Unions respond to the Government’s Industrial Strategy Paper

Earlier this week, the Government published its Industrial Strategy, laying out  plans to support the growth of eight key industries. Headline measures in the strategy include cutting energy costs for ‘big electricity users’. Energy-intensive industries will also receive further cost-reducing support. The strategy seeks to increase exports through trade agreements and cooperation with France and Germany, alongside strengthen the UK’s economic security through the previously announced decision to increase defence spending.

GMB welcomed the ‘grown-up strategy’, with General Secretary Gary Smith saying:

“This is a big step forward. Businesses across the country were left to wither and die as Conservative governments failed to deliver an industrial strategy for the UK.

“We particularly welcome action on the number one issue facing UK manufacturers – rocketing energy costs.

The TUC published ‘four big wins for workers in the new Industrial Strategy’, outlining key elements of the strategy that, in their view, have potential to bring good jobs back to towns and cities across the UK.

The TUC describes the strategy as:

“a promising beginning to a new chapter in the UK’s economic history. Success will not depend on effective next steps. Trade unions are ready to work with the government to help turn this ambitious vision into a reality.”

They highlighted the following:

• Aiming for jobs
  • The aerospace sector will commit to 40,000 new apprentices over the next ten years
  • The strategy proposes targeting govt procurement “to create good quality local jobs and boost skills”, by having criteria on jobs outcomes baked-in to contracting processes
• Partnering with workers to plan for the future
  • Workforce strategies for industries struggling to recruit that will focus on creating jobs that people want to stay in- meaning stable contracts, solid pay, meaningful opportunities for development.
• Tackling exorbitant electricity prices for industry- the TUC highlighted two key announcements
  • A new British Industrial Competitiveness Scheme (BICS), which will exempt up to 7,000 businesses from some of the environmental levies (‘policy costs’) included within electricity bills , reducing their bills by up to £35-40 per MWh, or 25%.
  • A new British Industrial Competitiveness Scheme (BICS), which will exempt up to 7,000 businesses from some of the environmental levies (‘policy costs’) included within electricity bills 1 , reducing their bills by up to £35-40 per MWh, or 25%.
• Growing foundation industries and supply chains
  • The TUC welcomes the inclusion of manufacturing and process industries (like steel, chemicals, ceramics, and glass) in the strategy, noting that these sectors will benefit from reduced energy bills.
  • They note that a new Supply Chain Centre will analyse where govt can take action to grow or diversify domestic supply chains among these foundation sectors.

Unite’s Sharon Graham joined others in hailing the strategy a “step forward for jobs”, however the union maintains that the government needs to go further in providing the entire manufacturing sector with support, and in tackling the long-term problems of the UK’s energy systems, which, in their view, requires bringing it into public ownership.

She commented:

“Make no mistake this is one of the most important measures the government has undertaken to protect jobs and improve job security.

“UK industry is highly competitive, until you include energy costs which in many industries make it the least competitive. Tackling industrial energy prices is the single most important thing the government can do as part of the industrial strategy.

UNISON responded to the Government’s ‘clean energy industries sector plan’. Assistant General Secretary Jon Richards said:

“The move across to clean energy must be handled correctly. Otherwise, the UK won’t have the workers with the right skills and expertise and firms could be forced to lay off staff as they struggle to keep up with technological advances.”