Composing motions 59 and 60 plus amendments
Congress notes that the Labour Party’s 2024 manifesto included bold plans for procurement.
Congress believes that the Labour government must use public procurement to drive re-industrialisation, as part of an industrial strategy that rebuilds our country, strengthens supply chains and creates good jobs.
De-industrialisation has cut the heart from communities that were once proud homes to businesses built on cutting-edge technology and manufacturing, delivered by skilled, unionised workforces.
Vital industries, such as shipbuilding, fabrication, and steel, lack necessary investment and support, leaving them at huge disadvantage when trying to win tenders for critical defence and energy security infrastructure projects. We are missing tens of thousands of promised unionised jobs in renewables as a result.
The strategic importance of our steel industry is essential to the UK’s national security, economic resilience and sustainment of good jobs in regions that need them most. Workers in steel and their communities have endured years of uncertainty, underinvestment and unfair competition, while too often public money has been wasted on importing steel from abroad rather than strengthening the industry at home.
There is an urgent need to improve domestic steel procurement in the energy sector, construction, transport, defence and other major infrastructure projects.
Congress notes the publication of Procurement Policy Note 025, which recognises steel as a critical sector and states that public procurement should be used more strategically to protect national security, strengthen domestic capability and reduce exposure to supply chain shocks. While this policy is a welcome step in the right direction, it will not cover projects delivered by private companies, even when they receive support from the taxpayer.
The government’s own steel strategy highlights that strengthening procurement of domestic steel in state-funded projects that do not fall under the public procurement regime is critical to protecting British jobs in steel.
Congress also notes that it is a false economy to award valuable public contracts to seemingly cheaper manufacturers on the other side of the world. Such arrangements can also be associated with poor labour standards, human rights abuses and carbon-intensive production methods. Offshoring emissions and exploitation do not leave the planet, workers or the UK economy in a better position. Apparent headline savings from overseas suppliers are often undermined by sizeable transportation costs and do not factor in the significant loss of opportunities for UK supply chains.
As the government makes significant investments across key sectors such as energy, defence, and technology, it must apply clear and consistent conditions, ensuring that private companies that benefit from these investments provide good quality, unionised jobs. Any outdated legislation that hinders this must be removed as soon as possible.
Congress calls on the TUC to:
i. put pressure on the government to keep to their stated ambitions for procurement and back British manufacturing
ii. work with GMB and other affiliates to promote investment for re-industrialisation, including vocational education
iii. campaign for a stronger steel procurement framework that extends requirements to procure steel strategically to all entities that benefit from public money whether through subsidies, grants, government-backed loans or contracts for difference; and ensures public investment supports domestic jobs, strengthens national security and enhances our economic resilience.
iv. campaign for procurement rules that require:
– recognised collective bargaining arrangements
– workforce development plans
– UK training opportunities
– greater measurable social value commitments throughout supply chains benefiting from public funds.
Mover: GMB
Seconder: Community
Supported by: Prospect; Nautilus International