Putting good work on the table
As part of their Economy 2030 Inquiry, the Resolution Foundation and the Centre for Economic Performance at 英国伦敦政治经济学院 recently released a report - "Putting good work on the table" - which discusses reforming UK labour market institutions to improve pay and conditions for workers.?
The report highlights stagnant real wages and use of zero-hour contracts, and investigates how high-quality jobs can be created. ?
An Oxford University study in 2019 found that happy workers are 13% more productive (Happy workers are 13% more productive | University of Oxford), which therefore means that to stimulate the economy and drive growth, people need to enjoy their jobs.?
Its key message highlights the importance of trade unions – an important form of labour market institution. Whilst 6 million workers are members of a union, membership has fallen by more than half since 1980. This is due to policy changes reducing the power of unions and changes in the industrial make-up of Britain’s economy.?
The report therefore recommends making three policy changes:??
?? allowing unions into workplaces.?
?? adjusting union-recognition requirements.?
?? allowing online voting for ballots.??
These policies will not necessarily return union membership to levels seen in the 1980s alone, though, due to the decline of the manufacturing sector – typically a stronghold of trade unionism, and the lack of awareness of the benefits of union membership.?
It points out, though, that this will not be all required to improve pay and conditions, with some sectors, like domiciliary care, likely to see more benefit in things like being paid for the time travelling between clients.?
Most importantly, though, the inquiry makes the case for Good Work Agreements (GWA), which are a framework for collaborative problem-solving between employers and workers. These would be designed to address poor-quality work in the parts of the economy that need it, complementing the existing national regulation and industrial relations.?
They propose four key areas to be the focus of GWAs:?
?? Training and progression.?
?? Pay.?
?? Health and safety.?
?? Terms and conditions e.g. irregular shift patterns, provision of basic materials.?
The inquiry suggests that the government should set up a trailblazer GWA agreement in social care to address the urgent issues around pay, inadequate training and unsafe working conditions that dominate the sector. The inquiry then goes on to suggest that the warehousing and cleaning sectors should be next, to resolve the issues including insecure and volatile zero-hour contracts that dominate these jobs.?
Some other suggestions made by the report include:?
?? GWA negotiation leaders should come from their sectors (both workers and employers should be represented).?
?? A mechanism to resolve disagreements with an independent chair appointed.?
?? Involving government in the negotiations to sign off the agreement at the end of the bargaining process and to enforce the agreements.?
?? Assessing GWAs regularly to keep them relevant, ensure standards are maintained and to take account of trade-offs.?
The inquiry points out the challenges associated with the changes: the time between changes to union policies and the effects being felt is large, amongst others. The case for pursuing the changes is strong, though: we face a skills shortage that may be in part due to the conditions and pay in certain sectors, and improving these would likely make the jobs more attractive.
Let us know what you think of the report and the suggestions below!?