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Rt. Hon. Stephen Byers - Former Secretary of State for Trade and Industry (Dec 1998 - Jun 2001)Scottish Trade Union Congress Conference |
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In Government we have put into practice our principles. To deliver social justice and security. To provide opportunities, a sense of community and of society. People working together for the common good, to build a future with fairness and prosperity. For all our people and not just the privileged few. In our modern world, the only way to achieve this is to create a progressive, forward looking and successful Britain. Where there are decent standards for people in work. In which business can prosper. Where consumers get a fair deal. That's what our people need and what they deserve. A principled reforming approach which step by step is making Scotland better. We have low inflation and rising living standards - as a result of Bank of England independence and our reforms to monetary and fiscal policy. We have helped people get back to work through the New Deal. The most ambitious programme of employment and retraining ever. Helping to reduce long term unemployment by almost 60% and youth unemployment by over 70% in the UK since May 1997. The latest figures published yesterday show that in Scotland last month, in the New Deal target groups for young people and the long term unemployed, unemployment was at its lowest ever March level. And that the number of people in jobs in Scotland has increased by 23,000 in the last year. The highest level since 1966 - when England won the World Cup. Creating work for our people is a top priority. So is providing minimum standards for those in work. Since May 1997, millions have seen direct improvements to their terms and conditions of employment. In taking forward these reforms, I have welcomed the advice, representations and views put forward by the Scottish TUC. That doesn't mean I always agree with points put forward. But we have a healthy relationship. We are now in the process of putting in place the right framework of basic standards and individual entitlements on which to build a new set of relationships at work. Let me make clear. We introduced it because we understand that fairness in the workplace - social justice - and business efficiency and success go hand in hand. Unions' have a right to recognition where that is earned by the support of the workforce. That's why we are introducing statutory rights to trade union recognition. These will come into force in just over a month's time - on 6 June. If you want to know the precise details of the recognition procedures I suggest you ask Bill here [Bill Speirs, General Secretary of STUC] who I've just appointed as a member of the Central Arbitration Committee responsible for applying the statutory recognition procedure. Today I can announce a measure which will probably increase Bill's workload - and be welcomed by many workers in Scotland. I will be extending union recognition to offshore employment - including North Sea oil and gas rigs. I am aiming for this to come into effect around the same time as recognition is introduced for workers onshore. The beginning of this month marked the anniversary of the National Minimum Wage's introduction. Benefiting over 1.5 million low paid workers and their families across the UK - and at least 100,000 in Scotland. In the last year, National Minimum Wage enforcement officers have investigated about 4,700 cases of suspected underpayment. 279 cases in Scotland. Across the UK, recovering almost £1¼ million in back-pay for workers. Helping those like the group of Thai workers at an electronics company in the west of Scotland. They were being paid just 96 pence per hour. Action by National Minimum Wage enforcement officers secured all £12,000 owed to them. In a modern economy, we need a flexible labour market. In return, employers have a responsibility to give their workers the flexibility they need. Flexibility to balance work, family and other commitments. That's why we've introduced new Working Time Regulations. Limiting the time people can be forced to work. Introducing rights to rest breaks, time off and paid annual leave. As a result, some 2.5 million people, including part-time workers, had paid holidays for the first time last year. In November last year paid annual leave was increased from three to four weeks. Extending the benefits to 3.1 million people. I will shortly be publishing the final regulations on part-time work. They will end discrimination on pay, pensions, training and holidays. Ensuring that part-timers - 80% of whom are women - are no longer treated as second class citizens. This is good for workers - and for business. It means companies can have a flexible, cost effective, experienced workforce. And employees can balance their life at work with other commitments. One of the great challenges facing parents is how to juggle the responsibility of bringing up a family with holding down a job. That's why we're introducing family friendly policies into the workplace. We've extended maternity leave by four weeks. Introduced 13 weeks parental leave for both mothers and fathers. A right to time off work to deal with a family emergency, starting from day one of employment. No longer will a working parent have to worry about losing their job if they are called away to care for a sick son or daughter or an ailing parent. Finding the right balance between work and family life is a challenge that faces us all. That's why I will be undertaking a review of maternity pay and parental leave, which will take account of the needs of individuals and businesses. Family friendly policies. Fair treatment for part-timers. Paid holidays. A decent minimum wage. Union recognition. Stronger rights against unfair dismissal. Restoring fairness and social justice in the workplace. Of course, the union movement has not secured everything it wanted. Neither has the business community. A balance had to be struck. This was fairness not favours in action. The adoption of these policies represents a major change in labour market policy. A change that can benefit both employers and their employees. The message is clear. Companies that invest in their people, that adopt fair employment practices and make their organisations good places to work, are also successful companies. We need successful partnerships in which employers, employees and their representatives recognise their common interest in the success of the business, and develop creative and co-operative ways of working towards common goals. Last year the Prime Minister launched a new Partnership Fund, providing £5 million to support projects which foster partnership in the workplace and enable successful partnerships to share their experiences with others. Last month I announced the winners in the first round of this Fund. I am pleased to say these included an excellent project led by the Scottish TUC - which is working with five Further Education colleges to spread best practice. The second round of the Fund will be launched soon and I hope to see many more imaginative projects, including those which improve the work-life balance. Partnership must be seen as more than a warm word. It should involve real changes in the workplace. New ways of working together. New approaches to training and development. New systems of performance and appraisal. Equipping people to cope with change. We are taking the same approach in industrial policy. As the decisions taken by BMW in relation to Rover show, in a time of globalisation we face two choices. A choice between uncontrolled change, forced by the markets and commercial pressures. Or a process of economic reform that delivers economic efficiency and social justice in which people and their communities can be genuine partners in change and not the innocent victims of change. Let me make clear. A Labour Government will always back the second option. We should not, we can not, stand in the way of global economic forces. Trying to block change would be futile. In the 21st century, successful economies and societies will be those that can adapt to the demands of rapid change; that manage change rather than being submerged by it; that equip their people to cope with change. It is the approach we will take across the UK. In England. In Wales. And, with the Scottish Executive, in Scotland. Earlier today I discussed manufacturing industry and shipbuilding with some of your colleagues. Let me make it quite clear to you, as I did to them. I am strongly committed to working with all in the shipbuilding industry to help improve its competitiveness and to win orders. I strongly believe that the shipbuilding industry has a future as a modern and dynamic part of the manufacturing sector. And I have no doubt that shipbuilding on the Clyde has a future. That's why I'll work with the unions and the industry to achieve this. Since becoming Secretary of State I've been pleased to be able to have provided improved financial support for shipbuilding. Enhancing the Home Shipbuilding Credits Guarantees Scheme. Extending support under the Shipbuilding Intervention Fund to previously excluded yards - including Ailsa Troon on the South West coast of Scotland. Extending support to conversion contracts. Encouraging productivity. No longer penalising companies by reducing financial support if they reduce their costs. Encouraging new investment. Allowing a 9% profit element in calculating the level of Shipbuilding Intervention Fund - rather than basing the grant on a break even basis. As a result, new orders have been secured for our shipyards. Orders that would not have been secured otherwise. Orders like the conversion contract recently won by Cammell Laird. The largest cruise liner conversion ever. Worth £57 million. And won with DTI financial support. Orders like the one which Cammell Laird won from a Norwegian owner this week. The first vessel to be built on the Tyne in six years. I am determined to build on this success. We must improve productivity. That's why we set up the Shipbuilding Forum - and the Scottish Shipbuilding Forum. To take things forward with the unions and industry. I recognise the uncertainty felt by the Govan workforce, their families and their communities. But as John Reid said to you earlier this week. It is a disservice to them to talk down Govan's prospects for the sake of a good headline or for the sake of political point scoring. No decisions have been taken over the award of future MoD orders which could affect this yard. But we are well aware of the importance of these orders for the future of Govan. The fullest consideration will be given to that bid. But we have to act within European Union rules on competitive tendering. These rules do not apply, however, to the programme of new warships which we are taking forward as a result of the strategic defence review. A multi-billion pound programme of shipbuilding. Larger than any similar programme in recent memory. The Type 45 destroyer, Future Services Combatant, and the Future Aircraft Carrier programme alone will generate orders with UK yards for well over 30 major warships. More than ordered in the whole period since 1979. Our policy is clear. I can confirm that all warships will be built in UK yards. The first warship order will be placed by the end of the year. And last week tenders were put out for two landing ships. Only UK yards were invited to tender. I am pleased that Govan was one of them. The MoD's procurement programme will represent a huge investment in the future of the UK shipbuilding industry. Giving the industry a long-term stable platform for the next 15 to 20 years to invest. To modernise and make themselves even more competitive in the world market. Orders are coming in. We must take decisions not only on the best commercial grounds. But also in the best interest of our shipbuilding industry. We shall ensure that these contracts are rolled out in a way which ensures a viable, competitive future for UK yards. We will work with the industry and the unions to build a world class industry. I want to discuss with the main UK ship yards and the unions the issues we face. To consider together how we can meet these challenges and take advantage of the opportunities provided by the MoD programme. That's why I will be convening a meeting of all interested parties to discuss the steps necessary to secure a strong, competitive and forward-looking shipbuilding industry. The MoD programme provides us with an historic opportunity. We cannot afford to miss this chance. By working together we can avoid the cycle of feast and famine that for so long has bedevilled shipbuilding in the United Kingdom. Not just defence contracts. In the civil sector possibilities are emerging too. We will support industries that have a real future. Some of the industries that commentators say we should ignore. People in those industries, and local communities, need to know that they have a Government who are on their side. Earlier this week I announced developments in our energy policy which will help the offshore oil and gas industry - and the coal industry. Lifting the stricter consents policy will enable new gas power station developments to go ahead, where they are genuinely competitive, providing new job opportunities. This is good news for the offshore oil and gas industry - and those employed in it - here in Scotland. This will create a new market and new challenges for the coal industry. The UK coal industry is by far the most efficient in Europe. But competitors in Germany and elsewhere benefit from Government subsidies. The aid scheme I announced on Monday will allow the coal industry to modernise and compete in the new markets that we are creating. It is not the time to stand still. For manufacturing to succeed in the 21st century it needs to meet the challenges of the knowledge driven economy. Some people mistakenly believe that the knowledge driven economy is only about dot.com companies. This is entirely wrong. All manufacturers, whether from a so-called "traditional" sector or a high technology sector, are part of the knowledge driven economy. Innovative, forward-looking manufacturing is the heart of knowledge driven economy. It is vital to our ability to compete in the future. Nor is the knowledge driven economy some invention by the metropolitan elite, irrelevant to the industrial heartlands of the UK. Investment in R & D and capital. Continuous improvement and best practice. Skills and training. These are the core issues for any manufacturing business in the UK. Issues that affect every employee, every customer and every supplier. We need to face them jointly. Government, unions and business. The most important contribution Government can make to the success of manufacturing is to provide macro-economic stability. I recognise the current difficulties caused by the strength of sterling or, more significantly, the relative weakness of the main European currencies and in particular the euro. But we must take the long term view. Spurn the attractions of today's standing ovation and tomorrow's supportive headlines. It would be wrong to let short term pressures lead back to policies which produced boom and bust. Manufacturers and those employed in manufacturing would not thank us for that. Instead we need policies which achieve sustained growth. That is our goal. Because, more than ever, businesses need to plan ahead with confidence. So that they can invest in new processes, R&D and training. We can't afford this vital investment to be put off through fears about the economy and its long term stability. We have created a sound and credible platform of stability and long term economic growth. Interest rates half the level they reached under the Tories. Boom and bust have been avoided. We avoided recession in the economy and we are now seeing healthy growth. That's why, in the latest figures released yesterday, 890,000 new jobs - 60,000 in Scotland - have been created since May 1997. Just an hour ago Donald Dewar announced another 1,350 new manufacturing jobs being created in Dunfermline. Motorola are investing £1.3 billion - their biggest ever investment in Europe - in what will be the largest semi-conductor plant in Europe. One of the biggest single investments ever seen in the UK. Secured against competition from other locations across the globe. Showing that the UK remains the preferred location for major global investors. A huge vote of confidence by Scotland's largest manufacturing employer. This demonstrates how - by building economic stability and investing in skills - we can exploit the opportunities of the global economy. That is why the Scottish Executive has set out a way forward for Scottish manufacturing in the 21st century. That's why my Department is working closely with them to help industry meet the challenges of the knowledge driven economy. Exploiting our science base and promoting innovation. And investing in skills. Education and training are a priority for the UK Government and for the Scottish Executive. Investing in schools to ensure people enter their working lives with the basic skills they need; investing in life-long learning and training to ensure people can update their skills throughout their working lives. In Government the questions we face on a daily basis are often difficult, complex and technical. We must never lose sight of the fact that they are human questions. The answers we give will affect individuals and their lives. While people are obsessed about the value of the pound, dollar or euro - it is the values that lie at the heart of our society that really count. In Government we have the opportunity to reflect those values of care, concern, compassion for all members of society. To create a Britain that is successful and dynamic. Built on power, wealth and opportunity in the hands of all our people. As we begin the new century we have the opportunity to put behind us the old British conflict between the left in politics who undervalued enterprise and the right who undervalued fairness. In the words of the late John Smith 'in a modern economy social justice and economic efficiency are two sides of the same coin'. We will only achieve this if we embrace change; to see it as a bringer of opportunity and not a threat. It is the task of government, unions and business to lead people through this process of change. I believe that by learning from each other we can meet the great challenge of change. Not by resisting. But by equipping people to cope with change. Not by standing still but by modernising our economy. Not by exploiting workers - but by ensuring decent minimum standards and encouraging business to build on these in partnership. Ensuring that we are partners in change and not the victims of change. In so doing we can be confident and face the future knowing that by working together we can meet the challenges of the 21st century. |
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Other speeches by Rt. Hon. Stephen Byers - Former Secretary of State for Trade and Industry (Dec 1998 - Jun 2001)
(the following are available from the archive) |
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