Employment and Trade Union Rights (Dismissal and Re-engagement) Bill

Alexander Stafford Excerpts

Friday 22nd October 2021 Commons Chamber

[Imran Hussain]

My hon. Friend, as ever, makes a very valuable point. The most pertinent point that he makes is that many countries in Europe are already ahead of us and have already acted in this area. Let me say this to him: the reason that Government Members are loud and make points that go towards accepting in part that there is this need is that they understand that, when they go back to their constituencies, there is a different argument that they have to face there. I urge them today to seriously consider this very sensible Bill.

The Bill introduced by my hon. Friend the Member for Brent North, with the support of trade unions, working people and the Labour party, would rebalance employment protection so that it is no longer overwhelmingly weighted in favour of the employer, and put workers and trade unions back on an equal footing. It would place power back into the hands of the workers who create the wealth, rather than the chief executives and shareholders who hoard it.

The Bill would also reward those countless employers who are doing the right thing by their staff in ensuring that they are well paid, well protected and well looked after, but who are being undercut by unscrupulous competitors. Yet even as Ministers claim to oppose fire and rehire, they are clearly telling their MPs to vote against the Bill, as is evident today. The reality is that the Government have nothing to offer working people.

[Alexander Stafford (Rother Valley) (Con)]

In some ways, I am a bit disappointed, because the hon. Member for Brent North (Barry Gardiner) made a bipartisan speech, but unfortunately the hon. Member for Bradford East (Imran Hussain) is not. Fire and rehire is a cross-party issue that Conservatives in our constituencies are dealing with on the ground as well. In Rother Valley, Adam Tinsley, the councillor for Maltby East, fought against Sheffield University, which was going to use fire and rehire, as a Unite the union representative. I commend him for that. Let us take some of the partisanship out of the debate and work together to solve the problem.

[Imran Hussain]

The hon. Gentleman says that he supports a councillor who stands up against fire and rehire in his constituency. I say to him that he should stand up in the House and support fire and rehire [Interruption.]—support ending fire and rehire. Then he can take that message back.

Of course, neither I nor anybody on these Benches intend to make this a partisan issue. [Interruption.] Let me finish. Our issue is that the Government have instructed Conservative Members to vote against the Bill. [Interruption.] Well, in that case, I look forward to welcoming Conservative Members in our Lobby today.

Let us look at the Government’s shameful record. I am not surprised that they are voting against stopping fire and rehire, because over the last decade, they have done nothing but openly attack and undermine workers’ rights. They introduced the Trade Union Act 2016 that stripped away the power of trade unions and made it harder for working people to organise in defence of their rights. They preside over an employment tribunal backlog that means it is almost impossible to receive justice for mistreatment in the workplace. They leave the post of director of labour market enforcement vacant at a time when we are seeing more workers exploited in the workplace. They promised us an employment Bill that we are still waiting for almost two years later. Is it any wonder that we have a labour shortage when the Government could not care less about the rights of working people?

We all know that the Prime Minister likes to talk about levelling up and building back better, but the Government cannot have it both ways. They cannot talk about levelling up without levelling up employment protections. They cannot talk about building back better without building a better employment rights settlement. They cannot talk about fire and rehire being a “bully boy tactic” without voting for this Bill today.

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[Gavin Newlands]

I will move on. I will come back to the hon. Gentleman. [Interruption.] Or not, if he is going to huff. It is up to him.

I do not believe that it is any coincidence that those countries with heftier employment rights around Europe have better and more robust economies. We can see the results of precarious employment around society right now: labour shortages in all sorts of sectors of the economy and lacklustre demand experienced by retailers. If our economy is 80% centred on the service sector, we need people spending money on those services. Leaving workers with the fear that tomorrow could see their employer slash their wages or show them the door is a sure-fire way to depress spending, demand, and ultimately hinder economic recovery. Workers in Europe have no such fears, and it is surely a factor in their continued long-term outstripping of the UK that employment rights are given such importance and credence by their national Governments.

Whatever ideological objections some Members on the Tory Benches have to improving workers’ rights—I have no doubt a few of them consider the factory Acts a gross impertinence—they can surely see the economic self-interest that protecting workers from fire and rehire would mean for employer, employee, and our society and economy as a whole. It is no wonder Ministers want to isolate the UK further and further from Europe; they want the UK isolated from the norms of employment rights that apply there. They want workers in the UK isolated from the economic benefits that enhanced rights would bring. They want the UK isolated from the basic standards of decency that apply across the continent. On decency, I will give way.

[Alexander Stafford]

Is not one of the big differences between what we are doing in the UK and what they do on the continent, that on the continent they have mass immigration across the EU, which is driving down wages, whereas in this country, now that we have left the EU, we can look after workers better, not rely on poorly paid labourers and actually get high quality high-skilled jobs? That is the fundamental difference: we want better jobs and better pay for people, rather than relying on cheap labour.

[Gavin Newlands]

Well, I find that rather astonishing. The hon. Gentleman talks about improving workers’ lot, yet they are voting down this legislation today. The lack of self-awareness in some Conservative Members is astonishing. They are very fond of talking about levelling up, but not, mysteriously, when it comes to levelling up workers’ rights against the power wielded by multibillion pound corporations and their multimillionaire managers. The idea that the UK should level up to European standards is anathema to them.

I am coming to my conclusion as I appreciate that there are many Members who want to speak today, but I would like briefly to take this opportunity to mention my own Devolution (Employment) (Scotland) Bill, which is on the Order Paper today. It is an unlikely contender for Royal Assent, given that it is at the bottom of the Order Paper today, but it is an attempt to prise employment law from the clammy grip of the Treasury Bench as far as Scotland is concerned. Do not worry, Madam Deputy Speaker, I will not speak to it; I mention it only because I fear that the Tories will vote down the Bill before us today. To my mind, that will be the straw that broke the camel’s back. No more should Scottish workers be forced to suffer the consequences of unthinking and uncaring Tory Governments. Dovetailing nicely with that is the fact that the Scottish Government supported my legislation last year and that banning fire and rehire was also in the Scottish National party manifesto for the Scottish elections in May, in which we received our record vote.

If this UK Government continue to stick their head in the sand and depress workers’ rights below the level seen in most other civilised countries, they should not be surprised if Scotland chooses civilisation instead of the race to the bottom that seems to be happening to workers here. Workers across these isles should all be accorded the respect and dignity they deserve, and have that backed up with the force of law where required. I commend the Bill to the House.

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[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

I congratulate the hon. Member for Brent North (Barry Gardiner) on securing the Second Reading of his private Member’s Bill and on the way in which he has engaged with both sides of the House, as well as with unions, workers and employers. I met him twice over the summer, and indeed, again this week, to discuss his ambitions for the Bill. In a slightly surreal surprise moment, he leaped out of a bar in Manchester at our party conference to lobby me as I moved from event to event. I know that he wants to be associated with the party of workers, but that was an extreme way of doing it. However, I welcome his approach and I jest, because I know that he has engaged on this issue and is committed to finding a workable solution to address the issue of fire and rehire, which is clearly important for Members of the House. I have stood here many times before to address the House on this issue.

Let me answer the charge from the hon. Member for Birmingham, Erdington (Jack Dromey) about sending out an unambiguous message. We do send the message out and we have been really clear. We do not have to do it through this particular Bill. I was really attracted to the approach of my hon. Friend the Member for Newbury (Laura Farris), when she talked about not having primary legislation to address this, but looking at other ways—including the code of practice that she proposes—for the reasons that she talked about relating to not having unintended consequences.

[Alexander Stafford]

Can we make it fully clear that Government Members, regardless of what is going on, are against the abuse of fire and rehire? I stand against it for the residents of Rother Valley and I am sure that the Minister does. Will he clarify that once and for all and make it clear for everyone listening at home?

[Paul Scully]

My hon. Friend is absolutely right. The unambiguous message is that using fire and rehire as a bully-boy negotiating tactic is absolutely inappropriate. However, and I will develop this point later, I do not believe that the Bill as it stands—even if it is amended, because we do not believe that we need primary legislation to achieve these ends—will have the intended effect, because it will not ban fire and rehire, as the hon. Member for Brent North said. I think he needs a bigger badge to explain what it actually does do, in his opinion. However, we want to get rid of using fire and rehire as a negotiating tactic, as a bully-boy tactic, and that is what the other measures that we are proposing seek to achieve.