Workers on the board?

One of the UK’s largest low-pay employers is planning to appoint a worker representative to its board.

Outsource firm Mitie, which provides care-taking and cleaning services, is considering adding a worker representative to the boardroom, according to a report in the Times.

The initiative is being implemented by the company’s new chief executive, Phil Bentley.

If the plans are successful Mitie would be the second British company, after FirstGroup, to appoint a worker representative to its board of directors.

Mitie executives are considering a range of options including appointing an outside trade union figure or bringing in someone from the firm’s own employee forum.

A Mitie spokesperson refused to comment on how far along the plans were, saying “the board hasn’t considered it yet.”

U-turn

The news comes after Theresa May u-turned on her inaugural promise to ensure it was “not just consumers represented on company boards but workers as well.”

The pledge was made in response to what many see as a runaway corporate culture in the UK that unduly rewards overpaid executives whilst riding roughshod over ordinary workers.

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.

Unite assistant general secretary, Gail Cartmail, praised Mitie’s approach but said the government needs to do more if widespread change is to be enacted.

“It’s welcome news that Mitie is considering such a progressive step. However the actions of one company do not signal a wider change to boardroom culture,” Cartmail said.

“For that to happen it’s necessary for the government to introduce legislation that makes it compulsory for companies to have worker representatives, elected by the workforce, on their boards. “It’s time the UK caught up with the rest of Europe this issue. In Sweden, for example, elected boardroom reps have been in place since 1972.”

She added, “The evidence is clear – worker representatives have a clear interest in ensuring their companies succeed and bring valuable knowledge and expertise to boardrooms.

“They help their companies to thrive, make sure employees are treated decently and provide a much needed balance to the excesses of executive groupthink.”