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Rt. Hon. Stephen Byers - Former Secretary of State for Trade and Industry (Dec 1998 - Jun 2001)The TUC Partnership Conference |
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I want to talk to you today about the challenge of change and the clear role that partnership in the workplace can play in managing the changes that will be necessary if we are to have a successful, knowledge driven economy in the 21st Century. You heard from the Prime Minister this morning. Like him, I want to confirm our pleasure at the very fact that today?s event is taking place at all. The New Unionism Agenda, and in particular its focus on developing and deepening the partnership approach, is something that I fully support. I want to echo the Prime Minister?s clear view that modernisation and reform are vital. Much has been achieved already, but the process of modernisation and reform is one that must continue into the future. We need to be clear that the status quo is not an option. We are living in a world of continuous and increasing change and have to respond accordingly. Technological advance, globalisation, increasing levels of competition and the growth of e-commerce are driving change as never before. These changes are affecting all of our lives - whether we work in manufacturing or services, in the public or the private sector. Successful economies and societies will be those that adapt to the demands of rapid change, that are flexible and creative and manage change rather than being submerged by it. Managing the sort of change we are seeing can be frightening, particularly for individuals. That?s why we need to equip people with the skills they need to survive and prosper in these more challenging times. We need to ensure they are partners of change, not its victims. The demands of the knowledge driven economy The challenge for tomorrow?s businesses is to harness the knowledge creativity, trust and good-will of their staff. And to find new ways of recognising and rewarding flexibility and commitment. The challenge for tomorrow?s workforce is constantly to develop new skills, to be ready adapt to changing circumstances. To accept the responsibility to engage in lifelong learning. My Department has been drawing up a programme on just these issues. We have prepared a report specifically on "Work in the Knowledge Driven Economy" highlighting the implications of change for the future shape of businesses and the individuals working in them. This report is a realistic and encouraging assessment of future developments. It recognises that many of us, work is not going to be some technologists paradise, all working from laptops over our mobile phones anywhere in the world. In many occupations, from health care and primary school teaching to restaurants and hairdressers, the impact of technological change and globalisation will be less evident. But we should not underestimate the potential for change in many aspects of our working lives - or the need to respond positively to this change. I think we would all like easy answers to the question ?what will the future of work hold for me?? From the conclusions in this report, I do not think these easy answers exist, but I intend to publish this report in the coming weeks as a contribution to the debate. One thing is certain though, these developments in the world of work have fundamental significance for Government, business and the unions. For business, it is clear that old style "us" and "them" attitudes are no way to respond to the pressures of the knowledge driven market place. Conflict between management and workers has always destroyed trust and eroded good-will. Now though, it is just these intangible assets like trust and good will which give a company it?s market edge. Management needs to come to new settlement with their staff, one which fosters a culture of co-operation and communication. Only then, will businesses get the full benefit of their employees? commitment. For the unions, the changing industrial landscape and the new realities of the world of work bring new demands and new priorities. There is a clear role for unions in protecting their members against arbitrary and unfair treatment. But union members increasingly need help to cope with the degree and pace of change. Unions are uniquely well placed to provide this assistance and to help members develop the skills they need to survive and prosper in an ever more challenging labour market. And as today?s event has shown, unions can play a highly constructive role in working with business to promote business performance. For Government, the most important challenge is to recognise our role in the economy and what we need to leave to others. Our ultimate goal is to foster a fundamental culture change in the British workplace, one in which all parties recognise the value to be found in constructive partnership. Government cannot deliver this culture change on its own. But as the previous administration showed, Government can block progress and put obstacles in the way of good and constructive relations at work. We were determined to redress the balance. That?s why legislation has been necessary to create the space for partnership in the workplace and for renewed dialogue between industry and unions. 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. But the practical reality is that we cannot legislate for good relations in the workplace. Piling on regulation after regulation is no way to build the good-will and trust of the business community, without which there will be no lasting and effective settlement. We need to be more creative, more imaginative. We need to develop other non-legislative ways to bring about the change in managerial attitudes and working practices that will be essential if we are to compete and succeed in the global economy. I see partnership very much as one such creative, non-legislative approach. And I urge both side of industry to take it forward. Partnership should give both employer and employee what they want. Successful partnerships will be those in which employers, employees and their representatives recognise their common interest in the success of the business, and develop imaginative, constructive and co-operative ways of working towards common goals. Partnership to be effective and not just a warm word - the motherhood and apple pie of modern industrial relations - must be based on a balance of rights and responsibilities: Employers have a right to expect commitment and flexibility from the workforce, but also a responsibility to treat the workforce fairly and to train and develop them. Employees? have a right to minimum standards of protection and opportunities for skills development and responsibility to accept changing world of work and to work for success of the business. Unions? have a right to represent where that is earned by the support of the workforce, but also the responsibility to use such opportunities responsibly and on the basis of commitment to the business. Partnership is not an easy option. Being imaginative and constructive is harder work than being obstructive and blind to the benefit of change. But partnership can pay great dividends. Which is why, as you have seen from the case studies today, many leading edge companies now recognise the value of a partnership approach. My Department has commissioned independent research which will be available for publication in the near future which focuses on 15 case studies to demonstrate the benefits of partnership. This reflects the seriousness with which we take this subject and our commitment to the development of partnership best-practice. Because that?s the challenge of today, how to spread this leading edge practice to companies and sectors that have yet to recognise its value. Take the retail sector. All retailers increasingly recognise that their people are key to their business. They are all concerned about high levels of staff turnover and increasingly invest in training. You?ve heard from Tesco, about how partnership has helped them address these concerns. But there will be a whole host of other businesses that could benefit from taking a more enlightened approach to partnership. In the utilities sector, Scottish Power, Welsh Water and others have shown how partnership can be the key to the successful handling of organisational change. In telecoms, BT has come up with a very succinct description of the factors that really count with its "PPP" approach: people, performance, partnership. And it?s not just businesses and their shareholders who can benefit from partnership working. In the public sector partnership can bring benefits, for employees in terms of job satisfaction, and for the organisation - and the taxpayer - in terms of more efficient delivery of public service. There?s also a tendency to think of formal partnership as a large firm phenomenon. I don?t believe that this is so. Small and medium sized businesses also benefit as partnership strengthens the development and commitment of their workforce and there are plenty of existing examples to prove it. The Partnership Fund I want the Government to act as a catalyst to help companies overcome the barriers to partnership. Employers are often not aware of the benefits of partnership. They see it as a cost and so don?t invest. I want to change that. We want to promote the best of modern partnership practices and to stimulate many more partnership approaches at work. That is why, as the Prime Minister announced this morning, we?re making £5 million available under the Partnership Fund. This Fund will support projects at the individual workplace to foster partnership, and projects which enable successful partnerships to share their experiences with others. The distinctive feature of the Partnership Fund is that it will be based on both employers and employee representatives working together. The Fund will be launched once the Employment Relations Bill has received Royal Assent. We will announce a number of calls for proposals, the first of which will be made as soon as the Fund is launched. We want to see proposals from the widest possible range of bodies: from companies and business intermediaries - including employer federations, from trade unions and other employee representatives and from trade associations, public sector bodies and others, all of whom will all be able to apply. And we will welcome bids from individual applicants or from groups of applicants such as consortia of employee and employer representative organisations. Support will be available for up to 50% of the eligible project costs for all applications up to a limit of £50,000 support per project. We will be looking to assess projects for their focus on a partnership approach; on the level of innovation; and on the extent of the benefits to the organisations concerned. Let me give you just one example of how Partnership Fund money might be used. Finding the right balance between work and family life is a challenge that faces us all. The Government has put in place key minimum standards for parental leave. But we will only really win the battle for family friendly policies if we can change attitudes in the workplace. That is why, in implementing our plans, we shall introduce light touch regulation to enforce the entitlements we are providing to parents. Instead of detailed and prescriptive regulation, we shall look for agreement achieved through a genuine partnership in the workplace. This approach is particularly important for small and medium sized employers. So I hope there will be bids for money to support projects which develop partnership as a means to implement family friendly working or other culture changes in the workplace. I look forward to receiving your imaginative and creative ideas when we put out our call for proposals once the Employment Relations Bill has received Royal Assent. Conclusion I want to re-emphasise in conclusion, my commitment to the creation of a fair workplace and a new climate of partnership in this country. In a changing world of work, I believe that we all need to reassess. Business needs to identify how best to get value from their employees. Unions need to ensure that they can make a continuing and positive contribution to the prosperity of their members and the businesses in which they work. And Government needs to look hard at how it can bring about the culture change in the workplace that must underpin our nation?s future prosperity. Some regulation will always be necessary, but increasingly it is clear that regulation is not the answer. We need a new strategy, focused on driving home a fundamental culture change in the workplace. Partnership is a crucial element of this new programme. We are look forward to working closely with business and unions to develop the spirit of partnership over the months and years ahead. Recognising that it is only by working together that we can meet the challenges that lie ahead in the new century before us. The Trade Unions were born to protect the vulnerable. They will always have that role. But they also have a new role too, recognised by Trade Unions, to focus on skills and learning, on benefits to their members, and on a shared agenda with employers. In that context, there is a role for Government to foster partnership in the workplace to meet the challenges that lie ahead. |
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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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