Bradford MP and competitions minister Gerry Sutcliffe has called on companies to promote a good working environment - and reap the rewards.

Mr Sutcliffe urged employers to "put people at the heart of their business" at a meeting of the Yorkshire and Humber Employee Relation's Forum.

As globalisation and competition from Far East markets intensified, Mr Sutcliffe said the need for effective employment relations which led to "high performance workplaces" had become greater.

As an example of the dangers to business in Yorkshire from foreign markets, he highlighted Bradford car components firm Federal Mogul. The firm shed 380 jobs in 2004 after moving production overseas.

Mr Sutcliffe said: "In the 21st century our companies are facing rapidly increasing competition.

The performance of the Asian economies shows the competition that we face.

"But the UK is full of talented people. We want to encourage business to maximise this potential and encourage recruits from all ethnic backgrounds"

Bradford North MP Mr Sutcliffe added the workplace was now "very different" to what it was 15 years ago.

Mr Sutcliffe said businesses in Bradford could take on their overseas counterparts by developing high performance and niche markets.

He highlighted Bradford-based Yorkshire Building Society as an example of a successful high-performance workforce.

Business leaders, human resources professionals, trade union representatives, employment lawyers and academics attended yesterday's event including Professor Miguel Martinez, of Bradford University Business School, and Martin Hathaway, of Yorkshire and Humber Chambers of Commerce.

Yorkshire Forward chief economist Simon Foy also spoke at the event. He said: "We are at a very important point in the development of the Yorkshire economy."