Theresa May dumps plans for workers reps on boards after business outcry
The Prime Minister was accused of breaking a promise to millions of blue-collar Brits that formed a key part of her Tory leadership campaign
THERESA MAY has dumped flagship plans to force companies to put workers reps on the board following a furious revolt by big business.
The Prime Minister was accused of breaking a promise to millions of blue-collar Brits after “clarifying” a pledge that had formed a key part of her Tory leadership campaign.
After promising in July to give both consumers and employees a place on company boards she yesterday said there were a “number of ways” to give workers a voice – such as advisory panels.
She told the CBI Annual Conference “it will be a question of finding the model that works”.
And she said: “I can categorically tell you that this is not about mandating works councils or the direct appointment of workers on boards.”
Downing Street insisted there had not been a U-turn – and that consultation on executive pay and workers’ rights would be published by the end of the year to find the “best way forward”.
But livid trade union chiefs said it was clear the Government had “watered down” the pledge.
GMB general secretary Tim Roache said: “The Tories can claim to be the party of workers all they want, but actions speak louder than words.”
RELATED STORIES
TUC chief Frances O’Grady took to Twitter to mock the PM – saying: “If Mrs May says Brexit means Brexit, surely workers on boards means workers on boards?”
Labour Shadow Business Secretary Clive Lewis added: “Tory promises don’t last until Christmas.”
Theresa May’s plan earlier this summer went far beyond a commitment from Ed Miliband in Labour’s General Election manifesto in 2015. Then, Labour called for employee representation on corporate compensation committees.
Launching her leadership campaign in July, the then Home Secretary said she wanted to see changes in the way big business was run to make them “accountable to outsiders”.
But business chiefs have spent the past weeks lobbying furiously for the plan to be watered down.
One source said: “It was getting to the point where companies were saying the most sensitive conversations would have to take place by phone to by-pass the worker.
“And of course there were fears about trade unions using this and putting their own candidates up.”
In a statement, Adam Marshall, director general of the British Chambers of Commerce praised the PM’s “substantially different” tone.
And he said it was vital current board arrangements were “protected”.
He added: “We have been working extensively with Ministers on corporate governance in recent weeks and will continue to engage on how best to ensure that the interests of employees, consumers and suppliers to major companies are effectively represented at board level.”