Firefighters - Their Fight Is Our Fight :: The Socialist Issue 278

"POLITICIANS QUEUE up for a photo with firefighters. All their praise, they can shove it. It's decent pay we want".

FBU Southern Regional Secretary Dean Mills, summed up the anger of firefighters responding to the Bain report, speaking at a Southampton Socialist Party public meeting.

Dean, a firefighter for 20 years, has been hospitalised five times and seen others pay the price for a dangerous job. He exposed Bain's report as a regurgitation of previous reviews. The reality of the offer is an increase of 24p an hour.

"We're happy to modernise, but our version of modernising not theirs. Their version is what they've done to education and health where schools built through PFI have their roofs ripped off in the wind. The audit commission described us as the most efficient part of the public sector.

"Our stand of refusing to do overtime has created thousands of jobs since 1977, it's a principle of the trade union movement and we're prepared to defend our position.

"It will cost them £100 million more to pay for the extra police and army cover than it would to meet our claim. They can find the money for a war in Iraq. If war starts at 9am, they will have spent our pay award by 9.02 and 30 seconds."

All Out To Win On London Allowance

SCHOOLS ACROSS London will close on 26 November as thousands of teachers join the one-day strike and march to the joint union rally at the Oval cricket ground.

Martin Powell-Davies, secretary, Lewisham National Union of Teachers (NUT)

Last March, NUT members responded enthusiastically to the call for a one-day strike to win a decent London allowance. This time, the action will be even stronger. NUT members will be marching with striking colleagues from the other main teachers' union, NASUWT, as well as support staff and other council workers from UNISON.

This united action is not just for pay, it is for education. Schools in London are facing a crisis. Teachers are quitting the capital in record numbers.

Constant teacher turnover, reaching 25% and more in some London boroughs, destroys the stability schools and pupils need. Even where posts are filled, schools have to rely on overseas staff and unqualified teachers.

Why should teachers stay in London when they know they would be better off if they took a job elsewhere? Metropolitan Police recruits are paid £6,111 London Weighting but teachers in Inner London are paid only half that, less again in Outer London. This just isn't enough to compensate for the rising cost of rents and mortgages.

The government always demands more from public-sector workers but they won't pay us the salaries we need to pay our bills. Ministers dismiss across-the-board increases in London allowances as 'dead weight costs'. They want to impose divisive discretionary bonuses instead. But we all suffer from the same high cost of living!

Instead of ending teacher shortages, New Labour hope they can exploit teaching assistants by using them to teach classes on the cheap. Teachers and support staff have to stand united against these threats and demand decent pay and conditions for all education workers.

The November strike will have a big impact but to make this government change course we have to show that we're in for a serious fight. Unions should warn ministers that if the review body report in January fails to recommend a decent London allowance, we will be balloting for escalating strike action, stepping up from one-day to two and three-day strikes.

We'll need a determined campaign to win the ballot and to raise the funds needed to sustain members through extended action. But if this is what is needed to win, then this is the action we must take.

Firefighters - A Decisive Struggle

NOT SINCE the miners' strike has there been such an important struggle as the national firefighters' strike for decent pay.

For many workers, especially in the public sector, the firefighters' struggle is also their struggle. A key group of workers has had the confidence and audacity to stand up to New Labour and demand they get the wage rise that they deserve. A victory for the firefighters would give confidence to all workers fighting against low pay.

For Blair, New Labour and the capitalist class which they represent, this is also a defining battle. Blair wants to prove to his big business backers that he can take on the unions and win. He wants to send a message to other public sector workers via the firefighters; accept low pay and 'modernisation' ie privatisation and attacks on wages and conditions - strike action cannot win.

The first two days of the strike tested the mettle of both sides. The firefighters stood firm and won huge public support. One government source said that "it's now a case of who blinks first" (Financial Times 17 November).

The FBU leaders hinted that they would lower their pay claim from 40% to 16% as a basis for negotiations. This could be seen by the government and the employers as a sign of weakness.

'Modernisation'

Prescott, who is in charge of negotiations, has raised the possibility of firefighters being made an 'exceptional case', but only if any settlement is funded by 'modernisation'. Blair has made similar statements while other government spokespeople have taken a harder line.

Blair and Prescott's comments reflect their shock at the level of support for the firefighters and the strength and cohesion of their struggle.

However, as with the rest of the public sector, 'modernisation' means cuts and attacks on jobs, wages and conditions. Most of the proposals in the Bain report would, if implemented, completely undermine the working conditions of firefighters that the FBU has fought for years to maintain.

If negotiations do not lead to an agreement, New Labour could once again raise the stakes as they did previously when they threatened to use the army to cross picket lines and 'commandeer' the red fire engines if the next planned eight days of strike action went ahead.

Lock out

Army chiefs have made it clear that they do not want troops to be used in that way. As one defence source put it: "Huge political stakes are involved... the soldiers have not crossed picket lines since the [1926] general strike".

The seizing of engines at this stage would be more symbolic than of practical use in breaking the strike. The soldiers would take weeks if not months to be brought up to speed. New Labour's real intention would be to show the firefighters that they mean business and are determined to win. Firefighters therefore need to show the same determination in resisting any attempt to seize the red engines, with solidarity support from other workers and the local community.

Commandeering fire engines could mean a 'lock out' of the firefighters. Then it would not be a case of having an eight-day strike and then back to work to see what the response is from the government. The battle would have moved on to a higher plane.

And under those circumstances the response of the whole trade union movement would need to move into a much higher gear.

Solidarity action

Inherent in the whole situation is the need for much wider solidarity action. Many Tube workers refused to work without fire cover in the first two days of the strike, which brought a large part of the underground system in London to a halt. Bob Crow, leader of the RMT, has called for a ballot amongst his members over safety to bring the whole of the Tube out on strike.

However, under the present anti-union laws, this cannot be done by the time of the next planned strike. Tube workers should be prepared to refuse to work from the beginning of the next firefighters' strike, which they can legally do under current health and safety laws.

Nuclear power station workers, chemical workers, petroleum depot workers and other transport workers are also in the same situation, where it is dangerous to work if there is no fire cover. This applies to many other workplaces as well. The army green goddess can only reach up to the second floor of modern office blocks.

Workers are already calling on their employers to do risk assessments at their place of work. And if there is shown to be a risk to health and safety they can refuse to work.

General strike

If the government goes on to the offensive again the situation will demand decisive action. The basic democratic right to strike could be at stake. Under these circumstances trade unionists should demand of their leaders that general strike action be organised in defence of the firefighters.

If the TUC will not act immediately, then the left leaders of the RMT, ASLEF, CWU, PCS as well as the FBU itself should make a call for trade unionists to come to the aid of the firefighters.

The government has also threatened to seek a court injunction to ban the next strike. If this happens, the whole trade union movement should be mobilised to support the firefighters.

This is a decisive struggle for firefighters and all workers. With solidarity support the firefighters can win.

Why Capitalism Brings Famine

THE UNITED Nations says that 30 million Africans are facing starvation. That’s three times as many at risk as in 1984 when the Live Aid famine relief appeal was launched.

One reason for the food shortage is widespread drought which has ruined crop production. But with a surplus of foodstuffs worldwide, why the threat of famine?

Simple, the crushing burden of ‘debt’ repayments of poor African countries to Western banks and governments means a lack of money to buy in the food.

Despite the hullabaloo from Gordon Brown and other Western finance ministers about providing debt relief measures, neither the US nor the European Union (EU) will provide the $50 billion aid to Heavily Indebted Poor Countries (HIPC) which even the World Bank says is needed to reduce world poverty by 2015.

And what aid has been made available, George Bush says, is conditional upon HIPCs implementing ‘reforms’ ie abolishing trade tariffs, privatisations, ending farming subsidies, etc.

What hypocrisy! While preaching ‘free trade’ to HIPCs the US, EU and Japan all heavily subsidise their agriculture. This May, Congress passed a bill increasing state payouts to US farmers by 70%, spending $180 billion in farm subsidies over the next three years. Even industrial goods are being protected, e.g. Bush has levied a new 30% tariff on steel imports.

By using their political and economic muscle, Western powers have ensured favourable terms of trade.

THE DROUGHT isn’t necessarily a ‘natural’ disaster. According to a New Scientist report in June, polluting emissions from factories and power stations in the US and Europe over the last 50 years have caused drought and starvation in parts of Africa.

Yet US president George Bush rejects even the weak controls of the Kyoto environmental summit in favour of a "polluters’ charter", complete with tax breaks for US energy companies.

It means that poorer countries are forced to import cheaper, subsidised agricultural goods, forcing local farmers out of business and labourers into working on cash crops for export.

The prices of these exports, such as coffee, are driven down to rock bottom by the market power of multinational companies. An Ethiopian coffee farmer who five years ago sold seven sacks of coffee to meet his family’s needs, now sells 28 sacks (worth just $60 a year) and his family of 12 are going hungry.

Some say we should shop ‘ethically’, as if working-class people here can afford to make these choices. We say: cancel the ‘debt’, nationalise the multinationals, neither free trade nor protectionism but international socialism.

Top-Up Fees - Build A Mass Movement Of Action

NEW LABOUR’S ministers clearly intend to increase the cost of university education. Higher education minister Margaret Hodge says that students could pay as much as £15,000 for a three-year degree.

Kieran Roberts

In an echo of the arguments that David Blunkett used when he first introduced fees, Hodge asked last week whether it was right to ask a dustman to subsidise the education of the doctor’s child.

But, as we pointed out when Blunkett used these arguments in 1997, it is young people from working-class families that are hit hardest by fees.

Since tuition fees came in, there has been a dramatic fall in applications to university amongst working-class students. Between 1997 and 2001 applications from people from lower-income backgrounds dropped by 9.5%.

These figures show that fear of taking on massive debts has deterred working-class students. This will be multiplied several times over if the government increases fees even further.

This is as true of a graduate tax scheme, where students pay the cost of their fees after they leave university, as it is for a system of upfront fees.

Big business in Britain makes billions every year – just a small fraction of this could give us a free, well-funded education system. If the ruling class continue to disregard our needs, the government won’t find increasing fees plain sailing.

In a recent poll more than three-quarters of parents were opposed to increases in tuition fees as a solution to the underfunding of universities. And at the last general election, even Tony Blair admitted that tuition fees were the most unpopular issue on the doorstep.

This pressure is reflected in the Cabinet where some ministers are alarmed at the prospect of opposition to even higher fees damaging New Labour’s support. Clare Short has ‘broken ranks’, speaking out against top-up fees.

Wrangling between ministers over what changes to implement has already delayed publication of the government’s review into higher education funding several times. It is now due in January.

If the government does bring in top-up fees or increase existing fees, there could be an explosion of anger amongst students. In the last month there have already been several protests at universities in anticipation of moves towards top-up fees, for instance at Imperial College where the vice-chancellor proposes charging £10,500 a year.

To stop the government increasing the cost of fees, to get rid of fees for good and to win a decent grant, we need to build a mass movement of action and non-payment of fees. The biggest possible turnout must be built for the NUS demonstration on 4 December to help build such a movement.

NUS demo

11am, 4 December, Malet Street,

London WC1, near Euston Station.

Firefighters Strike

"Nothing will ever be the same"

AN OFFICER at Lambeth station in south London summed up the strike's importance as he walked out on 13 November:

"This step we've taken is very significant. Nothing will ever be the same again in the fire service, it will never go back to what it was an hour ago. This is like the miners' strike, the government taking on workers with everyone else behind them.

"This is about the whole of the public sector. It could be a long and bitter struggle. We want to stay united, officers and firefighters, throughout."

Danny West, the Leytonstone fire station FBU rep agreed: "They're spoiling for a fight. They've took us down the garden path, getting past 5 November, now they hope we'll be under pressure because it's near Christmas.

"But we're standing out here to win. We're not here to mess around and call it off. We're not putting lives at risk. I've been in this job for nearly 20 years and the last ten years we've been fighting to keep fire engines. 20% of London firefighters have been cut and because of that the death rate in London has gone up. So don't start talking to us about people dying. The only thing they're worried about is money."

Neil MacPherson, FBU Secretary for Mid and West Wales spoke to Alec Thraves after the FBU rally in Newport on 15 November: "Personally, if they [the army] try and cross our picket lines, even if our Executive decides not to stop them, I would like to see hundreds of trade unionists from Swansea coming down to the picket lines as a show of solidarity.

"If the employers and government refuse to negotiate an acceptable pay award and try to up the ante then the TUC should put its money where its mouth is and mobilise the trade union movement to defend the FBU because if we win then all trade unions will be strengthened".

From the picket lines

NOEL PINE reports that firefighters addressed Tameside UNISON and the branch agreed to donate £150 per month till the dispute ends.

"We urged collections and visits to the picket lines. We are urging a voluntary levy of £2, or more if members can afford it, across our 5,000 members.

Prince Charles visited Tameside during the strike. Incredibly the council attempted to turn off the fire alarm in the main council building, so as to avoid any embarrassment!

A local butcher displayed a head of a pig with Camilla on it. The monarchy clearly are in some disrepute."

Firefighters at Calvert Lane fire station in Hull pointed out their specialist equipment for use in combating terrorist attacks. For a chemical attack their equipment was four sponges, 50ml of disinfectant, 10 dust masks and 20 plastic bags, with ties.

Jim Malone, Dundee FBU branch secretary explained that firefighters were determined that their campaign for decent pay would benefit all public sector workers. On the safety issues he told us that "it has been the firefighters themselves that have had to fight to ensure they had the best equipment and training over the years. It is sheer hypocrisy for politicians to now be showing concern on that point.

"Every proposed modernisation carried out in the fire service has come from the FBU themselves not the employers or government.

"The Bain report is a preparation for privatisation. No way is it independent. The Labour Research report, which was independent, came up with the £30,000 figure."

Professor Roger Seifert of Keele University agrees about the Bain report. "It is not about the future of the Service in terms of modernisation but about stopping the strike".

Sending in the troops - lessons from 1977

DURING THE last national firefighters' strike in 1977, 20,750 military personnel were used, seven percent of the total trained strength of the armed forces.

But as The Times pointed out at the time, public safety wasn't the first priority: "At stake in the dispute, apart from the dangers to life and limb, is the future of the government's pay policy, and thereby its political credibility."

The political importance of the strike and the fears of a firefighters' wage rise setting a precedent for other workers, meant a massive mobilisation of military forces.

Not only nearly 1,000 green goddesses but 4,200 sailors, 1,350 Royal Marines, 10,000 soldiers and 5,200 from the RAF. Prisoners from the military jail in Colchester were even let out for firefighting duties. There were also 33 military firefighting teams with breathing apparatus and foam.

By the end of the strike, the military had streamlined its basic firefighting training course to four hours.

Steve Peak in his book Troops in Strikes makes an important point: "A key factor in [FBU members'] decision to resume work was undoubtedly the relentless build-up of the military firefighting capability through the strike."

In spite of this huge mobilisation of forces, losses through fire during the strike were 'roughly double' what might have normally been expected, according to the Chief Inspector of Fire Services annual report.

Summing up the real reasons for sending the troops in, Steve Peak quotes some FBU members from Bethnal Green fire station in east London, who he interviewed in 1982: "Bringing the troops in was just a publicity exercise, an enormous con-trick on the public just to reassure the patient that he wasn't dying. The green goddesses were useless... There was no fire cover, it was purely cosmetic. It prolonged the strike. It would have been cheaper to give us the money but Callaghan was determined to break the strike."

Terrifying the neighbourhood

"JUST PAY them the money" were the words on everyone's lips as we watched badly trained troops attempt to put out a fire in my tower block.

Steve Nally, Lambeth

The teenage soldiers were clueless and were running round like headless chickens looking for the source of the fire. Tenants tried to direct them towards the bin chutes where the fire was but the officers refused to take our advice.

At one point they attempted to evacuate the 17-storey block, a pretty difficult job if you don't have a megaphone. The icing on the cake was when they announced that they weren't trained to rescue people even though they were putting them in danger by their incompetence.

Fires like this are commonplace on my council estate but what takes firefighters minutes to handle took troops over 30 minutes to deal with. And firefighters don't terrify the whole neighbourhood in the process.

I spoke to some of the soldiers and they admitted that they were out of their depth and one even said that the government should stump up the money.

SOCIALIST PARTY members visited over 100 firefighters' picket lines during the first strike. They have built important links between the trade unions on a local basis, for the developments in the firefighters' battle and in preparation for future struggles.

We can only carry a small sample of the reports we have received for The Socialist in this week's issue but we urge our readers to continue sending in material.

Mick Cotter moved a resolution supporting the firefighters at a recent meeting of the Amicus-MSF London Regional Council. It was carried and donations of £737 were made to the FBU strike fund.

Public support for the firefighters' strike is growing. In a Guardian/ICM poll taken over 15-17 November, 53% said the firefighters' strike action is justified. Three weeks before it was 47%.

The FBU strike and the London Underground

THE FIRST FBU strike spread to London Underground (LU) as tube drivers in RMT and Aslef refused to take trains out without fire cover. One of LU's busiest routes, the Piccadilly line, was suspended throughout central London and major disruption occurred on most other lines.

Bill Johnson, RMT

The fire brigade respond to all manner of emergencies on the tube, from rescuing people from accidents to evacuating trains broken down in tunnels. But the biggest concern of tube workers on FBU strike days is that if there's a fire in a tunnel there will be no-one able to rescue passengers or staff.

The green goddesses carry no breathing apparatus and troops have no experience of working in the underground's unique conditions. They would be helpless in the face of a major incident.

The government have accused tube workers of taking unjustified secondary action. Blair claims RMT and Aslef members are politically motivated. In fact it is Underground management who have taken the unjustified decision to keep the tube open at all costs in order to help their New Labour political masters to fight the FBU.

The refusal to work normally on the tube is motivated by real fears over the lack of fire cover in a dangerous environment. Of course any help this offers to the FBU and their strike will also be welcomed by RMT and Aslef members who like other workers see £30K as a completely justified pay claim.

Management are now threatening the possibility of disciplinary action against staff who refuse to work normally if the FBU goes ahead with action on 22 November. RMT members are considering the next move but this must include spreading action more widely across stations where other LU workers are just as much at risk as train drivers.

Who really defends public safety?

THIRTY ONE people died in the fire at Kings Cross station in November 1987, including one firefighter. A fire broke out under an escalator and quickly spread through the tube station's ancient building materials.

With inadequate means of escape, people were sent to their deaths up escalators and through the ticket hall which quickly turned into an inferno.

Militant, The Socialist's predecessor explained some of the reasons for these tragic deaths. "London Underground wants an arrangement 'where fewer staff are employed but with greater flexibility'.

"At Kings Cross, staff had been cut from 16 to ten and full-time cleaners from 14 to two."

This was in spite of a fire at Oxford Circus station three years previously, after which many improvements were recommended.

Militant quoted a senior London Underground official who told the press: "If we had unlimited funds we would have done a major renovation on fire safety. But we were stretched for cash and we did the best we could with what we had."

At the same time the London Fire Brigade management was trying to introduce plans to cut 800 jobs.

A firefighter wrote in The Militant: "The history of the fire service has shown that like any other group of workers, firefighters have had to get organised and fight to improve and defend conditions."

And the day before the Kings Cross fire, rail workers were leafleting passengers at Kings Cross, explaining the dangers of the plans to run driver-only trains on an underground stretch of British Rail track between Drayton Park and Moorgate.

What's behind the Bain report?

IN NORTHERN Ireland 96.7% of FBU members voted for strike action. The first two-day strike was completely solid and the non stop hooting of car horns at the picket lines showed massive public support.

Ian Beard, FBU rep Whitla Street station, Belfast

When FBU leader Andy Gilchrist spoke in Belfast's Transport House there was an electric mood among the more than 500 firefighters who crammed into the hall to hear him.

Firefighters are angry that having made the case for a professional wage for a professional job, Tony Blair has counter attacked with an attempt to erode conditions and introduce so-called 'reforms' that would lead to a worse service.

We are not opposed to change and real reform that would lead to an improved service. But Bain is about smashing the power of the FBU, not giving the public better fire protection.

He wants flexible shifts so that there is less solidarity among our members. He wants mixed full-time and retained crews, even though this could mean slower responses as we wait for part-timers to arrive.

He wants to bring in outside managers from the private sector, people who are good at attacking workers' rights but, like George Bain, know nothing about firefighting. While talking about the number of people applying to be firefighters he wants us to work overtime, even to work as retained firefighters in our time off, all of which would mean less jobs.

No firefighter wants to strike but we have been left with no option. We are fighting, not just for a decent wage but to protect the service from Bain and Blair's so-called reforms. It is the government who are threatening to escalate this dispute, asking the army to cross picket lines to take the red fire engines and even threatening to use the law to sack us for striking.

Blair wants to make an example of the FBU and then go on to hold down wages and attack conditions for other public sector workers. If we win, it will be a victory for every worker and could be the start of a struggle for decent wages and conditions for all.

Solidarity from UNISON

I PUT the following resolution to the national Policy, Development and Campaigns Committee of UNISON.

"This union states its full support to the FBU undertaking strike action in pursuit of their pay claim for a 40% pay increase. We urge all Branches to consider what steps they can take to assist the fire-fighters, in particular by showing support for demonstrations and similar events organised by the FBU and by raising funds to assist the dispute. We call upon the government to make adequate funding available to allow the fire-fighters to receive decent pay reflecting both their skills and the risks taken at work."

The resolution was carried unanimously. After the meeting I went to the picket line at Euston fire station, introduced myself and gave the pickets a copy.

Roger Bannister, UNISON national executive council

ISR - Fighting For Socialist Change

The past year has seen hundreds of thousands of young people take to the streets alongside other workers and trade unionists across the world.

Clare James

Some of the biggest protests have been against the threatened war in Iraq, with huge demonstrations taking place in many countries, including up to 400,000 in London on the 28 September and 200,000 in Washington.

The anti-capitalist movement, dominated by young people, has proved it is anything but dead, as some tried to make out after September 11.

Only two weeks ago, one million people marched through the streets of Florence, Italy against the war and against the Berlusconi government's attacks on workers rights. This demonstration took place after the 40,000 strong European Social Forum (ESF) - (report in issue 277).

In June a huge anti-capitalist demonstration took place in Seville, Spain two days after a Spanish general strike.

International Socialist Resistance (ISR), launched in December 2001 in Brussels at a conference of over 500 young people, has participated in and helped to build many of these demonstrations and events over the past year.

In England and Wales, ISR has organised protests against the arms trade, against the war on Afghanistan and now the planned war on Iraq.

ISR is building campaigns for a living wage with no exemptions for young people, against big business involvement in and the privatisation of education. The campaign against education cuts was launched internationally on 15 March this year, with ISR groups across the world organising and taking part in protests, meetings and schools strikes.

The 23 November conference has been organised to officially launch ISR in England and Wales and to discuss and vote on what campaigns we should take up and what demands we should raise in them.

The conference will provide a basis to continue the brilliant work that has already been done through ISR in England and Wales over the next year.

Young people internationally experience the same problems, such as low pay, inadequate housing, casual work, poor quality education and a lack of services such as youth clubs, advice centres and places to develop interests such as music and sport.

Many young people are extremely angry at these attacks and at the prospect of war in Iraq and the continuation of wars in other countries. They want to get involved in campaigns and organise together for an end to war, poverty and terrorism and for a world run for need and not greed.

ISR aims to help link up the many struggles that are taking place across the globe by campaigning for socialist change. Only by freeing the world of capitalism can young people gain control over their own lives and conditions.

23 November 2002

10:30am - 5:30pm

University of London Union (ULU), Malet St, London, WC1

(nearest tube - Euston)

Tickets £4/£2

020 8558 7947 / againstcapitalism@hotmail.com / PO Box 858, London, E11 1YG

South African students appeal

The Socialist Student Movement branch (the South African affiliate of ISR) in the educational institution Technikon South Africa (TSA) in Kwa Zulu Natal, has been banned following its uncovering of corruption on the Student Representative Council (SRC).

In addition to evidence of financial corruption, they found that the president of the SRC, who was not even a student at the TSA, was earning R6,000 (£600) per month from the post, signing performance agreements and acting as a management stooge.

This is an appeal to all readers but particularly those working in ISR and also in trade unions and community organisations, and affiliates of the CWI.

Send protests to

TSA Principal:

nmathabe@tsa.ac.za

Regional director:

xdubaza@tsa.ac.za

Send copies to -

mkhizebheki@ananzi.co.za

democraticsocialist@mweb.co.za

Capitalism With Chinese Characteristics

THE SIXTEENTH Congress of the Chinese 'Communist' Party has reinforced the country's transition to capitalism. Party chief Jiang Zemin has stepped aside for Vice-President Hu Jintao, although Jiang, as military commander, retains a large degree of political power. Other 'younger' pro-market reformers were elevated to leading positions.

John Reid

The Congress opened the doors to party membership to capitalist billionaires. Jiang stated: "We must make sure market forces play an essential role in the allocation of resources... we must free our minds from a dogmatic interpretation of Marxism". In fact Jiang stands Marxism on its head by proclaiming the Communist Party's duty to represent not only workers and peasants but also the capitalist class!

Economic transformation

ON THE face of it China's economic success seems amazing; the economy has tripled in size since 1989. Gross Domestic Product is expected to grow by 8% this year, on top of 7.3% growth last year. The national economy will exceed 10 trillion Rmb, up 8% on the previous year following China's entry into the World Trade Organisation (WTO). China is now the world's major exporter of many electrical goods.

However, the transition to capitalism may not be as smooth as the new Party clique hope. The banking system is creaking under the weight of bad debts (37% of GDP) as well as huge government debts (100% of GDP).

There's also the acute problem of soaring unemployment. The closure of state industries, which under the planned economy used to guarantee the jobs for life scheme (the "iron rice bowl"), has caused massive unemployment. Unemployed workers do not receive benefits.

Officially there is 4% urban unemployment, but the figure is probably nearer 8%. These figures do not include the 150-200 million unemployed and underemployed rural workers.

There have been massive workers' demonstrations over factory closures. These have been viciously dealt with by the authorities, jailing the leaders of independent trade unions.

An unemployed construction worker, Zhang Ke, says: "Chinese workers are struggling for money to feed their families while these leaders talk about welcoming capitalists into the Communist party - they might as well call it the Chinese capitalist party."

According to former tile factory worker, Huang Weibao: "We are worked like dogs and then are discarded when the factories close... Tensions are rising... It is only a matter of time before it explodes."

Since joining the WTO foreign investment is flowing into China at a rate of more than £30 billion a year. In Shanghai, more than 100 limited companies are set up every 24 hours. China is now the world's fourth largest industrial producer. It is the biggest exporter to the USA, knocking Japan into second place.

Many multinationals have moved large parts of their operations to China to produce goods for export (the home market is limited, with the workers on such low wages). National Presto, an American company, has closed two factories in the US states of New Mexico and Mississippi costing the loss of many jobs and has moved to China. China's vast pool of cheap labour is the attraction. Wages average 40 US cents an hour, six times cheaper than Mexican labour costs and just a fraction of US wages.

Wealth gap

THE NUMBER of private businesses has increased from 90,000 in 1989 to 2.3 million last year. State-owned industries are down from 102,300 in 1989 to 42,900 in July this year. The private sector is expected to overtake the state sector to control more than half the economy next year.

However, the ruling clique is still trying to manage the rapid transition to capitalism, for fear of provoking widespread social unrest. Chinese private companies are still restricted by the state. Of the Rmb30 billion (£2.3 billion) in corporate bonds issued so far this year, none was launched by private companies.

Homegrown private companies are also less favoured than foreign companies. In China's five special economic zones, foreign investors pay 15% corporation tax, but domestic companies pay 33%.

China is on the road to complete capitalist restoration, but the ruling clique are attempting to do this gradually and by maintaining their repressive authoritarian grip. The effects on the working class and peasants have been devastating; the gap between rich and poor exceeds the wealth gap in the USA.

There is the potential for huge movements of the Chinese workers and peasants. A revolutionary party based on a clear socialist programme needs to be built to enable the Chinese people to sweep aside the rotten ruling caste and establish a genuine, democratic socialist society.

Firefighters - Their Fight Is Our Fight