(7 years, 8 months ago)
Lords ChamberMy 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.
My Lords, I have a simple factual question. Everybody has been talking as if there is clarity about when the committee will be established and when the review will take place. That seems to be based on a false premise, unless I missed something in an announcement. The reference is that the committee will be established in the next Session and the review will be in the following Session. I do not know when the next Session is going to start. I do not know whether the Chairman of Committees can tell me that. I have a rather nervous disposition, and I remember that in the last Parliament, the one beginning 2010, the first Session—much to the opposition of many of us—lasted for two years. The Leader and the Chief Whip are present, so I would like an instant response on this question: I simply want to know when the next Session will start, because until we get clarity on that a lot of this discussion is based on a false premise.
My Lords, I do not disagree with what my noble friend has said, but I have one point to make. I had the honour of following my noble friend Lord Campbell-Savours as a member of this Liaison Committee. When I joined the committee, I found that there had been a very long-running battle between the enthusiasts for setting up an international relations committee and those who had reservations. Since the noble Lord, Lord Laming, took over as Convenor, he has, with tremendous skill and remarkable diplomacy, come up with a compromise which allows the setting up of the committee but puts very strong limits and controls on it. He is to be congratulated. I hope that we do not delay it and that the House passes it and endorses it unanimously.
(9 years, 5 months ago)
Lords ChamberMy Lords, this is a matter of major importance and of potentially huge public expenditure. As far as I can recall, we have not had the opportunity of debating it in this House yet. I went to a presentation in Portcullis House, as did some other Members, organised by the Clerk of the Parliaments and the Clerk of the House of Commons. I must say that I found it totally inadequate: there were questions that could not be answered and the presentation was not clear. We need more information about exactly what options are being proposed.
I ask three things from the Leader of the House. First, to repeat the point made by my noble friend, representation should be equal between this House and the other place. A decision was made about the education centre, which has major implications for us, but we were not able to play any part in it—it was made by the House of Commons and forced upon us, yet the centre is effectively just outside our back door and will have a huge effect on us. Can we have an assurance that we will have equal representation on the committee?
Secondly, can we get an assurance that before any decision is taken that will affect expenditure and the workings of this House there will be a full debate in this House, and that no decision will be made without such a debate? Thirdly, I ask the noble Baroness to make it clear that the Joint Committee will consider all the options for dealing with this matter, not just those that have been put forward so far as a preferred option or preferred options. All of them should be looked at properly and thoroughly by the committee. This is a matter of great importance, and I find it very strange that it was almost put through on the nod.
To follow on from my noble friend’s point, on a related matter, he is quite right that this is an issue that affects both Houses of Parliament but there are many other issues, one of which is highly relevant, pertinent and newsworthy at the moment: English votes on English laws. It has been suggested that the rules relating to that could be made in the Commons without any proper joint consultation with Members of this House. There should be at least a Joint Committee of some sort to look at the implications for both Chambers of changes of this magnitude.
I do not use the word “disgrace” lightly, but it is a disgrace that we are making fundamental constitutional changes by an order in the Commons without any reference to us whatever. Changing the legislative process, in which we are intimately involved, unilaterally in one House without any consultation, let alone agreement, between the two Houses is unacceptable. I put it to the noble Baroness respectfully that she, as Leader of the House, has a duty to those of us here, particularly the Scots, not to allow our rights to be in any way diminished by any changes in the constitutional arrangements—at least, not without both Houses being fully involved.