Lord Foulkes of Cumnock
Main Page: Lord Foulkes of Cumnock (Labour - Life peer)
Lord Foulkes of Cumnock
That this House takes note of the role of trade unions in a democracy and their contribution to the general economic wellbeing of the nation.
Lord Foulkes of Cumnock (Lab)
My Lords, I first declare an interest as a member of the GMB union, although I must confess that I am now, very appropriately, in the “retired workers” category. I very much look forward to the debate, but particularly to the contributions of the two maiden speakers, the noble Baroness, Lady Burt, and the noble Lord, Lord Robathan, whom I know from the other place and whom I know will make excellent contributions. However, I also look forward to the contributions from the many former trade union leaders—I was going to say “trade union barons”, but perhaps that is not the right phrase to use here—who know so much more about this matter than I do. We are in for a very well informed debate.
Labour’s contribution to the debate on the Trade Union Bill in the other place has of necessity been somewhat defensive, because that Bill represents such a fundamental and, frankly, malign attack on trade unions. However, on behalf of Labour, I sought this debate today so that we can be much more positive and praise the work of the trade unions over the years and the contributions they have made and continue to make to our democracy and economy, as well as to protecting the well-being of the workers they represent.
Trade unions, from the Peasants’ Revolt of 1387—not many Members will remember too much about that—
Lord Foulkes of Cumnock
—although my noble friend Lord Lea does; through to the industrial age, when, I am proud to say, the weavers in Ayrshire led the way, workers got together to challenge the injustices and abuse they faced. The state was controlled by an unrepresentative minority of wealthy people—in fact, a minority of wealthy men—
Lord Foulkes of Cumnock
My noble friend Lord Grocott says that it has not changed completely. They were intent on increasing their wealth, and ordinary workers were excluded and exploited.
The Chartists, founded by the London Working Men’s Association, agitated for political rights for ordinary people and set in train the long series of events that, by 1928—only then—led Britain to become a full democracy. When we take time to look back at the achievements of the unions, we begin to appreciate how different life would be now for ordinary working people without them. I will give a few examples.
First, on workplace safety, workplaces with union safety representatives have half the serious injuries of non-unionised workplaces. In particular, the London Olympics of 2012 were the first Olympic Games ever in which nobody was killed while constructing the venues. It is not accidental that for the 2012 Games there was strong union representation on both the London Olympic committee and the Olympic Delivery Authority. In comparison, at last year’s Winter Olympics at Sochi in Russia, 60 people died.
Secondly, there is the minimum wage. Unions were among the early supporters of what was arguably—it is a view I hold—new Labour’s most successful achievement: lifting the purchasing power of low-wage workers, particularly women, without negatively impacting on unemployment and, incidentally, thereby helping economic growth.
Thirdly, on equal pay, as we all recall, the female trade unionists at Ford’s Dagenham and Halewood plants forced the introduction of the Equal Pay Act 1970, which was a key step in the battle for gender equality in the United Kingdom. However, we are not all the way there yet. Since last week until the end of the year, women will on average be working for nothing in comparison with men in equivalent jobs.
Tremendous advantages have been won by the trade union movement, including full statutory maternity leave since 1993, and there are all those achievements without even mentioning the insurance cover, the legal representation and the other services that we ordinary union members receive from our trade unions.
Our economy also benefits hugely from the presence of trade unions at both the micro and the macro levels. At the level of individual workers within the economy, unions have had a positive effect for every type of worker. In relation to salaries and holidays, unionised British workers earn 8% more than non-members on average, and they have 29 days’ annual leave as opposed to 23 for non-members. For young people, workers between the ages of 16 and 24 earn on average 39% more when they are union members. That is a huge and significant difference. Women in a union earn 30% more on average. The gender pay gap among unionised workers is 6% compared with 22% among non-unionised workers. Finally, workplaces with recognised unions are 24% more likely to offer training to their workers, and training in skills is vital to developing our economy if we are to make progress.
Unions also impact positively on the macroeconomy in three major ways. First, although some people claim that unions inhibit productivity growth, the opposite is true—our economy is more productive where there are trade unions. Productivity growth since the recession has been disappointing across the economy as a whole. However, a recent study by the National Institute of Economic and Social Research found that this productivity gap is connected to the decline of trade unions and that, in reality, high union density is associated with stronger productivity growth. The sectors of the British economy that are experiencing strong productivity growth, such as aerospace and engineering, tend to be those with stronger union representation, where employers actively encourage and engage with the trade unions in their workplace. Professor Kim Hoque of Warwick Business School has found that workplace productivity in the public sector is improved by union representation, and he has raised concerns about the effect on productivity of the Government’s impending Bill—an issue we need to return to when we debate that legislation.
Research by the New Economics Foundation found that high union membership boosts GDP by redirecting a larger share of capital to consumers or purchasers, thus expanding the domestic market for goods. Therefore, increasing the level of unionisation to that of the early 1980s, for example, could add nearly £23 billion to GDP. For every 1% reduction in the proportion of the workforce in unions, GDP is reduced by more than £2 billion.
Lord Clinton-Davis (Lab)
As an active trade unionist all my life, I agree with what my noble friend says, but some trade unions are not affiliated to the Labour Party and they do an enormously valuable job. My noble friend Lord Monks and I have been presidents of BALPA for a long time. Would my noble friend say something about trade unions such as the National Union of Teachers and my own union, BALPA?
Lord Foulkes of Cumnock
My noble friend has a very distinguished record as president of the British Airline Pilots Association. Naturally, I would like all trade unions to affiliate to the Labour Party—of course I would. But I recognise that that is not likely always to be the case, and there may be very good reasons why they feel unable to do so. Part of our democracy is that they should have the right to make that decision.
If I may, I will move on to the point I was going to make about income equality. In the United States, the United Kingdom and Canada union membership has been strongly linked to greater income equality. Research has found that the more rapid rate of de-unionisation in America, for example, accounts for two-thirds of the greater income inequality compared with the United Kingdom.
I turn now to the unions’ contribution to democracy. As we all know, in a democracy, it is not enough just to cast your vote every four—now every five—years; that is only part of our democratic system. Real democracy demands civic engagement from people through churches, as the Bishops will testify, charities—I am proud to be a trustee of Age Scotland and many noble Lords are involved in charities—political parties and other parts of civil society. But the trade union movement is perhaps the single strongest embodiment of such civic engagement, critical not just as a way for employees to engage with employers on equal terms but as bodies representing and lobbying for wider changes in society on behalf of ordinary working people. We have seen trade unions do that. They serve as a vital conduit for the interests of millions to be heard here at Westminster, at Holyrood, at the Welsh Assembly and at Stormont, and in local government. They keep actively promoting the interests of working people in these areas where decisions are made. They promote the interests of a huge number of people—over 6 million British citizens—and are therefore essential to our democracy.
Trade unions also promote political participation by the citizens. According to figures from the OECD and the Institute for Democracy and Electoral Assistance, the 10 most unionised countries have an average voter turnout of 78%, while the 10 least unionised have a turnout of 62%. That is a remarkable difference and there must be some correlation.
Trade unions do not just help democratic participation; they also campaign and impact on a wide range of social issues. They fight not only for their members in the narrow confines of the workplace but also for a better society for their members. For example, on child poverty and opportunity, greater trade union membership is associated with lower rates of child poverty and significantly better economic mobility. On equality, the Trade Union Share Owners, controlling £1 billion of shares, has openly used this financial clout to pressure for more women on FTSE 100 boards. Such power could be used even further and more effectively, and I would certainly encourage it so to do. On anti-slavery, trade unions in this country have lobbied DfID, the ILO and the Home Office to fund anti-slavery programs for the benefit of people working in slave conditions, both abroad and at home.
Trade unions are sometimes cast as an anachronism, and some people say that they are redundant. But in spite of the tremendous advancement of workers’ rights, the coming years point towards severe challenges that British workers will face. It is critical that we in Parliament work with employers and trade unions to mitigate and reverse some of these threats. The Trade Union Bill, which we will come to later, is one such threat.
The experience of the United States is a dire warning. Safety in the workplace is worse in the United Sates and wages are lower, particularly in states where there is anti-union legislation. If we compare those states with the others, we see a very significant difference.
In conclusion, the essence of a successful democracy is that the country works for the benefit of all the people. The Labour Party, which we recognise was born of the trade union movement, embodies that ideal. We are here to make the case for a more just and a more equitable society, to give voice to those who would otherwise be silent and to champion the continued journey of a nation towards our democratic ideal. Our trade unions should be a vital and valuable partner as we make this journey. I beg to move.
Lord Foulkes of Cumnock
My Lords, the debate has been much more effective than I had expected—or even hoped—and it has been a pleasure to sit through all of it. Particularly effective were the two contrasting maiden speeches. I would hesitate to question the noble Baroness, Lady Burt—her having been deputy governor of Holloway among her many achievements—but I can assure her that the trade unions are now strongly supportive of mutuals and the Co-operative movement. Apart from that, it was a wonderful speech and we look forward to hearing from her many more times. My old friend, even though he is on the other side of the House, the noble Lord, Lord Robathan—whom my noble friend Lord Young described as having SAS views on the trade union movement—was equally effective. Again, we look forward to many more exciting and interesting contributions from him.
It was interesting that so few Tories participated in the debate. The noble Lords, Lord De Mauley and Lord Suri, did their duty by the Whips and will no doubt be suitably thanked for that. Apart from that, the contribution from the noble Lord, Lord Balfe, was interesting, as usual. He has had an interesting political journey, and it shows. The noble Lord, Lord Dykes, made an excellent contribution. He has had an even more exciting journey. He has moved right around the Chamber but always seems to be in the right place at the end. He certainly was today.
As expected, we had the most magnificent tours de force from the trade union Barons and from the Baronesses. It was interesting that the noble Baroness, Lady Dean, managed to elicit, in an intervention from the noble Lord, Lord Callanan, the real stark face of the Tories as far as this issue is concerned. The noble Baroness, Lady Prosser, rightly reminded us that I had forgotten to mention the wonderful international work of the trade union movement that I know so well. I remember talking to some old friends, trade union activists, who served in the International Brigade in Spain and did a wonderful job. We know what they did in Chile and elsewhere, and that must not be forgotten.
However, with no disrespect to all the other speakers, the first of my two highlights was the speech of the noble Lord, Lord Griffiths of Burry Port, who said that it was his brother who was the soapbox orator. I think of Leslie as the soapbox orator, who was really good at it, as well. The noble Lord made a fantastic, enthusiastic and positive contribution, which I expected. However, what was unexpected was that I, as a heathen, agreed with everything that the right reverend Prelate the Bishop of Derby said. It was an encouraging speech—one of the best in the debate. I have many times spoken about partnership and there is an interesting comparison between the church and the trade union movement. He raised the interesting issue of the non-joining culture, from which all organisations suffer. I am hinting to him that that might in itself might be the subject for a debate, because it is a worry for all who are trying to build up democracy.
Overwhelmingly what came through was a recognition of the value of the trade union movement and its positive contribution. As to productivity, which I have studied, there is no doubt that you get better productivity from a happy, contented and organised workforce. I can guarantee that. Many examples and studies that show that.
I welcome the powerful speech of the noble Lord, Lord Stoneham—it was encouraging to hear from the Liberal Democrat Benches their wholehearted support for the trade union movement—together with what my noble friend Lady Hayter said in her restrained but strong way.
I say this to the Minister: I hope she will acknowledge the sincere strength of feeling on the issue of the Trade Union Bill. I hope also she will say to her government colleagues that they are not going to have an easy time in this House when the Bill comes here. Sometimes in this House, we get the feeling that we should ask, “What are we doing here, when all the decisions seem to be made elsewhere?”. I hope she will take back to the people who make the decisions that there is a strong feeling in this place about the value and importance of the trade union movement. As I say, she will not have an easy time of it with the Bill.
I shall finish as I started, by talking about the positive role of the trade union movement within our democracy and our economy. That has been celebrated in this debate. It has been acknowledged time after time in speech after speech from all parts of the House. The trade union movement should be proud of the House of Lords for giving it such a warm welcome and such a great endorsement.