by Niall Mulholland, East London Socialist Party
Campaigners in Newham have secured a significant victory in their efforts to ensure council workers’ pension funds are not invested in companies linked to war, occupation, or human rights abuses. After sustained pressure, Newham Council has agreed to investigate its pension fund investments and assess whether they include companies connected to Israel’s occupation of Palestine.
On 13 July, councillors unanimously passed a motion calling for an audit of the pension fund and that publicly administered pension funds should not contribute to war, genocide, or military occupation.
The decision followed months of campaigning, including local demonstrations and lobbying of council meetings. The previous Labour council refused Freedom of Information requests about pension fund investments.
Following the May local elections, Labour lost its majority and entered a coalition with the Green Party, while the pro-Palestinian Newham Independents became the main opposition. This new balance of power reflected the angry mood among voters over years of local cuts and the war on Gaza, and increased pressure on the council to act.
During the council debate, Labour councillor John Gray, previously chair of the pensions committee, proposed an amendment, widely regarded as a wrecking attempt, that divestment should occur only if there was no impact on pension returns. The amendment was defeated and the original motion passed. Socialist Party activists argue that the council should ensure pensioners’ interests are protected while ending investment in companies linked to war, genocide, or military occupation.
Socialist campaigners now stress that the real test will be whether the council delivers on its commitments by conducting a thorough audit, divesting from complicit companies, and to refuse to make any of the budget cuts decided by the previous Labour administration.