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The role of modern trade unions in the 21st Century workplace

The Rt. Hon. John Hutton MP,  Secretary of State for Business, Enterprise & Regulatory Reform
Accord Conference, The Thistle Hotel, Glasgow,  17 April 2008

Introduction

Many thanks Tom – I’m delighted and honoured to be here.

It is fitting that we are here in Glasgow to discuss the role of modern trade unions in the 21st Century workplace.

We should celebrate the fact that the union movement has many strong links with the growth and success of this great city. Of course the unions continue to play an important part in helping to create the dynamic and vibrant city we see today.

Because modern trade unions, I believe very strongly, have a crucial role to play in helping to sustain a successful and fair society – a society where every person has the chance to make the most of their talents and skills. And where there are no barriers to how far a person can rise.

And we have come a long way in the last 10 years. Full employment. Stronger employment rights. Better protection against discrimination and prejudice.

But of course it is to the future, not the past, that I want to speak about today. And one thing is also very clear to me – that our economy and our society are changing today more quickly now, I think, than at any time since those early trade union pioneers first raised their standards calling for fairness and justice for working people.

So my message today is I hope, pretty straightforward. We must now take advantage of the opportunities presented by rapid global change to renew our drive for full employment in the UK and so help lay the foundations for a more inclusive and a fair society.

To achieve this we need modern trade unions that are willing and prepared to work with business to help more companies succeed in an increasingly competitive global economy. And trade unions that are committed to engaging with their members to give them new skills, unlocking their talents and potential.

These things are going to be particularly important during this period of uncertainty. The UK has enjoyed ten years of uninterrupted economic growth. But we are facing unprecedented international issues. But thanks to the reforms put in place over the last decade, I believe we are well placed. Britain has a resilient economy. We have to take the right decisions to protect the UK’s stability.

There are more people than ever in work, and we have transformed employment standards at the same time. People are much better able to juggle the demands of their job with their family responsibilities, be it either as parents or carers.

Our employment reforms have provided working families with up to 80% of their eligible childcare costs through the tax credit system; we’ve doubled the level of maternity pay and introduced paid paternity and adoption leave; and implemented the right to request flexible working for parents with young children, and now the carers of adults as well.

Our challenge now – Government, employers and trade unions – is to seek ways to improve our workplaces even further while we maintain UK competitiveness and see more and more people able to find the jobs that are right for them and their families.

I believe there are four key actions that we need to take to make this happen.

Firstly, I think we’ve got to build on the achievement of the national minimum wage. The 2008 minimum wage increase is set to benefit just under a million employees, two thirds of them will be women. We are significantly strengthening our enforcement efforts for the NMW. Through the Employment Bill, now in Parliament, the Government is planning tough new penalties for rogue employers who underpay decent employees.

And we are introducing a fairer method for dealing with arrears, calculated so that workers do not lose out as a result of underpayment.

In addition, the Employment Bill will allow the most serious offences to be heard in the Crown Court, and we will give those who enforce the minimum wage greater powers to investigate cases of non-compliance.

We are prepared to use all the powers at our disposal to stand up for exploited workers, and to protect the majority of law-abiding employers from unfair competition and as I said, being undercut by those who break the law.

Secondly, I think we’ve got to do more for vulnerable workers so that they know how they can take advantage of their strengthened rights at work. To help them speak out against abuse.

We are doing this through our Vulnerable Worker pilots in London and Birmingham, and a third round of the Union Modernisation Fund will be run with a new focus on protecting vulnerable workers – helping trade unions adapt to the changing dynamics of the labour market.

We have created the Enforcement Forum to bring together unions, business and government agencies to work out how best we can tackle abuses where they exist.

And we will continue to work to see an agreement in Europe on a new Agency Workers Directive that offers appropriate protections whilst maintaining the flexibility of the UK labour market.

Thirdly, we need to cultivate I think, a new attitude to health in the workplace, to tackle new health challenges that we face.

Dame Carol Black’s report ‘Working for a Healthier Tomorrow’ has shown that we will only ensure the good health of the workforce if employers and workers work together.

Union representatives have a key part in delivering on occupational health issues in the workplace.

We are also looking to see how we can go further on our work/life balance reforms. In November we decided the time was right to extend the right to request flexible working to parents of older children. We announced that Imelda Walsh, Sainsbury’s HR Director, would carry out an independent review to consider what upper age limit of a child should apply. I look forward to receiving her recommendations later this spring.

What’s critical to the success of such measures is making sure we continue to strike the right balance between ensuring what’s right for business, and workers with families and carer responsibilities.

And fourthly, we need to empower people to improve their experience at work. We want many more workplaces where all the employees’ talents flourish, adding value to business and services, and enriching their own working experience.

Modern trade unions are central to this drive. They are playing an active role in responding to the pressures of globalisation by increasing workers’ life chances and strengthening their voice at the workplace. By helping workers adapt, prosper and gain employment whatever future globalisation brings. Because there can be no going back I believe on globalisation. Erecting barriers to change will only mean that working people will lose out yet again.

For most employees today, there may be no such thing as a job for life. But we must do all we can to ensure there is work for life in the modern labour market for all.

In England already more than 18,000 Union Learning Representatives have been credited with encouraging over 150,000 people back into learning – particularly workers with literacy and numeracy needs. Unionlearn’s key annual target is for 250,000 learners to access learning and skills through the union route by 2010.

And here in Scotland the Union Learning Fund has supported almost 70 projects from 25 different unions over the last eight years helping tens of thousands of people move on with their careers.

All these projects will help us achieve the massive boost to skills levels across the workforce that Britain will need in the decades ahead if we are to remain competitive and prosperous.

We want a new culture of involvement and engagement in Britain’s workplaces. New rules enabling workers to be informed and consulted of significant changes to their company are now in place.

So we must work with trade unions and build on the insights of many of Britain’s most successful companies.

I firmly believe the partnership work between Accord, Unite and HBOS is leading the way in showing how employers and unions can work together to create a successful 21st Century workplace.

The word I think. must be out there among your workers as Accord’s membership has continually grown over recent years – bucking the trend of a wider union movement.

And it is delivering on your conference theme of People, Progress and Partnership.

By helping your people, your members become equipped with the necessary skills and knowledge needed in the modern workplace. The Government has tried to recognise your efforts in this area through the Union Modernisation Fund.

The project to train Union Representatives in how the finance world operates I think makes good common sense by equipping workers with the skills and knowledge to understand how they can contribute to help make their business more productive. And it reinforces the crucial value of the financial sector on the UK economy overall – never more important than at present with the current challenges in the global financial markets.

And this partnership is enabling your company to progress too. There is no doubt that Accord and Unite’s strong commitment to be a true partner with HBOS continues to contribute to the success of the company.

You clearly recognise that only successful businesses can deliver employment security, rewards, dignity at work for your members.

And finally showing how the partnership is delivering for the business, as clearly outlined by your CEO Andy Hornby at this conference yesterday.

You don’t need me to tell you that you don’t hear many CEO’s who publicly state that their ambition is to grow their union membership. I know Andy has an ambitious vision for your membership to grow from the current level of 50% of HBOS employees to 70% by 2012. That’s a great thing.

Conclusion

We need to see similar dynamic relationships to help us deliver our vision for workplaces in the future that will help the UK maintain its competitive edge now and in the future.

By working together, I believe we can deliver fair, productive workplaces that can deliver a prosperous society.

We must act so that as many of our people as possible can prosper through change and uncertainty, ready and equipped to use their talents and fulfil their ambitions whatever the challenges and opportunities ahead.

I think that this is the only way to deliver our shared goals of fairness and rising national prosperity. And it is why, I believe Tom, trade unions that embrace change and understand the realities of the modern economy have such an important role to play in Britain’s future.

Thank you very much indeed.