Code of Practice on Dismissal and Re-Engagement

Debate between Lord Offord of Garvel and Lord Woodley

Monday 25th March 2024 Lords Chamber

[Lord Offord of Garvel (Con)]

As the noble Lord knows, one can read Hansard as well as one can, but not being in the Chamber to hear his eloquent argument of the case makes me slightly deficient in this response. I am disappointed that my noble friend was unable to write more comprehensively on the matter. Perhaps I can follow up with a second letter in that regard.

[Lord Woodley (Lab)]

My Lords, this has been a lively, interesting and, indeed, productive debate. I just want to say one thing to the Minister. In a previous life, I was the leader of Britain’s largest trade union, and I spent more time fighting for companies and for company survivals, and indeed to make sure that they had the right investment to protect jobs and increase jobs in our country, than I ever did fighting against them. That is why I take a little offence that the Minister suggested that my amendment indicates that fire and rehire is banned in all cases. That is the worst case of selective deafness that I have heard from two Ministers, to be quite honest. I point out to the Minister that it does not say that. It makes it absolutely clear that if we are in a situation where the very foundation of the company depends on these actions being taken, not only should they be carried out but we would support that.

However, with regard to where we are, I do not see anything reasonable in the code of conduct, as indeed we have all said here. The Minister also mentioned that—ironically—a TUC investigation into these things found that only 3% of employers were using fire and rehire as a tactic. I said this in the previous debate: 3% across all employers in this country means 38,800 employers. This is not chicken feed; it is big business. It is a pandemic that is right across our country and it will only get worse if we do not legislate to stop it. Again, it has been very interesting that, not only during my previous debate but today on this amendment, not a single speaker has spoken in favour of the code of conduct, never mind anything else, and that includes on the Tory side of this House.

I therefore regret that the Minister’s response is not really doing anything to remove those concerns that we have all registered here about this code of practice. It is toothless, and it does not give the protection and decent compensation that workers who are being exploited deserve. However, as I am sure your Lordships now realise, I do not intend to divide the House on this matter, so I beg leave to withdraw.

National Minimum Wage

Debate between Lord Offord of Garvel and Lord Woodley

Wednesday 21st February 2024 Lords Chamber

[Lord Woodley (Lab)]

My Lords, there is no justification for discriminating against young people under any circumstances. People can join the Army at 16, they can be on the front line at 18 putting their lives at risk for King and country, but they cannot receive the full national minimum wage until they are 21. This cannot possibly be right. Does the Minister agree?

[Lord Offord of Garvel (Con)]

I thank the noble Lord for that. There is a wage scale, as he will well know. For those aged 18-20, it is £8.60 an hour and for those under 18 it is £6.40 an hour, an apprentice rate. The point of this is a scale. We all start work on lower wages and increase our wages as our skill levels increase. We must not be in a situation where we, in effect, lock young people out of the market. We must ensure that young people get into the market earning wages and then increase their skills and their wages. The noble Lord will know well that many studies have been done on the wage scar, which blights young people if they do not get into a job early and get training. We want young people in a job early, trained up, so they can increase their wages.

Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2022

Debate between Lord Offord of Garvel and Lord Woodley

Tuesday 19th December 2023 Lords Chamber

[Lord Offord of Garvel (Con)]

I thank the noble Lord for his supplementary question. The right to strike is enshrined in UK law. There is no ambition on the part of the Government to undermine that fundamental right. But there is a balance to be struck between the rights of employers and agency workers being able to find work if there is work available. Therefore, this consultation will focus entirely on whether there is a need for private companies to be able to provide agency staff where they have a need for employment.

[Lord Woodley (Lab)]

My Lords, the REC, which supplies agency staff, warns that allowing bosses to bus in strike-breakers risks extending disputes by inflaming tensions between trade unions and employers. Unions and even the Government’s own impact assessment agree it will undoubtably worsen industrial relations and lead to prolonged strike action. How can the Minister possibly justify pushing ahead with these damaging and counterproductive measures when employers, unions and even the Government—that is a first—all agree it will poison industrial relations and make it much more difficult to resolve disputes?

[Lord Offord of Garvel (Con)]

Well-run companies can operate only with the consent of their workforce. Well-run bosses run companies well with the consent of their workforce. Therefore, no well-run company wants to be a position where there are disputes with its workforce except in extremist situations. Bringing in agency workers is never a panacea, and is quite often more expensive. Well-run companies would not want to do that. It would be only in extreme situations where I could ever envisage this happening.

Employers: Fire and Rehire Tactics

Debate between Lord Offord of Garvel and Lord Woodley

Thursday 14th September 2023 Lords Chamber

[Lord Woodley]

To ask His Majesty’s Government what steps they are taking to prevent employers from using fire and rehire tactics.

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Scotland Office (Lord Offord of Garvel) (Con)]

My Lords, earlier this year the Government consulted on a new statutory code of practice on fire and rehire. We are currently analysing responses to that consultation. A government response and the final version of the code will be published in spring next year. The code sets out employers’ responsibilities when seeking to change contractual terms and conditions of employment and seeks to ensure that dismissal and re-engagement is used only as a last resort.

[Lord Woodley (Lab)]

The code of practice as published is toothless, unfortunately. It contains no legal obligations on employers and adds only 25% to any compensation, no matter how small it may be—that is no solution. As we all know, what is needed is legislation—as there was in Australia this week—to end the scandal of fire and rehire; most decent people in this place and across the country support that view. When the Bill was proposed in the other place, the Government disappointingly ordered an unprecedented Friday three-line Whip and gerrymandered to filibuster and therefore embarrass a proper vote. I have been informed—

[Lord Woodley (Lab)]

With respect, I will continue. I have been informed that my Bill will not get a Second Reading. Can the Minister explain why the Government seem to be using every trick in the parliamentary playbook to prevent us even debating this much-needed change in the law?

[Lord Offord of Garvel (Con)]

I thank the noble Lord for his follow-up question. The UK labour market is strong by historical and international standards. In fact, in all employment law we are trying to get the balance right between workers’ protection and employers’ flexibility. The employment rate is at 75% right now, and wages have gone up by just short of 8% in the last year, so we think we have the balance right. The Government are taking action to ensure that this practice is a last resort. We are not banning it outright. In the code, we have measures whereby employees’ compensation in certain circumstances, as the noble Lord alluded to, can be increased by 25% if the employer has unreasonably failed to comply with the code, which is quite a big disincentive for the employer. But we believe that there are certain circumstances in which flexibility is required, so we are seeking to get the balance right.