Employment Rights Bill

Debate between Baroness Verma and Baroness Fox of Buckley
Baroness Verma Portrait Baroness Verma (Con)
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My Lords, I agree with almost everything that my noble friend said. When I was growing up, my father, who was in business, suffered the three-day week, and I understand the impact it had on his business and many like his. I also understand that productivity needs to be improved and increased. We need to look at what is happening across the world to be competitive enough.

I know that the Minister, the noble Lord, Lord Leong, has a business and understands business. If he were sitting on this side of the Chamber, I suspect that he would be arguing in the same vein as we are. It would be right and proper not to shirk away from proper impact assessments and proper comparative assessments of what is happening across the world, because we all want a competitive country where we are leading at the helm. Denying and disagreeing just for the sake of denying and disagreeing does not do this debate any good.

Baroness Fox of Buckley Portrait Baroness Fox of Buckley (Non-Afl)
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My Lords, unusually, I completely agree with the remarks of the noble Lord, Lord Deben; he and I are both surprised by that. That is not because I am a business owner—that has never been my shtick—but because I am worried about the unintended consequences of the Bill. I too simply want an opportunity to check—and if I am wrong, that is fine.

This group of amendments is very important because it will give the Government a chance to think again, to assess and to reflect. It does not have to be a U-turn; it can straightforwardly be something that is accepted at this point in the Bill that would then mean that those of us who are nervous about the Bill’s consequences can be proved right or wrong.

I am particularly concerned about the impact the Bill will have on productivity, and Amendment 311 is therefore key. I am concerned that the Bill is not doing what it says on the tin and will have a diametrically negative impact on workers’ rights, jobs and wages. I am interested in Amendment 312, which simply asks for real wage impact reporting.

Of course, the big amendment that would cover all the things that have been argued for so far is Amendment 319, which calls for an impact assessment of the regulatory burden of the Bill on businesses. In the past, people who have complained about overregulation have been considered to be on the right of politics—the idea is that those people are so irresponsible that they do not want any regulations and are prepared to take risks. I have never understood it like that at all.

I was therefore delighted to find that I agreed with the Government and the Prime Minister, Keir Starmer, when he made some tub-thumping speeches about the problems of

“the regulators, the blockers and bureaucrats”

stopping investment and growth. He called them an “alliance of naysayers”, which I thought was good, because I have always been worried about this. I am not from the Tory fold, but that goes along with what I thought. I was genuinely excited that the Labour Government were embracing this way of understanding what can get in the way of economic development and growth, which is necessary for workers to have jobs, wages and rights under an industrial policy that we are hearing about today—all the infrastructure things.

Last December, the Prime Minister infamously blamed Britain’s sluggish growth on

“people in Whitehall … comfortable in the tepid bath of managed decline”.

As we have been going through the Bill, I have felt like I am in the tepid bath of managed decline at the heart of Whitehall and Westminster. Therefore, I urge the government representatives here to remember their own Prime Minister’s words when deciding how they should approach the Bill, rather than just being partisan.

Between 2015 and 2023, the Conservative Government set themselves the target of a £19 billion reduction in business costs through deregulation. Instead, the Regulatory Policy Committee watchdog calculated that even exempting most Covid regulation, the regulatory burden increased by £18.4 billion in that period. I am saying this because people keep declaring that they are going to tear up the regulations getting in the way of growth, industrial capacity and so on, and then, the next minute, unintentionally, regulations grow. The Bill is so jam-packed with regulations that workers’ rights do not stand a chance of breathing.

One of the fears I have about the Bill, which I have raised in a number of amendments and which I hope Amendment 319 will address, is that it is a recipe for huge amounts of lawfare. Day one rights and protection from unfair dismissal both sound progressive and admirable, but the Government’s own analysis predicts a 15% rise in employment tribunal claims. There are already huge backlogs of between 18 months to two years, even before the Bill is enacted, so there is a real threat of a litigious clogging up of the system. Of course it is important that employees are treated fairly. As I have argued throughout consideration of the Bill, I am not frightened of trade union and workers’ rights at all, but I am concerned about this growth, encouragement and incentivisation of the use of lawfare.

I have just read a fascinating report, which I will send to the Ministers, entitled The Equality Act isn’t Working: Equalities, Legislation and the Breakdown of Informal Civility in the Workplace, produced by the anti-racist, colourblind organisation Don’t Divide Us, which assesses the unintended consequences of the Equality Act. Nobody thought this would happen, but it has led to a real fractiousness in the workplace: people are suing each other, all sorts of things are going wrong, and, in many ways, it has clogged up the system. The last thing we need is the Bill adding to that burden, leading to lawfare and people taking matters even further by suing each other.

Either an impact assessment is going to show that some of the concerns raised are overhyped, or in some instances ideological or raised by nay-sayers; or the Government can take the opportunity to say, “We never intended the legislation to do this, but we have seen that in some areas, it needs to be tweaked to make sure that it is not over-regulatory, damaging workers’ rights and wages and so on, in which case we are prepared to be honest and hold our hands up”. That is the very least legislators should do when they introduce a law that is going to bring huge change the whole business and workplace arena.

Employment Rights Bill

Debate between Baroness Verma and Baroness Fox of Buckley
Baroness Fox of Buckley Portrait Baroness Fox of Buckley (Non-Afl)
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I am all for enhancing in any way the free speech duties required by the law, and I am happy to talk to the noble Baroness in a moment about how we can do that.

Earlier, the Minister said that the Government were on the side of workers and not the abusers, and she got a lot of, “Hear, hears!”. I would like to point out that the people who are worried about these clauses are not on the side of the abusers against the workers. That characterisation is not particularly helpful in a Committee in which we are trying, in good faith, to understand the implications of this set of clauses. Imagine that you are an employer and you hear these proposals; you will think, “Oh, my God, if I don’t completely over-comply, I’m going to be accused, demonised, as on the side of abusers, not on the side of my employees”.

It is therefore very important that this impact assessment is done to reassure those of us who are worried. If the Government feel that we are over-worrying, then a detailed impact assessment, which we have not had for these clauses, would help to reassure us properly, with facts and evidence, rather than assertion and soundbites.

Baroness Verma Portrait Baroness Verma (Con)
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My Lords, I have a brief point to make about the impact on minority businesses, which may need extra assistance, and to ask whether the cost has been taken into account in an impact assessment. If it has not, I highly recommend that the Minister consider the many thousands of businesses across the country which will have to comply. If there is not a fully programmed impact assessment incorporating all those businesses, she will undoubtedly find that a lot of them will come out on the wrong side of implementation.

Elections Bill

Debate between Baroness Verma and Baroness Fox of Buckley
Baroness Verma Portrait Baroness Verma (Con)
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My Lords, I am only saying that I have had no objection to it being a photo ID. The implication seems to be that we, as communities, would object and become disenfranchised but I have not found that. This is the only point I am trying to raise.

Baroness Fox of Buckley Portrait Baroness Fox of Buckley (Non-Afl)
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My Lords, I thank the noble Baroness, Lady Verma. She has raised some of the issues that have prompted me to speak today. I have had a slight change of heart or mind—or my mind has been changed—which is why I am speaking, rather than repeating everything that I previously said.

My concerns about these photo IDs have fairly consistently been that there is no evidence of voter impersonation; it is not an issue. I do not like any move towards a “show us your pass” society. I worry about the unintended consequences of the Government pushing voter ID. In itself, it implies a problem which might then undermine trust in the democratic process. In particular, I echo the query from the noble Lord, Lord Willetts, about the consequences of people being turned away from polling stations. I have raised that before.

I am not very good at paperwork. I am the kind of person who gets it wrong. We have only to look at the best-intended interventions in Ukraine, or in Poland with the issuing of visas to Ukrainian refugees, to see that paperwork can go wrong. I am concerned about people turning up with the wrong thing and being sent away when they only have that day to vote. It would imply to fellow citizens that something dodgy was going on—that they were cheating, rather than just having the wrong piece of paper. What does the Minister advise in this instance?

In following the noble Baroness, Lady Verma, the problem is that we have probably got to a point where the ship has sailed regarding trust in democracy. Something has gone wrong. A constant theme in commentary on elections is that too many people seem to think it impossible for their side to have lost without implying that the other side has somehow won by cheating or that the vote was manipulated. I have been quite shocked by the commentary around the vote in Hungary, in which it has been implied that the only basis on which Orban won was become something dodgy happened and that it was unfair. That was said about Brexit, about Trump’s win and about Biden’s win. In all those instances, there have been implicit or explicit accusations by losers that somehow cheating has happened. There is a broader problem of the undermining of trust in democracy, which I think a lot of people in this Chamber and outside it have created, but it has nothing to do with voter ID.

When I started to talk to people after my speeches at Second Reading and in Committee, I was absolutely inundated by those who said that they disagreed with my opposition to voter ID. Those were not the cut-and-paste emails, which we all receive, or from organised lobby groups. They appeared to be from ordinary people. Pundits and loads of people contacted me—some I knew and some I did not. I have had more correspondence on this than on anything else.

I tell your Lordships this because I was taken aback, but when I started to talk to people, they said that because there is a big debate about trust in the democratic process, for whatever reason, they want reassurance that the ballot box is secure. People said that their motives were about protecting the vote and respecting democracy. I do not know that it can be described as fake news when the Government say there is a discussion about the democratic process, because it seems that there is. I suppose that has happened in the name of transparency, accountability and trying to be honest, so when people say that they want to shore up democracy through ID, I want to take at least some notice.

Another thing that was said, which fits in with the remarks of the noble Lord, Lord Desai, and the noble Baroness, Lady Verma, was that they felt insulted by the idea that showing ID would put them off voting. They said, “You think we have such a low view of democracy, that we are so easily put off voting. The problem is that we go out to vote and when we do, people tell us we voted the wrong way.” That was their problem.

I have thought about it a lot and am still not sure but I am prepared to consider some compromise, particularly on Amendment 8. It does the job by letting us have some ID, as wide a range of IDs as possible so we do not have the problem of turning people away at the ballot box. It is also important to recognise that, whether we like it or not, there is a debate about how much we can trust the democratic process, so if there is a way of reassuring people—although I wish we had not got to that point—then maybe we should think about this.

I would like to know what the Minister thinks about the dangers of undermining our trust in democracy by pushing this too hard. Is there a compromise that the Government can make that would, relatively speaking, satisfy all people? Even the noble Lord, Lord Woolley, said he might reluctantly go down that line, despite it going against what he wants, which is to get rid of it altogether.