Trade Union Funding

Albert Owen Excerpts

Wednesday 29th February 2012 Westminster Hall

[Fiona Bruce]

No. [Interruption.] May I please give my speech, Mr Owen? [Interruption.]

[Albert Owen (in the Chair)]

Order. I call Fiona Bruce.

[Fiona Bruce]

Thank you, Mr Owen. During the 13 years of the Labour Government, the Government were funded to the tune of £10 million a year by the unions in political work. We think that that is wrong.

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[Mr Doran]

My hon. Friend speaks with a lot of experience. He has worked with local authorities across Scotland, and I bow to his knowledge. It is easy to count the cost of wages. The Secretary of State for Communities and Local Government, who has an axe to grind, has all the resources to get the figures together; but there is no assessment of the benefit to management. That is the fundamental weakness in the case.

The pendulum is swinging. I have described how we approached industrial relations, and the figures for time lost at work through strike action in the past 15 years show a dramatic improvement, but that graph is likely to change substantially. I am deeply concerned about the approach of any Government who think that the only way to resolve problems in the workplace is to reduce workers’ rights and remove their health and safety rights. That is a particular issue for me. I was a very young Member of Parliament when the Piper Alpha disaster happened. It was a time of light regulation in the offshore oil industry, because the imperative was to get the oil ashore and recover the taxes that it paid the Exchequer. One hundred and sixty-seven men were killed, and I have spent a lot of my political life still in contact with the relatives and survivors. It is not something I want repeated. I have a simple rule: one man’s red tape is another man’s essential safety system.

The Conservative party was not always the way it is now. A week or so ago I read an obituary of Robert Carr, who died recently. Lord Carr had the onerous responsibility of taking the Industrial Relations Act 1971 through Parliament. That was flawed, and he made it clear later in life that much of it was not easily understood; I think that was how he put it. He had practical experience of manufacturing industry. His family had owned a metal works, which apparently provided metal for the airframes for, I think, the Wellington bomber, during the war. It was a quite substantial company. After his spell as Secretary of State he said that because of his time on the shop floor in his fathers’ factory he understood the importance of trade unions. That breed of Tory—people with practical experience of the workplace—seems to have gone. He understood the importance of trade union rights and was genuinely liberal about them.

There are more important issues involved. The way we deal with the workplace is extremely important. As I have said, we have virtually lost our manufacturing base. We have the car industry and a few other significant areas, but perhaps we should look at what happens in other countries—particularly Germany. After the war Germany recognised the importance of good relations between the work force and management. It established a system that German trade unions tell me is almost as revered as the NHS. The key thing is that the work force has a voice at every level.

I lost my seat in 1992 and at that time—another confession for the hon. Member for Congleton—I worked for the trade union movement. I was responsible for organising some conferences for what is now a part of Unite, but was then the Transport and General Workers Union. One conference was about the automotive industry, and I had the task of asking the head of BMW in the UK to speak at the conference. I had a meeting with him and he asked me what I wanted him to say—an unusual situation for me; usually it is a case of being told what someone wants to say. I just said, “Be union-friendly.” He said, “I can be very union-friendly. I strongly believe that no major company can now operate without the strong support of its work force and trade unions.” He was a member of the main board of BMW in Germany at the time.

That philosophy seems totally alien in our political system. The debates on trade unions that we have had in this House—the last one was on a ten-minute rule Bill on facilities for trade union members—are marked by two things: ignorance and anger. There is polarisation on both sides. That is bad for us, politics and the country.

[Albert Owen (in the Chair)]

Before I call Robert Halfon, I want to make an announcement on time limits. Because of the number of hon. Members who want to speak, including those who have given advance notice, I am, with the authority of the Chairman of Ways and Means, imposing a time limit of four minutes on Back-Bench speeches. The rules are exactly as in the House. Each of the first two interventions accepted will stop the clock and give the hon. Member who gives way an extra minute. We do not, as the Chamber does, have the mechanisms that enable hon. Members to know the time on the clock, so with the assistance of the Clerk we will ring the bell when there is a minute to go. An intervention made in the last minute entitles an hon. Member to added time.

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[Robert Halfon]

My hon. Friend proves my point. In 1979, during the general election, trade union members held a mass rally at Wembley stadium under the banner “Trade unions for a Conservative victory”. That is the kind of future that I hope our Government will aspire to.

My conclusion is that we need to support the moderate majority of trade union members, most of whom are not political activists. In politics, language is everything. We should not be afraid to support grass-roots trade union members, to encourage people to join trade unions and—dare I say it?—to have, perhaps, the occasional beer and sandwich. We often discuss facility time, and, yes, we need to crack down where it is abused and say that it should not be used for party political activity. Nevertheless, some facility time is good. A local employer in my constituency, the bus company Arriva, says that facility time is incredibly beneficial. The politically neutral First Division Association, which has 20,000 members, uses facility time to relocate the families of civil servants who are serving overseas. While we crack down on the abuses, we should recognise that not all facility time is bad.

Whatever reform is pursued, our focus must be on what is right for union members. It may be worth returning to the original opt-in position for political levies, which was the status quo until 1945.

Finally, I will quote Richard Balfe, the former Labour MEP who came over to the Conservatives. He said:

“British politics has changed enormously in recent years. Labour has become a rich persons’ party and the Conservatives are reaching out to groups that in the past would not have been natural allies. We do not expect to convert the leadership of the trade union movement, but we do offer respect for the achievements of the movement and the possibility of a mutually beneficial dialogue.”

I say to the Government and my hon. Friends that, despite the rhetoric, let us not walk into the elephant trap set for us by Len McCluskey, Bob Crow and others.

[Albert Owen (in the Chair)]

Order.

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[Ian Lavery]

I will not give way. It had been mentioned at the Tory party conference by officials and Ministers who were proud to be trade union bashers and trade union kickers. That is why a lot of the new Tory MPs are thinking that this is the way to get a job in the party. They think, “Let’s start kicking the trade unions. That’s what we should be doing.”

I have been a trade union representative since the age of 16 or 17. I have been involved in both the private and public sector. By the way, the private sector represents about 40% of facility time, so it is not only public sector representatives who are paid for by taxpayers for facility time.

About the money that has been suggested is being paid by the taxpayer, in my experience, if I had any time off for facility time, I would have just received the wages that I would have received had I been at work. That is not even a saving. No one was put in my place, so there was no saving. It is misleading to suggest that there can be a huge saving in facility time, because, in the main, people are not replaced when they are doing facility time, and that is important.

I represented people in the mining industry. My facility time was about health and safety. What is more important than health and safety in the workplace? I visited people who had lost their husbands underground. They did not want to see the colliery manager or anyone from the management. They would ring up and say, “Mr Lavery, can you go and speak”—

[Albert Owen (in the Chair)]

Order.

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[Albert Owen (in the Chair)]

Order. That is a point of debate.

[Alec Shelbrooke]

Thank you very much Mr Owen. We have seen in the past couple of minutes where my frustration has lain, with people saying, “Unions do this” or “Union bashing”. That is not what the debate is about; it is about funding and how public sector money is used. Politics is about perception, and if there is a perception that public money given to the unions is then given to the Labour party, the best way to solve that problem is to tinker with the rules and have an opt-in, so that people can say where they want the money to go. Then the unions can say, “We have this many people opted in and this pot of cash, and we have decided to give it to the Labour party.” No one would argue with that. We cannot argue with that.

There may need to be some reform. The balance needs to be redrawn for some of the public sector workers working full-time purely on union business, but that is a different debate. Please do not make this an argument about union bashing. That is offensive to many Conservative Members who believe in the work of trade unions. I am not here to speak for everybody on the Government Benches, but I know that a great many of my hon. Friends very much believe in the work of the trade unions. A great number of us have been members of trade unions and have worked in places where we have seen their work, but that does not mean that the situation is completely okay; there are aspects that need reform, but debate is the best way to examine that.

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[Ian Lavery]

The hon. Gentleman is being very conciliatory in his contribution. The political levy is covered in the Trade Union and Labour Relations (Consolidation) Act 1992. Union members must be balloted, whether or not they pay a political contribution.

[Albert Owen (in the Chair)]

Order. I call Gareth Thomas.

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[Mr Thomas]

Not now, no.

Trade unions are heavily regulated, a point made by my hon. Friend the Member for Wansbeck. The right of employees in the public sector to be represented properly is a measure that not even Margaret Thatcher in her wildest moments wanted to abolish. I recognise that TaxPayers Alliance reports are to Conservative MPs what sweets are to little children: a temptation, a must-have, something to cry and shout about. Older heads, wiser heads—I hope Ministers—need to recognise that behind the sound and fury, trade unions play a quiet, useful and important role in helping our public services to run more smoothly. In the worst of times, when employees feel vulnerable and on their own, a trained and professional representative, a trade union representative, can play an important role in supporting them.

[Albert Owen (in the Chair)]

I am grateful to hon. Members for adhering to the time limit. I call on the Minister to reply.