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Rt. Hon. Stephen Byers - Former Secretary of State for Trade and Industry (Dec 1998 - Jun 2001)Work and Parents: Competitiveness and Choice |
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Balancing work and family life is one of the stresses of modern life. And it's a difficult balancing act that affects more and more of us. They are issues which a large proportion of the population face during their lives. Issues which parents, and those who care for elderly relatives, have to deal with everyday. And which affect all businesses. This has always been the case. But it is more so now. In the last 25 years there have been huge changes in the world of work and the way people want to work. We can't ignore these changes any longer. More people than ever are in work in our country - over a million more since the election. The number of women with dependent children who are working has also increased dramatically. Increasing by almost one million between 1984 and 1997 - from three and a half million in 1984 to four and half million in 1997. More men want to take time off after the birth of their child or devote more time to looking after their son or daughter. And people are choosing to start families at a later age - and a later stage in their careers. At the same time, the nature of our economy is changing rapidly. The new economy is based on knowledge and skills; on exploiting new ideas and technology and meeting customer demands. In this knowledge economy we need to harness fully the energy and talents of our workforce. But in a tight labour market, employers find it increasingly difficult to recruit and retain skilled people. In this changing world, it's vital to recognise the pressures on working parents and business. To look at ways support can be increased to help parents meet the challenges of family life. And help business meet the challenges of the modern economy. The right solutions can provide the basis for a better society. Enabling parents to spend the time they want to with their children during their formative years. And ensuring business can attract and retain the skilled workforce they need in the modern knowledge economy. Working parents are already benefiting from measures introduced by this Government. The legal right to paid holidays. Increased maternity leave. Parental leave. The increased support through the Working Families Tax Credit and the Childcare Tax Credit. And the right to time off for family emergencies. But we need to do more. To support parents and business. At the beginning of September we launched a national debate about how working parents can be given more choices in balancing their responsibilities at home and work. Our aim is to achieve this while at the same time ensuring that such measures are not harmful to business. I don't believe we need to make a choice between either helping families or helping businesses. The right policies will not only support parents but also enable business to recruit and retain skilled staff and so increase productivity. The initial discussion period ends today. I'd like to share with you the messages that have come out of these discussions and the issues we will be considering in a forthcoming Green Paper. This is the most comprehensive review of work and parents ever undertaken by the Government in Britain. We were determined at the outset to discuss the issues with a wide range of people. Not just the usual suspects. We wanted to hear directly from people about the problems they face in balancing work and family commitments. To hear the solutions they would like to see. And to hear from companies of all sizes who have to meet the needs of their workforce and operate in ever more competitive markets. I've been determined that small firms should be central to the debate right from the start and not - as too often in the past - towards the end of the process. And, because I want practical solutions, we've been learning from the many successful businesses - big and small - who are already getting the family/work balance right. The Ministerial team working on the Review has participated in 16 round table discussions up and down the country to hear what people think at first hand. We've listened to over 250 individuals and organisations along the way. Ministers and officials have also spoken to over 50 organisations, including the NFPI, on a bilateral basis. I am grateful to everyone for their contribution to the debate. Over the last two months we've been listening. So what have we heard? One thing is clear. Change is needed. The current arrangements and practices are not meeting the needs of parents or employers. Some recent press reports have framed the debate in terms of parents and unions calling for change and business resisting change. And it's variously been reported that the Government has decided to come down in favour of one side or the other. No decisions on detailed policies have been taken. But what is clear is that the status quo - simply leaving things as they are - is not an option. Business and parents have both identified the need for change. To give parents more choice. To encourage greater flexibility. And to simplify existing legislation. There is an emerging agreement that a package of practical measures is needed to help overcome the difficulties facing business and parents. What concerns business is the need for greater certainty - to enable them to plan ahead. Businesses - especially smaller firms - find existing provisions complex and bureaucratic, particularly on maternity leave and pay. Many organisations have sent us suggestions on how we can simplify measures and provide better advice and support. This is an area on which we will need to make progress. Our discussions and research have also shown that many parents are not aware of their existing rights. One man told me that his employers wouldn't let him take time off work when his wife was ill after the birth of their daughter. Yet he had a legal right to time off to deal with emergencies like this. Initial findings from the surveys that have been commissioned for this review suggest that awareness of this right is low among employers and among parents. In addition, the right from last autumn to four weeks paid holiday is not widely known. We must respond now to this issue - and will shortly be launching awareness campaigns on the legal right to paid holidays and the right to time off for family emergencies. Parents have also emphasised the real difference flexible working practices could make. I heard from a mother whose boss wouldn't let her start work fifteen minutes later in order to drop her kids off at school. As a result she had to leave the company. And the company lost a skilled employee and incurred extra costs of recruiting a replacement. Most mothers want to work. But many can't do so without flexible working arrangements. Companies are finding flexibility works for them. Companies like Alliance and Leicester, where a pilot homeworking scheme at their call centres has increased productivity: with more calls taken and higher sales. Many employers are also advocating an inclusive approach to flexible working. Enabling all employees, whether parents or not, to balance work and life. Enabling businesses to recruit, retain, and motivate the skilled workers they increasingly need. Childcare is another key issue. Parents need high quality, flexible, affordable childcare. I've heard from a number of couples who - because they can not get affordable childcare, have to work back to back in order to look after their children. The only time they see each other during a working day is when they hand over their children in a car park, between shifts. Parents need more choice - and it doesn't have to be full-time child care. Often they only need childcare at the start and end of the day or during school holidays. And, because many people work some distance from home, they need childcare in the community. Close to home, not necessarily at the workplace. From what I've heard from business and employees, I do not accept that creating a more family friendly environment will damage the competitive position of businesses. Yes, we need to help small firms. Yes, we need to ensure a clear and simple framework of regulation - making it easier for business to administer and for employees to claim their rights. And yes, we need to provide the flexibility which enables employers and employees to find solutions which meet their particular needs. We mustn't lose sight of the business case. A survey of the hundred best companies to work for in America showed that these companies had significantly lower staff turnover rates. Higher stock market returns. Lower levels of sickness and absenteeism. And higher levels of productivity and profitability than their competitors. So let's be clear. This is an issue which affects the bottom line. Getting the policies right can improve productivity and profitability. Ensuring that all staff can fulfil their potential; enabling the business to maximise the contribution of all. Ensuring the more effective use of resources, by tailoring the needs of the job and the individual more closely. Creating a more motivated, committed workforce. Promoting a forward looking flexible working environment which helps to attract the best new recruits. Helping to retain the experience and expertise of staff who may otherwise leave. And reducing levels of stress - which in turn reduces absence rates and improves performance. These benefits are not just theoretical. They're real benefits which forward thinking employers are realising. It's clear from our discussions that we need a much more flexible culture. But we must recognise that there are no single over-night solutions. We must develop practical measures that support both parents and businesses. To provide more choice for parents around the time of a child's birth To provide more choice for those with young children. Doing so in a way which doesn't harm business. And finding ways of improving the competitive position of business. Those are the principles we must apply to achieve five key objectives. First, to increase opportunities for women to rejoin the labour market - removing the barriers to women returning to work after childbirth. Second, to widen opportunities for fathers to play a greater role in home life. Third, to promote more flexible working arrangements. Arrangements which meet the needs of both employers and parents. Fourth, to take business - small and big - with us in the changes necessary. And finally, we need to make existing legislation work better. It needs to be clear and simple. So we shall look at simplification of existing legislation and providing better advice and guidance. Discussions have pointed to a new approach to tackling these issues. A simple and inclusive approach. One that recognises that the right solutions will be different for each family and for each employer. That to increase choice and encourage innovation, we must provide the flexibility to meet individual circumstances. These are the issues we'll be looking at in the forthcoming Green Paper, where we'll be seeking views on various options. Once the Green Paper is published, we want to hear from individuals, organisations and employers on how they feel about the options that are proposed. I believe that working together we can build a new approach which reflects the demands of modern life and the modern economy. I want to build a consensus around a new model which meets the needs of parents, their children and employers in the 21st century. We must take the long term view. I want to build a lasting settlement. Which meets the needs of all businesses - large and small. Which meets the needs of all parents - lone parents and couples. An inclusive framework. One based on the realities of our society and economy - not one based on dogma, intolerance or opportunism. In a modern economy we need to ensure that all parents are able to work if they want to - to contribute their skills to the economy. In a modern society, we need to ensure that all children have the best start in life and the best support through their life - whatever their family situation. Finding ways to support the balance between work and family is part of our programme of modernising Britain. Pushing through reforms which reflect and support a modern, fair society. One in which being a good parent and a good employee are not in conflict. |
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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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