Scotland Bill

Debate between Angus Brendan MacNeil and Jack Dromey

Monday 6th July 2015 Commons Chamber

[Jack Dromey (Birmingham, Erdington) (Lab)]

It is always a pleasure to follow the hon. Member for Downton Abbey. I want to speak on employment in relation to section H1 in part 2 of schedule 5 to the Scotland Act 1998 and new clause 63. I rose from the Grunwick picket line ultimately to be elected as the deputy general secretary of the Transport and General Workers Union. I have believed all my life in the old trade union legends of “unity is strength” and “solidarity for ever.” I have seen the consequences of disunity, including in Scotland. I remember the activities of ruthless gangmasters in the fields and fish farms of Scotland, which our agricultural section was battling against. I remember the shameful pressures that were brought to bear by supermarkets on the slaughterhouses and packing plants of the meat industry. They drove down costs along the supply chain and led to a two-tier workforce. Newly arrived migrant workers—overwhelmingly, they were agency workers—were on poorer conditions of employment. Scottish workers here for generations were directly employed full-time on better conditions of employment. That divided workforces and damaged social cohesion—there was exploitation and undercutting.

Not once did we blame the workers concerned; we sought to unite them, and it was tough. I remember one plant in Scotland where there was a fight involving 100 workers in a car park, such were the strong divisions in the workforce over that two-tier labour market. We united that workforce around a recognition that it was not newly arrived migrants who were the problem, but ruthless employers seeking to undermine and undercut.

Unity was what we achieved, not only among workers in Scotland, but between workers in Scotland and England and across the four nations of the United Kingdom. As a consequence, we won landmark achievements for workers. The Gangmasters (Licensing) Act 2004 was the most complex private Member’s Bill taken through Parliament in 30 years, and it established the Gangmasters Licensing Authority. Jim Sheridan, a former Transport and General Workers Union convener at Barr and Stroud in Glasgow, sponsored that Bill. We also achieved equal treatment for agency workers and the directly employed. Finally, following a landmark inquiry by the Equality and Human Rights Commission into what had happened in parts of the north of England and Scotland, the supermarkets were compelled to end the two-tier labour market in the meat industry supply chain. Those battles, which changed life for the better and the laws protecting workers for the better, would never have been won without a unity of workers north and south of the border, and a Labour Government.

Even under a Conservative Government, great battles were fought and won for Scotland and for Scottish workers—battles that could not have been won without that unity of Scottish and English workers. I will give two examples. First, I was privileged to lead the great battle against the closure of Rosyth dockyard. The yard was privatised in 1987. In 1991, a Conservative Government, encouraged by Conservative Members of Parliament in the south-west, moved down the path of closing Scotland’s biggest industrial establishment, Rosyth dockyard. Some 20,000 jobs hung on that decision. The Conservatives down south were saying, “Close Rosyth. Bring the work down to Devonport and we will see all the Navy’s work done on the south coast of England.”

[Mr MacNeil]

I thank the hon. Gentleman for his work in that period in Scotland; we have spoken about it privately before. Does he recognise that the problem of that period was that Scotland had a UK Government, like today, that we did not elect? Had we been an independent country then, we would not have had those problems and we would not have needed his mighty efforts to try to stem the damage that the then Tory Government were doing. The steps they took contribute today to the £1 billion annual defence underspend in Scotland.

[Jack Dromey]

Two unions saved Rosyth. The first was the campaign led by the TGWU that united the whole of Scottish public and political life. More than that, it united Rosyth and Devonport. I remember addressing a meeting of 9,000 workers at Devonport. They would have been the beneficiaries of the closure of Rosyth, and they were being encouraged by the Conservatives to back that closure, but they said no—they stood by the workers of Rosyth. The other union that saved Rosyth was the Union of England and Scotland. Had we had a Westminster Government making decisions simply in the interests of England, we would have seen the closure of Rosyth. For me, the lesson of that great battle was that unity and solidarity north and south of the border are critical.

I shall give another example. The only time that British Aerospace was ever defeated on a workplace closure was in 1989, after it had announced the closure of the Bishopton royal ordnance factory. I was proud to lead the campaign against that, too, and we won. The factory ultimately stayed open for another 13 years, employing 500 workers directly and 1,000 in the supply chain. Again, absolutely key to that were the workers down south in the Chorley factory, which was the other explosives factory. They said, “If Bishopton is closed, we will not handle the work.” Although they were English workers being told that it would be in the English interest to agree to the betrayal of Scottish workers, they refused to do it.

[Mr MacNeil]

I do not fully recognise the rosy picture that the hon. Gentleman is painting of that unity. If we remember, in the lifetime of the last Labour Government some 10,000 defence-related jobs were lost from Scotland, and we also have the £1 billion defence underspend in Scotland. We are told that we have greater public spending in Scotland, but that does not include those defence figures, because they come under non-identifiable spending. These non-identifiable spending figures are grossly and dramatically skewed towards the south-east and south-west of England, and Scotland is seeing an underspend. If the Union was as the hon. Gentleman is presenting it, we would not have that underspend; we would have our own taxes being spent in Scotland in that area and not have those taxes being shipped south in an area of non-identifiable spending.

[Jack Dromey]

I used a not dissimilar argument when it came to the lobbying on where the aircraft carriers would be built. I argued that there should be fair treatment of Scotland, with Rosyth playing a key part in the construction and assembly of those aircraft carriers.

The lesson of history on those great battles was that unity of Scotland and England and unity of Scottish and English workers are key. On other fronts, I have to say that some of the proposals emanating from the SNP cause grave concern, such as those on the future of pay bargaining. We fought throughout the Conservative years against the regionalisation of public sector pay bargaining. We were able effectively to see that off. To go down the path of separate agreements for Scotland, then for England, then for Wales and then for the regions of England would once again divide workers when unity is strength.

--- Later in debate ---

[Mr MacNeil]

The hon. Gentleman has been very kind in giving way. A few moments ago, he asked rhetorically where this takes us on pay. Had Labour agreed to allow the minimum wage to be devolved to Scotland, that would have taken us to a higher minimum wage. Instead, Labour’s position left control of the minimum wage across the entire United Kingdom in the hands of a Tory Government. Had the minimum wage been devolved to Scotland and gone up, as it would have done, that would have put pressure on that lot on the Government Benches to increase the minimum wage in England. Sometimes, centralised control is worse for the entire body than localised control in various corners.

[Jack Dromey]

I am sorry, but the lesson for me from my whole history in the trade union movement has been that battles for a higher minimum wage—and I would like to see the minimum wage become the living wage—are best fought by workers north and south of the border standing together in solidarity and unity.