Trade Union Funding

Frank Doran Excerpts

Wednesday 29th February 2012 Westminster Hall

[Mr Frank Doran (Aberdeen North) (Lab)]

I am proud to answer the question from the hon. Member for Congleton (Fiona Bruce): I am a member of the GMB union, and, yes, it has helped to fund my election campaigns. I hope it will do the same in the future, just as the businesses the hon. Lady supports are likely to support her directly or through some other medium.

The hon. Lady’s comments emphasised one of the major problems in our political system. When a party is elected, it rips up what the previous party did, and we can see the consequences of that in all sorts of areas. One section of the Tory party—it is much larger than it used to be—is focusing particularly on trade union rights. It thinks the only way we will sort out our economic and political system is by removing workers’ rights to health and safety protection at work because such things are all red tape. That is why the Tories have formed their Trade Union Reform Campaign, in the same way they formed the TaxPayers Alliance as a front and a seemingly independent organisation to get over their message and alter the debate on public finances.

I want to focus a little on how things should be. When we look at our economic competitors, it is clear that we are not at the races. Our manufacturing industry has virtually disappeared, although that is the fault of both the Labour and the Conservative parties, and I am not laying political blame. However, there are fundamental weaknesses in the way we approach industrial relations.

I was a Parliamentary Private Secretary—the lowest of the low—in the Department for Trade and Industry when Labour was elected in 1997, after 18 years out of office. One of the key issues on which we had manifesto commitments and which we wanted to tackle was the industrial relations system. Rather than taking the approach of the hon. Lady and most of her colleagues in the Conservative party, we decided to trust the trade unions and management. We asked the CBI and the TUC to go away and look at what we proposed in our manifesto programme, and then to go beyond it and look at a range of issues that we felt were a serious problem in our industrial relations system. There was not a lot of confidence that they would come back with a workable programme, but we were quite explicit: we told them to come back and tell us what they could agree about, what they did not agree about, but thought they could sort out, and what they positively disagreed about.

I remember sitting in the office of the Secretary of State, my right hon. Friend the Member for Derby South (Margaret Beckett), when the TUC and the CBI came back to report on what they had worked out. We were all astonished, because they had gone much further than we had anticipated. Both sides knew the industrial landscape and the workplace, and they knew how the system worked. They came back with a formula that eventually became the Employment Relations Act 1999. The focus of that Act was not, as the hon. Lady might suggest, about Labour buying off its union funders: it was a serious attempt to change the industrial landscape. One of the key issues was to try to get the courts out of industrial relations, and I think we succeeded enormously in that respect. I am very proud of what we did in that area.

One of the key areas of conflict was recognition. We introduced a process that enabled recognition to be properly worked through in the workplace or with support from ACAS. That meant that we had a rational debate, rather than both sides following their first instinct and rushing to the courts to try to force things through.

Within a few months of the Act—in fact, the process started before it was enacted—we had more than 1,000 new workplace agreements. Management decided to sit down with their workplace unions for the first time, and they started to enter agreements. There have been virtually no disputes since, although there have been one or two high-profile ones. In the main, however, the whole issue of industrial disputes over recognition has disappeared.

Sadly, we now have a new Government. Just this week, I met a group of trade union officials who represent the trade unions at QinetiQ, where the managing director, who has no experience of the defence industry or science, has decided that recognition will be removed from the workplace. That will be an area of conflict, and it is completely unnecessary. There was no proper consultation with unions: in fact, in that case, unions at the national level feel they have been deceived and lied to, and such comments are not made lightly in an industrial context.

[Bob Stewart (Beckenham) (Con)]

I am totally in support of having unions, and it is a statutory right for unions to carry out their business unpaid in work time. However, I am worried, and I wonder whether the hon. Gentleman agrees in principle with union members being paid out of taxpayers’ money. That is the crux of the worry many people have.

[Mr Doran]

A whole phalanx of my colleagues will come in on that issue, but I want to focus on the issue I have outlined. To answer the hon. Gentleman’s question, however, I see this arrangement as a facility for management. In my constituency, which does not have a Labour council at the moment, staff are paid to do this work because it is a door for management to knock on when there is a problem. Whenever there is a difficulty, the two sides can quickly get together, and the people who represent the work force can talk with some authority; they do not have to work at the coal face in another job and then have to be briefed on an issue that has come up somewhere in another department. These things happen in the private sector as much as in the public sector because they are good for management—they oil the wheels.

[Mr Michael McCann (East Kilbride, Strathaven and Lesmahagow) (Lab)]

Does that point not sum up the fundamental flaw in the contributions of the hon. Members for Congleton (Fiona Bruce) and for Beckenham (Bob Stewart)? This is not about trade union facilities, but about the time given to fulfil industrial relation duties. The time used by trade union representatives is, in fact, tiny in relation to their own particular work, and the vast majority is used to ensure that the workplace works smoothly. That is where Tory Members are getting this very wrong.

[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.