UK government backtracks on worker representation on boards
UK Prime Minister Theresa May has confirmed that her government will not require companies to have workers or consumers on their boards, despite a previous commitment to such a move. Speaking at the CBI, May said that whilst workers and consumers should be listened to, works councils and direct appointments would not be required. The PM suggested that advisory councils or panels could be appropriate for some companies. 

Theresa May has told business leaders that her government will not force companies to directly appoint workers or consumers on to their boards, watering down an earlier pledge on the issue.



She used a keynote speech at the CBI conference to say she had no plans to mandate such changes, despite suggesting that would be the case during the leadership contest and at the Conservative party conference.

“While it is important that the voices of workers and consumers should be represented, 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,” the prime minister told a packed room in central London.

“Some companies may find that these models work best for them – but there are other routes that use existing board structures, complemented or supplemented by advisory councils or panels, to ensure all those with a stake in the company are properly represented. It will be a question of finding the model that works.”

May’s pledge was one of the more eye-catching elements of her pitch to replace David Cameron, on a platform centred around social justice.



In July, she used a key speech in her bid to become Conservative leader to say: “If I’m prime minister, we’re going to change that system – and we’re going to have not just consumers represented on company boards, but employees as well.”



She returned to the theme as prime minister, using her Tory party conference speech to promise: “Later this year we will publish our plans to have not just consumers represented on company boards, but workers as well.”

Pushed on the change of position in questions after her CBI speech, May played down the idea of a U-turn, saying there were a number of ways to boost representation of workers.

It came after Greg Clark, the business secretary, made a similar argument on Radio 4’s Today programme. He said plans would be outlined by the end of the year, but declined to confirm that they would involve workers sitting on boards.

“There are different ways of doing this,” Clark said. “Theresa May has talked about an economy that works for everyone – that includes workers, employees, consumers, the supply chain businesses – so we will put forward a series of ways in which those voices can be represented on boards.”

Asked if this meant the government was pulling back from the plan, Clark did not fully deny this, saying only: “There will be different options.” He added: “We will publish those plans. We will have options. We are working with business. They will be produced and we will talk about it.”

The 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 today do not deliver on this.

“This is not the way to show that you want to govern for ordinary working people.”

The GMB also accused the prime minister of failing to stick to her promise. “The Tories can claim to be the party of workers all they want, but actions speak louder than warm words,” he said, arguing that the watering down of the pledge was telling.

“The mask is slipping - nice speeches followed by broken promises will not help working people get fairness and dignity in the workplace.”

But May’s official spokeswoman denied the policy had been watered down. “Look at what the PM has said all the way through. This is about how workers’ views are represented on boards. This is consistent with that... I think there will be a number of ways to do it. Part of the approach we will be taking is to put it out to consultation and hear views from stakeholders, employees and businesses on the best way forward. We are absolutely committed to having the voice of workers heard on boards as part of establishing the best corporate governance of any major economy.”