The push for good growth: putting working people at the heart of trade and investment

The decision by Labour's northern mayors to ensure working people had a voice within the discussions taking place in India, was a significant one. After two decades on the side-lines, it marks an important step towards putting workers at the heart of conversations about trade, investment and economic growth. And perhaps most significantly, it showcases the UK's emerging model of tri-partite partnership between government, employers and unions. 

The focus of the trade mission to India was to drive investment and growth in both the North of England and India. And trade union participation indicates that Northern Labour mayors aren’t just pushing for economic growth, but for good growth: growth that creates decent jobs, raises living standards, benefits local communities and ensures workers have a meaningful voice in shaping the decisions that affect their lives.

Meeting with Indian trade unions showed first hand that economic growth does not always benefit working people. Representatives talked about how growth has failed to deliver improvements in workplace rights, job security and living standards. And those from the textiles industry, farming and the public sector talked specifically about how recent labour reforms have reduced the effectiveness of factory inspections putting the health and safety of workers at greater risk. 

And while there are very welcome protections within the new UK–India trade agreement, with concerns already surfacing about the enforceability of the agreement, trade unions do not believe this will be enough. Workers in both India and the UK know too well that a right written on paper is not always a right you can exercise.

People in the North hardly need a lecture about decisions on industry being made without workers. Coal, steel, shipbuilding and manufacturing communities know the consequences when jobs disappear and working people have too little control over what comes next.

That experience should shape how we approach new trade and investment opportunities today. Not every investment announcement can be deemed as good news in itself. We must always ask whether workers can organise, if jobs are secure, and how it will improve terms and conditions for workers on both sides. And we must not protect workers in the North at the expense of workers in Mumbai, or the other way around. That kind of competition is exactly what allows standards to be driven down.

Twenty years is a long time for trade unions to be absent from a UK trade mission. I am glad that has changed. But what will really demonstrate progress is when I can point to a worker, in Britain or India, who has better employment rights, better terms and conditions and a louder voice in the workplace, because of the action we took since we returned.