HC Deb 08 June 1982 vol 25 cc6-7
Mr. Cadbury

asked the Secretary of State for Employment if he has received any recent representations concerning the extension of employee involvement practices in British industry.

Mr. Waddington

Yes, Sir. It is clear from representations made to me that there is a widespread and growing understanding in industry of the need for more progress in employee involvement, but I have received many representations expressing concern about draft European Community directives which would impose rigid legal systems and could disrupt industrial relations.

Mr. Cadbury

Is my hon. and learned Friend aware that some British companies, particularly the Jaguar motor car plants, have made great strides towards greater employee involvement through the use of quality circles? Does he agree that, although quality circles are not appropriate to all industrial relations circumstances, some form of increased employee involvement is necessary to bridge the gap between management and work force, which has dogged this country for far too long?

Mr. Waddington

My hon. Friend is entirely right to stress the importance of getting rid of the "them and us" attitude in industry. Quality circles can certainly play a part in that. They are performing a useful function at Jaguar. My hon. Friend the Member for Meriden (Mr. Mills) told me this morning how successful they were proving in Dunlop, too.

Mr. Radice

Is the Minister aware that according to the CBI only one-third of employers have any kind of formal participative or consultative arrangements? That being so, why have the Government taken no action, legislative or otherwise, to promote participation or industrial democracy, although they have been only too eager to introduce anti-union legislation?

Mr. Waddington

We have not introduced any antiunion legislation. The hon. Gentleman mentioned one result of the survey that was carried out by the CBI. May I remind him of another result of the survey, which is that 84 per cent. of company chief executives who participated in the survey felt that employee involvement policies had brought about tangible gains in performance? I hope that that message has gone home throughout British industry. The difficulty is one that I am sure the hon. Gentleman recognises. Although one would wish to give all possible encouragement, one is reluctant to impose any rigid framework that might break across the good employee involvement arrangements that already exist in many parts of British industry. That is the difficulty.

Mr. Robert Atkins

Does my hon. and learned Friend agree that the greatest participation that the Government have introduced into industry is the right of many employees in State-owned industries to buy shares in their companies and to participate thereby in the control, success and profitability of companies such as British Aerospace?

Mr. Waddington

My hon. Friend is entirely right. The Government demonstrated their support for employee involvement to no mean tune by selling the National Freight Corporation to its employees. They have set up a genuine prosperous co-operative, not a clapped-out Benn-type set-up such as the Kirkby Manufacturing and Engineering Company.

Mr. Pavitt

Will the Minister examine the papers that are being discussed in Strasbourg by the Council of Europe on employee involvement in trans-national companies? Is he aware that the predecessor to the Secretary of State, my right hon. Friend the Member for Barrow-in-Furness (Mr. Booth), visited the Glacier Metal Company, which is an outstanding example of employee involvement? Will the Minister persuade his right hon. Friend the Secretary of State to follow the good example of his predecessor and see for himself the practicalities of genuine employee participation?

Mr. Waddington

I promise the hon. Gentleman that I am doing my best to study the problem. I am going to Germany in the near future to try to increase my education. We have much to learn from what is happening in other countries.