Growth and Infrastructure Bill

Debate between Lord Strasburger and Baroness Afshar

Wednesday 6th February 2013 Lords Chamber

[Baroness Afshar]

My Lords, I have worked for a long time with minority groups who employ their women in a system that is very similar to what is proposed. They have an interest in the business, they are committed to the business, they have kinship ties, and they have absolutely no rights. They work right through the day, and they share the losses and the gains.

In my long experience, the children of these minorities, who are some of the best educated children because the families use education, grow up and wish to use their education to get out of the informal sector into the formal sector. They wish for a different experience from that of their parents. They want to be workers with rights, entitlements and the possibility of progress. In fact, many of them would work in these new companies without realising that by doing so they were returning to where their parents were. That is not because they are not educated but because of the complexity of the contract. They are happy to have a contract. They sign it, which means it is formal and official. They do not have a lawyer at their side to warn them of every point. It would be a matter of great regret to lose these intelligent people, who, I think, are footloose and fancy free. They may well move on to other countries where they are better paid for having poor contracts. We are losing the confidence of our minorities and possibly the prospect of some very well-educated young people.

[Lord Strasburger]

My Lords, I declare an interest. Before I joined this House I was a serial entrepreneur. I have started many businesses from scratch. The most recent one employed 200 staff after being in business for four years. I am a big fan of giving employees a stake in the success of the business so that their goals are aligned with those of the founders. It never crossed my mind that my staff should need to forfeit their employment rights in exchange. Snatching these rights is hardly the best way to win their hearts and minds. Managers who feel they need to diminish the rights of their staff to get their full commitment to the success of the business are bad managers and will almost certainly fail. This idea is complete nonsense.