Employment Rights Bill

Lord Goddard of Stockport Excerpts

Report stage
Wednesday 23rd July 2025 Lords Chamber

[Baroness Lawlor (Con)]

My Lords, I support the amendments in this group and I will say a word in particular about some of the amendments. On the amendment from the noble Lord, Lord Burns, which would remove Clause 59, people in the country will ask, “How can it be that, in a democracy, a payment is automatically deducted from membership fees for a political fund?” That is a question about democracy in the workplace. How is it that it can go—if it does go—to one political party? I take the point about affiliated unions and the different purposes for which the political funds are used, but we are being asked as a Parliament to pass legislation that has a direct impact on the party opposite: the Government. I cannot think that there is a similar arrangement by trade unions for any other political party, but I am willing to be put wise. So, it is a sectional problem that we are dealing with.

All the amendments in this group seek to tackle workplace democracy under the Bill, which would use the law to promote the powers and funds of trade unions, despite their shrinking membership. Some 11% of them are in private sector businesses and command practically the whole productive economy of this country, and 30% are in the public sector—so 20% overall. Yet these unions are being pivoted into power with automatic funding from their members for political purposes. I think it is wrong that this should happen and be a matter of law for us to pass.

In the amendment from the noble Lord, Lord Burns, which would remove Clause 59, we see the automatic payment deducted from the membership fees. That undermines any claim the Government make that the Bill is good for workers. It is the sort of sharp practice that is not only discredited in other walks of life but, in this context, unless it omits Clause 59, it brings disrepute on the unions, the Government and this Parliament. Otherwise, people in the country will rightly feel that the Labour Government of July 2024 has in the matter of so-called rights used the Bill, and other measures, to pivot one minority in this country to a position of dominance in our economy and work- force. That will not be regarded as a fair position in this country.

I also, for the same reasons, support the amendments from the noble Lord, Lord Leigh of Hurley, to omit Clauses 77 and 78 because, in the interests of transparency, working people and trade union members need to see in the annual returns what the political funds are spent on. The noble Lord referred to some of the political purposes that they are used for. Of course there are others, and they may be very good purposes, but surely it is in everybody’s interest that we have transparency, just as I think the certification officer should have enforcement powers.

In the same vein, the amendments from the noble Lords, Lord Evans of Rainow, Lord Sharpe of Epsom and Lord Hunt of Wirral, suggest that the 50% threshold in a ballot for strike action should be retained. Without these safeguards, we make a laughing stock of the idea of democracy in the workplace, our economy and the whole country if we pivot a minority into this false position of power over a majority of the people concerned in the ballot, concerned in giving money or concerned in having their returns properly transparent.

I do not like the totalitarian thread of the Bill. Times have moved on since the days of Herbert Henry Asquith and the time when trade unions represented working people and the industrial economy was at the heart of Britain’s economy. Times have changed. Working practices have changed. Safeguards for people who pay money have changed. Today we see a service economy of roughly 80% and a productive economy of goods of roughly 20%. All the amendments in this group matter, and I particularly support those to omit Clauses 59, 77 and 78 and reverse the attempt by the Government to remove the 50% threshold for decisive action in a ballot.

[Lord Goddard of Stockport (LD)]

My Lords, I rise with some trepidation to follow that 70 minutes of riveting debate. Members may argue that that is the point of this House, and that is what we do. Well, we could have just put the tape recording from Committee on and then gone to the Tea Room for a tea and played it for the same amount of time. Almost the same number of exponents were expressing the same views again and again.

I will try to be as brief as possible. The noble Lord, Lord Burns, is right. We support his amendment. The reason for that is that the opt-in system is the best because it maximises choice and transparency for individuals and retains political funds. They need to understand what their funds are being used for.

Amendment 148 in the name of the noble Lord, Lord Sharpe, would retain the 50% ballot threshold required for trade unions undertaking industrial action. The Bill would remove this threshold entirely, meaning that a trade union could vote for strike action without a majority of eligible voters. We tabled similar amendments in Committee, and we have concerns about the democracy and democratic integrity of strike action ballots, which this Bill could potentially harm. We also believe that the current threshold for being able to undertake strike action is suitable and that making it easier to strike risks putting further pressure on public services. If a Division is called on this amendment, we will also support it.

[Lord Hunt of Wirral (Con)]

Hear, hear!

--- Later in debate ---

[Lord Goddard of Stockport (LD)]

The noble Lord, Lord Hunt, will say “Hear, hear” no more because we cannot support Amendment 149A, which is a new amendment that proposes removing Clause 72. I will tell the House why we cannot support it. On Monday I supported the noble Lords, Lord Hunt and Lord Sharpe, when we were very critical of the Government for tabling amendments on Report. People nodded wisely and said that it is not a good thing to do, yet this amendment was tabled today or yesterday. It has had no time for discussion or debate. It has had no time for people to understand its nuances. We know that it takes a big chunk out of the Government’s manifesto pledge Bill, and that does not seem fair to me.

In our view, legislation should be done through constructive amendments. If you do that, you end up with a compromise, whether it is through ping-pong or by persuading the Minister to change their point of view. It is almost like taking the sledgehammer again, and that is not good politics. It is not good for the House, and it is not good for Members. Lots of Members come into these debates, not all the time, and try to get a flavour of what is going on. They might hear that Amendment 149A, which sounds fairly reasonable, has been put forward. It is not fairly reasonable; it takes an enormous chunk out of the Government’s Bill, and that cannot be right for democracy. I have criticised Ministers many times, but we should be mindful that it is in the manifesto and move legislation via amendments rather than trying to remove huge chunks of legislation. On that basis, we will not support Amendment 149A.

[Lord Sharpe of Epsom (Con)]

My Lords, on balance, it is a great pleasure to follow the noble Lord, Lord Goddard. I will speak to Amendments 148, 149A, 149ZA and 150 standing in my name and that of my noble friend Lord Hunt of Wirral. Before I do that, I thank the noble Lord, Lord Burns, for his common- sense amendment. We think political contributions must always be a matter of choice, not a default. That seems to us a fair and democratic principle, and the Government ought to listen. I was particularly pleased to see that the Attorney-General was in his place to listen to the excellent arguments advanced by my noble friend Lady Cash, which all pertain to international law. I hope he was paying attention. If the noble Lord, Lord Burns, decides to test the opinion of the House, we will support him.

I turn to Amendment 148. On 8 July, the Secretary of State for Health and Social Care, Wes Streeting, remarked rather pointedly that despite the fact that the majority of resident doctors did not vote for strike action, the BMA is now preparing for strike action and it is completely unnecessary. Who can blame him? Strikes are happening under the existing law, and now this Government propose to remove the 50% threshold, the very last democratic safeguard that ensures that strikes have substantial backing. What would that do? It would significantly lower the bar for strike action and allow a smaller minority to cripple vital public services. It is worth bearing in mind that it is public services we are talking about because that is where the bulk of union members are. One has to wonder whether the Government agree with their own Health Secretary. If they do, why are they proposing this? If they do not, will Mr Streeting be invited to correct his error on the record? Do the Government share the disappointment that he expressed on 8 July about the BMA’s strike action or was that simply a performance for the cameras, a convenient public relations stunt, while others quietly dismantle safeguards and seek to make extremists more powerful?

On Amendments 149A and 150A, I am grateful to my noble friend Lord Jackson of Peterborough for his words. Earlier this month, Norman Tebbit, Lord Tebbit, died after a long period of illness. One of his enduring legacies was his role in turning around an unemployment crisis that peaked at 11.5% in 1982. Thanks to the reforms introduced on his watch, the rate fell sharply thereafter. The success was later acknowledged even by the Blair and Brown Governments, who accepted the new consensus, a fair balance between workers’ rights and the flexibility that businesses need. It was the late Lord Tebbit who warned us that we do not intend to see again the scenes of intimidation, mass picketing and political strikes that disfigured our country in the 1970s. That warning remains as relevant today as it was then. Supervision of picketing is an essential safeguard. It ensures that industrial action remains peaceful, lawful and accountable. Removing these provisions, as the Government propose, risks returning us to the chaos and intimidation of the past, as described so ably by my noble friend Lord Evans of Rainow.

Amendment 149ZA is crucial to protect airlines from unfair financial risk caused by conflicting notice periods. This was originally tabled in Committee by the noble Lord, Lord Hutton of Furness. He raised a timely and important issue. As he did not retable the amendment for Report, we did because, frankly, the Committee debate was very late, it was truncated, and the Minister’s response was inadequate.

I refer noble Lords to col. 1342 of Hansard on 10 June for the detailed arguments of the noble Lord, Lord Hutton, but in essence they are that, under current law, airlines must give at least 14 days’ notice of industrial action to avoid costly compensation claims under passenger rights legislation—namely, UK261—unless there are extraordinary circumstances, and a ruling of the European Court of Justice in 2019 made it clear that a strike by an airline’s own staff is not considered an extraordinary circumstance.

The amendment would therefore simply protect airlines from having to pay hundreds of millions in compensation for cancellations caused by strikes. Reducing the notice period to 10 days would expose airlines to up to four extra days of compensation liability and a serious and unavoidable financial burden that would inevitably be passed on to passengers, making family holidays even more expensive for working people. The amendment would ensure that the 14-day notice period remained for industrial action affecting airlines, and it would align industrial relations law with passenger rights and protect vital UK businesses from crippling— I will be charitable and say probably unintended—costs.

In Committee the noble Lord, Lord Katz, argued that this would represent a sectoral carve-out, but that is not a logical argument as the sector is governed by a rule that does not apply to any other. It is therefore entirely consistent with a level playing field. It is the contradiction in legislation that puts airlines at a disadvantage.

Finally, I agree fully with my noble friend Lord Leigh about seeking to maintain the requirement that trade unions should report their political expenditure in their annual returns. I shall support him too, should he wish to call a Division.

--- Later in debate ---

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

My Lords, I shall speak briefly to Amendment 150 in the name of my noble friend Lord Hendy, because I think that it is worth taking just a moment to consider the impact of the reduction in union bargaining power that we have seen on ordinary working people in this country. That will not take long, because it is plain to see, in stagnating living standards and the drag on fair growth, but it is also worth considering how the position of the party opposite on industrial action has evolved over time.

In April 1980, the then Secretary of State for Employment, Jim Prior, introduced an Employment Bill which restricted secondary action, but he certainly did not advocate that it should be banned altogether. The then Conservative Government’s position was that secondary action should in fact remain lawful if it related to a first customer and/or supplier that was of direct importance to the original dispute. Jim Prior said that

“the only other position that we could take would be to say that there will be no immunity for anything other than primary action. I do not believe … that that is either a practical or a reasonable position to take”.

He also said that, by protecting the right to take secondary action in relation to a customer or supplier,

“We are seeking to reach a position which we believe is fair and which recognises the traditional rights of the trade union movement”.—[Official Report, Commons, 17/4/1980; col. 1490.]

Back then, a Conservative Minister could acknowledge that the relationship between an employer, on one hand, and workers and their unions, on the other, is an inherently unequal one. But, of course, Jim Prior did not last long in that role and, under successive Conservative Governments, the inequality of power between workers and employers was deliberately and repeatedly reinforced.

Secondary action, or solidarity action as it is commonly called, was effectively outlawed in 1990, but here is the problem that I invite noble Lords to reflect on when considering the arguments of my noble friend Lord Hendy. Business was handed a unilateral power to define what secondary action is and, unfortunately, that is an invitation to an abuse of power. This is not an academic point. It was only after a six-week strike in 1984 that Ford sewing machinists finally secured full equal pay, but the victory was short-lived. Ultimately, the company took the decision to outsource those jobs and so avoid any need for pay parity, secure in the knowledge that solidarity action from workers in the customer company would become unlawful. Today, some companies continue to use long supply chains and complex outsourcing arrangements to effectively balkanise workers’ bargaining power. For example, take a company that decides to boost profit margins by targeting one part of the work- force for wage cuts. To prevent fellow workers from participating in industrial action to resist those pay cuts, a company can simply divide itself in two. To paraphrase Jim Prior, is that fair?

[Lord Goddard of Stockport (LD)]

My Lords, I will be very brief. Amendment 154 would remove another huge chunk from the legislation and, for the arguments that I rehearsed in the previous group, we will not support any move to force a vote on this occasion.