Trade Union Bill

Debate between Lord Lea of Crondall and Baroness Burt of Solihull

Thursday 25th February 2016 Lords Chamber

[Baroness Burt of Solihull (LD)]

My Lords, I concur completely with the comments made by the noble Lords, Lord Kerslake and Lord Balfe. I personally see this as a cynical attempt on the part of the Government to cause maximum damage, difficulty and disruption to trade unions. They are seeking to take away powers from public bodies when they should be devolving more of them, and to make Great Britain a less harmonious place in which to live and work. Every ostensible reason for restricting check-off, as the noble Lord, Lord Kerslake, has already indicated, cannot be substantiated.

The issue of cost has been mooted, but as the noble Lord, Lord Balfe, said, many trade unions already cover the administrative costs of check-off. His Amendment 93 would resolve the situation as regards any which do not at the moment, certainly with regard to cost. In any case, many deductions are used as bargaining chips in negotiations between employers and employees within the whole package of benefits. It is part of the fabric of the relationship between employer, employee and trade union. So we have the irony whereby employers make deductions at source for any number of things, and we have heard about many of them already—they include charity subscriptions, bike schemes, season tickets and so on—but they will not be able to make a deduction for the most central thing in the working life of an employee.

The other fig leaf being used by the Government as an excuse is modernisation. Of course we can sign standing orders and direct debits, but is the removal of this benefit justifiable in terms of forcing trade union members to be modern? I suggest that there is a whole other reason. It stands up to scrutiny about as well as not allowing electronic voting in respect of industrial action, which is hardly an ethos of embracing modernity. It seems that we can be modern as long as it suits the Government’s purposes and damages the trade union.

Then there are the administration costs. The Government are supposed to be committed to reducing administrative costs for organisations—unless, of course, you are a trade union, when you will have to spend a huge amount of time re-signing up your members and changing the payments system all over again. As I said at Second Reading, the TaxPayers’ Alliance—not normally renowned for defending trade unions—has estimated the cost to trade unions of removing check-off at £6 million. Clearly, this will weaken trade unions and the Labour Party in their pockets. If there is one thing that the Conservative Party knows about, it is the importance of having money to spend on campaigning. Indeed, I am testament to how effective Conservative spending is, otherwise I might have been delivering this speech from green Benches, instead of red ones. I am sure that we on this side of the Chamber await with great interest the Select Committee report examining the financial implications of the Bill for democracy in this country.

Then there is the huge number of complaints that I and many colleagues from across the House have received from local authorities that are furious at having this power taken away from them. Public bodies of all kinds rely on the ability to be flexible in their negotiations with trade unions. It is part of building up good industrial relations, which are vital for the avoidance of industrial action when things get sticky. The Bill will harm good industrial relations and enhance the likelihood of industrial action. Indeed, if they were trying actively to provoke industrial action, the Government could not be doing a better job in the Bill. What happened to commitments to devolution? I thought that the idea was to give more power to local areas to run themselves, rather than take it away.

To try to see the other side of the argument, I believe that it is reasonable that members of trade unions should opt in to paying a political levy, but, with their having opted in, there is no excuse for any employer who chooses to not to be able to make deductions for their employees on anything they both mutually agree on. This is a cynical, vindictive clause, and I and my colleagues on these Benches will oppose it at the appropriate time.

[Lord Lea of Crondall (Lab)]

My Lords, before I come to the specifics of Amendment 94, it is fair to say that these Benches echo the basic analysis of the noble Lords, Lord Balfe and Lord Kerslake, and of the noble Baroness, Lady Burt, echoing, as they do in turn, the basic analysis of my noble friend Lady Wheeler. That is what we have heard in the last three-quarters of an hour.

We are reaching a position where we can only express amazement at the sudden rush to the head of some people in the Conservative Party of an ideological position that this whole tradition, which I thought in my generation of trade unionism had become mainstream in this country, summed up in the term “social partnership”, has gone out of fashion big time. Perhaps it is not held by all members of the Conservative Party—we have heard a very distinguished exception—but it is the controlling ideology of the Conservative Party.

The Government seem to want to do everything they can to reduce trade union membership per se—thereby cutting the legs off part of the social partnership structure—by reducing their income and making their role in the workplace next to invisible, even on such questions as health and safety and training and pensions, let alone collective bargaining on pay and conditions, grievance procedures, disputes procedures and all the rest of it; in other words, everything that makes up the quality of the contract of employment. For the last 30 years we have worked to improve not just pay but the quality of the contract of employment. I put on record our thanks to the Government for stopping just short of describing us as enemies of the people.

The Government’s impact assessment implies that there is no cost to the unions in removing check-off. It is not obvious to the Government that there will be any impact on trade union income and membership. I do not know who they have talked to. Perhaps the Minister can tell us that. They do not seem to have made any inquiries. We have heard that they do not seem to have made inquiries of local authorities, much less publish them. They do not seem to have made any inquiries of any employers—not that I can find—or of trade unionists. From my own inquiries, I conclude that one might expect in the sector affected a 20% reduction—that order of magnitude—in trade union membership, and a 20% reduction in trade union income as a consequence. As has been said, this will result from all the extra administrative hurdles over which trade unions will have to jump. Trade union members will receive a form through the post. There are few things more irritating than postal forms asking you to provide bank details and so on.

I should spell out what a 20% hit will mean in figures because we have been talking about peanuts for much of the discussion on the Trade Union Bill. You do not need to be Einstein to figure out that a 20% hit will mean that a union in this sector with 100,000 members will wind up with 80,000 members. If today it has an income of £10 million a year, it will be left with one of £8 million a year. Perhaps some of the Minister’s colleagues in the Government will shed crocodile tears on hearing that, but no doubt will also greet with a look of glee this further tearing up of the social fabric. I do not know too much about crocodiles, but some other animals have long memories.

The Government are struggling to find a justification for their claim that the impact on trade unions will be minimal. They have found and incorporated into the impact assessment—no doubt after some searching—a somewhat quixotic quote from a PCS spokesman, saying that the union could end up stronger as a result of this measure. However, if you look at the PCS website, you will find that this is among scores of other quotes saying pretty much the exact opposite.

The Government claim that the check-off arrangements are an outdated practice. I will not repeat everything that has been said, but it perhaps needs underlining in a couple of sentences. As the noble Lord, Lord Balfe, and my noble friend Lady Wheeler pointed out—independent observers will surely acknowledge its validity—deductions from the payroll are an increasingly common way by which employers help their employees manage their finances. Payments for childcare, travel, charity donations, computers, the rent of bicycles—or whatever—are often made through payroll deductions.