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Put workers on company boards to control executive pay, says TUC


The TUC has called for workers to sit on company boards, saying they would help to ensure "reasonable" levels of executive pay.

It said the corporate governance laws in the UK were "missing a trick" by preventing workers representatives from sitting on remuneration committees.

The TUC also believes that the appointment of workers to the boards could help companies to emerge stronger from the economic downturn. General secretary Frances O'Grady (pictured) said employees would inject a "much-needed dose of reality" into boardrooms.

"The move would put the brakes on the multi-million pound pay and bonus packages tht are fast becoming the norm in corporate Britain," she said.

The call comes after the TUC published two reports, criticising the UK system of relying solely on shareholders to hold a company to account. This had not delivered economic success or social justice, said the union body.

One of the reports, Workers on board, suggests that involving employees in the running of companies would be a break from the UK's "failed system of governance" and harness the contribution of people who have the "long-term development of the company at heart".

O'Grady said: "The move would also help put firms on a clear trajectory out of the economic difficulties many UK companies are currently facing and assist boards to focus on the strategies and investments needed for long-term company success."