John Hutton MP address to Congress 2007

Rt Hon John Hutton MP - Speech to TUC 12 September 2007

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Congress, thank you for giving me this opportunity to speak to you this morning, and thank you Alison for that introduction.

President, Britain's economy today is stronger, fairer and more competitive than it was ten years ago. There are over 600,000 new businesses. Investment is up. More people than ever have a job and those people all have more rights than they did in 1997. Unemployment is at a 30 year low. Inflation is at historically low levels.

This hasn't happened by accident. It has happened because we have recognised that to succeed in the dynamic global economy, we have to be open and outward looking. Receptive to new ideas. Willing to change the way we do things.

And to deal with change successfully, we need to build partnerships between business, government and unions. To put confrontation and conflict behind us.

I see this clearly in my own constituency, where workplace relations in the shipyards have changed beyond all recognition in the past ten years - helping to sustain jobs and skills in an industry many people felt had no long term future.

And in making this progress, we have learnt one other thing too - that in the modern world you do not have to trade economic success for social justice. You do not have to choose between a fair society and prosperity. That is the false choice the Conservative Party has always offered the British people. And you only have to read John Redwood's plans to see what a threat a Cameron government would be to jobs and workplace rights in the UK.

So when I say that I want to be the voice for business, that means championing all those that make business in the UK successful - most importantly the greatest resource Britain's businesses have; our workforce.

I believe we have established a partnership - based on fundamental shared values - between Government and trade unions that has delivered advances for working people unparalleled in modern times.

It is for all of these reasons that I believe in the link between the trade unions and the Labour Party, I have done since my days as an employment rights lawyer working in the North East. Now more than ever we need to listen properly to each other and debate policies in a progressive way. That is why I welcome the work we are all engaged in to extend and renew our party democracy.

And I know that only a constructive partnership between a Labour government and a modern trade union movement will deliver the changes that working people in Britain need.

Next month workers who have to take bank holidays out of their statutory leave entitlement, will benefit from an additional four days holiday, with more to come. Making a difference to 6 million workers, many of the poorest working people, and delivered as a result of your constructive engagement with government

And in October around a million people will benefit as the minimum wage rises once again

But as the experiences of Jennifer, Michael, Daniel and Theresa in the film you played earlier so powerfully showed, the existence of workplace rights alone is not enough if employers think they can flout the law with impunity. There is still exploitation and abuse in the workplace. So we will never retreat from arguing for fairness at work, the right to work, and the right to share in rising prosperity so that everyone has the opportunity to use their skills to the full.

These rights are fundamental to a decent modern society. But it is only by ensuring they can be exercised - in a Britain that is changing more rapidly and profoundly than at any point since the industrial revolution - that we can both give protection to the most vulnerable, and ensure our economy can prosper into the future. Rights that exist only on paper are not worth the paper they are written on.

The vulnerable worker enforcement forum we set up this year - bringing together unions, employers and the enforcement agencies - is doing vital work in helping us understand the extent of abuse in workplaces today. The evidence that Unite, GMB and Ucatt are bringing to the Forum is vital to our joint work. And evidence from the TUC's own Commission on Vulnerable Employment will be crucial input into the Forum.

We know we must step up enforcement in workplaces across Britain:

That is why we are substantially increasing investment in enforcing the minimum wage.

Where there is underpayment, I can confirm today that employers will face an increased maximum fine and workers will get fair arrears reflecting the current value of the wage they are owed.

As the Prime Minister announced on Monday, bringing the powers of the enforcement agencies closer together will be key to making progress. Congress, this is something I want the Forum to address urgently, starting from its meeting next week.

Where there are abuses in employment agencies, we must root them out:

I can announce today that we will double the number of inspectors in the Employment Agency Standards Inspectorate and give them greater powers to investigate;

And we will go further to crack down on rogue agencies;

We will raise the possible penalty for abuses to an unlimited fine;

and we will legislate to end the suspect practice of forcing agency workers to pay for accommodation or transport - giving them a real choice and a right not to take services they don't want.

Vulnerable workers can be exploited by employers prepared to flout the law no matter the nature of their employment or which sector they work in.

And we know it is completely wrong to suggest that agency workers are automatically victims of abuse and exploitation.

So we must route out the rogues, whichever sector they are in, as we also act to protect jobs and flexibility in our labour market that offers choice to millions of workers.

Agency and all other workers benefit, deservedly so, from our core workplace rights and they are likely to be the largest single group to benefit from the new bank holiday legislation. And we will continue to form our policy in this area on the evidence.

The TUC's own research found a significant number of temps actively choose agency work in preference to a permanent job. Agency working has always played a crucial role in the labour market, allowing people to get their foot in the door and a route into a permanent job, many from a life on benefit. 36 per cent of agency workers were previously out of work altogether - including many coming from years on benefit and women returning to work after bringing up children. 40 per cent are in a permanent job after a year.

So it is vital that - as we fulfil our agreement at Warwick to seek progress in Europe on the Agency Workers Directive - we balance a commitment to the principle of equal treatment with a determination to protect jobs and continue giving people the choice that agency work currently offers.

We want to see discussions on the Directive come to a successful conclusion with a fair and lasting solution. The priority being placed on the issue by the Portuguese Presidency gives us all the opportunity to take a fresh approach as we search for an agreement. We will take advantage of this new opportunity to try and reach a sensible agreement.

So as we try to make progress on this and many other issues of importance to workers and our labour market, I think there are two essential tests that any new legislation in this area must meet:

Firstly does it protect jobs and so advance the fundamental right to work? Will it continue to allow companies to go on creating jobs and promote rising national prosperity?

And secondly, will it make a positive change for the most vulnerable working people?

Where those tests are met, we will not hesitate to take action.

But I want to end today by stressing that government action alone will not be enough.

We need a new partnership to help shine a light into the dark corners of the labour market and rid Britain of practices that have no place in a modern economy.

Unions have a vital role to play in bringing rogue employers to justice, reporting abuse to the authorities so that we can join together in protecting the most vulnerable workers.

If you come forward, Government will act. I have already asked Brendan for the details of all the people mentioned in your video so we can ensure the enforcement agencies are taking all appropriate action where the law has been breached.

I think there is one more area where we need to do more. It is right that we look for ways to help your organisations and members better protect vulnerable workers. David Cameron announced yesterday he would scrap the union modernisation fund. Because we value the work you do in improving the lives of working people, I can announce today that we will extend and strengthen the fund. There will be a further round of up to £3 million which will include a new focus on protecting vulnerable workers from abuse and exploitation.

Working together to help the most vulnerable in our society is what our movement was founded upon.

Working together today, we can deliver fair employment opportunities for all British workers. A Britain where the right to work and the right to fair treatment in the workplace continue to be the hallmarks of our decent and progressive society.

Thank you.