Employment Rights Bill: Productivity

Baroness O'Grady of Upper Holloway Excerpts

Monday 31st March 2025 Lords Chamber

[Baroness Jones of Whitchurch (Lab)]

I know noble Lords do not like to hear it, but I am happy to repeat it again. That, of course, demanded tough choices to fix our public services and create long-term growth and investment. The Government have more than doubled the employment allowance to £10,500 for the smallest companies, meaning that more than half of businesses with NICs liabilities either gain or see no change next year. Businesses will still be able to claim employer NICs relief, including those for under-25s and under-25 apprentices, where eligible. These are tough times economically, but we are determined to do everything we can to ensure that our growth agenda remains undimmed.

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

My Lords, is my noble friend aware of HSE analysis which shows that unionised workplaces have fewer accidents and injuries and better well-being, and of TUC research showing that unionised workplaces have more investment in skills, better family-friendly policies and a voice for working people? Does she agree that that is good for productivity?

[Baroness Jones of Whitchurch (Lab)]

I am grateful to my noble friend for making these points. I should reiterate that Britain’s working people and businesses will be the driving force of the UK economy, but the current labour market is not delivering for either. The productivity gap with France, Germany and the US has doubled since 2008; average salaries have barely increased from where they were 15 years ago; and the average worker would be more than 40% better off if wages had continued to grow as they did leading into the 2008 financial crisis.

A final point: alongside its productivity performance, the UK lags the OECD average on most employment protections. We inherited an economy that was in decline, with poor productivity, and we intend to fix that.

Employment Rights Bill

Baroness O'Grady of Upper Holloway Excerpts

2nd reading
Thursday 27th March 2025 Lords Chamber

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

My Lords, during my time as TUC general secretary, I met many employers who value good industrial relations and agree terms far above legal minimums. I also met dedicated care workers who did not earn enough to give their own children a decent start in life; loyal P&O crew who were fired and replaced with labour paid below the minimum wage; Amazon workers whose boss is running roughshod over the basic British liberty to organise collectively and bargain for better conditions; and teenage workers at McDonald’s who faced sexual harassment, and even demands for sex for shifts. On that issue, will the Minister please update us on the Government’s approach to tackling non-disclosure agreements regarding discrimination and harassment? Frankly, it is obscene that NDAs are used to silence victims and that that silence puts workers, especially young women, at risk.

The Bill has strong public support across the political spectrum, and no wonder. The UK is now an outlier among OECD countries for labour standards. On rights for temporary workers, the Work Foundation reports that the UK is bottom of the league of 22 OECD nations, only just above the United States. Statutory sick pay is the lowest in Europe, and the lowest paid have been excluded, which means that many cannot afford to stay home when sick. As we saw during Covid, that endangers public health. Other countries—New Zealand, Italy, France, Germany and many more—banned exploitative zero-hours contracts long ago, but the UK did not.

Under the Conservative Government, rights failed to keep pace with the rise of the gig economy. In fact, the Conservatives worsened protection against unfair dismissal, some sex discrimination rights and the human right to withdraw your labour. The party opposite claims that tilting the balance back towards workers would be bad for business. Nonsense. On the contrary, there is strong evidence that fairness at work boosts both productivity and innovation. In the UK, too many people are stuck in a revolving door of low-skilled, insecure jobs and unemployment. This Bill will promote better quality jobs and positive flexibility, so that more carers and people with disabilities or poor mental health get the chance to get work and stay in work. Of course, individual rights need effective collective enforcement. That is why it is so important that the Bill strengthens rights to organise and be represented by a trade union.

Finally, I will say a word on the UK-EU trade deal—the mother of all costs to business. According to the London School of Economics, trade barriers have hit small businesses hardest, with 14% having stopped exporting to the EU altogether. One reason we ended up with a second-class trade deal is that the EU feared unfair competition and that the UK would undercut it with worse workers’ rights. The Conservative Government’s broken promise to bring forward an employment Bill and its attacks on trade unions only confirmed that suspicion. This Bill can help ease EU fears and support negotiations for a better deal. That is just one more reason why the Bill is good for jobs, good for workers and good for business too.

Plant Oxford Site

Baroness O'Grady of Upper Holloway Excerpts

Tuesday 25th February 2025 Lords Chamber

[Baroness Jones of Whitchurch (Lab)]

My Lords, we are very aware of the situation with regard to China, in particular Chinese electric vehicles. China’s role in the global automotive industry is growing, which presents both risks and opportunities for us. We will not hesitate to act where that creates issues or problems for the UK, but we are very mindful of the opportunities that this presents as well. Our automotive industry in the UK is very different from those of other European countries because it is export oriented; we export 80% of our cars abroad, unlike, for example, the EU and the US, where production is sold domestically. Nevertheless, we are aware of the issues that the noble Lord raises and will continue to act in our interests.

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

My Lords, I declare an interest as the daughter of a former assembly line worker at Cowley—I am very conscious of the incredibly skilled and dedicated workforce there—and as a trade unionist who, frankly, has worked with motor companies and unions through many ups and downs over the years and knows the importance of working together. Can my noble friend reassure us that, as well as working closely with the company, the Government are working closely with the unions to ensure a strong future for the car industry and that that future is electric?