Industrial Action

Baroness Blower Excerpts

Wednesday 11th January 2023 Lords Chamber

[Baroness Blower (Lab)]

My Lords, the Minister and the Government are being a little disingenuous when they refer to what happens in Europe. I am delighted to follow the noble Lord, Lord Balfe. The fact is that the countries the Minister listed, generally speaking, engage in sectoral collective bargaining, and where there are minimum service levels—if they are implemented at all; it is a moot point whether or not they are—they are within the framework of sectoral collective bargaining. The Minister will know that about 80% to 90% of workers in various areas in other countries are covered by sectoral collective bargaining, but that is not the case here. Will the Minister consider putting in place a structure for sectoral collective bargaining before we move to what is clearly unworkable legislation on this basis? While I am on my feet, perhaps I could ask the Minister to respond to my noble friend’s question about ACAS.

[Lord Callanan (Con)]

There are not just minimum service level obligations in other European countries, there are outright bans on striking. For instance, there are bans on border security strikes in Germany, Spain, Italy, France and Belgium. We are not proposing to go nearly as far as those countries have in banning strikes in these areas. We are merely suggesting that unions should provide minimum services during strikes. As for consultation, the legislation was drawn up very quickly and in haste. We have not been able to do all the consultation we would like, but noble Lords will be reassured to know that for the actual implementation of the secondary regulations—which will contain most of the detail—we will of course carry out full consultations.

Employment Policies

Baroness Blower Excerpts

Tuesday 6th December 2022 Lords Chamber

[Lord Callanan (Con)]

I agree with the noble Lord: I do blame the train unions for the strike, because they are the ones who are taking strike action and depriving people of the right to go and see their relatives and loved ones at Christmas.

[Baroness Blower (Lab)]

The Government’s plan to introduce a minimum service level for transport workers on strike, which reports in the media suggest may be extended to the whole public sector, is clearly a direct violation of Convention No. 87 and more, so how can the Minister claim that the Government are keeping the UK’s international obligations when they plan such egregious attacks on workers’ rights?

[Lord Callanan (Con)]

The noble Baroness states that something is clearly in contravention; we do not agree with that advice. If she were right, then France, that bastion of liberalism, would not have minimum service level provisions in its domestic law, which it does.

Government Departments: Communication with Industry and Commerce

Baroness Blower Excerpts

Monday 14th November 2022 Lords Chamber

[Lord Callanan (Con)]

I can give the noble Lord that assurance. We have been engaging extensively with the City of London financial services firms in the development of the related legislation that will shortly be before your Lordships.

[Baroness Blower (Lab)]

My Lords, in this Evidence Week, I draw the Minister’s attention to the fact that researchers in the University of Sheffield have shown that, between 1995 and 2015, the finance industry—sometimes referred to as the City of London—made a negative contribution of £4,500 billion to the UK economy. Have the Government investigated this, and will a report be published on it?

[Lord Callanan (Con)]

The short answer to the noble Baroness’s question is no. I have no idea what she is talking about or indeed where she has got the figures from. The last figures that I saw showed that the financial services industry—which is not just in the City of London—contributes tens of billions of pounds to the UK economy. The noble Baroness and her friends are always talking about more public expenditure and the need to spend more in every sector. Somebody has to earn that money, and one of the principal earners for the UK is the City of London. We should be proud of the contribution that it makes.

Winter Heating Initiatives

Baroness Blower Excerpts

Thursday 7th July 2022 Lords Chamber

[Lord Callanan (Con)]

Of course, the rate of VAT has already been reduced on some energy-efficiency measures, but my noble friend makes a good point and I will be sure to convey it to the Treasury.

[Baroness Blower (Lab)]

My Lords, I am sure the Minister recognises that the cost of energy is having a very bad effect on education budgets in schools. I hope he will be liaising with whomever ends up at the Department for Education to see what can be done to ensure that schools are properly heated, as cold children cannot learn and cold teachers cannot teach.

[Lord Callanan (Con)]

The noble Baroness makes a powerful point. I point to the public sector decarbonisation scheme, for which I am responsible, which has already rolled out billions of pounds’ worth of improvements to all our public buildings to help make them more energy efficient.

Fire and Rehire

Baroness Blower Excerpts

Wednesday 15th June 2022 Lords Chamber

[Lord Callanan (Con)]

My noble friend makes a very important point. He has long experience of industrial relations. It is almost as if these strikes were specifically designed to make life as inconvenient as possible at some of the worst times of the year for the travelling public. That is unacceptable. They should think again, and I hope the Labour Party will join us in urging the trade unions to think again.

[Baroness Blower (Lab)]

My Lords, clearly the strikes are designed to make sure that those workers who worked extremely hard during the pandemic, and work very hard all the time, achieve decent wages and conditions, but does the Minister agree that, by failing to outlaw fire and rehire as a negotiating tactic, the Government are giving the green light to bad bosses to exploit workers?

Employment Bill

Baroness Blower Excerpts

Wednesday 6th April 2022 Lords Chamber

[Lord Callanan (Con)]

I have heard what my noble friend has said, and I know the close interest which he takes in these matters and his close relationship with the trade unions. I will certainly take his message back to the department but, as he will be aware, I cannot predict what may or may not be in the Queen’s Speech.

[Baroness Blower (Lab)]

My Lords, the all-Peers letter to which my noble friend Lord Hendy has already made reference contains an excellent proposal to ask European ferry operators and unions to agree a common level of seafarer protection on European ferry routes. Will the Minister undertake to consider legislation to achieve such sector-wide collective bargaining at national level too—as was recently implemented in Spain and proposed in New Zealand?

[Lord Callanan (Con)]

Part of the problem with P&O is that the ferries were registered in another European country, so presumably it was applying European law in those circumstances. Clearly there is an issue with ferries, which by their very nature cross borders, and I know that the Secretary of State for Transport has announced nine measures, including minimum wage requirements for seafarers operating from British ports. He will want to take those issues forward as fast as he can.

Trade Union (Levy Payable to the Certification Officer) Regulations 2022

Baroness Blower Excerpts

Monday 7th March 2022 Lords Chamber

This legislation is unfair, unnecessary and speaks only to the Government’s malevolence towards trade unions, which they regard as distorting the labour market and preventing wages being driven down to the lowest level that workers will tolerate. I support the amendment.

[Baroness Blower (Lab)]

My Lords, in 2016, I was not yet a Member of your Lordships’ House and I protested on many occasions, very loudly, outside this House at the trade union legislation then going through the processes here. I trust that I shall always be able to protest very loudly outside this House, whether standing still or moving around, when legislation of this type is proposed.

The Minister talks of the valuable work of unions, but the actions of this Government belie that. My noble friends on this side, in particular my noble friend Lord Monks, have talked about the level of constraint and regulation on the trade union movement in this country. From my engagement with trade unions across Europe, both east and west, I know that to be true. This is therefore a regulation too far. While I do not agree with all the remarks made by the noble Lord, Lord Balfe, I certainly agree with his opening remarks that this is unwarranted and gives rise to the view that this Government are anti-trade union.

[Lord Callanan (Con)]

I thank all noble Lords for their valuable contributions to the debate. It is great to see the noble Lord, Lord Woodley, back with us in such hale and hearty form. I had the pleasure of replying to the debate when the noble Lord made his maiden speech, so I regard it as a particular honour that I get the chance to respond to him again tonight, albeit in slightly less harmonious circumstances.

Turning to the amendment put forward by the noble Lord, Lord Bassam, I thank him for raising his concerns, although, as will become clear, I do not agree with very much of what he said. However, I reiterate what I said at the start: unions play an important role in some aspects of industrial relations and have an important part to play in our economic recovery. It is therefore crucial that the public have confidence that they are regulated effectively and fairly.

These reforms will bring the Certification Officer in line with the powers and funding arrangements of other regulators. They will allow the Certification Officer to take robust enforcement action against an organisation that breaches its statutory obligations. The reforms will ensure that the taxpayer no longer has to pay in full for the regulation of trade unions and employers’ associations. The cost will be borne in part by the organisations that can afford it.

Despite many of the comments that were made, there are many precedents for this: a number of other regulators are funded by a levy. For example, the Groceries Code Adjudicator, the Office of Rail and Road, and the Pensions Regulator are all funded by a variety of levy schemes. The Pensions Regulator uses a banded scheme based on membership of pension funds. Companies House is partly funded by fees from company directors. The Financial Reporting Council is paid for in large part by the auditors that it regulates.

Other regulators also have a range of sanctions at their disposal. The Electoral Commission and the Information Commissioner’s Office, like the Certification Officer, can either take civil enforcement action or launch criminal prosecutions. The Electoral Commission’s compliance notices are similar to the Certification Officer’s enforcement orders. The Electoral Commission also has a range of financial penalties at its disposal, from £200 to £20,000, which mirrors those proposed for the trade union Certification Officer. Those instances are all slightly different, but it is not true that this is somehow something being imposed uniquely on trade unions.

In reply to the noble Lord, Lord Bassam, we have of course considered the affordability of the levy and how much it can grow in the future. As no organisation will pay more than 2.5% of its annual income, and lower-income organisations will be exempted from the levy entirely, I think his criticisms on that were unwarranted and have no validity. As the Certification Officer regulates both employers’ associations and unions, it is fair that employers’ associations also contribute in part towards the levy.

The Trade Union Act 2016 contains an important safeguard that requires the Certification Officer to aim to ensure that the total amount levied over a three-year period does not exceed the actual expenses she has incurred. We believe that this will ensure that the levy remains predictable and affordable. The Certification Officer has always gone about their duties in an independent and impartial way, and of course that will continue.

I will now answer some of the other points raised during the debate. The noble Lord, Lord Bassam, and my noble friends Lady Neville-Rolfe and Lord Balfe all raised the issue of electronic balloting. Indeed, the Trade Union Act included provisions to introduce electronic balloting for union elections. A review of electronic balloting was conducted by Sir Ken Knight, but before responding to the recommendations in his review, the Government were required by Section 4 of the Trade Union Act 2016 to consult relevant organisations, including professionals from expert associations, to seek their advice and recommendations. We have now done this, and we are finalising our consideration of Sir Ken’s recommendations before we issue our response in due course.

I have answered many of the points made by the noble Lord, Lord Razzall, about the comparison with other regulated bodies. I reiterate that the role of the Certification Officer is unique, as is the role of trade unions, and that comparisons with other sectors, while there are some parallels, are not totally relevant.

The noble Lord, Lord Woodley, and my noble friend Lord Balfe raised the possibility of vexatious complaints being made at a cost to unions. I must say, respectfully, that the Government disagree. When there are vexatious complaints, we do not expect that the Certification Officer will spend much time on them. The CO is a public authority, and she has to act reasonably. She cannot appoint an inspector unless a new, higher judicial test has been met that she has reasonable grounds to suspect that a breach of the regulations has occurred.

The noble Lord, Lord Bassam, raised the point about the significant limit on how much the levy could raise in similar years. The noble Lord, Lord Monks, also raised the point that the Certification Officer can somehow just do as she pleases. I responded to that in my previous comments, but we have removed most of the variable costs from the levy and, as I said, the Certification Officer, as a public authority, has to act reasonably, and that is a higher judicial test than in the current regulations.

Lastly, my noble friend Lady Neville-Rolfe asked me whether USDAW had responded to the consultation. I am afraid I do not have that information with me, but I will ask officials to look through the consultations and write to her accordingly.

In conclusion, this is not about constraining the ability of unions and employers’ associations to do their work. There is, unquestionably, a strong public interest in appropriately regulated trade unions. These reforms are about modernising the Certification Officer’s role to ensure that she can continue to deliver exactly on that. Therefore, I commend these draft regulations to the House.

Non-UK Residents: Property Ownership Register

Baroness Blower Excerpts

Tuesday 2nd November 2021 Lords Chamber

[Lord Callanan (Con)]

We do support legislation, as I have told the noble Baroness before in this House. Finding time to legislate in recent years has been challenging. My department has been working on complementary forms for Companies House such that when we implement ROBO, and we will, it will be more effective because of the broader powers that Companies House will have.

[Baroness Blower (Lab)]

My Lords, a public register of property ownership was promised by the noble Lord’s party in 2016 and consulted upon in 2017. A Bill was promised in 2018, again in the Queen’s Speech in 2019 and at the G7 in 2021. There is still no Bill. Can the Minister please be a little more specific than “when parliamentary time allows”?

[Lord Callanan (Con)]

I apologise to the noble Baroness, but I cannot. The Government’s legislative agenda is not fixed yet. There are a number of different measures that different departments want to put forward and there has to be a weeding-out process, as all noble Lords who have been involved in government will know.

Ethnicity Pay Gap Reporting

Baroness Blower Excerpts

Monday 25th October 2021 Lords Chamber

[Baroness Blower (Lab)]

My Lords, it is a pleasure to follow the noble Baroness, Lady Prashar, and I congratulate my noble friend Lord Boateng on securing this debate. I congratulate him in particular on his speech, which made an unanswerable case for ethnicity pay gap reporting.

Fairness on pay is a key issue for all workers, which is why the TUC was always in favour of gender pay gap reporting and why now the TUC, joined by the CBI and the Equality and Human Rights Commission, is in favour of ethnicity pay gap reporting. In the context of the rise of the Black Lives Matter movement, calls have clearly intensified for race equality and, as has been said, a petition to introduce mandatory ethnicity pay gap reporting was delivered to Her Majesty’s Government last July. This, of course, followed the McGregor-Smith review of race in the workplace already referenced. That, as my noble friend said, is emblazoned with the slogan:

“The time for talking is over. Now is the time to act.”


But the Government did not act on the recommendations that they should legislate to make larger businesses publish their ethnicity data by salary band to show progress. As is frequently the case, the Government consulted and found difficulties, and the results of this consultation have not, in fact, been published.

One of the difficulties put forward, as I understand it, is the issue of sample size and workplace segregation. However, Professor Susan Milner of the University of Bath says:

“Pay gap reporting in its current form”—


bear in mind that 11% of companies do produce data—

“is not meant to be a robust statistical tool. It provides a snapshot of workforce composition and pay at any given point.”

The point of pay gap reporting is to oblige employers to examine their data and work out what disparities might exist. This is why the National Education Union conducts a survey of pay, and while it does not specifically conclude that discrimination is taking place, it provides figures which the employers of teachers should perhaps consider. It is the largest database of teacher pay data, given that the DfE does not collect meaningful data on this basis. Headlines from that recent survey include that 85%—not enough, in my view—of white British teachers had received the national recommended cost of living award, but even worse, appallingly, only 77% of other ethnic minority teachers had received it. Only 7% of white British teachers were denied pay progression, but 11% of other ethnic origin teachers were so denied. In fact, in finer detail, 15% of Indian teachers and 14% of African teachers, as self-identified in the survey, had not received this pay progression. At the very least, these figures suggest a requirement to publish a policy on pay progression at school level in every school.

I close my remarks by returning to Professor Susan Milner. She concludes that while ethnicity pay gap reporting will provide an imperfect picture, it is still a much-needed one that organisations can learn from to improve their employment practice. At a time when there is evidence of worsening employment conditions for people from black and ethnic minority backgrounds due to the pandemic, government action is more necessary than ever. I believe that she is right. I hope the Minister can offer some hope for action.

Status of Workers Bill [HL]

Baroness Blower Excerpts

2nd reading
Friday 10th September 2021 Lords Chamber

[Baroness Blower (Lab)]

My Lords, it is a pleasure to speak in this Second Reading debate on a Bill which is so urgently needed to create fairness and coherence for workers.

As the TUC has said, our legal framework for workers’ rights is not fit for the 21st century. Indeed, it has not really been fit since well before the turn of this century. My noble friend Lord Hendy has outlined with clarity and precision the aim and intention of the Bill, which would of course leave unaltered the arrangements for those who are genuinely self-employed on business on their own account, either through a genuine personal service company or as professionals. However, it would address the situation of so many workers who find themselves in so-called self-employment—bogus self-employment—which leaves them with none of the statutory rights, such as they are, enjoyed by employees.

In the context of building back better, in the period beyond the worst phases of the pandemic—which is where we hope we at least find ourselves—we must surely want to ensure that all workers are entitled to at least the minimum wage, paid holidays and protection from unfair dismissal. Building back better must also of course mean building back fairer. The Status of Workers Bill would give millions of workers in insecure and precarious situations across England, Wales and Scotland greater rights by the creation of this single-worker status and equivalence therefore with employees. The claim is sometimes made—as has been referred to by other noble Lords—that bogus self-employment is about flexibility for the worker. Unscrupulous, bad employers might well make this case, but good employers can and do negotiate flexible working arrangements without recourse to eliminating workers’ rights. That should be the position for all workers.

Much more can and should be said about the range and number of workers—the TUC calculates 3.6 million—whose working lives would be improved by the Bill. I look forward to speaking during the later stages of its passage through this House and I offer it my full support.