europe and the USA this does not seem to be the case, although some protest is tolerated.  However, Europe and the USA not only condone this form of action in the Middle East but overtly support it.  Why is there one right for the Middle East and another for Europe and the USA.  In Europe and the USA, the governments are taking forceful action to stop and discourage any such expression of  dissatisfaction with the state or the creators of the economic doom.

Is this because in Europe and the USA, the governments legislate in favour of the rich against the "plebeians"?  Of course, the rich fund their election campaigns and gets them the seats in parliament and the senates and the voters do not matter.  May be that is a way of repaying their dues. Let the Masters rule the governments.  The "plebeians" are no more than slaves to the demands of the Masters.  The governments are instruments used by the Masters to control the "plebeians" and keep them in check.  In the UK, the government is even considering legislations against the right of workers to strike.  Soon workers will have no rights at all, "and they will be no better than slaves".

"Plebeians" beware!  During election times think; do you votes really count?

Good Luck and good bye until the next time.

Knight Owl