Industrial democracy? It’s all about trade unions

4095726_sAccording to John Duffy and his co-authors of the Jimmy Reid Foundation report on industrial democracy entitled Working Together, a major plank of the future of industrial relations in Scotland should be based on the adoption of European “models” involving employee forums, works councils and employee seats on company boards. It is a proposition that appears to have resonated with the Scottish Government, who include support for increased employee involvement in their Scotland’s Future White Paper.

On the face of it, such suggestions may look attractive, especially as they contrast sharply with the Con-Dem attack on employment rights and the establishment of the Carr Review to consider another raft of anti-union legislation. Continue reading →

Could the German economic model be Ed Miliband’s ‘big idea’?

German industryDavid Cameron was recently filmed lecturing a group of manufacturing workers with the inimical advice that ‘frankly we have to be more Germanic in our work practices’. That was pretty rich coming from an old Etonian who, like George Osborne, has never had a proper job in his life. But it set me thinking – and not least because the German economic model is everything that successive British Government, especially Conservative ones, has shied well away from.

Instead from Margaret Thatcher onward, the British political class have opted for the deregulated, free market model favoured by the United States. This is a model that has seen those employed in manufacturing industry drop from 50% thirty years ago to 15% today. It is a model that has favoured the financial sector, dot-com booms and a reliance on property prices to provide economic growth. It owed much, more recently, to Alan Greenspan and his weird nostrums about ‘endogenous growth’. Continue reading →

Hollande and the French economy (part 1)

Enthusiasm for François Hollande’s new government in France is understandable, as it provides a popular mandate for an economic alternative to austerity, and a programme for economic growth. As Trevor Martin exhorts in his recent Tribune article “Let us follow where Hollande leads”.

Michael Meacher sketches an outline of what Hollande’s policies would mean translated into British terms: Continue reading →

Time for Economic Democracy

Aside from the unfair voting system and the use of big money to buy political power and influence, Britain is, broadly speaking, a political democracy. But when it comes to the economy, we remain a dictatorship. A rich and powerful economic elite makes all the key economic decisions, disenfranchising millions of employees and consumers.

Our country’s democratic political transformation – pushed forward by the Levellers, Chartists and Suffragettes – has never been matched by a corresponding economic democratisation. ‘One person, one vote’ has been won in the political sphere but not in the realm of economics. Britain’s democratic revolution, begun four centuries ago, remains unfinished. Continue reading →