HL Deb 17 July 1985 vol 466 cc737-8

2.47 p.m.

Lord Taylor of Gryfe

My Lords, I beg leave to ask the Question standing in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government what percentage of United Kingdom companies give the information on worker participation required by the Employment Act 1982 in their annual reports.

The Minister Without Portfolio (Lord Young of Graffham)

My Lords, my right honourable friend the Secretary of State for Employment deposited the results of the monitoring of employee involvement statements in company reports in the Library on 10th June. The results show that seven-eighths of the reports examined which appeared to be in the scope of the legislation included employee involvement statements; and these included some excellent reports revealing a wealth of voluntary employee involvement practices. More progress is needed, however, and my right honourable friend has taken up the issue with employers' organisations.

Lord Taylor of Gryfe

My Lords, I should like to thank the Minister for that reassuring reply to the Question and for his acceptance of the fact that of the 765 companies reviewed less than one-quarter had submitted the required information. Does the Minister recall that this requirement was inserted in the Act by an amendment in the name of the noble Lord, Lord Rochester, from the Alliance Benches; and does he agree that, in addition to being a statutory requirement, the obligation to involve employees in the business represents good management? Will he take the necessary steps through NEDO, the CBI and also the TUC to ensure that this Act is being observed?

Lord Young of Graffham

Yes, my Lords. The survey covered some 665 reports, of which about seven out of eight showed that some action had taken place under the various subsections of Section 1 during the year. But companies are obligated to report only the action that took place during that year and not total involvement. It may well be that other action had been taken before, or has been taken since. However, we are well aware of the point and very well aware of the fact that it is important to involve employees at all stages in a company's operations. I have no doubt at all that my right honourable friend will take it up with vigour with the appropriate organisations.

Lord Rochester

My Lords, is it not unfortunate that, in drawing conclusions from its monitoring of responses to Section 1 of the Act, the Department of Employment itself did not stress the need for more to be done by the companies which have responded inadequately or not at all? Is not the purpose of informing and consulting employees to ensure that this country's industrial performance is improved, and will the Government take every opportunity to impress on recalcitrant employers the need to do more in this field?

Lord Young of Graffham

My Lords, my right honourable friend the Secretary of State for Employment is taking up with employers' organisations the need for all companies to report on their activities. It may well be, though, that some companies do not report the full involvement of their operations, and this is another matter which we are taking up.

Lord Dean of Beswick

My Lords, will the Minister agree that, if industrial recovery is to take place and is to be of the dimension and rapidity that we all wish, it is essential, in order to get the maximum effort from the workforce in the various sectors of the industries involved, that maximum consultation takes place? Experience has shown that where this happens it very often eliminates almost entirely industrial unrest.

Lord Young of Graffham

My Lords, if I may quote from one paragraph of Section 1 of the Employment Act 1982, one of the desirable objectives of the section is, achieving a common awareness on the part of all employees of the financial and economic factors affecting the performance of the company. That can only be desirable, and that is the very least of the four tests. I hope that all companies will take suitable steps to ensure that management and workforce alike are fully aware of these facts of life.

Lord Brockway

My Lords, may I ask the noble Lord the Minister whether Her Majesty's inspectors of factories have any authority to act in this matter?

Lord Young of Graffham

My Lords, to the best of my knowledge, no.