IPPR calls on government to extend approach taken in social care and teaching support to other key sectors
The government should extend fair pay agreements to industries crucial to the housebuilding sector, according to an influential think tank.
The Institute for Public Policy Research, a progressive research organisation, has urged Labour to consider rolling back what it calls 鈥淭hatcher-era鈥� relations in order to achieves its policy goals in key areas of the economy.
Collective pay agreements are already in place voluntarily across some industries such as North Sea oil and gas production and large-scale engineering projects.
They had been more common in the last century until the institutions that negotiated and implemented them were abolished in the 1980s.
IPPR said the approach should be revisited in sectors such as housebuilding, childcare and rail, which have labour shortages, are crucial to the government鈥檚 missions, and in which the public sector has significant purchasing power.
Joseph Evans, researcher at IPPR, said: 鈥淟abour has promised to deliver its national missions, but workforce shortages in the industries which will achieve those missions are creating significant hurdles.
鈥淐onstruction, childcare, and rail will all deliver on the government鈥檚 promises to grow the economy and break down barriers to opportunity.
鈥淔air pay agreements will help to make sure these sectors are functioning as effectively as possible: they鈥檙e key to getting Britain back to work and driving growth.鈥�
The concept is not entirely alien to this Labour government, which has already committed to introducing sectoral collective bargaining for social care employees and teaching support staff.
This process involves unions and employers negotiating training standards, pay and working conditions that apply across an entire sector.
IPPR claims fair pay agreements could help solve recruitment and retention problems in areas like construction.
It recommends establishing new negotiating bodies in law with legislation defining the remit and organisations involved, and encouraging contractors in publicly-funded construction projects to comply with collectively agreed workforce standards.
Jock Simpson, the chairman of the National Joint Council for the Engineering Construction Industry, said: 鈥淭he National Agreement for the Engineering Construction Industry (NAECI) is a long-standing national agreement loyally supported by its employers, trades unions and stakeholders.
鈥淐lients in power generation, petrochemicals, process plant and repair and maintenance, rely on the NAECI to provide model terms and conditions and well managed industrial relations in a key sector of the UK economy.
鈥淚ts renowned procedural and engagement arrangements will have a vital role to play in the delivery of Net Zero.鈥�
No comments yet