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Paul Murphy: UK strike wave, public pay deals and Oxfam critique

Paul Murphy: UK strike wave, public pay deals and Oxfam critique

Paul Murphy described the large coordinated strike action in Britain and Northern Ireland, saying workers have moved from intermittent one-day strikes to serious, militant action and that it could inspire similar mobilisation in the south. He acknowledged a domestic public sector pay deal, urged negotiation over strikes, and criticised Oxfam's wealth tax proposals as likely to drive wealth and investment abroad.

Large coordinated strike action


Paul Murphy outlined a significant wave of industrial action across Britain and Northern Ireland, citing teachers, train drivers, civil servants and higher education UCU members. He described the action as the largest coordinated strike in over a decade and said workers have realised militant strike action is the way to go after repeated one-day strikes.

Potential spillover to the south


He warned that workers in the south may look across the water and consider using their power too, including preparing the ground for a 24-hour general strike to demand pay increases at least in line with inflation. He framed this as a response to falling real incomes and rising prices despite existing measures.

Engagement with UK and Northern Ireland officials


Paul Murphy said he raised concerns about the situation directly with Prime Minister Sunak during a recent call, with party leaders in Belfast, and with the Secretary of State for Northern Ireland at the British-Irish Intergovernmental Conference in Dublin on January 19. He noted consistent opposition to the bill he referenced and said that opposition was growing.

Domestic pay policy and industrial relations view


He contrasted the domestic position with Britain, saying a public sector pay deal at home goes part of the way to compensating workers and that the country had previously seen pay rises higher than inflation. He described strikes as "a failure of industrial relations" and argued that negotiation with unions, not strikes, is the best way to resolve pay disputes.

Paul Murphy — clip from statement: Paul Murphy: UK strike wave, public pay deals and Oxfam critique (01.02.2023)

Response to Oxfam report and wealth tax proposals


Commenting on an Oxfam report, Paul Murphy noted it was based on net wealth and said proposals he read suggested tax rates of 60% or more. He warned that such high wealth taxes would risk driving wealth and investment abroad and said wealth taxes have generally not been successful where tried.

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Transcript
We have a very impressive display of workers' power in Britain today, the largest strike action, coordinated action in over a decade. Teachers, train drivers, civil servants and many others withdrawing their labour. In the north, UCU members who are working in higher education are on strike. That is a strike that is about pay, but it is also about investment in the future of higher education. The workers have realised that serious and militant strike action is the way to go after some years of a series of one-day intermittent strike action. In the north, that comes after a wave of strike action that we have seen, including hospital staff in particular, and a coming wave, including teachers, firefighters and others. Are you concerned that workers in the south may look across the water and say, do you know what? We need to use our power here too. Do you know what? We need to be preparing the ground to be able to take the idea of a 24-hour general strike to say we actually need to get pay increases that are at least in line with inflation to stop people losing out and their incomes being reduced. The government continues to communicate with deep concerns about what is happening and the unilateral approach being taken by the UK government. I raised this directly with Prime Minister Sunak during our call last Monday and with the party leaders in Belfast recently. I raised it with the Secretary of State for Northern Ireland at the British-Irish Intergovernmental Conference hosted in Dublin on January 19. There is consistent opposition to the bill across the board and that continues to grow. I am obviously very aware of the strikes that are happening at the moment in Northern Ireland and in Britain. I make the point of watching the British news any day that I can. I have to say, listening to the deputies opposite, they almost sound like they are glad that the strikes are underway and are sad that they are not happening here, notwithstanding the impact that it has on people who use public services. Something a trade union leader said to me once is something that I really identify with. I remember him saying to me that any strike is a failure of industrial relations. While it is easy to go out on strike, it is much harder to settle a dispute because that means having to sell to your members less than what they have been demanding. I thought that was a very pertinent comment. That was not from me, that was from a trade union leader. There are very big differences between what is happening here and what is happening in Great Britain. We had for a prolonged period pay rises that were higher than inflation. We do not have that at the moment, but we do have a public sector pay deal in place, which at least goes part of the way to compensating workers for the rising cost of living. While in Britain they are effectively back to austerity and are increasing taxes and reining in public spending, because we have managed the economy so well, because the public finances have been managed so well, we are in a very different position and we have been able to reduce income taxes and put in place cost of living measures that have helped soften the blow. I absolutely hear the concerns that workers have, that prices are now rising faster than wages are rising, and that is a problem and I acknowledge that, but the best way to resolve that is by negotiation with unions, not strikes in my view, and strikes are a failure of industrial relations. Finally, just on the Oxfam report, I did have a chance to look at it. I acknowledge that it is based on net wealth, not gross wealth, and that is something that I am glad was clarified. I heard you use the term modest tax rates. My reading of it was that they were proposing tax rates of 60% or more, and I do not think most people in the country would regard a 60% tax on anything or anyone as being modest, and the biggest risk of taxes of that nature is they drive people abroad. They drive wealth abroad and they drive investment abroad, and that is why wealth taxes generally have not been successful where they have been tried. They drive government. They drive who has a good wealth here. They drive companies are running the profit and they don't really do it. They drive people abroad, and they drive those to the world and they drive people abroad. And that necessarily do this too. I'm looking for it. It's a good call. It's a good call. Let's be back. It's good. See? Yeah. I'm not good. Look at the other people. Everyone. I'm looking for it. I'm looking for it. I'm looking for a long time. I'm looking for a long time. I'm looking for the market. What do you see? I'm looking for them. You're looking for a long time. I'm looking for a problem.