Automotive Sector

Brexit:Unite demands protections for you

7719_Brexit_Automotive_A4_8pp_Final.qxp_Layout 1 19/01/2017 12:33 Page 1

The referendum result on 23rd June sentshock waves throughout the UK, makingthe politicians and the media sit up andtake notice.

Unite recognises that millions of working people,including many of our members voted to exit theEU. The question now is on whose terms will Brexithappen?

We must unite to make sure that Brexit happens onour terms – protecting jobs and retaining vitalworkers’ rights while outlining our vision for Post-Brexit Britain.

The same out-of-touch Tory government whichcalled the referendum now has no plan for dealingwith the result. That negligence has led touncertainty which threatens all sectors of oureconomy – from manufacturing, to transport andfinance.

As the financial crisis proved, in Tory Britain it isworking people who are always forced to pay theprice in times of uncertainty. A Tory vision of Brexitwould see further austerity and attacks on ourworking rights, while racism and division would beallowed to run unchecked in our communities. Brexit must not be used as an excuse to cut jobs,move work out of the UK or attack workers’ rights.

We cannot sit back and accept Brexit on the Tories’terms.

Unite is demanding a new industrial strategy, a planwhich includes all our sectors, with decent jobs, fairpay and strong working rights at its heart.

Such a strategy must use every tool at thegovernment’s disposal including: plugging the skillsgap by supporting apprenticeships; use of the publicsector procurement to support manufacturing;removing barriers to reshoring jobs; and directsupport for our strategic industries such as steeland energy.

This should culminate in new infrastructure projectsto create jobs and grow our economy. Such astrategy would make sure Britain retains the best ofthe EU, while putting trade union values at thecentre of Post-Brexit Britain.

Brexit: Unite demandsprotections for you

“

”

Nobody knows how long theBrexit negotiations will takeor what the outcome will be.One thing is certain. Unite willdefend our members. Togetherwe will campaign to protectjobs, pay and conditions.Len McCluskey, Unite General Secretary

7719_Brexit_Automotive_A4_8pp_Final.qxp_Layout 1 19/01/2017 12:33 Page 2

We Won't Pay for ‘Brexit’:Exitingthe EU must not result in a renewedattack on our jobs, rights andcommunities.

• Article 50: The government mustnot trigger ‘Article 50’ before a clearnegotiating position has a mandatefrom the people via a vote inParliament.

• Access to the Single Market:Tariff-free access to the SingleMarket is vital to defend jobs. Suchaccess will allow us to retain thebest of the EU, while committing toa much needed industrial strategy.

• A Seat at the Table for Workers:The collective voice of millions ofworking people must be central tothe negotiations.

• An Ambitious Industrial Strategy:The only way to mitigate the impactof Brexit is with an ambitiousindustrial strategy, using all optionsat the government’s disposal.

Safeguards Against Exploitation Unite on ‘Freedom of Movement’Unite is calling for safeguards that defend allworkers against wage cutting and that mustinclude ending the exploitation of migrantworkers.

These safeguards must include strongercollective bargaining rights, so any employerwishing to recruit labour abroad should only beable to do so if they are either covered by aproper trade union agreement or by sectoralcollective bargaining.

This would allow us to hold the line andguarantee a union-backed ‘rate for the job’, nomatter a workers’ country of origin.Such safeguards would end the race-to-the-bottom attacks on wagers, terms andconditions.

Len McCluskey, Unite General Secretary,says:“The problem is not cheap labour in Britain –its cheap labour anywhere. Anyone who hashad to negotiate for workers, inmanufacturing in particular, knows the hugedifficulties that have been caused by theability of capital to move production aroundthe world in search of far lower labour costsand higher profits. Supply and demandaffects the sale of labour too, pitting workeragainst worker.”

Unite supports all our members and willcontinue to support the right of EU workers toremain in the UK after Brexit.

Our role as a trade union is to unite workingpeople to defend and promote our sharedinterests –secure work, decent pay and astrong collective voice.

We must not allow ‘Tory Brexit’ to be used as aweapon to divide us and drive down wages.

7719_Brexit_Automotive_A4_8pp_Final.qxp_Layout 1 19/01/2017 12:33 Page 3

The government has signalled that the UKis likely to Leave the European Unionbefore 2020, but that doesn’t mean Brexitwon’t have an immediate impact in ourworkplaces.

Already several large companies have madestatements about future investment decisions.Unite is demanding that the government end theuncertainty by stating that guaranteed tariff-freeaccess to the Single Market will be a red line in thecoming negotiations.

Similarly, Unite is demanding that all workers’rights, health and safety standards and consultationrights which are underpinned by EU law areretained in UK law when Brexit takes effect.

Some employers may look to take advantage of theuncertainty, using Brexit as a cover to cutinvestment or undermine our rights.

• If you sit on a European Works Councils orSocial Dialogue project you cannot beexcluded while the UK remains a memberof the EU.

• Employers cannot opt out of EU legalrulings, such as the ruling protectingholiday pay, which remain in effect.

• Employers cannot claim that legislationsuch as the Working Time Directive, theAgency Worker Directive or the DrivingHours Directive no longer applies to UKworkers.

The Impact of Brexit in the Workplace

Brexit In Your WorkplaceUnite will be launching a new ‘BrexitCheck’ website to monitor the impactof Brexit and provide the resources

you need.

Let us know what impact Brexit ishaving in your workplace. Contact:automotive@unitetheunion.org

7719_Brexit_Automotive_A4_8pp_Final.qxp_Layout 1 19/01/2017 12:33 Page 4

A Time to Unite:Fighting Racismwith SolidarityIt is a guiding principle of ourmovement that an injury to one is aninjury to all. That means Unite iscommitted to opposing any incidenceof racism, prejudice or sectariandivision in the workplace.

The EU referendum was divisive. Opinionswere strongly held, debate was heated andsome of the deep divisions in our societywere exposed.

Right-wing politicians and their allies in themedia did all they could to sow distrust andexploit these divisions for their own ends.

No matter which way you voted, the prioritynow is to unite.

As Britain prepares to withdraw from theEuropean Union, the resulting uncertaintymay once again give way to fear.

It is a priority of our union not only to defendour members’ jobs, but to defend their safety.Unite will continue to defend EU nationalsand other migrant workers who live and workin the UK. We support their right to remain.

It is our role, as workplace representativesand shop stewards, to take the lead and makesure that solidarity triumphs over division.

Defending YourWorkplace: MakeYour Voice HeardOur strength as a trade union comes from ourorganisation in the workplace. It is vital thatwe use this strength to protect our membersfrom the possible impact of Brexit.

• You have the right to disclosure.Demand that your employer sharesinformation about their plannedresponse to Brexit, including plansfor future investment.

• If you have pay talks or othernegotiations planned demand thatyour employer publically pledges toretain all working rights, terms andconditions, including access toEuropean Works Councils.

• Can you organise a branch orworkplace meeting to discuss theimpact of Brexit at work and how toorganise our response?

7719_Brexit_Automotive_A4_8pp_Final.qxp_Layout 1 19/01/2017 12:33 Page 5

Brexit and an Industrial StrategyThere is no doubt that the threat of so-called ‘HardBrexit’ hangs over our manufacturing industries.

Brexit on the Tories’ terms would follow over thirtyyears of de-industrialisation. Indeed, senior Toryeconomists such as Patrick Minford see Brexit astheir chance to finish the job Thatcher started.This is why it is essential that Brexit is linked to anambitious, long-term industrial strategy.

Such a strategy must marshal all options at thegovernment’s disposal to re-balance our economy,and grow a 21st century manufacturing base.It is our job to make sure that trade union values arecentral to this - that’s secure work, decent pay and astrong collective voice.

Unite is calling for the government to develop an‘Industrial Toolkit’ a range of options to create newjobs and give manufacturing a vital boost. Thisincludes:

• Reshoring Jobs:Removing the barriers tobringing manufacturing work back to the UK.

• Invest in Skills: The UK needs nearly 1 millionnew engineers and highly skilled workers by2020 and that need must be met with highquality apprenticeships

• Support our strategic industries: From steel toenergy and the railways, the government mustretain the option to bring these vital industriesinto public ownership.

• Positive Procurement: The government can usethe £200 billion a year public sector budget to

create a strong, stable internal market to supportmanufacturing

• Invest in Infrastructure: Road and rail should bejust the start of ambitious new infrastructureprojects, ranging from HS2 to a new 5GBroadband network.

Such an industrial strategy must be linked tosecuring tariff-free access to the Single Market andretaining all positive EU-based laws – from workers’rights to environmental protections.

Taken together this is a strategy for retaining thebest parts of the EU, while taking full advantage ofany opportunities that arise from Brexit. Thepriority in the months ahead is for the governmentto end the uncertainty that is plaguing industry –and come clean on its plans for Brexit.

We must make sure our members’ voices are heard– in the workplace and in Parliament - to scrutinisethe government’s plans, and show we will notaccept a version of Brexit that threatens ourmembers’ jobs and livelihoods.

Brexit and Your Sector

Brexit and the Manufacturing Sectors

7719_Brexit_Automotive_A4_8pp_Final.qxp_Layout 1 19/01/2017 12:33 Page 6

The Automotive sector has been one of UKmanufacturing’s greatest success stories. Unitemembers across the industry are rightly proud to bethe essential component at the heart of this worldbeating industry. The Tories cannot be allowed toput this at risk.

The automotive sector is truly global. The carsrolling off the production lines may be badged withthe most British of brands - Mini, Bentley, Rolls-Royce, Jaguar Land Rover – but these firms areinternational.

Similarly the industry is dependent on a UK-EU widesupply chain. Many manufactures, such as Nissanand Toyota operate ‘Just in Time’ supply chains,where they only stock essential components for anumber of hours. Any break in the supply chain thatruns from Aberdeen to Athens has the potential tocause major problems.

That is why Unite is demanding that the governmentpublically commits to pursuing tariff-free access tothe Single Market. This would maintain the integrityof the supply chain, while giving industry thestability needed to invest in new vehicle models.

However, both employers and the government cango much further than this.

Unite is calling on all employers to pledge that hardearned workers’ rights – from equality of pay, to theWorking Time Directive, access to European WorksCouncils and the rights to consultation – are allretained regardless of Brexit.

Unite will not accept any watering down of workers’rights, terms or conditions. We are calling on shopstewards, reps and members to be vigilant for anyemployer who seeks to take advantage of theongoing uncertainty.

The union is also lobbying the government –centrally, devolved and regionally – to adopt newprocurement rules so public bodies, from councils topolice forces, can support our industry by buying UKmade vehicles. This is just one way that a stable andstrong internal market can be create to support thecommunities which rely on our industry,

Brexit and the Automotive Sector

“”

The future of the automotiveindustry must be based on decentpay, guaranteed rights and astrong voice at work. That mustmean defending hard earnedemployment rights, such asagency worker protections, whilealso pursuing an ambitiousindustrial that grows our sector,with more quality apprenticeships.That is what Brexit on our termscan look like.

Tony Murphy, National Officer, Automotive Sector

7719_Brexit_Automotive_A4_8pp_Final.qxp_Layout 1 19/01/2017 12:33 Page 7

Not yet a member of Unite? Join today: www.unitetheunion.org/joinwww.unitetheunion.org @unitetheunion

Q) How can Workers’ Rights be protected?From equal pay to the Working Time Directive, EUlaws underpin many of the rights and protectionstrade unions have fought for. These must beprotected by UK law and retained in full from themoment Brexit takes effect. We must also use ourstrength in the workplace to demand thatemployers publically pledge to retain all rights,terms and conditions, including access toEuropean Works Councils.

Q) Why is access to the Single Marketimportant for Automotive?

Unite is calling for the UK to achieve tariff-freeaccess to the Single Market· If the UK leaves the EU without a trade deal

exporters face costly tariffs on goods being soldinto Europe

· Value of EU exports across automotive was over£10 billion in 2015 –49% of all carmakers'exports.

· Example: 55% of Nissan sales are to the SingleMarket. New tariffs would cost Nissan £290million a year. That’s £1.8 billion over the amodel’s lifecycle

Q) What about ‘Hard Brexit’?If the UK fails to negotiate a new trade deal withthe EU in the two-year window that follows thetriggering of Article 50 the result is ‘Hard Brexit’.This would result in the UK falling back on WorldTrade Organisation rules, which means costlytariffs. This could be as much as 10% on all exportsand 4% on imports, which would hit manu-facturing hard as it would sever UK-Europeansupply chains. It would also result in a new cost ofliving crisis with a dramatic rise in cost of importssuch as food and consumer goods. This is whytariff-free access to the Single Market is vital todefend jobs.

Q) What alternatives are there to EUmembership?

Unite has analysed the most commonlymentioned alternatives to full EU membershipincluding the so-called ‘Norwegian’ and ‘Swiss’options, as well as trade deals based on CETA andTTIP. It is clear that none of these models aresuitable for the UK. Instead tariff-free access to theSingle Market must be secured, allowing agovernment with the political will to keep all that ispositive about the EU, while also retaining the rightto intervene directly in support of our industries.

As the government’s cowardice to confront thesteel crisis shows, intervention is a question ofpolitical will. It is Unite’s job to pile on the politicalpressure to make sure that will is exercised.Any new free trade deals must not be based on thefailed models of TTIP or CETA. Workers’ rightsmust be guaranteed, there must be no ‘ISDS’secret courts and there must be strong tradedefence mechanisms to prevent the illegaldumping of Chinese steel, tyres or ceramics.

Q) What happens next?Unite will be lobbying the governments ofWestminster and the devolved countries to makesure our collective voice is heard. The true powerof our union is our strength in the workplace. Wemust organise to use this strength to protect ourmembers from the impact of Brexit. Discuss theimpact of Brexit at your next union branchmeeting and campaign for your employer topublically pledge to retain all workers’ rights,standards and protections.

Brexit must not be something our union simplywatches from the side-lines. We have a uniquerole to play in protecting and advancing theinterests of our members.

Frequently Asked Questions

7719_Brexit_Automotive_A4_8pp_Final.qxp_Layout 1 19/01/2017 12:33 Page 8