(11 years, 11 months ago)
Grand CommitteeMy Lords, I support what my noble friend has just said in relation to Amendment 2. It is often contended that I do not care about SMEs and that I care only about employment rights. That is not true. From the standpoint of the provision of employment, it is important that SMEs are protected. The Government ought to support this amendment as it offers SMEs protection and support. One of the reasons why they are not always able to offer employment is because they do not get the money—they do not get the contracts. This provision seeks to ensure that everything possible is done to make sure that SMEs get the money and the opportunity to play the part that many of them want to play in the provision of employment. They can do that only if they have the necessary contracts and support indicated in Amendment 2. I hope that the Government will accept the amendment.
My Lords, I also support the thrust of the amendment of the noble Lord, Lord Mitchell, particularly as regards SMEs. I welcome his comments regarding SMEs’ concerns around the payment of debts. The Minister will know that I and others have often raised this issue. It is important for SMEs to be directly involved but, where contracts are awarded to large contractors, small businesses have an important role in supplying those large contractors. To follow on from the point the noble Lord made about late payment, will the Minister once again renew efforts to ensure that main contractors pay their bills to SMEs on time and in due order?
I support the amendment and have put my name to it. When the Bill was discussed previously, concern was expressed about the state of labour relations at Royal Mail. At Second Reading, I pointed out that the union was in discussion with management about modernisation and that the indications were that poor labour relations had been overcome. The union wants to co-operate, but believes that amendments to the Bill could be useful towards that end. It is for that reason that I have put my name to the amendment. It would be useful for the Bill to make it a requirement that the staff of the company be involved at the very highest level. To that end, it is proposed that a seat be reserved on the company board and that, before a sale takes place, Parliament should be assured that this proviso is a part of the deal.
The Government have already committed to an employee interest as Clause 3 makes provision for an employee share scheme. The proposal for staff representation at the highest level is in tune with that kind of thinking and helps to confirm employee interest in the well-being of the company and, most importantly, in its service to the public. As I indicated previously, I believe that the public still hold in high esteem the Royal Mail and the staff who work for it. I therefore hope that the Government will be prepared to accept the amendment or that, if they do not like the wording—as has sometimes happened—they will accept the notion and perhaps come back with different wording that incorporates the same idea. We think that it is a very good idea, because it involves the participation of staff in, and their commitment to, the well-being of the company.
My Lords, I thank the noble Baroness, Lady Turner, and others for raising an issue whose importance I am aware of from my own experience. I was managing director of a small plastics manufacturing company. It had only 30 employees, but it was important to me to bring those employees with me. Our discussion today is an important part of that approach. That employees will have shareholdings in Royal Mail is to be welcomed. It is disappointing that many other companies, of all sizes, do not recognise the importance of involving their workforce. As the noble Baroness and others said, a welcome improvement in labour relations has been seen within Royal Mail. I know that the Minister will take this issue very seriously and I am sure that she will give adequate answers to the points that have been raised. It is crucial that employees have not only shares but a real voice in one way or the other. Without that, so many companies fail. We want the new conglomerate to succeed, to go forward and to bring its employees with it, as opposed to management and employees being at each other’s throats as has sometimes been the case in the past.