London (Parliament Politics Magazine) – UK’s trade union and manufacturing executives have cautioned that major international manufacturers are carrying back investments in the UK until Labour indicates it is committed to promoting the industry.
The heads of the Trades Union Congress (TUC) and Make UK, which illustrates 20,000 employers across the UK, have joined forces to caution the government that rapid action is needed to launch a long-term industrial approach or risk losing billions of pounds in investment abroad. They expressed the UK was at a crucial moment in a global race for investment.
What Do Trade Union Leaders Want from the UK Government?
In a joint discussion with the Guardian, Stephen Phipson, the top executive of Make UK, and Paul Nowak, the general secretary of the TUC, expressed that putting good jobs at the heart of a strong and speedy industrial strategy would allow employers and workers.
“Please make this a priority,” said Phipson. “They [the government] have got thousands of things to do, we can see that. And they’re enthusiastic and all the rest of it. But they need to get on with it because we can see the opportunity. It’s been great messaging so far, and I can’t fault the amount of enthusiasm and engagement. But we’re just trying to remind them this has got to be a top priority.”
Nowak stated: “Seize the goodwill, people have been waiting. You’ve got a 172-seat majority, now you can take some decisions for the long term, with employers and unions weighing in behind you.”
Why Are Global Manufacturers Waiting for a Clear UK Plan?
Phipson recommended large global manufacturers were slowing investment in the UK until they had more clarity. “I’ve heard first-hand from some of the big names you will know. They say we have plans in Spain, in Germany. But they’re saying, where’s the plan for the UK? Why would I invest until then?”
Uttering together in Nowak’s office in central London, the union leader and leader of the UK’s largest manufacturing body stated further reforms and investment were required as part of the industrial strategy to support apprenticeships and training.
What Reforms Are Needed for the UK’s Industrial Strategy?
Establishing a joint report calling for a robust strategy, they expressed Britain was at a critical moment on the road to becoming a greener economy, with manufacturers meeting a “perfect storm” of rising occupational ill-health, earlier retirement, and an ageing workforce, alongside a deficiency of digital skills required for businesses to adopt new technologies.
Phipson stated that Make UK was “not in the same place as the CBI”, as manufacturers maintained good relationships with trade unions and thought that better pay, terms and workplace conditions could allow industrial companies to be more productive. “The manufacturing sector is paying above average, we don’t tend to use zero-hours contracts, and we find discussions with Angela Rayner and her team pragmatic around that,” he stated.
A spokesperson for the Department of Business and Trade stated: “Our new industrial design will deliver long-term, sustainable, inclusive development right across the UK by driving investment into our economy. “It will play a critical role in maintaining the most elevated sustained growth in the G7, expanding opportunities for all, and making the UK a clean-energy superpower. We will work in collaboration with the private sector to support industries across the whole country.”