David Miliband
David's statement to union members
"I want to thank the trade unions and trade unionists across the country who contributed to our General Election campaign – especially in our key seats and against the BNP. In the face of Tory money and a hostile media we showed the power of thousands of face to face conversations and the strength of a good case. After all it was our partnership that secured many advances for working people - the minimum wage, tax credits, rights to union recognition, paid holiday and flexible working, childcare and better public services.
But we lost, and in many ways lost badly. So we have to repair and rebuild. We have an important job to do in Opposition - to face down threats to living standards, public services and to the democratic rights of people and trade unions. We also have to become an alternative Government.
First, that means reclaiming the idea of a living breathing Labour movement across the country. The partnership with trade unions and trade unionists is an important part of that. We need to be campaigning in communities and workplaces, where we are in power in local government and out of it, making our case and delivering change.
Second, we need to refresh our policy agenda - so we are ahead of the game on the economy, education, housing, immigration, welfare, and not playing catch-up when speaking to people’s hopes and fears.
We joined the Labour Party and trade unions to tackle exploitation and the abuse of power, equalise life chances, and build a decent society. Our policies need to reflect this - making us the progressive reformers that the country needs. We can learn from the experience of trade unionists, and should work with trade unions as key social partners to make this happen. Our local and national links should make us better representatives of the people we serve.
This is a time for pride in what went right in government and honest appraisal of what went wrong. We have suffered a defeat that will only be a disaster if we fail to learn from it. I am determined that we should do so, so united and refreshed we are ready to return to government - the best place from which to live out values."
What do you see as the role of trade unions in the 21st century?
"Unions can play a leading role in shaping the new economy in the aftermath of the financial crisis, and helping Labour reconnect with the voters we have lost.
New economy: Trade unions can be the champions of a more balanced, more equal and more sustainable economy. They stand up for a fair deal for employees, securing improved terms and conditions and being a trusted friend at work. By promoting good work in good workplaces, unions are central to shaping a new era of shared prosperity. Workplaces where employees have a voice and a stake in their firm – who feel trusted, involved, respected and fairly rewarded – are those that will prosper in the new economy. I want to work with unions to ensure we have an economy with fair rewards at the top and the bottom, including through a living wage.
Winning back voters: It was the TUC in their work on the ‘real middle Britain’ back in 2009, who identified those on incomes of £20,000-£30,000 as the group under real economic pressure in the recession. They felt squeezed by stagnant incomes and higher living costs, and insecure about their future prospects. These are precisely the voters Labour lost at the general election. We need to return to the ‘bread and butter’ issues that affect people’s daily lives – jobs, pensions, housing, transport and childcare. in particular, time and money are real pressures for many families. They need an effective partnership between Labour and the trade unions to stand up for them and make their lives better."
How would you practically implement a living wage? For example, would you support legislation to ensure that companies can only get government and local government contracts if they pay a living wage?
"A fair days pay for a fair days work has always been a core principle of the Labour movement. That’s why the minimum wage is one of Labour’s proudest legacies – and we were right at the general election to argue that it should rise at least in line with average earnings over the next few years.
But when nearly five million people earn less than 7.15 an hour, we know that the fight for fair pay is not yet won. That’s why I support calls for a living wage, to complement the National Minimum Wage. I think we should pursue this goal through the government becoming a living wage employer – and committing to only doing business with contractors who pay a living wage. This would set a bar and show the way for the private sector – where campaigns involving community groups and trade unions have already made a big difference.
I want Labour to return to its roots as a living, breathing movement for change precisely so it can play its part in these community actions. It’s also important to remember that successful living wage campaigns do not just strike a blow for social justice – they make good business sense too. Major companies, like Barclays, who have implemented the living wage, have seen real benefits in lower staff turnover and higher productivity."
What should be the future of public sector pensions? Would a future Labour Government led by you stand by theagreement reached between the TUC and the Labour Government in April of this year and commit to provide 'good quality, index-linked, sustainable, defined benefit pensions' or public sector workers?
"We should stand up for good public sector pensions and good privates sector pensions. My priority is tackling pensioner poverty and enhancing pension provision in our country, not engaging in a race to the bottom – and Labour’s manifesto is the right place to start.
According to the National Audit Office, most pensions paid to former NHS and civil service staff are worth less than £110 a week. A quarter of former health workers get less than £40 a week. By contrast, fewer than 0.2 per cent of teacher pensioners, 1.8 per cent of civil service pensioners and 2.5 per cent of NHS pensioners get pensions of more than £40,000 a year. When the Tories seek to undermine public sector pensions, we need to remind people that they would end up targeting many formerly low paid workers.
Second, cost. There has been a two per cent increase in the average pension in payment since the turn of the century. Ironically, one of the reasons the Office for Budget Responsibility recently projected an increase in the net cost of public sector pensions is because of the negative impact of the planned public sector pay freeze on employee pension contributions.
The most pressing problem with pension provision in this country is that nearly two-thirds of private sector workers have no employer backed pension scheme at all. It is estimated that 7 million workers are not saving enough for retirement, with 750,000 employers in the private sector still not operating an occupational pension scheme.
Labour’s pension reforms addressed this problem – and any government delay to our plans for workplace pensions, with compulsory employer contributions, would be a massive hit to the future of British pension provision, especially amongst the low paid. After all, the real ‘pensions apartheid’ is not between the public and private sector, but between low paid workers with no pension coverage and high paid workers who have taken the lion’s share of the generous tax breaks on pension contributions.
Following the announcement of a review, the government should commit to not making any changes to public sector pensions without consensus, including with the relevant trade unions. This was an essential part of Labour’s pension reforms, through both the Turner process and the measures already agreed which will increase contributions to public sector pensions by 1bn a year from 2012/13."
If elected as the Labour leader, would you support a three-line whip for the PLP against the Coalition government's Bill to privatise, and break up, Royal Mail?
"I support our manifesto commitment to maintaining Royal Mail in the public sector, while bringing in both new investment and reform. This is the best way to protect the vital principles of a single price and universal provision that underpin a postal service operated in the public interest. Competition from other forms of communication – not least e-mail – is only going to continue, so we must encourage innovation and creativity from all quarters to safeguard the future of Royal Mail.
I am very concerned by suggestions that the Tory-Lib Dem government is considering privatisation. As Labour leader, I would oppose any Bill that gave the private sector a majority stake in Royal Mail, which would mean the controlling interest of the company was not democratically governed in the public interest.
I also think we should be finding ways to sustain and capitalise on the Post Office network, which is part of the fabric of our communities. We should be exploring ways to use the Post Office network to provide banking and other financial services to people – as well as to provide credit to families that keeps them out of the hands of exploitative loan sharks and enables them to borrow at a reasonable cost."
Labour stands for equality and fairness at work and in the wider community. How do we tackle the gender pay gap, discrimination and low pay in the current economic climate?
"In Government, Labour made real progress on tackling discrimination at work. Our Equalities legislation made provision for extra protection for employees and we were absolutely right to introduce gender pay audits.
However there is still a long way to go and the gender pay gap is still too wide. 40 years after equal pay legislation came into force, women working full-time earn on average 17% less per hour than men. For ethnic minority women, the gap is even higher at 20%. Over the course of a working life women earn £330,000 less than men.
To tackle this we need to make sure we improve the enforcement of employment rights. Proper inspection and follow up of breaches of employment laws will help tackle discrimination at work.
We also need to look at ways of ensuring employees are properly involved and informed about important decisions in the places they work. Workers need the power to tackle discrimination and improve fairness in the workplace. That’s why we need to reform corporate governance by requiring an employee representative on the remuneration committees of firms – and promoting the rights to information and consultation.
Finally, despite the minimum wage, it is wrong that there are still over 5 million low paid workers in our country today. That’s why we should campaign to ensure that anyone working in the public sector is paid a living wage – showing a lead to the private sector."
The unfair treatment of agency workers causes many problems, not just for the agency workers themselves, but also for their directly employed colleagues. How should the Agency Workers Directive be implemented and enforced in order to put a stop to the exploitation of agency workers and the undercutting of permanent staff, and what other measures should be put in place? Why do you think progress was not made to sign up to and implement the Agency Workers Directive sooner under Labour, given supporting it was part of the Warwick Agreement of 2004?
"I strongly support the Agency Workers Directive, to ensure people receive the employment rights they are due and to prevent the exploitation of vulnerable workers. This is a basic issue of fairness at work. It required negotiation between government and the social partners both here in Britain and at a European level. In retrospect, it took too long to achieve, but it was an agreement that would never have been achieved under a Tory government; hostile to both employment rights and to European cooperation.
It’s now vital that we get implementation of the Directive right. Workers should not be denied a fair wage, holiday entitlement and access to parental leave just because they are not permanently contracted with their employer. That’s why I support the TUC’s efforts to ensure the regulations prevent unscrupulous employers and agencies from avoiding the new rights – such as by shifting agency workers between jobs within the same workplace or using bogus self-employment to avoid equal treatment. Where they believe these rights are being denied, employees and trade unions should have recourse to proper dispute resolution mechanisms, including an employment tribunal if necessary."
Britain has the most restrictive industrial laws in the western world, which stop unions from best representing their members. What one restriction do you think most urgently needs lifting and why?
"Unions should have the freedom to recruit new members. Preventing trade union reps from entering workplaces to speak to people about the benefits of joining a union also risks creating a confrontational relationship with employers, which is not the basis for good social partnership.
We made many positive changes to industrial relations in government, including the right to recognition and the Union Modernisation Fund. The challenge of maintaining and growing union membership is one shared by our sister movements in virtually all developed nations, despite very different employment legislation. But the insecurities associated with globalisation and desire of employees to be treated with respect and have a voice at work makes the need for trade unions as important today as at anytime in our history.
The opportunity for unions is to demonstrate their appeal to workers and to today’s economy – where being a decent employer and a profitable enterprise go hand in hand, and the best workplaces are those characterised by autonomy, engagement and innovation. That means standing up to those companies who think the route to success lies in squeezing every ounce of effort out of their workforce in return for low pay and poor conditions – as a substitute for management vision and investment.
In short, we need good trade unions now more than ever. Perversely, the Tories seem to want to re-fight old battles over strike laws. Industrial disputes are at a far lower level than during the 1980s – and the last thing Britain needs is a throwback to the confrontational prescriptions of that decade."
The Labour Party has always prided itself on being the Party of equality and diversity. How will you ensure that Labour’s shadow cabinet and the PLP are representative of women and men? What one thing would you do to make sure that Labour is better connected with and representative of ordinary trade union members?
"I am lucky to be surrounded by a number of strong women in my life: my mother, my wife and my key political advisers. They all tell me the same thing — we need a new kind of politics which promotes and supports women from the grass roots up. Only then will we see change at the top.
I want our parliamentary party to reflect our country – that’s why I want a 50:50 gender balance in the PLP by the next election. To achieve this, I am committed to raising money for a Leadership Academy to provide high quality mentoring and training, bringing in experts
from the public and private sector. I would also continue my longstanding support for All Women Shortlists and will aim to increase transparency - at least 50 of the top 100 target seats should be AWS.
As leader I would appoint a Shadow Women’s and Equalities minister and would make sure that the Shadow Cabinet is made up of at least a third women, to reflect the current balance in the PLP.
I want to lead a living breathing Labour movement rooted in workplaces and communities, truly representative of the people we serve and a voice for working people. During the campaign I have trained 1000 future leaders in the techniques of community organising, drawing on the best traditions of the Trade Unions. This is just the start. I am targeting a doubling of the party membership by the next election, including a national drive to recruit trade union levy payers to the party. I am also committed to a democratically elected Party Chair to lead the process of rebuilding our party in workplaces and communities across the country."
