Austin-Morris Merger (Redundant Workers)

HC Deb 03 February 1953 vol 510 cc1640-2

24. Mr. Edelman

asked the Minister of Labour what action he took, arising from the Austin-Morris merger, to ensure that men made redundant were promptly absorbed in suitable employment.

Mr. Watkinson

My officers paid an advance visit to the factory so that workers declared redundant might have an opportunity of registering for alternative employment with the employment exchange before their present employment finished.

Mr. Edelman

Is the hon. Gentleman aware of the intense resentment felt among Coventry workers at the callous manner in which this redundancy was declared? Is it not the case that there was no consultation at all with the trade unions before the redundancy lists were drawn up? Is this not an improper way of dealing with redundancy, and will he reprimand the firm for the manner in which it has taken place?

Mr. Watkinson

I have the pleasure of knowing the parties on both sides, the trade unions and the employers, and I think it is rather unfair to describe what has happened in that way when the employers are trying, to our knowledge, to meet a very difficult situation as reasonably and as humanly as they can.

Mr. Chapman

Since there is this considerable redundancy, will the Minister represent to the Minister of Supply that there should be some adjustment in defence contracts in this whole area in order the more quickly to absorb these men?

Mr. Watkinson

I am very glad to be able to tell the hon. Gentleman that we have, as from now, decided to take off from the Coventry area the ban which has been on it for the placing of certain Government contracts. We hope that will be a contribution towards meeting the undoubtedly difficult situation in that area.

Mr. Ellis Smith

Will the hon. Gentleman have a look at Clause 12 of the National Agreement, which provides for systematic short-time to be worked in preference to discharging men; and, in these special circumstances, would it not have been a good policy to have applied that National Agreement?

Mr. Watkinson

I will certainly have a look at that.

25. Mr. Edelman

asked the Minister of Labour what action he is taking, in view of the dismissals which have meen made, following the amalgamation of the Austin-Morris motor firms and the rationalisation of their production, which constitute a threat of a dispute in the trade.

Mr. Watkinson

The redundancy at the Morris engines factory at Coventry has been the subject of consultation between the management of the British Motor Corporation and the trade unions concerned. As a result, arrangements were made which had the effect of substantially reducing the original redundancy, and I understand that consultation is still continuing as regards their detailed application.

Mr. Edelman

Is the hon. Gentleman not aware that a major industrial dispute because of the manner in which this redundancy was declared was only narrowly averted; is there any reason—and he has not said this—why, when redundancy was about to be declared, consultations did not take place with the trade unions before the redundancies were declared?

Mr. Watkinson

My Ministry were given the opportunity of having advance registration, to which we always attach the greatest importance, and we did that. We have been very closely in touch with the situation. Whatever the past may have been, I think the hon. Gentleman will agree that at present—which is the thing I am concerned about—the maximum of consultation is taking place between the two sides to try to solve what is a very difficult problem, and I hope the hon. Gentleman will not try to raise the temperature, so that those negotiations may succeed.

Mr. Edelman

In order to help to reduce the temperature, not only in Coventry but elsewhere, will the hon. Gentleman, as a guide to the future, urge firms which are engaged in amalgamations or mergers where such redundancies may be declared to enter into consultation with the trade unions before the redundancies are actually declared?

Mr. Watkinson

I quite agree. As a general principle we always do that, and I will see that it continues to be done.