Rolls-Royce Redundancies

Chris Williamson Excerpts

Thursday 14th June 2018 Commons Chamber

[Greg Clark]

My right hon. Friend is right to stress that it is important for any British company in an internationally competitive market to be efficient. The company has been very clear about its intentions as a growing company in a growing market. But having made a number of profit warnings over recent years, the management have been on a programme to make it more efficient. It is in all of our interests that this company, which is so important to the UK, continues to be successful around the world and to be at the leading edge of innovation, as it has been and as we are determined to see it be in future.

[Chris Williamson (Derby North) (Lab)]

When I left school in Derby in 1972, Rolls-Royce employed around 35,000 people. Today, it employs just under 12,000. If these job losses go ahead, the workforce will be reduced to around 8,000. That is a huge reduction. The company made a £4.5 billion profit last year, and when the Prime Minister hosted a meeting with the aerospace industry in March, she talked about a successful collaboration with the industry. Indeed, the Secretary of State has talked this morning about the close relationship with the industry and with Rolls-Royce. But talk is cheap. Is it not time for the Government to legislate to have workers on the boards of companies so that there is somebody there to represent the interests of the workforce? At the moment, we are seeing expanding order books while the workforce is diminishing. Is not this a failure of shareholder capitalism, which basically sacrifices jobs on the altar of higher shareholder dividends?

[Greg Clark]

I understand why a Member with a strong constituency interest in the workforce there would be anxious and combative in defending their interests. I will ensure, as will the trade unions, that the interests of the workforce are strongly represented. It is not true that all the redundancies will be at Derby, although the hon. Gentleman is right to say that a proportion of them will be. It is important that the company should adhere to its agreement with the trade unions, and I will of course make sure that it does that. In terms of the hon. Gentleman’s overall statement about the efficiency of companies, I think he should just reflect that his desire to overthrow capitalism would make it very hard for anyone to find work in any private company at any time.