Union recognition and 20-1 executive pay ratios: Here's Jeremy Corbyn's plan to upgrade the economy

 
Emma Haslett
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Only companies which give full recognition to trade unions and have a 20-1 pay ratio will be granted public procurement contracts under new proposals Jeremy Corbyn will announce today.

In a speech at the Wabtec train maintenance company in Doncaster this afternoon, Corbyn will say he wants to use the £200bn the government spends on private sector contracts each year to create "good local jobs".

Under his proposals, Corbyn will scrap current rules imposed by the EU which force government bodies to open public contracts to all EU-based firms, instead only opening them to "good" companies.

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Companies which bid for public procurement contracts will have to prove they comply with collective bargaining agreements, limit boardroom pay, prove they stick to 30-day payment terms and "maintain high environmental standards", he will say.

They will also be forced to demonstrate that they prove "full training and apprenticeship opportunities", pay taxes, and "adopt best practices in equal opportunities".

“National and local government spends £200bn per year in the private sector," he will say.

"That's an incredible purchasing power, which we can use to support the good companies and improve the behaviour of the bad ones that undercut with unfair practices.

“And while Brexit presents many challenges to Britain, it can give us more powers to encourage best practices and support new and existing businesses and industries in Britain."

Corbyn's seven requirements for public procurement
1.

Give full trade union recognition for their workforce and comply with collective bargaining agreements.

2.

Move towards a ratio of 20-1 between the lowest and highest paid, matching the target in the public sector, over a transitional period.

3.

Pay their suppliers the full amount owed within 30 days.

4.

Maintain high environmental standards in relation to energy use, emissions and waste disposal, while taking appropriate measures to aid the transition to a low carbon economy.

5.

Provide training and apprenticeship opportunities proportionate to firm size.

6.

Full tax compliance

7.

Adopt best practices in equal opportunities

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