The Courier & Advertiser (Perth and Perthshire Edition)
May backtracks on plan to put workers on boards
Prime Minister rules out controversial measures but says business sector must ‘embrace reform’
Theresa May has offered an olive branch to businesses by ruling out imposing the appointment of workers or trade union representatives to company boards.
The Prime Minister said the Government was preparing to take action to tackle problems with executive pay and accountability and would ensure employees have a “voice” in the boardroom – but promised to “work with the grain of business” on the reforms.
Ahead of Philip Hammond’s crucial Autumn Statement, Mrs May also set out plans to assist business, including her ambition to ensure the UK has the lowest corporate tax rates in the G20 group of advanced economies and measures to boost productivity.
But she stressed that as part of a “great national effort” to build a “stronger, fairer Britain”, firms must work with the Government by improving corporate behaviour.
Following the rise in antiestablishment and anti-globalisation movements across the West, Mrs May said she would defend capitalism and free trade, but warned that the image of business had been “bruised” by poor behaviour from “a limited few” bosses.
She told the CBI that the June 23 vote for Brexit reflected not only a desire to leave the EU but also a public demand for “change” in the way capitalism and the market system operate in the UK.
“If we support free markets, value capitalism and back business – and we do – we must do everything we can to keep faith with them,” she said.
“And with not enough people feeling that they share in the wealth created by capitalism – and with the recent behaviour of a small minority of businesses and business leaders undermining the reputation of the corporate world as a whole – the way to keep that faith is to embrace reform.”
But addressing the commitment on workers’ voices being heard, she said: “I can categorically tell you that this is not about mandating works councils, or the direct appointment of workers or trade union representatives on boards.”
But unions reacted angrily, claiming that Mrs May was rowing back on previous commitments.
TUC general secretary Frances O’Grady said: “Theresa May made a clear promise to have workers represented on company boards.
“The proposals in her speech do not deliver on this.”