How welfare supports the 'gig economy'

Last Friday, I was sent to a jobs fair by my work coach. The fair was at another job centre a short bus ride away. There, the claimants waited patiently, and some impatiently, to speak with seated representatives of various companies and public bodies. I found long queues for the local council — offering admin jobs and other opportunities — and nonexistent queues for tutoring and personal training (I went for the former).

Apart from admin roles, tutoring and personal training, the fair had desks for construction work, retail, catering, even health and social care. Names of brands caught my eye: Westfield, Nando’s and Tesco. It got me wondering. How much of this is about what the employers want? Take a guess. Here we are, the reserve army of labour, queuing to sell our time and our skills to would-be employers. Is this really what the unemployed need?

Of course, there was a catch: if I failed to attend the jobs fair, I would face the possibility of my benefits being slashed to £10 a week for up to 90 days. This is what’s called a ‘sanction’. Once at the fair, you queue to talk to the reps, sign up in the hope of an interview and they sign you off for having applied for a job. It’s unclear how much of this is about paper-shuffling. A cynic would suspect quite a lot.

However, this is not a worry in itself. I suppose some people may find a job this way, and I might even be starting out in some temporary arrangement. But it is an example of something else. The work coaches are eager to get claimants to sign up for agency work, which will provide temporary employment and sometimes ‘self-employed’ or ‘free-lance’ contracts. I’ve worked these before. It can leave you at the beck and call of a company.

If you’re on Universal Credit and working you can keep 35p for every pound you make. That’s £35 for every £100 (in theory). I’ve yet to find out if this system works (in practice), but it sounds like it could serve as a transition back to full-time work. It’s meant to ‘wean’ the claimant off of the public teat. So you re-enter the labour market and never return. This may help reduce the official figures of unemployed too.

There is an industry in waiting for the jobless. The ‘gig economy’ — so-called for its offer of work on ‘self-employed’ contracts, such as Deliveroo andUber— is eager to gobble up cheap labour. These types of flexible contracts leave workers with their rights undermined, including the minimum wage, sick pay and holidays. It shows just how fragile these protections have become. And maybe this is why unemployment is officially falling.

At the time of writing, unemployment stands at 4.8% and, at least on paper, the UK has reached an employment level of 73%. This is the highest since records began in the early 1970s. Naturally, Tories like Toby Young love to play this up as an achievement for the right. Yet the lowest unemployment rate on record was at 3.4% in 1973. Those were the days when governments aimed for ‘full employment’.

Although employment is officially high, real wages have fallen by more than 10% in less than a decade. The TUC found that the wages have continued to stagnate, leading to a fall of 10.4% from 2007 to 2015. The UK is now alongside Greece in terms of shit pay for a hard day’s work. Even Poland has seen real wages increase by more than Britain. Meanwhile the super-rich continue to pig-out, with their salaries hitting £5.5 million.

It looks like the job centres are pushing claimants into short-term, low paid jobs — only for them to be kept on a lower rate of benefits. The government gets to say unemployment is falling, while the reasons for people falling out of work are worse than ever. As we’ve established, Universal Credit isn’t much of a cushion to land on, especially with the ‘sanctions’ regime of benefits. No wonder most people would rather be rinsed by the ‘gig economy’.

This article was originally published at Notes from the Underclass.

Why Nana Didn't Vote UKIP.

"I'm the only politician keeping the flame of Thatcherism alive." - Nigel Farage

The night of Thursday 22nd of May I got a phone call from my nana. She told me, "I was going to vote UKIP, but then I read what they were for..." She referred to a spread in The Daily Mirror where the party's positions on issues other than immigration were presented. Farage was much less appealing as a Thatcherite, who wants the privatisation of the NHS, the abolition of maternity leave, sick pay, and redundancy pay. Tooth and nail libertarian ideas hardly appeal to a bread base of voters and for good reason. In the end my nana voted Labour, saying "I always used to vote Labour..." and adding "they used to be for the workers". That's the crux of the matter.

My nana was interested in voting for UKIP because she wants a referendum on EU membership and, in her own words, UKIP are "against asylum seekers". This is where the party appeals to a broad base of voters. Only on these grounds could an ex-banker and former Tory, like Farage, market himself as a man of the people. Relatives of mine have voted UKIP in the past out of opposition to the European Union and mass-immigration. But these are former Labour supporters. The media closes in on issues like immigration, benefits, and the EU, to steal away the core support for social democratic measures. It has been a successful campaign in many ways - there is widespread opposition to immigration and widespread support for benefit cuts - while failing in other ways - opposition to universal health-care remains insignificant.

How can people who have voted Labour all of their lives, and in the case of my relatives, even voted Green in the past, turn to a party of right-wing spivs. The extent to which UKIP has succeeded in stealing Labour voters is debatable, but it is the key to any long-term electoral strategy. It is not enough to compete with the Conservatives. Even though the raison d'etre of Faragisme is to force the Conservative leadership further rightwards. The current austerity isn't enough. The stealth privatisation of the NHS isn't enough. Anti-immigrant campaign vans aren't enough. Cuts to disability benefits aren't enough. The tax-cuts for the rich aren't enough either. It should be clear what these people are about.

The facts of UKIP's prejudices are not amazing to anyone on the liberal-Left. Never mind the core base of support for anti-immigrant policies. What does amaze people are the policies which Farage would implement if he had real power in this country. When asked by Norman Smith whether he would ringfence the NHS the UKIP leader said "No, I want to see us getting better value for money." Need I say anymore? Yet that wasn't plastered on every headline throughout the country. The media demands the debate on immigration because it can only move between two poles: liberal internationalism in one corner and populist nationalism in the other. It's convenient for a discourse which doesn't do serious politics and peddles easy answers to complex problems.

Nick Clegg has Only Himself to Blame.

Some of you may have tuned in to the LBC debate between Nick Clegg and Nigel Farage on the European union. This spectacle was hosted by reactionary lard-arse Nick Ferrari. It was everything one would expect. Nothing outside of the oscillation between mainstream liberalism and nationalism came up and this debate can largely be understood as a sign of the rightward trend of British politics over the last four decades. Liberal internationalism and conservative nationalism feed into one another, their relationship is dialectical, both oppositional and complimentary, and ultimately, they spiral into the same downward trajectory. It's no coincidence that the Liberal Democrats signed up for the Coalition with a party torn over Europe and he now finds himself poised against UKIP. For the Conservatives, Nick Clegg is the canary in the mineshaft and little more.

It must have been a disparaging experience for Liberal Nick. No longer a sponge sucking up all those disenchanted votes Nick Clegg stood as the establishment figure with his old place usurped by Nigel Farage of all people. Of course, the underdog status of UKIP is a falsehood. Nigel Farage railed against the bankrupt establishment, which Clegg now embodies so thoroughly, all the while UKIP stands in necessary relation to the status quo. He was probably expecting reason to triumph over reaction. He littered his phraseology with references to 'dogma' and appealed to common-sense. Bad moves by definition in this kind of debate. I don't know how he could have expected it to have gone his way. Without any grounding to maneouvre on economic and domestic policy (where he is wedded to Conservative policy-makers) the only issue of contention was going to immigration. That is hardly a threat to the Conservative Party. And of course UKIP has no interest in combating neoliberalism.

Outside of conventional politics the demagogue sets himself and poses as raising the real questions, the dangerous questions, to which the Establishment then reacts to preserve itself. As with Romania we find that the UKIP lot are playing this game again. The real issue that the people in countries like Romania and Bulgaria are fleeing from social conditions produced by neoliberal globalisation cannot be raised. Should we repair the damage? Now that's a dangerous question! It would only mean that the level of immigration would be based on the free movement of people, rather than on economic desperation. The Lib Dems can't make such a point because they've accepted the neoliberal model prescribed by Brussels, Whitehall, and Washington; while the only criticism UKIP may wage is that this hasn't gone far enough in tearing through all forms of state-ownership. This is why a key issue was never mentioned, namely the EU-US free trade deal currently being implemented by stealth.

The Liberal Democrats emerged from the consolidation of gains for a third party after the founding of the Social Democratic Party from the right-wing MPs who abandoned Labour. The loss of 10% of their MPs helped to secure Labour's defeat and a victory for Thatcher in 1983. So you can see how far the Party has come since helping to divide up the voters for Thatcherism thirty years ago. They have now graduated to joining those forces they helped deliver Britain to in the 1980s. This is the stinking filth of the body of liberalism: inaction, hot-air, and endless compromise. It's clear the trilateral consensus are not only complacent in the face of the nationalist reaction to the rapid internationalising trend of capitalism. We see this quite well demonstrated in Ukraine where a coalition of neoliberals, conservatives, ultra-nationalists, and oligarchs, have seized power only to wrench the country into the orbit of the European Union and open it up to the IMF prescription for an economic miracle.

Meanwhile here in Britain we find UKIP is looking to force the Conservatives further and further to the right as it condemns the EU. Clegg doesn't deserve our pity for his pathetic belief that if he just said the right words the audience would dutifully nod their heads for him. He was asking for the kicking he got.