Introduce collective bargaining to housebuilding to attract workers, says think tank

The government should extend fair pay agreements to industries crucial to the housebuilding sector, according to an influential think tank.

The Institute for Public Policy Research, a progressive research organisation, has urged Labour to consider rolling back what it calls “Thatcher-era” relations in order to achieves its policy goals in key areas of the economy.

Collective pay agreements are already in place voluntarily across some industries such as North Sea oil and gas production and large-scale engineering projects. 

They had been more common in the last century until the institutions that negotiated and implemented them were abolished in the 1980s.

IPPR said the approach should be revisited in sectors such as housebuilding, childcare and rail, which have labour shortages, are crucial to the government’s missions, and in which the public sector has significant purchasing power.

It says fair pay agreements could help solve recruitment and retention problems in areas like construction.

Joseph Evans, researcher at IPPR, said: “Labour has promised to deliver its national missions, but workforce shortages in the industries which will achieve those missions are creating significant hurdles. 

“Construction, childcare, and rail will all deliver on the government’s promises to grow the economy and break down barriers to opportunity. 

“Fair pay agreements will help to make sure these sectors are functioning as effectively as possible: they’re key to getting Britain back to work and driving growth.” 

The concept is not entirely alien to this Labour government, which has already committed to introducing sectoral collective bargaining for social care employees and teaching support staff. 

This process involves unions and employers negotiating training standards, pay and working conditions that apply across an entire sector. 

IPPR recommends establishing new negotiating bodies in law with legislation defining the remit and organisations involved, and encouraging contractors in publicly-funded construction projects to comply with collectively agreed workforce standards.