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Rt. Hon. Jacqui Smith MP

USDAW Women's Conference

Jackie Smith MP

WARRINGTON


Monday, October 18, 2004


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I am delighted to be here. I would like to thank you for inviting me to the National Women’s Conference and I’d like to thank you for the support that you give my constituency party where we are working extremely hard to defend a 2500 majority!

Your focus on work life balance is timely and I was interested to hear what has come out of your discussions this morning.

As Deputy Minister for Women and Equality – and more importantly as a working Mum, I am more than aware how important it is for women to be able to balance work and home. 

Families do not come in one shape or size. We know there are more and more families where both mum and dad work – for a number of reasons. Because families need, or want, an additional wage, or because mothers want to work – they want adult company or some financial independence.

Where the balance is right, our lives are so much easier – and fulfilling. When the balance is out, then the stresses can seem unbearable. And often it is as mothers – sometimes as daughters – that women bear most of the pressure – trying to juggle responsibilities or giving up work completely.

I should say up-front that the Government’s agenda is not about interfering in what are very personal decisions. Nor is it to suggest that caring for children – or other dependents – is less valued than employment. This is about enabling people to maximise their full potential and realise their aspirations.

Work life balance is about flexibility and choice. It has the potential to be good for employees and for business. But I’m also aware – because USDAW members have told me – that flexibility can be a two edged sword. Low hours contracts with no certainty from week to week about when or whether you’ll have work is not my idea of good flexibility. It’s certainly not good for USDAW member and, in fact, I don’t believe it’s the route to long term success for your employers either.

We have the evidence that shows the benefits of a fair and decent approach to flexibility and wlb. There is the hard evidence of financial savings, reductions in staff turnover and reductions in absenteeism. But also improvements in morale and reduced stress, positive impacts on an organisation’s culture and improved employer and employee commitment.

Where women are better able to balance their home life, they are able to contribute more at work. And when they contribute more, they can be paid more. 

So increasingly it is becoming clear that there are important links between work life balance and equal pay. Women's role as the primary carer is an important underlying cause of the pay gap.  Without sensible solutions on work-life balance, women have fewer opportunities to progress and can be forced into part time jobs at lower rates of pay, or are even forced out of the labour market altogether. Our record of action supports equal pay through supporting work life balance.

The pay gap is not fair to women and it is not fair to the economy. It squanders women's skills and productivity potential as much as it drains their earnings potential. 

But there are many complicated factors affecting the pay gap. 30 years after the Equal Pay Act, it is rarely just straightforward discrimination that causes unequal pay – it’s more tricky than that.

But we’re determined to get to the bottom of it and to make a difference.  That’s why we have just announced the setting up of the Women and Work Commission.  Chaired by Margaret Prosser, it will look at all the issues in the round - labour market experience, skills and education, and discrimination.  We were very pleased to welcome your General Secretary to the Commission, alongside other leading trade unionists and employers, social partners and academic experts. And we look forward to seeing its recommendations.

On working time, I think it’s useful to consider where we’ve come from and the progress a Labour government has made. Firstly, the issue of wlb is now at the centre of political debate. It wasn’t long ago that, whether in the Labour Party or even in progressive unions like USDAW, talking about wlb was something that you let women talk about when there wasn’t something more important to do!  I have to warn you that even the Tory party has changed – last week, one my Shadows on the Tory Front Bench told me that ‘wlb is an important issue and that Teresa May is working on it!’  Six months ago, he said in the House of Commons that he didn’t know why Patricia Hewitt and I were so obsessed with it! 

But it’s only become more important because unions like USDAW have been willing to campaign on it and a Labour government has been willing to act.

For example, incorporating the Social Chapter has given every employee a legal entitlement to at least 4 weeks paid annual holiday, the first time paid holidays have been provided in law, benefiting some two million people. If we’re re-elected, we’ll extend this to include bank holidays – adding eight days paid holiday to the basic legal entitlement.

The Government has also supported businesses and unions through the work life balance campaign, the Challenge Fund and the Partnership at Work fund to find the practical ways of achieving the benefits of wlb. Promoting good practice is important, but we’ve also been willing to legislate.

Higher maternity pay, longer maternity leave, paid paternity leave and the right to request family-friendly working hours are all making a real difference to British families. 

In the first year of the laws taking effect, incredibly almost a quarter of parents with a child under 6 requested to work flexibly. That is 800,000 requests granted and a reduction in the proportion of requests being refused by over a half. 

But we need to go further to ensure that choice and flexibility is available to all – not just those who can afford it.

We have made huge investments in childcare and will continue to do so – the Prime Minister has pledged universal, affordable and flexible childcare for the parents of all 3-14 year-olds who want it and a Sure Start Children's Centre in every community of Britain.

However, I know that some parents do not feel confident in asking for flexible working or do not have the opportunity of changing their working patterns. At the moment changing the legislation isn’t the answer – what works best is cultural change. So employers recognising the benefits of flexible working and employees being able to make the business case for changes in their working pattern is crucial. There is a role for Government in spreading best practice but this is also an area where unions can make a real difference.

Government needs to look at where our actions make most impact. There are still major disparities between men and women’s roles. Women are predominantly requesting to work flexibly. And women are still the primary carers. Though increasingly we are hearing that fathers want more opportunities to care for their children.

Earlier in the summer we talked to parents, carers and employers across the country in a series of round tables.

What came out clearly is the sheer breadth of expectation about family and work. But common to them all is the desire to give children the best start in life or support elderly or sick relatives in the best way possible. Above all, what mattered to people enormously, was being valued whatever they choose. 

There has been much speculation about what we will be doing. I can say that we are looking carefully at a range of options to try and understand the impact and implications as well as the competing priorities:

·          For example, what would happen if we increased statutory paternity pay and leave?

·          Can we do something more creative around leave which at the least enables, but can also facilitate, greater sharing of childcare between men and women?

·          How can we better support those caring for adults?  What would be the impact of extending the scope of the legislation to people who care for elderly or sick relatives?

I have talked about what the Government has done. But I know that much of what we want to achieve is cultural. It is about using the legislation as the foundation on which employers and employees can build high performing workplaces. And that is where unions are key. 

You have the opportunity to support individuals at work – to help them understand their rights and know how to exercise them 

In workplaces, working with managers and staff you have the opportunity to bring about change – not necessarily big steps – but sometimes small incremental differences that can have a massively positive impact

At a national level, you have the opportunity to negotiate terms and conditions and make changes on a big scale.

I am pleased to see how USDAW, our fifth largest trade union, has worked so well both at helping its members but also in working with employers to ensure that everyone benefits. With Tesco, for example, I have been impressed with how well you have worked with them in exploring better ways to work.

You have shown the rest of industry the way work will be done in the future and the DTI has been pleased to help support your work in this area.

Finally, the role for unions is to campaign on behalf of your members. I will listen to you as you campaign on the work life balance agenda. I can not promise that we will deliver everything that you are asking for – but I can assure you that we are all working in the same direction – to support people in balancing work and home.  We have a strong foundation on which to build. I look forward to working with you in the future.

 

 


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