Trade Unions

Lord Morris of Handsworth Excerpts

Thursday 19th November 2015 Lords Chamber

[Lord Morris of Handsworth (Lab)]

My Lords, it is a privilege to follow the noble Baroness on the occasion of her maiden speech. It was a speech of content, passion and, of course, authority. The House warmly congratulates her on that speech and looks forward to many more contributions in the future.

When considering today’s debate, I was tempted to reflect on my 12 years as general secretary of the Transport and General Workers’ Union. But in order to avoid being labelled a “trade union baron”, as I anticipated, I decided instead to share my thoughts based on my 18 years as an employee and workplace representative at Hardy Spicer Ltd, subsequently a member of the GKN group.

As a believer in the values of a fair and just society, I have no difficulty in rationalising my role as a trade unionist. Today’s debate seeks to explore the role of unions in a democracy and their contribution to the wider economy. I take the view that a free, independent trade union movement goes hand in hand with a fair and just society. But without playing devil’s advocate, I would like to put exactly the same question to the employers: what is the role of employers in a democracy and their contribution to an economy that is fair and equitable? What are they doing that could not be done by other agents or, indeed, the state?

What I am seeking to establish is that there is an interdependence between capital on the one hand and labour on the other. Both working together, and working well, benefits society for the common good. It is clear that production and consumption are two sides of the same coin. The debate is about not the acquisition of ownership but equitable distribution. Trade unions provide a mechanism for dialogue between workers and employers, helping to build trust and commitment among the workforce. They ensure that problems can be identified and resolved quickly and fairly, bringing significant productivity benefits.

Many employers and employer bodies such as the EEF and the CBI have recognised the positive role that trade unions have played in supporting employer-led issues such as training and health and safety. Employers have long recognised the contribution that unions make in implementing organisational changes. They offer a mechanism for the effective negotiations and consultations that are generally needed to make significant change to programmes within the workplace. Trade unions are ambassadors, both at home and abroad.

In addition, trade unions have long worked alongside companies, business organisations and their communities in supporting national infrastructure projects. We have heard about projects such as the fifth terminal at Heathrow and of course the 2012 Olympic and Paralympic Games. As we speak, these groups are working together to build the case for other projects, yet some politicians and newspapers talk of trade unions as the scourge of economic well-being, in the past even describing us as the “enemy within”. These claims are made even when workers seek health and safety protection for themselves and, more importantly, the general public.

A recent report produced by the independent think tank the New Economics Foundation and the University of Greenwich points out that the number of days lost per year to industrial action has fallen dramatically over the past 30 years and has today reached an historic low. The report concludes:

“The UK has paid a heavy economic price for three decades of anti-union policy and law”,

and argues:

“If the recovery from the recession is to be placed on a secure footing, the status of trade unions as an essential part of sound economic policymaking must be restored”.

The report argues that the UK economy is wage-led, not profit-led, and that increasing wages would kick-start spending and increase GDP by 1.6%. The collective strength of trade unions’ negotiation means that on average union members take home higher pay and have better sickness and pension benefits, more holidays and more flexible working—all of which benefit the economy.

The World Bank agrees that unions are good for the economy. In a report based on more than 1,000 studies of trade unions and the performance of national economies, the World Bank found that high rates of unionisation led to less inequality of earnings, lower unemployment, lower inflation, higher productivity, and speedier adjustment to economic shocks.

So far I have looked only at the contribution of trade unions to the economy. What of their role in a democracy? I take the view that free, independent trade unions go hand in hand with a just and fair society—locally, nationally and globally. On a basic level, trade unions are agents for change and will always strive to protect and advance the interests of those they represent, including those without a voice. A major ILO study found that countries in which income inequality was on average lower tended to be those in which a greater proportion of workers were members of trade unions. It also found that higher rates of union density had a positive impact on the range of social rights afforded to citizens.

It is no coincidence that in countries in which there are free and active trade unions, there are more democratic, transparent and representative forms of government. In countries where there are no trade unions or where the movement is not visible, the vast majority of citizens continue to be trapped in poverty. It is in these conditions that instability and extremism thrive at the expense of democracy. Therefore, by pressing for better social, economic and environmental policies, trade unions are good for the economy and for society, and make democracy work better.