Seat at the table

Theresa May’s pledge to install worker representatives on company boards could be law “within a year”, according to a new TUC report.

The commitment, made during the prime minister’s summer campaign to replace David Cameron, could be enshrined within 12 months if a consultation begins in the days following the Tory party’s conference, the TUC said.

The government has confirmed the issue will be considered during a broader consultation on corporate governance this autumn, but has given no guarantees on its prevalence.

Commenting on the report, TUC general secretary Frances O’Grady said, “The TUC stands ready to work with Theresa May to make workers on boards a reality. If the political will is there, this policy can be on the statute books within a year.

“These are common sense plans,” she added. “Those on the shop floor have a clear interest in the long-term success of their companies and deserve a bigger say.”

As well as setting out an achievable timetable, the TUC report said the new law should apply to all firms with a workforce of more than 250 people, with worker representatives who are elected by their colleagues making up a third of board members.

Similar requirements are already in place in 12 other EU member states, including Germany, Sweden, Austria and the Netherlands. Surveys in those countries reveal that the majority of companies find employee representatives beneficial to their businesses.

‘We need the same in Britain’

Unite assistant general secretary Tony Burke pointed out that worker representatives provide valuable knowledge and expertise to boardrooms, ensuring workforces are treated decently whilst helping companies to thrive.

However Burke also warned that Britain will only achieve a successful model of worker representation in the boardroom if big business lobbies are kept in check — The Confederation of British Industry said the issue of worker representation needs “careful consideration”, while the Institute of Directors said any measures should be “voluntary”.

Burke said, “If it is going to work the government needs to make sure that worker representatives are not just token gestures. There’s no point if a person can be handpicked as a representative, just for the sake of appearances.

“Unite has worked closely with German and Scandinavian unions, where they do have representatives on company boards at the highest levels and they have an influence,” he added. “We need the same in Britain.”

One of the few people to have experience as a worker representative in Britain is Unite rep Clive Bell, who until three years ago sat on the board of his employer SCA Hygiene. He said the role is a challenging position and agreed it could not be performed properly if a representative is shoed-in merely for appearances.

Bell said, “You need to be quite experienced to step up to that role. I would have been out of my depth otherwise. There was a lot of homework and reading to do. Fortunately SCA is a German company and there are provisions made to train worker representatives [in that country].

“Employee representatives are definitely a good thing to have,” he added. “The longer you’re there the more impact you can make. But if you don’t have the background to do it, you’ll just go along to the meetings and sit there like a cabbage.”