HC Deb 29 January 1953 vol 510 cc153-5W
Mr. McKay

asked the Minister of Labour (1) whether he is aware that, at the Wallsend factory of Remploy Limited, a kitchen cabinet is being produced on an assembly line at which all the operatives combine to produce the one finished article; that the operatives are in favour of a bonus payment system which would give better wages and more output, and would remove discontent; and whether he will introduce a bonus system throughout the organisation, or permit the Wallsend factory to introduce such a system;

(2) to what extent the Government subsidises Remploy factories; and what control is exercised with regard to wages;

(3) whether he is aware that employees, with dependants, of the Wallsend factory of Remploy Limited receive less pay for a 44-hour week than they would receive from National Assistance benefit if they were unemployed; that there is great discontent at the existing wage rate of 2s. 4½d. to 2s. 6½d. per hour for most of the disabled men at this factory; that there is no machinery for joint consultation on wage rates; and what powers the management at the factory have to change the local rates or to introduce a bonus scheme for the factory if the local workmen agree.

Mr. Watkinson

Standard scales of pay operate for severely disabled workers throughout all Remploy factories, irrespective of trade. They provide, for male adult workers, a minimum commencing rate of 2s. 4½d. per hour and increases within a period of two years, to 2s. 7d. per hour. These rates are based on an award dated 28th July, 1952, of the Industrial Disputes Tribunal, to whom Remploy Limited and the trade unions concerned referred the case for an increase in rates.

It would be virtually impossible for a man to receive more in Unemployment Benefit than in pay for a 44-hour week at a Remploy factory, but the amount of National Assistance allowances would depend on a number of factors and, in some circumstances, a worker with dependants might receive more than the Remploy weekly wage if he became unemployed.

The Remploy factory manager has no powers to change the standard scales of pay or to introduce bonus schemes, but he may grant increases above the maximum rate of 2s. 7d. per hour where justified by a worker's skill and output. Joint Consultative Committees have been set up in all Remploy factories to consider questions affecting production, factory conditions and welfare arrangements, but they do not deal with rates of pay or general conditions of service, which are the subject of negotiations between the Company and the trade unions nationally. The Company are considering the possibilities of the introduction of incentive schemes within their factories.

Deficits incurred by Remploy Ltd. which amounted to £2,443,013 in the year ended 31st March, 1952, are entirely met out of an annual Government grant, in addition to which Government loans are made to the Company to cover capital expenditure. The Company are required to consult the Minister of Labour on the principles to be followed in fixing rates of wages and my right hon. Friend and his predecessors have taken the view that, subject to such consultation, wages can appropriately be agreed between the Company and the trade unions concerned.