Economy: The Growth Plan 2022
Debate between Baroness Bloomfield of Hinton Waldrist and Lord Hendy(2 years, 1 month ago)
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Lord Hendy (Lab)
My Lords, it is a constant theme of Conservative economic policy that the rich are incentivised to be more productive by increasing their incomes whereas the poor are incentivised by threats to reduce theirs. The growth plan is full of examples, such as, at paragraph 3.22, the removal of the higher rate of tax from those earning more than £150,000, which has now of course been abandoned and, at paragraph 4.9, removing the limit on bankers’ bonuses. On the other hand, paragraph 3.24 proposes more conditions on eligibility for universal credit: “intensive conditionality”, the Chancellor calls it. It is specifically aimed at
“claimants who are in work and on low earnings”.
We know that most claimants are, in fact, in work. Universal credit is, in fact, a subsidy for employers who pay the lowest wages.
Average wages are rising by 5.2% per annum, while the consumer prices index rose by 9.9% in the year to August. The value of earnings from wages is therefore falling by an average of nearly 5% per annum. That is a huge hit to the living standards of working people. Consequently, demand in the economy is shrinking. That cannot be redressed by giving a few thousand high earners more money, but, if the incomes of ordinary working people rise, that money will be spent and demand will increase.
The differential between earnings and prices has another impact. Notwithstanding the Government’s energy price cap at twice last year’s rate, working people are becoming desperate. That is why there is a wave of strikes, with overwhelming ballot mandates. But rather than address the catastrophe facing working-class people this winter, the Government propose further restrictions on the only leverage that working people have to protect their standard of living when persuasion fails—industrial action. Not content with the most restrictive laws on trade unions in the western world, the additional restrictions of the Trade Union Act 2016, raising this year the limit on damages payable by trade unions, and enabling agency strike-breakers, also this year, the Government now propose yet further restrictions on the right to strike in paragraph 3.28 of the Growth Plan: minimum service levels for transport services, and every employer’s offer to be put to a ballot of employees.
The objection is not just one of principle—these restrictions are in breach of the conventions of the ILO and the European Social Charter, from which the Government undertook not to regress in Article 399 of the trade and co-operation agreement at the end of 2020; there are also problems with practicalities. If the minimum service requirement is, say, 10% of train services, who will select the train services to run and on what basis? How are those who are to staff them to be selected and forced to work? Ten per cent of train services will require near 100% of signallers and most of the station staff. Are they to be denied the right to strike?
In relation to balloted offers, must there be a ballot for an offer of a penny extra an hour when the members have voted unanimously for an extra £5? If they reject the offer, can the employer then further postpone the strike by offering another penny, and so on until the statutory duration of six months for a strike ballot is exhausted? How are the workers to be balloted? Presumably, as for strike ballots—and unlike the ballot for the Prime Minister—by post only, not online. That takes weeks. Who will pay for it?
Instead of attacking workers trying to defend their standards of living, I commend to the Government the restoration of the system of sectoral collective bargaining that was a feature of our economy when it was successful. It is a feature of the successful economies of Europe and is currently the subject of legislation in New Zealand and the fast food industry in California. It gained support only last week—
Baroness Bloomfield of Hinton Waldrist (Con)
The noble Lord has exceeded the advisory speaking time by some margin.
Lord Hendy (Lab)
—in the OECD Employment Outlook 2022. Those are my last words.
P&O Ferries
Debate between Baroness Bloomfield of Hinton Waldrist and Lord Hendy(2 years, 8 months ago)
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Baroness Bloomfield of Hinton Waldrist (Con)
I assure my noble friend that P&O is still accountable for its deficits in the pension scheme, particularly in the Merchant Navy ratings reserve fund. Regarding interaction with the trade unions on the situation, we are working closely with them to understand their concerns and act in support of their aims where possible, including to establish the legality—or lack thereof—of the actions of P&O. Minister Courts held a round table with maritime unions last week to discuss how Governments can best support maritime workers. We will continue to engage with unions as appropriate.
Lord Hendy (Lab)
My Lords, I am glad that Her Majesty’s Government are considering changes to the law to prevent this sort of outrage happening in the future. However, one thing is clear. Simply tightening up the loopholes exploited by P&O, or increasing the financial compensation caps, will not be enough with an employer who has long pockets. I suggest three steps which would have real teeth. First, as the Minister has mentioned, Barry Gardiner’s fire and rehire Bill would allow an injunction to compel consultation. Secondly, we should amend the Equalities Act to allow an injunction to prevent what is clearly discrimination on grounds of nationality. Thirdly, trade unions should once again be allowed to take solidarity action.
Baroness Bloomfield of Hinton Waldrist (Con)
My Lords, we are committed to reviewing and monitoring the impacts of minimum wage legislation—including for seafarers—very closely, to ensure that it meets modern employment practices. Two years ago, the Government pledged to conduct a review of all NMW law in relation to seafarers and a working group was formed to explore this. I am sure that we will be looking at its results in responding to this crisis.
Covid-19: Working Mothers
Debate between Baroness Bloomfield of Hinton Waldrist and Lord Hendy
Baroness Bloomfield of Hinton Waldrist (Con)
The noble Baroness is right to point out a number of very shocking statistics in the TUC report. We continue to actively monitor the impact of Covid-19 on the labour market, particularly on women. All departments ensure that equality considerations are at the heart of their decision-making. This is key to the Government’s commitment to delivering equality of opportunity for all as well as to complying with legal requirements under the public sector equality duty. The Government Equality Office, based in the Cabinet Office, runs a number of targeted programmes for women to support returners to work and others with protected characteristics, including minority groups.
Lord Hendy (Lab) [V]
Does the Minister agree there is an urgent need for legislation to create a comprehensive scheme for working parents which, in addition to properly paid maternity and paternity leave, provides for shared paid leave and flexible work arrangements in relation to childcare, care for family members and family emergencies, requires employers to make reasonable adjustments for non-disabling, non-permanent conditions, such as menopause, and gives adequate protection against dismissal or detriment for seeking to enjoy these rights?
Baroness Bloomfield of Hinton Waldrist (Con)
The noble Lord makes some interesting points. The shared parental leave and pay scheme already gives working families choice and flexibility on who cares for their children, at least in the first year. Following consultation, we are evaluating the views from over 3,000 parents, and our analysis will be published. There are protections against detriment, and parents on shared parental leave are protected against unfair dismissal. I note his comments about requiring legislation, and this will be part of the considerations in the consultation.