Jack Dromey
Main Page: Jack Dromey (Labour - Birmingham, Erdington)Department Debates - View all Jack Dromey's debates with the Scotland Office
(9 years, 4 months ago)
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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.
Chris Stephens (Glasgow South West) (SNP)
I respect the hon. Gentleman’s trade union activity. On pay bargaining, though, I fear that he is somewhat confused, as local government pay in Scotland is separate from that in England and Wales. In Scotland, the two-tier workforce agreement is still in place, which the Conservative Government dumped when they were elected in 2010. There are already discrepancies.
Jack Dromey
Some Scottish national agreements exist alongside agreements covering the rest of the UK, but is it really being said that we want the progressive atomisation of pay bargaining? Where does that ultimately lead?
Another example that surprises me about the Scottish National party’s position is on the transfer of undertakings regulations. Under a Conservative Government, I took the case of the Eastbourne dustmen all the way to the European Court of Justice. The Court compelled the Government to extend the acquired rights directive to England, Scotland, Wales and Northern Ireland, which had been denied coverage for 10 years after the passing of TUPE. The lesson for me is that such fundamental rights are best obtained across the four nations of the United Kingdom.
Alex Salmond
When I, as First Minister, negotiated a no compulsory redundancy agreement with the civil service unions in Scotland, should I have not done that because the Government down here were not prepared to do so? When I negotiated with the Fire Brigades Union to stop the embezzlement of part of their pensions, which was being pursued down here, should I have not done that because this Government refused to do it?
Jack Dromey
In my trade union life, I frequently negotiated no compulsory redundancy agreements in a whole number of cities and throughout England, Wales and Scotland.
Chris Stephens
The hon. Gentleman seems to be very concerned about pay discrepancies. What is his view of the Scottish Trades Union Congress’s position? It said in evidence to the Scottish Parliament’s Devolution (Further Powers) Committee that issues such as the minimum wage fitted better in a devolved Scotland.
Jack Dromey
I shall come to exactly that point. New clause 63 in essence says, “Look before you leap.” I do not want unity and solidarity between England and Scotland and between English and Scottish workers to become history. I do not want the border between England and Scotland to become an exploitation zone with employers able to take advantage of different arrangements.
Dr Daniel Poulter (Central Suffolk and North Ipswich) (Con)
The hon. Gentleman is right that in some cases collective pay bargaining can bring benefits. We recognise that in the NHS, for example, Scotland has devolved powers to set pay arrangements, as does Wales, but the national pay review bodies recognise that discrepancies and differences in the pay scales and pay agenda in England and Scotland or in England and Wales can drive workforce patterns of behaviour and affect retention and recruitment. That might well be the point that he is trying to make.
Jack Dromey
That is exactly right. When the national framework, particularly for the national health service, was constructed—I was involved in the early stages of that construction—it provided a framework for the whole of the UK, within which was a certain flexibility that has been used subsequently.
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.
Dr Philippa Whitford
The Scottish Government are recognised as a living wage employer. Does the hon. Gentleman not feel that having a Government who are willing to push the living wage, as the Scottish Government are, and to push employers to pay it, sets an example that makes it easier to get it followed down here, rather than having everyone in the United Kingdom kept down?
Jack Dromey
We have been acting on the living wage north and south of the border. I was a founder member of the drive for the living wage in London. TGWU organisers, together with TELCO—the East London Citizens Organisation—and then London Citizens, organised 4,000 cleaners in Canary Wharf and the City of London. I am proud to say that I organised the first strike in the history of the House of Commons to win the living wage here. I am now working to drive up the living wage in Birmingham, which is the most advanced council of any in the country in enjoying the living wage. I have been at conferences of people from north and south of the border, all working together to drive up the living wage throughout the economy. I am sorry, but I will never give way on the thrust of what I am saying: these battles, whether they are for the minimum wage to become the living wage or for the implementation of the living wage, are best fought through solidarity between workers and all our country.
Owen Thompson (Midlothian) (SNP)
I have listened intently to the hon. Gentleman’s résumé of the actions he has taken, but for how long does he feel that it is appropriate for Members in Scotland to wait for a living wage economy to be introduced when we have such support for it from the Government and from local government across the nation? Should we be going at the pace of the slowest by waiting for the UK Government to take action?
Jack Dromey
Down south, together with workers from up north, we are working to drive the living wage. We are not waiting for our Government to embrace the living wage. We are driving it, city by city, council by council. In Birmingham, 134 private employers have now signed up to the minimum wage.
Alex Cunningham (Stockton North) (Lab)
The hon. Member for Central Ayrshire (Dr Whitford) mentioned the Scottish Government’s reputation for being a living wage employer. Is my hon. Friend aware of the work they are doing to persuade the contractors on their payroll, such as contract cleaners and others, to pay the living wage?
Jack Dromey
Let me give an example of what really matters on the living wage. In Birmingham, it affected not just the directly employed but the schools, and then all the contractors. Now, all future care contracts will be based on the living wage. Forgive me, but I say with the greatest of respect to the SNP Members in the Committee today that I have fought a fair few battles in Scotland for workers over the years—I suspect a few more battles than have been fought by Members of the SNP—and nothing will ever persuade me against the notion that the unity and solidarity of workers north and south of the border and of the nations of the United Kingdom is in the best interests of winning for workers.
Mr Grieve
I had not intended to speak in the debate, but the rather pejorative comments of the hon. Member for Birmingham, Erdington (Jack Dromey) in which he described my hon. Friend the Member for North East Somerset (Mr Rees-Mogg) as representing Downton Abbey prompted me to do so. My hon. Friend might at times appear to have a rather archaic way of approaching some of these issues, but in practice his analysis of the devolution of the Crown Estate that is proposed in the Bill is correct.
The Crown Estate is indivisible, because it is the Crown Estate of the United Kingdom. There is absolutely no reason why the revenue from it should not be allocated in different ways, including to the Scottish Government—I have no difficulty whatever with that proposal—but an issue arises in relation to the duty of this House to fulfil what is both a statutory and, in a sense, a fiduciary duty to ensure that the estate is properly managed and to hold to account the Ministers and, ultimately, the Commissioners who are responsible for that. The point has been made that the provisions in the Bill do not allow for the estate’s alienation, but that does not mean that it could not be so mishandled in the course of its management that its value did not diminish substantially. I assume that, as a result of the Bill and of Sewel motions, this House would no longer be in a position to scrutinise how that management was taking place if that were to happen.
The Crown is a reserved matter, and the running of the Crown Estate is intimately concerned with the affairs of the Crown, so this proposal is a constitutional novelty that my hon. Friend the Member for North East Somerset was quite right to highlight. I hope that the Secretary of State will tell us more about the issues relating to alienation, about the management of the Crown Estate and about the extent to which this House—which is ultimately supposed to maintain the dignity of the Crown—will have a role hereafter in respect of those parts of the Crown Estate that are being managed elsewhere.