Select Committee on Trade and Industry Minutes of Evidence


APPENDIX 49

Supplementary memorandum submitted by the TUC

FUTURE OF UK MANUFACTURING

  Thank you for giving the TUC the opportunity to present oral evidence to the Trade and Industry Select Committee on 12 December 2006, as part of your inquiry into the future of UK manufacturing. We found this to be a very stimulating discussion and hope it was useful to you. There were a number of points that we promised to follow up on.

  Firstly, on procurement, we have made a number of submissions to the Office of Government Commerce (OGC), regarding the implementation of the new EU public sector directive, which was transposed into UK law in January 2006. I enclose one of our submissions, which includes our main arguments. We believe the new directive can be used to promote skills training and apprenticeships, as well as greater equality and sustainability, in public sector purchasing of manufactured goods.

  We strongly support a commitment to high quality skills training, positive industrial relations, environmental responsibility, equal opportunities and fair employment in contracts let to deliver the London 2012 Olympic and Paralympic Games. We have made these points in our submission to the consultation on the Olympic Delivery Authority's (ODA) procurement policy. A copy of our submission to this consultation is enclosed, together with a copy of the ODA's draft procurement policy, which we feel is much more positive than interpretations of UK and EU procurement law put forward by the OGC. We look forward to continuing discussions with the various Olympic bodies in the run up to 2012.

  On high performance workplaces, including trade union recognition, and the link to high productivity, I mentioned that there are a number of studies into this issue. An example that we have found useful is a study entitled "German multinational Companies in the United Kingdom: Employee Relations and Subsidiary Performance", one of whose authors, Professor Heinz-Josef Tuselmann of Manchester Metropolitan University, presented his findings at a TUC seminar in 2005.

  In the summary of main findings, this report states:

    "German multinational companies' sites in the UK that reflect the collective orientation of the German model, taking the form of trade union recognition in a UK context, out-perform on average their non-unionised counterparts in terms of labour productivity, whilst at the same time recording no relative disadvantage in terms of financial performance compared to non-unionised subsidiaries."

  On UK Trade and Investment, I have written to Rt Hon Ian McCartney MP, the Minister of State for Trade, Investment and Foreign Affairs, regarding the inclusion of trade unionists on trade delegations to foreign countries undertaken by the DTI, and regarding our two suggested additions to the six qualities of the UK as a place to do business. A copy of my letter to Mr McCartney is also enclosed.

  Mr Binley asked us about paying for training. Our document, "2020 vision for skills", addresses this issue on pages 14-16. Finally, I described a variety of materials that we have produced in support of apprenticeships. A range of these materials is enclosed.

  I hope that covers all the issue that we said we would follow up. However, if you require any further information, please do not hesitate to contact us.

17 January 2007





 
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