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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