§ Mrs. Haymanasked the Secretary of State for Industry if he will make a statement on the report by British Aerospace required by Section 5(3) of the Aircraft and Shipbuilding Industries Act 1977.
§ Mr. VarleyThe Corporation has submitted within the time scale prescribed by the Act separate reports on management organisation and industrial democracy, and I have today laid copies before each House of Parliament.
The report on management organisation shows that the Corporation is working to establish an integrated management structure which strikes a balance between the decentralisation of management—an objective mentioned in the Act—and the need to promote unity and consistent policies within the Corporation.
The report on industrial democracy which comprises the recommendations of a joint working party established by British Aerospace and the Confederation of Shipbuilding and Engineering Unions envisages a series of participatory councils composed of management and employee representatives at all levels of the Corporation. The Corporation has accepted the general approach of the joint working party; the detailed recommendations are to form the basis of further discussions with British Aerospace employees.
British Aerospace has emphasised that further changes in management structure will follow as experience and decisions on major projects make these necessary. Already as a result of consultations with the work force there have been some minor adjustments. I recognise that to achieve a unified management by 1st January 1978, as the Corporation intends, has involved much hard work, which I appreciate. At the same time it is the 682W firm intention of the Corporation to seek agreement with those concerned in order to make the speediest possible progress in the development of industrial democracy in a strong and organic form; British Aerospace considers its proposals are part of a process of development which must have the full support of those who work in the Corporation. I endorse this approach and hope that the trade unions in the industry will continue to give it their full support.
British Aerospace is of course keeping in touch with me on management organisation. I have asked it to report further to me by 30th June 1978 on agreements reached on industrial democracy. I shall inform the House of significant further developments.