Rolls-Royce chief backs May’s proposal for workers on boards
ROLLS-ROYCE’S chief executive has said he is in favour of Theresa May’s controversial plan to put workers in the boardroom.
Warren East is the highest-profile boss to come out in support of the Prime Minister’s proposal, which has sparked unease among business leaders.
He said his personal view was that workers on boards helped communication, citing Germany, where worker representation is common.
‘We have nearly 20 per cent of our workforce in Germany, so are wellacquainted with worker representation,’ he said.
‘We have good relations here with our trade unions. It could be an extra channel to communicating with the workforce. Gone are Victorian days of managers and workers.’
East took over RollsRoyce last year after it issued a series of profit warnings. He has overseen a reorganisation that has included big job cuts.
May last week denied her proposals were an abandonment of freemarket principles, saying they were to ensure ‘everybody plays by the same rules’.
Rolls-Royce is expected to update investors on its restructuring this year. It has axed 4,000 jobs in the past two years and some more job losses are expected.