We were never all in this together

 

by Kay Keane

Article originally published in Issue 4 of Rupture, Ireland’s eco-socialist quarterly, buy the print issue:

At the beginning of the Covid-19 pandemic the mantra from the then government, led by Fine Gael, was ‘We are all in this together.’ This has been exposed as nothing more than spin.

Welfare poverty

The inequalities within the ‘normal’ welfare system have been laid bare. At present, the Pandemic Unemployment Payment (PUP) is €350 per week while Jobseekers Allowance is €203 for over 25s and €112.70 for those aged 18 to 25 who do not live independently. The fact that the previous government set the rate of the PUP at €350 is an admission that even they recognised that the standard weekly payment is insufficient to live on. 

Despite this recognition, there has been no move to increase other welfare rates to the PUP level, for instance for those on disability or pensions the rates have remained unchanged. Instead of increasing everyone’s level of support, the government is seeking to phase out the PUP and bring everyone back down to poverty levels. 

Those in hospitality, non-essential retail and the service industry did not cause the closures nor did they expect to still be out of work over a year later. Unfortunately, the reality is that some workplaces will not reopen and many on the PUP will have to apply for Jobseekers Allowance if the government is successful in cutting the PUP. This will result in a major financial cliff edge for hundreds of thousands of workers as “normality” returns. 

‘Normal’ means workers get left behind

Before the 2020 election, the Fine Gael-led government pushed the economic growth and recovery it had achieved, yet there was no recovery for ordinary people - 10,000 people became homeless. Zero hour and low hour contracts became more common, low wages were the norm for many workers within certain sectors, with women disproportionately impacted as they make up the majority of low wage workers.[1] Plenty were left behind and it will be those same workers who will be pushed further into poverty by a government who will double down on them.

Aside from poverty-level wages, the pandemic highlighted the very low level of workers’ rights across the country, for instance on sick pay. Take for example the situation in meat plants, according to the Irish Congress of Trade Unions (ICTU) most of the workers were not entitled to sick pay, therefore they had no choice but to continue coming to work even when they felt ill or face not being paid.[2] The result of the lack of a basic right such as sick pay was that whole counties had to be locked down when inevitably clusters were discovered in the plants and in areas where the workers lived, often in very cramped conditions. 

The response from the government on improving workers’ rights has been pathetic. Leo Varadkar launched a commission to look into it and his department stressed the importance of protecting workers. Yet, their statement quickly points to who they will protect:  “Any move to introduce statutory sick pay which will place financial burden on employers must be balanced to support the viability of the business sector thereby protecting jobs.”[3]

Instead of a commission, why not just legislate for sick pay and other entitlements? It is evident who they want to protect, they intend to protect the beef barons and big business.

Workers need a new normal

In an article in the Irish Examiner, Kathleen Lynch, a professor at UCD wrote, ”The Covid-19 pandemic will compound economic inequality across Irish society as frontline groups report rising poverty levels before and during the public health crisis,” she went on to say “People are going to be extremely vulnerable when the PUP ends.”[4]

Already there are hints at how monies spent supporting people during the public health crisis will be recouped. Various statements have been made by ministers and business spokespeople pushing to shift the burden onto workers through welfare cuts, increased property tax or even a return of water charges.

Yet there has been no comment on how the wealthy, who have increased their wealth by €3.3bn since the beginning of the pandemic, are to contribute.[5] A wealth tax on these people and companies who have profited would show equality within the system, unfortunately, capitalism and profit was never intended to be equal.

Our first demand should be to oppose any reduction in PUP, and in fact, welfare supports generally need to be increased. Any reduction in the payment will have a huge impact on those unable to return to work. 

Secondly, we need to fight for increased workers’ rights. The pandemic has shown the weaknesses in the system, protecting workers rights within the workplace should not be a secondary issue. ICTU should mobilise workers behind it to demand improvements on basic rights such as sick pay. As part of a campaign for better rights, ICTU should campaign for a new minimum wage of €15 an hour to make sure poverty is not the normal we return to. 

Notes

1. irishtimes.com/business/economy/women-more-likely-to-be-earning-minimum-wage-than-men-1.3872576

2. ictu.ie/press/2021/03/04/new-approach-needed-to-ensure-a-sustainable-future/

3. irishtimes.com/news/ireland/irish-news/sick-pay-scheme-not-intended-to-place-undue-cost-on-employers-1.4506448

4. irishexaminer.com/news/arid-40235810.html

5. irishexaminer.com/news/arid-40213496.html