Freeports and why Boris Johnson’s trade union ban must be lifted if levelling up to work on the Tees and Humber – Andy McDonald

It’s a mantra we hear day-in-day-out as he desperately seeks to divert attention from and dig himself out of the ‘partygate’ scandal.

Levelling-up policy falls short of promises made by Government - The Yorkshire Post says

We’re told that Johnson is desperate to begin talking about his so called ‘levelling up’ agenda, with an announcement this week more than two years after the Tories made solemn pledges to the electorate to deliver on this policy area.

When Johnson, and his ‘levelling up’ Cabinet consigliere Michael Gove set out their long-awaited plans, it is highly likely that the Tories flagship freeports policy will loom large.

The launch of freeports in the Tees, and the Humber, personify the ‘boosterism’ and ill-thought-out policy agenda that has so characterised Johnson’s premiership since its inception in summer 2019.

Johnson, Gove and the policy’s cheerleaders among the so-called Red Wall Tory MPs evangelise about freeports as a low tax nirvana for big business. The Tories glibly assert that this ‘Thatcherite’ experiment will create tens of thousands of jobs and deliver unparalleled economy prosperity for the regions in which they have been launched.

Yet, despite the forming of a freeport in my own constituency of Middlesbrough, we’re still waiting, for an explanation as to how this policy will translate into meaningful employment and a boost to our local economy. 

Tax exemptions that firms operating out of freeports enjoy in the form of tariffs will amount to little more than ‘corporate welfare’ for big business without the delivery of well paid, secure and unionised jobs for the people who live and work in and around the ports of Teesside, the Humber, and elsewhere.

The outright refusal from the Tories to allow trade union representation on the boards of freeports has set the scene for how far down the list of priorities workers’ rights are with this government policy.

To add insult to injury, Tees Valley Tory mayor Ben Houchen has refused to meet myself and other representatives from the Labour and trade union movement to discuss how workers’ rights can be safeguarded in the freeport. 

What is effectively a ‘locking out’ of trade unions points to the Tories’ promoting an insecure work culture that will undermine and drive down wages in firms operating outside freeports, with damaging consequences for the local economy and living standards.

However, it simply does not need to be this way. With some reports suggesting that the Teesside freeport will be the UK’s biggest, the spotlight is well and truly on our region when it comes to good practice.

The best way to deliver success for any freeport, through the creation of well-paid quality jobs and success for the companies, has to be full and thorough engagement with the trade unions.  

Unite, Britain’s largest trade union, has recognition agreements with some of the biggest companies in the country. Firms such as Nissan, Cummins Engines, SABIC, Hitachi Rail, Vauxhall, Barclays, RSA, Siemens, Northumbrian Water, EDF, PD Ports, Svitzer and many more. 

The union works constructively with each of these employers to build permanent good industrial relations which in turn ensures the smooth running of those companies.

If Boris Johnson was even remotely serious about seeking to start to win back public trust against the backdrop of his grotesque flouting of Covid rules, there are specific measure that his government can and should take while it remains in power for now.

The Prime Minister must use the launch of the Government’s ‘levelling up’ paper to pledge that all jobs created within freeports and beyond are through direct employment, and not via bogus alternatives and work arounds.  

There must be a steadfast commitment from the UK Government that freeports will not attempt to disguise the employment status of workers in order to evade UK employment legislation or to avoid any tax responsibilities.

Full representation for unions on freeport boards, alongside formal union recognition and collective bargaining agreements, must be part a watertight package to protect and promote good quality and secure jobs that can, in turn, help drive a post-pandemic economic recovery. Now that would be a real ‘levelling up’.

Andy McDonald is the Labour MP for Middlesbrough and a former Shadow Cabinet member.

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