| Let me first say something about the press coverage over
the past couple of days. I want to stress I was putting out ideas for
discussion because I think that's healthy. But I also stressed - in my
interview with the FT and in the IPPR pamphlet which will be published
next week - that I want us to continue on the whole issue of Working
Time and Flexible Working in the way that we have begun.
The new package of laws we introduced in April last year was
developed and agreed in partnership with the CBI, TUC, small
organisations, EOC and others. It's been by working in partnership and
getting a balanced package that we have succeeded in making changes that
perhaps initially people thought would be burdensome on business, but in
face in practice about 1million people have changed their working hours
and very few have had any difficulty in having their requests granted.
We took a similar approach with the National Minimum Wage which some
people thought would lead to a massive reduction in employment but which
has in fact been followed by a massive growth in employment.
We will continue to work in collaborative fashion and I will abide by
my pledge that we will not seek to change anything before 2006.
Now to Information and Consultation. The context I want to put this
in is, what kind of workplaces to we want to create in Britain?
We are all committed to high performance work places. Where employees
are valued and involved. Where management and staff work together to
reach common goals. Where everyone has the opportunity to fulfil their
potential by learning new skills and making the most of the ones they've
got. And where there is a real sense of shared responsibility for the
success of business.
I want all UK companies to achieve the standards set by the best and
all of us want an end to the situation of workers hearing about job
losses on the radio when they're getting ready for work or, as in one
notorious case, by text message. I&C won't be the end of bad news,
but hopefully it will be the end of that kind of nasty surprise.
I have been struck by how successful companies are already operating
this kind of partnership with their workforce.
Tesco - who with USDAW operate one of the biggest workplace
partnerships in the country. Since they launched it in 1998, they have
seen their profits go up to a billion pounds a year; and USDAW's
membership up by a quarter.
I have spoken to both management and union representatives. Since
they created that partnership, both have put huge amounts of time and
effort into making it a success. But I was also struck by how much
information Tesco felt able to share. Large parts of the business plan
are made available to the workforce - and they have never had a leak of
commercially sensitive information. We will not be mandatory about that
but it is an example of what can be achieved.
Or WL Gore - winners of this years 100 Best Companies to Work For
Award where 86% of staff say they believe they can make a difference at
the company, 89% feel they make a valuable contribution to business
success, 87% would miss the company if they left and 85% 'just love'
working for Gore. Isn't that what we all want in the organisations we
all run? And isn't there a bottom line impact on the staff you recruit -
and keeping them once they have been recruited?
Or Data Connection - who came in at number 3 on the top 100 list -
who have weekly meetings to allow employees to air any worries and where
"87% of staff feel managers are honest with them".
Companies who make the Top 100 list consistently outperform the FTSE
100 - again, a bottom line impact.
Tolstoy said all happy families resemble one another. We've found
that some of the best companies have a lot in common too.
The Work Foundation's recent study [The Work and Enterprise Panel of
Inquiry] found that businesses achieving high performance share certain
characteristics.
· Effective people management with strong leadership;
· Clear objectives communicated throughout the business;
· Employee involvement in decision making; and
· Flexible working practices.
They -
· Value and use diversity within their firms;
· Invest in and make the most of skills they have; and
· Recognise that employee satisfaction breeds customer satisfaction.
They derive maximum value from every aspect of the business -
particularly from their people - by creating a valued, diverse and
involved workforce.
At a very basic level a workforce that thinks it works for a good
employer will produce more and better results for that employer.
It's not about size or sector. It's about attitude. Every business
has the potential to be high performing.
For us in Government, our role is not to tell you how to run your
business but provide the framework for business to thrive. The
cornerstone for all is the economic stability we have achieved. But
there is still more to do.
We need to tackle unemployment where it still exists - Britain's
ethnic minorities are still over twice and in some cases three times
more likely to be out of work.
We need to tackle the illegal gangmasters whose treatment of people
is simply unacceptable.
We need to improve the quality of work - giving people the choice and
control over their working lives to balance work and family.
So for me, whatever we are doing is designed to achieve that goal:
more productive, more profitable businesses.
Figures out last week show that people in full time jobs spend almost
40 hours week at work [37.1 hours]. For those that work full time for 35
years that's about 60,000 hours over a working lifetime.
How that time is spent is crucial - not only for their well-being,
but for the well being of society and the well being of our economy.
It matters because -
· As Individuals - work engages our ambitions and expectations and
helps to shape our identity and status. At its best, we are rewarded
with good pay, the satisfaction of working with others and a job well
done. At its worst, people can suffer prejudice, bullying and even
physical harm at work.
· It matters to our businesses who need trusted and committed staff
with the skills, tools, management support and leadership they need to
succeed in a global market; and
· It matters to the success of our economy. Because, although we've
had huge success getting people into work, 1.9 million more people in
work since 1997, our productivity is still way behind our major
competitors.
If we could match US output per worker, we'd all be £5,000 a year
better off. With more money to invest - in better schools, better
hospitals and more police on the streets.
Work related stress costs employers over £350 million per annum. The
costs to society are much greater - around £3.8 billion. The personal
cost to families and individuals cannot be measured.
In its early form, the Information and Consultation Directive was
trying to impose a continental European model on the UK. But the
Directive we have now will suit our country and companies. A minority of
firms are affected but the majority of the workforce - potentially three
quarters of the workforce. It's a great opportunity for companies to
really engage the people that work for them.
It's by working together that we have arrived at a directive which we
believe will work. We got Royal Assent on the Employment Bill last week
which gives us the powers we need to bring I&C into force in April
2005. At this stage all the focus is on getting the regulations and the
guidance right. We need to hear your suggestions and your experience to
ensure all that is provided for.
Of course - the best option is to be ahead of the game and put
processes in place before the regulations come into force. So we're
running a series of master classes later this year to show companies
exactly how they can engage their workforce and just how beneficial that
can be.
One of the proudest achievements of the first two terms of this
Labour government has been the lowest unemployment in the UK for a
generation. Nearly 75% of people of working age are in employment.
What we want to do in our third term - should the electorate grant us
one - is improve the quality of work.
Information and Consultation is key to creating the kind of working
environment that employees need to feel empowered, involved and
respected. We want them to be involved in decisions that will have a
significant impact on them. All of us know these days that skilled
employees are not just looking for pay, hours and rest breaks - but
about feeling valued and respected at work.
I &C signals a new phase in employment relations in the UK. I
believe it will help promote a culture of change in organisations based
on mutual understanding and partnership - I hope all of that will help
to make a real break from the adversarial approach of the past that so
many of you have already left behind. And it's a testament to the
partnership Frances, John and I have been working to promote.
I'll leave you with a final statistic from the Work Foundation - they
found that high performance companies are on average over 40% more
productive than poor performers. That's a powerful bottom line incentive
to embrace I&C and copy the characteristics of high performing
workplaces.
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