Fourth Delegated Legislation Committee
Tuesday 8th September 2026
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14:33
14:33
14:33
Speaker 3
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Speaker 3
Thank you, sir Jeremy. On the surface, this revision introduces a the legal right to reasonable paid time off for union equality representatives ensures that representatives can hold multiple positions, thus increasing the provisions on which they qualify for more time off puts a greater onus on employers in tribunals, and legally requires employers to provide reasonable means to support representatives carrying out their jobs. Yet it does far more than this it burdens businesses with yet more regulatory red tape, decreases employment opportunities further and compounds the hardship.
Employers are already facing higher employment costs through increased administrative expenditure, unaffordable additional paid leave and legal tribunal expenses are a fast track to job scarcity. A recent survey of over 1000 business owners found that 1 in 5 lacked confidence in the new trade union rules. Furthermore, 69% of employers believe trade unions still have the power to cause serious problems for the UK economy, while 62% believe the UK is entering a new, more unstable period of employment relations.
Yet rather than heed these warnings and work with businesses to create a viable solution, the government persists with such policies despite being aware of the risks. This is a tough time for both employers and workers. Employers are seeing rising costs all around them whilst workers are watching their budgets get stretched thinner as the cost of living continues to mount. A solution is needed, but this approach will only create new challenges. The increased presence of trade unions is anticipated to escalate the number of strikes taking place across the economy.
Indeed, data from the European Company survey shows that strike incidence is directly higher in establishments where trade union density is greater. Furthermore, trade union membership in public sector sits at 48.5%, compared to only 12.1% in the private sector, with research showing that since 2000, the number of days lost to strikes per worker has been 30 times higher in the public sector than the private sector. Despite sector public sector earnings rising faster. And in this scenario of escalating industrial action, who's likely to be profoundly impacted? A persistent casualty demographic is the general public.
It's unacceptable that the government is looking to create a set of circumstances conducive to increased strikes, that the that burden the British public and at the taxpayers expense, no less. That is why we will be voting against this draft code. Rather than expanding the scope of paid time off for union representatives. The government should instead be scrapping this legal burden on employers and redirecting important taxpayer funds to frontline priorities like the NHS and national infrastructure.
Businesses have already suffered harmful setbacks under this government. Increases to national insurance contributions, mounting energy bills, business rate modifications and the Employment Rights Act, which 86% of industry leaders warned would harm UK growth. The government claims to be pro-worker, yet continues to enact policies that shrink workforces and empty the public's pockets. I am both pro-worker and pro-business. So is my party. We are steadfast in our belief that we must support businesses and entrepreneurs who not only prop up our economy, but take risks needed to provide employment.
I also firmly believe that a government must support workers by ensuring that they can keep as much of their own money as possible. That is how you truly bolster UK business and meaningfully assist the hard working taxpayer simultaneously. So can the Minister outline their plan to ensure that their policies on trade unions do not lead to further job losses, and if not, whether they will accept our suggestions?
Employers are already facing higher employment costs through increased administrative expenditure, unaffordable additional paid leave and legal tribunal expenses are a fast track to job scarcity. A recent survey of over 1000 business owners found that 1 in 5 lacked confidence in the new trade union rules. Furthermore, 69% of employers believe trade unions still have the power to cause serious problems for the UK economy, while 62% believe the UK is entering a new, more unstable period of employment relations.
Yet rather than heed these warnings and work with businesses to create a viable solution, the government persists with such policies despite being aware of the risks. This is a tough time for both employers and workers. Employers are seeing rising costs all around them whilst workers are watching their budgets get stretched thinner as the cost of living continues to mount. A solution is needed, but this approach will only create new challenges. The increased presence of trade unions is anticipated to escalate the number of strikes taking place across the economy.
Indeed, data from the European Company survey shows that strike incidence is directly higher in establishments where trade union density is greater. Furthermore, trade union membership in public sector sits at 48.5%, compared to only 12.1% in the private sector, with research showing that since 2000, the number of days lost to strikes per worker has been 30 times higher in the public sector than the private sector. Despite sector public sector earnings rising faster. And in this scenario of escalating industrial action, who's likely to be profoundly impacted? A persistent casualty demographic is the general public.
It's unacceptable that the government is looking to create a set of circumstances conducive to increased strikes, that the that burden the British public and at the taxpayers expense, no less. That is why we will be voting against this draft code. Rather than expanding the scope of paid time off for union representatives. The government should instead be scrapping this legal burden on employers and redirecting important taxpayer funds to frontline priorities like the NHS and national infrastructure.
Businesses have already suffered harmful setbacks under this government. Increases to national insurance contributions, mounting energy bills, business rate modifications and the Employment Rights Act, which 86% of industry leaders warned would harm UK growth. The government claims to be pro-worker, yet continues to enact policies that shrink workforces and empty the public's pockets. I am both pro-worker and pro-business. So is my party. We are steadfast in our belief that we must support businesses and entrepreneurs who not only prop up our economy, but take risks needed to provide employment.
I also firmly believe that a government must support workers by ensuring that they can keep as much of their own money as possible. That is how you truly bolster UK business and meaningfully assist the hard working taxpayer simultaneously. So can the Minister outline their plan to ensure that their policies on trade unions do not lead to further job losses, and if not, whether they will accept our suggestions?
14:37
14:37
Speaker 1
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Speaker 1
Thank you, chair, and I welcome the Shadow Minister to his role and to the committee today. I look forward to working with him and debating many issues in this area and and on this issue in particular, he he references a lot about industrial action, and I always find it quite rich from the opposition when I hear about strike days, because under their watch they did absolutely nothing to further good relations in this country. And that is a real shame, because it's detriment not only to those employers, but for trade unions and our society and economy as a whole.
That's why this government is absolutely acting responsibly. And I'll touch on exactly what we are debating today. But our wider industrial relations framework, we really, really recognise the need to make sure it is functioning so we can resolve disputes early in the workplace. That's good for businesses, it's good for employers, it's good for those trade unions and actually enforcing and making sure we have the skills across the workplace on negotiation is really, really important. So actually, what we're doing as a government, I think, is a responsible thing to do in ensuring that we can reset industrial relations.
And we're looking at modernizing our wider framework alongside lots of legislation, the bits that we're discussing today and helping to usher in that more cooperative and constructive approach between employers, workers and their unions. And I think that's a really good thing.
That's why this government is absolutely acting responsibly. And I'll touch on exactly what we are debating today. But our wider industrial relations framework, we really, really recognise the need to make sure it is functioning so we can resolve disputes early in the workplace. That's good for businesses, it's good for employers, it's good for those trade unions and actually enforcing and making sure we have the skills across the workplace on negotiation is really, really important. So actually, what we're doing as a government, I think, is a responsible thing to do in ensuring that we can reset industrial relations.
And we're looking at modernizing our wider framework alongside lots of legislation, the bits that we're discussing today and helping to usher in that more cooperative and constructive approach between employers, workers and their unions. And I think that's a really good thing.
14:38
14:38
14:38
14:38
14:38
Speaker 1
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Speaker 1
I won't be drawn on the ins and outs of every single dispute that's happening in the industrial relations landscape. What I will do again is bring us back to what a responsible government is doing, and that is fostering good industrial relations, because I think that is absolutely the right thing to do as a responsible government. And unfortunately, maybe we just disagree on that point, but bring it back to the draft code of practice, which obviously the statutory instrument is focusing on today and ensuring that employers have the guidance that they need based on what was passed in the Employment Rights Act.
That's why this is a really necessary step, so that employers do have the guidance to facilitate the legislation and understand their duties going forward. So providing that guidance and clarity is, is really important. And one of those things that we've touched on already in this debate is the ability to resolve the grievances early and having reps having more ability to spend time in the workplace to do that is a really, really good and positive thing. In addition to the improving communication, supporting training in workplaces and preventing those disputes, that's great workplace value and that's what we want to foster going forward.
And this today, what we are debating is absolutely necessary step. It's the right one to take so that as for the points that I made in my introductory speech and just now, chair, we want to absolutely make sure that the code plays a key role in ensuring that the new rights that are introduced in the Act passed last year can operate effectively in practice. When they're introduced from the point they come into force next month.
So I beg to move that this code of practice is approved, and it's a real shame the opposition can't support us today.
That's why this is a really necessary step, so that employers do have the guidance to facilitate the legislation and understand their duties going forward. So providing that guidance and clarity is, is really important. And one of those things that we've touched on already in this debate is the ability to resolve the grievances early and having reps having more ability to spend time in the workplace to do that is a really, really good and positive thing. In addition to the improving communication, supporting training in workplaces and preventing those disputes, that's great workplace value and that's what we want to foster going forward.
And this today, what we are debating is absolutely necessary step. It's the right one to take so that as for the points that I made in my introductory speech and just now, chair, we want to absolutely make sure that the code plays a key role in ensuring that the new rights that are introduced in the Act passed last year can operate effectively in practice. When they're introduced from the point they come into force next month.
So I beg to move that this code of practice is approved, and it's a real shame the opposition can't support us today.
14:40
Speaker 2
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Speaker 2
I'm grateful to the minister and to the shadow Minister. The question, therefore, is that the committee has considered the draft Acas code of practice on time off for trade union duties and activities, as many as are of that opinion say aye. I contrary no. No no. Division. Lock the doors. I think they're happy.
14:40
14:41
14:41
14:41
14:42
14:42
14:42