National Minimum Wage (Amendment) Regulations 2019

Debate between Baroness Donaghy and Baroness Burt of Solihull

Monday 4th March 2019 Grand Committee

[Baroness Donaghy (Lab)]

My Lords, I welcome this statutory instrument and the increases outlined by the Minister. As he knows, next month will be the 20th anniversary of the introduction of the national minimum wage, and I had the honour of being one of the founding members of the Low Pay Commission at the time. The recommendations we made impacted on and benefited 1 million women—and, incidentally, the world did not come to an end, which some forecasts had said would happen.

I am pleased that successive Governments have upheld the principles laid down by the original committee, and I hope that that will continue. Obviously, this was before the national living wage was introduced. However, one omission from our very first report in 1998, before the implementation, was the issue of accommodation offset. We were asked as a committee to look at that again, because we had not seen the significance of it.

I well remember being taken with the committee down to a convent in the middle of the Devon countryside to be gently lobbied by the Mother Superior and a number of nuns about the importance of having an accommodation offset. The Minister will know that it might have been gentle lobbying, but, my goodness, we were in absolutely no doubt whatever about the strength of feeling involved. The experience we had on the committee is a memory I will take with me for a long time. We were conscious that we were creating history, and I am very glad indeed that this is still here for us to admire.

[Baroness Burt of Solihull (LD)]

My Lords, I will fulfil the promise I made to the Minister on the previous statutory instrument and be brief. It is also a great relief from Brexit to be discussing something that is current and not contingent on anything else happening.

The statutory instrument talks about the national minimum wage amendment regulations, but the table refers to the national living wage. It does not take much to confuse me. I just want to explore that difference for a minute or two. The uplift of 4.9% for over-25s to £8.21 is very welcome and I accept and welcome the comments from the Minister on the progress that the Government are making to get to 60% of median earnings by 2020.

The concept of the national living wage was introduced by the Government in 2015. I appreciate the Minister’s comments on how the amount has increased but my understanding is that it is not a national living wage because it is not based on actual living costs. The Living Wage Foundation currently calculates it—although presumably it is due for an uplift as well—at £9 per hour and £10.55 in London. It says that the living wage is what people need to earn to live. Citizens UK says that there is a moral imperative on employers to pay that if they can and 4,700 businesses and 104 local authorities do.

We know that 20% of all low-paid workers are in the public sector. Can the Minister say what percentage of public sector workers are in receipt of the living wage? It was very good to hear the Minister’s comments on enforcement. Can he tell me how many companies have been found to be paying below the minimum wage and how many of these have actually been prosecuted?

In conclusion, I hope that we will be moving towards the living wage very soon. It is proven to be good for business because it improves staff morale and retention. It is good for society and for the Government’s coffers too, because 35% of those earnings will go to the Treasury.

Trade Union Bill

Debate between Baroness Donaghy and Baroness Burt of Solihull

Tuesday 23rd February 2016 Lords Chamber

[Baroness Burt of Solihull (LD)]

My Lords, these amendments aim to remove from this clause elements of facility time that are used on health and safety. I suppose that our attitude to this just depends on how we view the status of health and safety activities. I wonder whether the Government are saying that health and safety should be part of the same category as everything else that trade union representatives do. It is of great credit to employers and trade unions that the health and safety record of this country’s workplaces has improved so much over the last 20 years, as the noble Lord, Lord McKenzie, said. Let us also not go back to those dark old days he describes, when employees could be regarded as some kind of an expendable commodity. They are costly to recruit and train, they have fewer days of sickness absence if other health and welfare issues are attended to, and they work harder for an employer when they are properly regarded and looked after.

We understand that no element of facility time should have carte blanche to take up as long as anyone wishes. There has to be a balance. Nevertheless, we do not want to go back to restrictions leading to short cuts and more risks. Therefore, to echo the words of the noble Lord, Lord Deben, if we could have some kind of a robust explanation from the Minister as to why specifically health and safety is included in this clause, I think everyone in the Committee would rest easy.

[Baroness Donaghy]

My Lords, I should be clear that I do not support the Government’s intention—I still think it is their intention—to reduce facility time in the public services in principle. It is a matter for employer and employee to agree between them. Even the claims of cost saving in the Civil Service which were made in the last debate made no attempt to produce a cost-benefit analysis, which includes the undoubted benefits of facility time to the employer. The attempt to aggregate all facility time, including that of health and safety representatives and union learning reps, is cynical. The Government will decide what are “unacceptable inefficiencies” in the system and what is,

“poor value for money for the taxpayer”.

One wonders how objective that will be. It is to be hoped that the benefits, including staff satisfaction, improved health and safety and learning, will also be taken into account.

It is clear, as has already been said, that those employers with the best health and safety record welcome and support union safety representatives. Workplaces with union safety representatives have half the serious injury rate compared to those without. They also have lower rates of occupational illness and disease. The 100,000 health and safety representatives also save the economy millions of pounds and help to develop a positive safety culture in organisations and the reporting of injuries, and risk-awareness.

I will give two examples of health and safety partnership between employers and UNISON, my former union. In 2015, over 1,000 employees took part in a high-quality dementia awareness training in conjunction with the Open University in a range of workplaces. More partnership work is planned with the Open University around mental health awareness and autism awareness. While days lost through strike action amounted to 0.8 million, those lost through injuries or illnesses caused by work were 29.2 million—more than half because of “stress, depression or anxiety”, according to the CIPD. I am not trying to claim that health and safety representatives in most of the public services face the same physical hazards as, say, the construction industry. However, promoting well-being at work leads to huge savings for the employer. No attempt has been made by the Government to assess the benefits of this work.

A recent report by the CIPD, Growing the Health and Well-Being Agenda, reveals that the average cost of sickness absence alone is £554 per employee per year. This is the tip of the iceberg, as it does not cover the “indirect costs” of ill health,

“such as lost productivity, impaired customer service and lower employee morale”.

If you compare that cost of £554 per employee with the estimated cost of the apprenticeship levy and the national living wage at approximately £483 per person it illustrates the importance of well-being strategies and the link with day-to-day management.

I turn to union learning reps, because I have an amendment in the same group. It is important to place on record the important work undertaken by union learning representatives and their involvement in lifelong learning. A recent report by Exeter University also documented the significant added value which employers and individuals derive from projects provided by the Union Learning Fund. The report found that each £1 invested from the fund generates a total economic return of £9.15. The authors of the research estimate that £5.75 of that return goes to individuals in the form of improved prospects of employment and higher wages and £3.40 to employers, resulting from the greater productivity of a better skilled workforce—less output lost as a result of working time taken off to engage in learning.

I will give an example of other partnership deals, first, with Stoke Mandeville Hospital and local learning agreements with Sodexo and Carillion. One member, Louise, said of her own experience:

I left school at the age of 14 with no qualifications as I never sat my GCSE – I was a very rebellious teenager! … I took an NVQ2 admin course at college … I started working for the council in July 2009 … and was fortunate to work with UNISON ULRs [union learning reps], who encouraged me to do my level two adult literacy and numeracy in 2010” … I became lead ULR in January 2014 and began the digital champion project with the help of branch, ULF and UnionLearn funding, which is still going strong … By November 2015, I was already looking for my next learning mountain to conquer and I start an Institute of Leadership and Management leadership and management qualification this month”.

Louise went on to say that it was the investment of time by the union learning reps at the beginning which helped her life improve, and of course I pay tribute to her own commitment and dedication to lifelong learning. The investment of time in lifelong learning pays enormous dividends for our society, and nothing should be done to inhibit the work of union learning reps, which a cap on facility time will almost certainly do.