Employment and Trade Union Rights (Dismissal and Re-engagement) Bill [HL]

Baroness O'Grady of Upper Holloway Excerpts

2nd reading
Friday 1st March 2024 Lords Chamber

[Baroness O'Grady of Upper Holloway (Lab)]

My Lords, I declare my interest as former leader of the TUC. It is a pleasure to follow the noble Lord, Lord Balfe, and also to congratulate my noble friend and fellow trade unionist Lord Woodley on bringing forward this Bill.

In the wake of the P&O Ferries scandal, Grant Shapps, who was Secretary of State for Transport at the time, said on Sky News that the Government would

“send a clear message … that we will not allow this to happen again. That where new laws are needed, we will create them. Where legal loopholes are cynically exploited, we will close them. And where employment rights are too weak, we will strengthen them”.

The Government’s new code of practice, sadly, comes nowhere near meeting that promise. It does not close the legal loopholes that allowed P&O Ferries to evade the law and financial sanctions. It does not strengthen unfair dismissal rights to prevent an employer sacking their workforce, and either rehiring or replacing them on inferior conditions. A 25% uplift in compensation hardly adds up to a deterrent. Noble Lords will recall that the P&O boss brazenly admitted that employers can simply price-in the cost of one-off payments.

Emma Wayland of Keystone Law has said:

“The cynical might say that this can be treated as a tick-box exercise that will present no more than a minor inconvenience to an employer, for whom the threat of fire and rehire can still be used”.


That cynicism is justified and rooted in real experience. It is disappointing that Ministers have pushed through this code when it does not have the confidence of the very people who are on the front line fighting fire and rehire—namely, workers and trade unionists. Businesses use fire and rehire tactics for the simple reason that, in Britain today, sacking workers and rehiring or replacing them on worse paying conditions is far too cheap and easy. Those guilty of this practice over recent years are not just those running a few back-street sweatshops, or a few struggling employers who have fallen on hard times. The roll of shame includes big names in the mainstream, which have absolutely no excuse—the likes of Tesco, British Gas and British Airways.

In many cases, unions have fought back and won, but no working family in Britain should be put through the worry, hardship and humiliation of being treated as throwaway labour. Workers need stronger protection against unfair dismissal from day one in the job and tougher tests that require employers to consult with unions with enough time to explore reasonable economic alternatives. Instead of making it harder for workers to protect their pay and conditions, as with the Strikes (Minimum Service Levels) Act, the Government should recognise that, when faced with the threat of fire and rehire or replacement, workers must be able to respond quickly and exercise their democratic rights to withdraw their labour. Where an employer flouts the minimum standards set out in law, for example by not following the required steps for consultation before sacking workers, those workers must be afforded an immediate remedy, notably automatic reinstatement.

Finally, let us recognise that fire and rehire is often just a fancy name for casualisation: long-standing hotel staff on full-time contracts being rehired on short-hours arrangements; university lecturers facing similar, not least at SOAS, where worse conditions for staff mean a worse education service for students; and seafaring crews on collectively agreed terms and conditions being replaced by agency staff paid a pittance. As TUC analysis shows, it is no accident that black and ethnic-minority workers are twice as likely to find themselves on the sharp end of fire and rehire.

Paying lip service in the form of a code is not good enough. The Bill offers the Government a second chance to get this right, to make good on their P&O promises and to stop the slide towards insecure employment in Britain. I urge the Government to support the Bill so that the decent employer is not undercut by the bad, and so that everyone at work gets the respect and dignity that they have earned.

National Minimum Wage

Baroness O'Grady of Upper Holloway Excerpts

Wednesday 21st February 2024 Lords Chamber

[Lord Offord of Garvel (Con)]

I thank the noble Lord for that. I think I have already addressed that question. We have to set the national minimum wage as high as possible for young people without damaging their prospects. We have to encourage them into the workplace. We have to avoid the longer-term scarring effects from long spells of unemployment that I have talked about. That is what this metric achieves.

[Baroness O’Grady of Upper Holloway (Lab)]

My Lords, does the Minister agree that it is shocking that social care workers—who perform incredibly skilled and precious work for all of us but the majority of whom are paid less than the real living wage of £12 an hour outside London—are paid so little, and that a quarter of them are on zero-hours contracts? How much do his Government believe a social care worker is worth?

[Lord Offord of Garvel (Con)]

I think everyone on all sides of the House agrees with the noble Baroness that we owe a great deal of gratitude to those who work in the social care sector. It is a fact that a lot of them are on lower wages and we would like them to be paid more, but at the end of the day we now have 10% of the workforce on a national living wage that underpins their prospects, and it is now the responsibility of businesses and employers to increase the training and skills of our workforce so that they can earn more in the market.

Code of Practice on Reasonable Steps to be taken by a Trade Union (Minimum Service Levels)

Baroness O'Grady of Upper Holloway Excerpts

Wednesday 6th December 2023 Lords Chamber

[Baroness O'Grady of Upper Holloway (Lab)]

My Lords, I rise to support the amendment standing in the name of my noble friend Lord Collins, and to join him in reminding the House that Labour will repeal this toxic legislation that would turn the clock back on mature industrial relations and workplace justice in this country.

First, I relay my thanks to the Minister, the noble Lord, Lord Offord, for taking the time to meet with me yesterday. Our discussion touched on the P&O Ferries scandal. I confirmed that, after those unlawful mass sackings, no one was prosecuted and there have been no government sanctions against either the firm or the owner. Compare and contrast that with the proposals that we have before us today. This House rightly raised the alarm about the risks of a skeleton Bill railroaded through without proper scrutiny or parliamentary accountability and without proper regard for our international obligations.

Sadly, this legislation was never about good policy-making; rather, it is about an unpopular Government trying to shift the blame for their own failings on to decent public servants and punishing trade unions which exist to defend them. Ministers say they are standing up for public service users, but those claims ring hollow. During the recent wave of strike action, polls showed public sympathy with the strikers and exasperation with Ministers’ high-handed, slow and chaotic approach to resolving these disputes. Now, the OBR is forecasting an unprecedented two-decade squeeze on real pay by 2028, and the Autumn Statement heralds another round of deep austerity cuts for many public services. That is why the Government are railroading through this bad legislation. They have no intention of addressing the causes of discontent; the objective is to crush it.

The code of practice is just the latest manifestation of contempt for the rights and freedoms of ordinary working people. The code sets out so-called “reasonable steps” that unions must take to comply. However, there is nothing reasonable about the code’s ridiculous requirements and deadlines for identification, state interference in what an independent union must communicate with its own members, new demands on picket supervisors when the strikes Act did not even mention picketing or imposing draconian sanctions on staff and unions. Rather, the code enables employers, no doubt under pressure from Ministers, to disregard democratic strike ballot, drag unions into court, attack union funds, strip away automatic protection against unfair dismissal and ban strikes by the back door.

On the day that the former Prime Minister, Boris Johnson, professes gratitude to healthcare workers and other public servants for protecting people through the pandemic, this is their reward. In drawing up this code, Ministers ignored the advice of Select Committees of this House, trade unions who opposed the strikes Act, employers who never wanted it, the RPC, which red-rated it, the UN’s labour arm—the ILO—and even the UK’s widely respected industrial relations body, ACAS.

I have two questions for the Minister. First, the Government fund ACAS with taxpayers’ hard-earned cash to promote good industrial relations and provide real-world expertise. However, ACAS’s long list of sensible proposals for substantive amendments to this code were rejected. Can the Minister tell us why? In what area of good industrial relations practice have this Government proved to be more expert than ACAS?

Secondly, the code spells out that an individual worker who disobeys a work notice will lose automatic protection against unfair dismissal and, if unions are deemed to have failed to have taken the so-called reasonable steps, all striking workers lose that automatic protection. However, the code says absolutely nothing about what positive rights NHS staff, rail staff and other dedicated key workers would then have in those circumstances. This is quite an oversight. If, as a result of the legislation, workers individually or en masse are sacked, precisely what would their rights be and why does the code fail to set this out?

[Lord Hendy (Lab)]

My Lords, I declare my interests as in the register and that I am a member of the Delegated Powers and Regulatory Reform Committee.

Of the many points that I would like to make, I will restrict myself to four. First, having spent 46 years of professional practice largely involved in the legal consequences of industrial relations disputes, I find it offensive that the Act and the code of practice compel trade unions to serve the interests of employers in undermining their right, guaranteed by all relevant international law and hence diminishing the only bargaining power our 34 million workforce have, to enhance the terms and conditions on which they sell their labour.

Secondly, in November 2021 the Delegated Powers and Regulatory Reform Committee published Democracy Denied? and the Secondary Legislation Scrutiny Committee published Government by Diktat. Your Lordships will recall the two principles underlying those reports. First, primary legislation should conform to the principles of parliamentary sovereignty, the rule of law and the accountability of the Executive to Parliament. Secondly, the threshold between primary and delegated legislation should be founded on the principle that the principal aspects of policy should be in the Bill and only detailed implementation should be left to secondary legislation. These principles were debated in this House on 6 January 2022 and 12 January 2023. The House clearly and strongly endorsed them. I understood that the then Leader of the House did not dissent from them. Yet this legislation failed both principles.

In its consideration of the Bill, the Delegated Powers Committee, in its 27th report, criticised the Bill’s granting of a Henry VIII power to the Secretary of State to set minimum service levels by regulations. We said:

“This is a Bill that deals with minimum service levels during strikes. Yet there is nothing in the Bill saying what those minimum service levels are. We shall only know when Ministers make regulations after the Bill is enacted. This is small comfort to Parliament, which is considering the matter right now”.

Workers’ Rights

Baroness O'Grady of Upper Holloway Excerpts

Monday 6th March 2023 Lords Chamber

[Lord Johnson of Lainston (Con)]

I thank the noble Earl for that point. Hospitality has been an important focus for this Government, which is why we are introducing the Employment (Allocation of Tips) Bill, an important measure to ensure that, when you tip, the money actually goes to the service staff who have supported you. To my surprise, and probably that of many other Members of this House, in many instances it did not. These are the sort of Acts we absolutely need to focus on, and I am always delighted to have further conversations about how we can do more to protect this vital sector.

[Baroness O’Grady of Upper Holloway (Lab)]

My Lords, the employment Bill that was promised back in 2019 has been promised time and again; in fact, on 20 different occasions we have been promised a comprehensive Bill that would deal with workers’ real concerns. Millions of workers in this country are on zero-hours contracts, false self-employment or other forms of temporary work, or stuck in low-paid employment, and now with the prospect of real fears and concerns about what will happen to their rights. Can the Minister explain why there has apparently not been time to bring forward a Bill that would give workers much-needed and urgent protection on everything from TUPE to sexual harassment to insecure contracts, yet the Government have found time to bring forward two red-rated Bills, on retained EU law and strikes, that will make it harder for workers to stand up for their rights?

[Lord Johnson of Lainston (Con)]

I enjoyed that question because it bites into my time for answering questions, so I thank the noble Baroness. It is very relevant to realise that this Government have invested a huge amount of time in focusing exactly on this, and I would like to go through a few quick points. Apart from increasing pay by raising minimum wage levels, we have extended the ban on exclusivity clauses, which is vital for allowing flexibility in the workforce; we have introduced legislation to ensure that an equivalent to the minimum wage is paid to thousands of seafarers, who are in a sector that is very important to this country and needs protecting; we have closed loopholes that allowed agency workers to be employed on cheaper rates than permanent workers; and we have quadrupled the maximum fines for employers who treat their workers badly. I have mentioned the list of employment legislation that we are bringing in, and we continue to try to do more. If you look at it in the round, better than having one huge, complicated piece of legislation is getting these measures through in their own way and actually making a difference to the workers in this country. That is how I would prefer it.