Britain needs profit restraint not wage restraint, Frances O’Grady tells TUC Congress

Frances O'Grady gave a blistering attack on the Tory government and the cost of living crisis

Frances O'Grady speaking at TUC Congress 2022

The Trades Union Congress (TUC) is taking place in Brighton from 18-20 October. With Frances O’Grady stepping down as general secretary of the TUC in January after a decade in post, she gave her final speech to the Congress in fighting spirit.

The Congress is taking place against a backdrop of the ongoing cost of living crisis, widespread industrial unrest and the collapsing Tory government in Westminster. Unsurprisingly, therefore, these three issues were the primary themes of O’Grady’s final address.

O’Grady told the Congress that “It wasn’t wages or workers that caused the crisis, and we refuse to let workers pay for it.” Criticising those who have called for workers to scale back their demands for wage increases, she said, “With inflation at 10 per cent, we don’t need wage restraint. It’s time for some profit restraint. Taxpayers helped business with their bills. Now it’s time for business play their part – no layoffs this winter, no boardroom bonanzas, and no shareholder sprees. Put the cap back on bankers’ bonuses, lets have a bigger windfall tax on greedy energy giants, and don’t just bail them out – bring them into public ownership. And more: protect benefits against inflation, invest in public services, and give us stronger workers’ rights. Our nation of grafters have earned a fair day’s pay for a fair day’s work. That means a £15 minimum wage as soon as possible, fair pay agreements to get wages rising for everyone, and it’s time to do right by the people who’ve done us all proud. They got us through the pandemic – and we owe them. Give public servants a proper pay rise, a real pay rise, and give it now!”

Elsewhere in her speech, O’Grady laid the blame for cost of living pressures, inequalities and wage squeezes at the Tory government. She said that in their 12 years in government, the Tories “have slashed, burned, and ripped off this country something rotten. While the sun was shining, the Tories didn’t mend the roof. They nicked the lead off it!.” She later added, “We need an economy that rewards work – not wealth. But under the Conservatives, working people have got poorer, while shareholders have got richer. We’re in the longest squeeze on real wages since Napoleonic times. And if ministers and employers keep hammering pay packets at the same rate, UK workers are on course to suffer two decades – twenty years – of lost living standards. Over the next three years alone, real earnings are set to fall by another £4,000. We have got to stop the rot. Families can’t afford to tighten their belts anymore. They’re at breaking point”.

She was also deeply critical of Liz Truss’ record in her brief time as prime minister. Saying there had been, “more U-turns from her than a malfunctioning Sat Nav”, O’Grady told the Congress, “I say this to Liz Truss: Your budget wasn’t pro-growth. It was pro-greed. Tax cuts for the rich, with no plan for growth at all. That’s why the markets got spooked. That’s why the economy tanked.” However, she argued that the problem isn’t just Truss, but the entire Tory government, saying, “Some say Liz Truss must go. I think they’re wrong. This whole rotten Tory government must go. The Tories are toxic. It’s time for change. We need a general election now”.

O’Grady’s speech was well received by the audience in the room – with sporadic bursts of applause and a standing ovation to finish. Among the biggest moments of applause came when she spoke about the ongoing industrial action that has swept the country in recent months. Opening her speech, she said of workers keeping the country running, “All they ask for in return is respect and fair pay. And if it takes strike action – so be it: We stand with you!” And towards the climax of her speech, O’Grady said, “People ask me, will the TUC coordinate strike action this winter? And I say: We already are. When workers are left with no choice but to vote for strike action for decent pay, I say: bring it on!”

Chris Jarvis is head of strategy and development at Left Foot Forward

Left Foot Forward’s trade union coverage is supported by the Barry Amiel & Norman Melburn Trust

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Image credit: TUC livestream

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