British Steel

Andy McDonald Excerpts

Tuesday 22nd April 2025 Commons Chamber

[Andy McDonald (Middlesbrough and Thornaby East) (Lab)]

I wholeheartedly congratulate my hon. Friend on her sterling work and very much welcome her statement. No doubt she will remember that on 11 April, the Leader of the Opposition said that in government she had negotiated a steel modernisation plan. The next day, when the Government brought in emergency legislation to save Scunthorpe, she said she was still negotiating a deal when her boss called the snap general election. There was never any agreement for an electric arc furnace on Teesside, as she claimed, as much as me and my colleagues support the concept. Will the Minister confirm that it was the Conservative party that presided over the end of virgin steelmaking in Redcar and Port Talbot, and that it would have done the same at Scunthorpe were it not for the Labour Government? Will she also confirm that if the private sector will not sufficiently invest, the Government will maintain British Steel through public ownership and use their public procurement strategy to make the company sufficiently profitable?

[Sarah Jones]

My hon. Friend is completely correct. Indeed, the Leader of the Opposition confirmed on the “Today” programme this morning that the Conservative party policy is for an electric arc furnace at Scunthorpe or Scunthorpe and Teesside—it is unclear—which would have cost nearly twice as much as the existing proposals, without any mention of primary steelmaking. I understand that the official Opposition’s position is that they are not in favour of retaining primary steelmaking capacity in the UK.

Steel Industry (Special Measures) Bill

Andy McDonald Excerpts

2nd reading
Saturday 12th April 2025 Commons Chamber

[Jonathan Reynolds]

Our friends in the press will follow that up and find out exactly how much money the Leader of the Opposition secretly promised to Jingye to transfer those jobs out of Scunthorpe. I think it might be wise, on all counts, for that statement to be withdrawn.

The situation we inherited across the board on assuming office is one where most of our foundation industries were in some substantial difficulty. Since 2010, UK crude steel production has almost halved, and we know that rebuilding our steel industry after years of neglect will be a challenge, but it is one that this Government have grasped.

[Andy McDonald (Middlesbrough and Thornaby East) (Lab)]

My right hon. Friend and I were in this House in 2015 when the Conservative party sat on its hands and kissed goodbye to the Redcar blast furnace and, with it, the state-of-the-art coke ovens that could have resolved this situation today. Before he sits down, will he say something about the Jingye activities at Lackenby and Skinningrove and how they will be impacted by today’s announcement?

[Jonathan Reynolds]

I am really grateful that my hon. Friend has been able to put that point on the record for his community, to avoid the kind of situation we have seen in lots of industrial communities, to be frank, over the years. This is why we take this action today in the national interest: to provide that bridge and that possibility to the future.

Specifically in relation to the downstream mills, even if we were willing to accept a situation in which they were supplied from a foreign country, as in this case, the confidence of consumers and businesses would surely be put at risk and it would bring into question the entirety of British Steel’s workforce and business and a huge part of our strategic assets. That, again, is why this decisive action today is necessary.

Employment Rights Bill

Andy McDonald Excerpts

Report stage
Wednesday 12th March 2025 Commons Chamber

[Lincoln Jopp]

I think the hon. Lady has slightly missed the point of what I was saying. Reading the body language of Members on the Government Benches, I think they all wanted to hear how this story ended up.

It did help that the then Secretary of State for Defence was a friend of mine, with whom I served in the Scots Guards. We did get the £20 bung for all the service personnel who stood in—regardless of the fact, interestingly, that all the generals, air marshals and admirals were against it, as were all the officials. There you go—I very much have the same values at heart.

Secondly, to win over the other side of the House to the very fair point I will come on to make, let me pay tribute to the remark of the right hon. Member for Birmingham Hodge Hill and Solihull North (Liam Byrne), in respect of union membership, that he wanted people to

“make a fair choice one way or the other”.

I note that the hon. Member for Cumbernauld and Kirkintilloch (Katrina Murray) also referred to fair work. I want to come back to that theme of fairness in addressing amendment 292.

The Bill is, to put it politely, something of a cat’s cradle of clauses, so I will briefly remind the House that the Bill seeks to place on employers an obligation to give their workers a written statement that they have the right to join a union, and, if they do join, to contribute to the political fund. Amendment 292 would simply inject a bit of balance into the legislation by requiring trade unions to notify their members annually that they have a right to opt out of the political fund and to obtain an annual opt-in from their members.

This all puts me in mind of November 1988, when Mrs Thatcher was about to visit Poland. At Prime Minister’s questions, just prior to her going, an Opposition Member stood up and asked whether she would raise with Lech Wałęsa the right to join a trade union. There may be some Members present who were there—I will not be so ungallant as to ask. A roar went up from the Labour Benches, and the redoubtable Mrs Thatcher replied that she would raise with the Poles the right to join a trade union, but that she would also raise the right not to be a member.

The Bill seeks to whack the pendulum pretty hard in favour of union power; our amendment would bring it back into balance somewhat. We all know someone, after all, who has fallen prey to one of those charity muggers who stop people in the street and try to sign them up to whichever charity they are being paid by that day. I have known people who have done that job, and it is not an easy one. Similarly, any Member of this House who stood in a precinct and tried to sell their political brand and get people to sign up will attest to that completely. Sometimes, the charity collectors are successful, and the all-important direct debit details are extracted. In fact, I remember hearing a number of Labour Members railing against this practice in the previous Parliament.

Amendment 292 would remind workers that they still have an off-ramp, if they want one—they still have agency, and they still have freedom of choice. We have heard Member after Member stand up over the past two days of debate and declare—in some cases sheepishly, in some cases more proudly—the money they receive from the trade unions. This is only right and proper. The public can make up their own minds as to whether this money has coloured the judgment of Labour Members, or whether it is simply support from an organisation that shares their values. But to turn down amendment 292 would, in my view, be a dreadful look. This is a totally measured, balancing amendment and, if Labour Members vote against it, the public would be right to conclude that the Government are being motivated not by a sense of equality, fairness and justice, but instead by something else. I urge hon. Members to vote for amendment 292 and to give power to the people.

[Andy McDonald (Middlesbrough and Thornaby East) (Lab)]

It is a pleasure to be called to speak for a second time on Report. I proudly refer the House to my entry in the Register of Members’ Financial Interests as a member of Unite the union.

Much has been said about trade unions and strike action, as if the only purpose of a trade union is to get workers out on strike. It is a mischaracterisation of unions, as was so eloquently described by my hon. Friend the Member for Tipton and Wednesbury (Antonia Bance). It is also a mischaracterisation of corporate Britain to think that everyone is exploitative and abusive. The majority of companies in our country adhere to environmental, social and governance principles, and they make that commitment; they want to demonstrate that they are responsible people. They want that for their investors and for long-term sustained investment, so we have to draw back on those views and step away from the disdain and the contempt for working people and for trade unions, which is not helpful.

--- Later in debate ---

[Gregory Stafford]

I have hardly started. There cannot possibly be anything that the hon. Gentleman wants to intervene on me for just yet, but I will come to him.

[Andy McDonald]

Will the hon. Member give way?

[Gregory Stafford]

I will come to the hon. Gentleman in a minute.

Yesterday, we heard that Labour clearly does not understand business, and today we get to what it really does understand: how it can support its trade union paymasters. Government Members have given us a masterclass in how to support trade unions. Opposition Members have mentioned the 1970s. When I heard Government Members speaking, especially the hon. Member for Blyth and Ashington (Ian Lavery), John Williams’s score from “Jurassic Park” soared in my mind. But instead of Jeff Goldblum being savaged by the dinosaurs, the dinosaurs that walk among us today will be savaging our economy. We know that because the growing influence of the unions, especially under the Bill, impose a heavy burden on corporations, stifling their ability to operate efficiently. As new businesses struggle to adapt to the new regulations, which the Government’s very own impact assessment predicts will cost £5 billion to implement, industry leaders have publicly shared their fears—

[Andy McDonald]

On a point of order, Madam Deputy Speaker. We have had directions from the Chair on this matter, and I ask for your guidance. The hon. Member for Farnham and Bordon (Gregory Stafford) has just been immensely critical of my hon. Friend the Member for Blyth and Ashington (Ian Lavery), who has a history of standing up to defend his industry, and who had the courage to go on strike for 12 months. Was he given notice that he would be named in this debate in that way?

Employment Rights Bill

Andy McDonald Excerpts

Report stage
Tuesday 11th March 2025 Commons Chamber

[John McDonnell (Hayes and Harlington) (Ind)]

I refer to my entry in the Register of Members’ Financial Interests. Just to inflame matters more, I am the chair of the RMT parliamentary group as well.

Next Monday is the third anniversary of the P&O scandal. Members might recall what happened: 800 members of staff—RMT members, largely—turned up for work and were sacked by video. Many of them were marshalled off their vessels by trained bouncers and guards who dealt with them roughly. The reaction across the House and across society was that this was repellent and should not happen in a civilised society. The Labour party then made a commitment that it would introduce legislation that would install in law the seafarers’ charter, and that is exactly what the Bill does, so I welcome it wholeheartedly and congratulate the Minister on doing this. But as he can guess, we see this as just the first step, because there is so much more to do, particularly in this sector, where many workers are still exploited compared with shore-based workers.

Government new clause 34 extends the maximum period of the protective award from 90 days to 180 days. We were looking for an uncapped award, to be frank, because P&O built into the pricing the amount it would be fined as a result of its unlawful behaviour, so that did not matter to P&O—it simply priced that in.

In addition, we were looking for injunctive relief, and I thank the Government for entering into discussions about that. Many employers can get injunctive relief on the tiniest error by a union in balloting procedures, but workers cannot. We are asking for a level playing field. We hoped that an amendment would be tabled to the Bill today, but it has not been. We hope the Government will enter into those discussions and go further.

[Andy McDonald]

I wonder whether my right hon. Friend recalls the evidence of Peter Hebblethwaite, the chief executive of P&O Ferries, to the Business and Trade Committee. He made it clear that he deliberately broke the law and had no regard for it. Was my right hon. Friend as horrified as I was to see that in this House, and as disappointed at the lack of response from the Conservative party?

[John McDonnell]

I think that across the House it took a long while to recover from the anger at the behaviour that was displayed in front of the Select Committee. The chief executive was acting with impunity because he had been able to price in those sorts of fines, and it was a cross-party view that we were angry about that behaviour. That is why the charter is so important to us, and why injunctive relief that is open to trade unions would provide an adequate starting point for getting some form of justice.

A range of other issues need to be addressed, including schedule 4, where the Government are introducing the ability to monitor the behaviour of companies. Harbourmasters monitor some of that behaviour as well, with declarations that companies are abiding by basic health and safety practices—some practices in the past have been frankly terrifying. We want health and safety to be about more than just basic legislation; it is also about rosters and how long people are working. We still have ferry contracts where people are working for 17 weeks without a break. We want to ensure that the regulations cover rosters, as well as holiday pay, sick pay, pensions and ratings training, so that we can start to get some form of accountability within the sector. That is not much to ask for, yet we have given shipping owners £3 billion of tonnage tax exemptions in return for the employment of British seafarers, and I do not think we got a single job as a result of that £3 billion. There is a need for proper regulation of the sector.

I tabled an amendment to ask the Government to stand back once a year and bring a report to the House on how implementation of the Bill is going, and to update us on the implications for maritime law and International Labour Organisation conventions, and the impact on the sector. A lot of debate on this issue has been about ferries, but we want to ensure that the provisions apply to all vessels, not just ferries. One point made by those on the Labour Front Bench when considering the Seafarers’ Wages Bill was that if a ship came into a harbour 52 times a year, the legislation would apply. Now—I do not know why—that has been extended to 120 times year, which means that thousands of workers will lose out because the measure will not apply to them. Will the Government have another conversation about that and see whether we can revert to the original position of the Labour party all those years ago when these scandals happened?

There is not much time but, briefly, I am interested in the extension of sectoral collective bargaining right across the economy. We are doing it with social care, but what I have seen from proposals in the Bill does not look like sectoral collective bargaining to me; it looks simply like an extension of pay review bodies. Indeed, the Bill states that any agreements within those organisations cannot legally be accepted as collective bargaining.

The Bill is not clear about how members of the negotiating body are appointed or by who. We were expecting that it would be 50% employers and 50% trade unions, and I tabled an amendment to try to secure that. We think that the negotiating body should elect its own chair, not that the chair should be appointed by the Secretary of State. We want such bodies to be independent and successful, because I see that as the first step in rolling out sectoral collective bargaining in many other sectors of our economy. That is desperately needed because of the lack of trade union rights and the low pay that exists.

The Bill is a good first step, but there is a long agenda to go through. I look forward not just to the Bill proceeding, but to the Minister bringing forward an Employment Rights (No. 2) Bill in the next 18 months.

--- Later in debate ---

[Laurence Turner]

I agree. My hon. Friend makes a very important point. When we look back at the national agreement in the early 2000s which led to the expansion of school support staff roles, the justification was that they would alleviate pressure on teachers and add to the quality of teaching in classrooms. That is exactly what school support staff workers in my constituency and his do every day.

School support staff roles are essential for SEND support, but the contracts those staff are employed under are so squeezed that no paid time is available for professional development or training. In other words, we cannot resolve the SEND crisis without contract reform, and we cannot achieve that contract reform if the drift and delay, which is the legacy of the 2010 decision to abolish the SSSNB, continues. I urge the Opposition, even now, to think again and not press their amendment to a vote.

In the time remaining, I wish to say a few words about the provisions on hospitality workers and their right not to be subject to third-party harassment. When the hon. Member for Bath (Wera Hobhouse), who was formerly in her place, brought forward her private Member’s Bill in the last Parliament, it contained the same provisions that are being advanced now. At the start of the debates in the House of Lords, the extension of the protection to “all reasonable steps” was supported by the Government of the day. Baroness Scott, leading for the Conservative party, said that the measures would not infringe on freedom of speech; in fact, they would strengthen it. The Conservative Front Benchers were right then and they are wrong today.

The Bill is incredibly important. Employment law in the United Kingdom has tended to advance by increments; the Bill measures progress in strides. I am proud to have had some association with it through the Public Bill Committee. I thank the departmental team who were part of the process and the other members of the Committee. I will be proud to vote in favour of the extensions to rights in the Bill when they are brought forward to a vote tonight.

[Andy McDonald]

As a proud trade unionist, I refer the House to my entry in the Register of Members’ Financial Interests.

Today marks a truly historic moment: the most significant expansion of employment rights in more than a generation. I extend my congratulations to the Secretary of State and the Deputy Prime Minister for their efforts, and express my enormous gratitude to the employment rights Minister, my hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders), for his time and engagement with me over recent months in discussing the measures in the Bill. I also wish to acknowledge the dedication of Bill Committee members, as well as the countless trade union officers, academics, Labour party members and staffers who have worked tirelessly for decades to bring us to this day. This is a milestone we have long strived for. On a personal note, I extend my sincere thanks to the Prime Minister for entrusting me, while in opposition, with the responsibility of delivering Labour’s Green Paper, “A New Deal for Working People”.

I speak in support of the Government’s amendments and will touch on my own tabled amendments selected for discussion. Specifically, I support Government new clause 32 and Government new schedule 1, which will extend guaranteed hours protections to nearly 1 million agency workers. This is a crucial step, aligning with my own amendment 264, and I am pleased to see the Government taking it forward. The TUC has rightly emphasised that for these rights to be effective, they must apply to all workers. Including agency workers is essential to prevent unscrupulous employers from circumventing new protections by shifting to agency staff. Exploitative tactics employed by a minority of employers, designed to avoid responsibilities and deny workers job security, remain a deep concern, which is precisely why I have consistently advocated for a single employment status.

I tabled new clause 61 because I believe that establishing a single status of worker is a necessary step to ending unfair employment practices. The Government’s “Next Steps to Make Work Pay” document, published alongside the Bill, states their intent to consult on moving towards a single worker status. On Second Reading, I noted that we cannot truly eradicate insecure work until we establish a clear and unified employment status. Since then, the Director of Labour Market Enforcement, Margaret Beels, has told the Business and Trade Committee that

“the whole business of employment status needs to be addressed”,

adding that

“you can probably consult until the cows come home on this issue…it is about time to do something about it”.

The TUC also urged a rapid review of employment status to prevent tactics such as bogus self-employment from proliferating as employers respond to new rights.

I welcome the Business and Trade Committee’s recommendation that the Government must prioritise their review of employment status and address false self-employment

“so that these reforms are rolled out alongside…the Employment Rights Bill.”

I acknowledge the new clause tabled by the Chair of the Committee, my right hon. Friend the Member for Birmingham Hodge Hill and Solihull North (Liam Byrne), which seeks to establish a deadline for this consultation. I urge the Government to accelerate progress on this front, but take reassurance from the fact that this issue is well understood at the highest levels.

I turn to collective redundancy and the unacceptable practice of fire and rehire. ACAS reported in 2021 that the use of fire and rehire tactics by employers was prevalent in the UK and had increased since the pandemic. Nearly a fifth of young people say their employer has tried to rehire them on inferior terms. Many will recall how P&O shamelessly broke the law, choosing to pay compensation rather than comply with its legal obligations because it calculated that replacing its workforce with cheaper labour would ultimately be more profitable.

I welcome the Government’s consultation on collective redundancy and their introduction of new clause 34, which doubles the maximum protective award for unfairly dismissed workers to 180 days’ pay. However, while this may deter some employers, I question whether it is a sufficient deterrent to prevent further abuses. The TUC has raised concerns that merely doubling the cap will still allow well-resourced employers to treat breaching their legal obligations as the cost of doing business. The TUC instead proposes a stronger deterrent: the introduction of interim injunctions to block fire and rehire attempts—an approach I have sought through new clause 62.

Mick Lynch, the outgoing general secretary of the RMT, told the Bill Committee that unions should have the power to seek injunctions against employers like P&O. He rightly pointed out:

“The power is all with the employers,”––[Official Report, Employment Rights Public Bill Committee, 26 November 2024; c. 59, Q57]

and that unions currently lack the legal means to stop mass dismissals before they happen. My new clause offers a solution, giving employees immediate redress through an injunction if they can show that their dismissal is likely to be in breach of the new law, ensuring that they remain employed with full pay until a final ruling is made. I encourage the Minister to address this issue in his response and to indicate an openness to considering injunctive powers in this Parliament.

[Richard Burgon]

My hon. Friend has played such an important role in the development of these policies. He is making a wide-ranging speech—in his remaining remarks, will he reflect on the importance of not just individual rights, but collective rights?

[Andy McDonald]

My hon. Friend highlights a critical issue—this is about making that shift and reversing the decline in collective bargaining. We should be looking for the International Labour Organisation standard and, as per the European Union, to get to 80% collective bargaining coverage across the piece.

I also note the concerns of the TUC and Unite regarding Government new clauses 90 to 96, on the “one establishment” issue, and urge them to engage with the unions on these issues.

Much has been said about wealth creators, but there needs to be a recognition that working people are wealth creators and they are entitled to their fair share. The Chair of the Business and Trade Committee calls for consensus. At the core of this discussion has to be that good, well-paid, secure, unionised employment is good for our constituents, our businesses and our economy, and this crucial Employment Rights Bill is an essential step along that road to a brighter economy and a brighter future for all our people.

“Chapter 4A

Andy McDonald Excerpts

Tuesday 11th March 2025 Commons Chamber

[Greg Smith]

My hon. Friend is absolutely right. I am attending a wedding in Farnham later this year, and I look forward to visiting the Nelson Arms and thanking his constituent for the service he also gives as a paramedic.

[Andy McDonald (Middlesbrough and Thornaby East) (Lab)]

Is the shadow Minister aware that the TUC’s survey clearly shows that the vast majority of people on zero-hours contracts really want regular hours? Can he respond to that?

[Greg Smith]

The hon. Gentleman says it is “the vast majority”. I do not know whether it is the vast majority, but some people, of course, will want the guarantee of the hours he talks about. The point I am making is about allowing flexibility for those for whom it does work. I gave the example of students, and my hon. Friend the Member for Farnham and Bordon (Gregory Stafford) gave another example of someone for whom this flexibility works. That is not to say that there are not many people in our economy who do seek the change the hon. Gentleman wants, but it is not a universal rule, and it should not simply be applied to everyone. I gently invite him to reflect on the impact this will have on people such as those my hon. Friend the Member for Farnham and Bordon referred to.

--- Later in debate ---

[Richard Burgon]

It is always a pleasure to follow my constituency neighbour from the other side of the House, the right hon. Member for Wetherby and Easingwold (Sir Alec Shelbrooke).

I really welcome the Bill, which needs to be put in its historical context. With the exception of those passed under the last Labour Government, virtually every time we have seen an employment rights Bill or a trade union Bill in recent decades, it has been an attack on trade union rights or workers’ rights, whereas this Bill makes a real difference in advancing the rights of working people in this country. They have been kicked around for too long, and it is right that we do not accept that it is fine for workers in this country to be some of the easiest to sack and mistreat in the continent. Workers in our country deserve better employment rights, and this Bill sets about putting them in place.

[Andy McDonald]

My hon. Friend will have heard constantly, particularly in response to the P&O disaster, that the Conservatives were going to introduce an employment Bill when they were in government. Does my hon. Friend agree that they have criticised this Government for doing what they promised: to bring in this Bill within 100 days?

[Richard Burgon]

I certainly do. The previous Government never got round to introducing such a Bill. When the Conservative party was in government, all we had about the P&O debacle were crocodile tears or statements of sorrow from the Dispatch Box, which just do not cut it.

This Bill contains important advances, such as establishing bereavement leave and introducing menopause action plans. Over 1 million people on zero-hours contracts will benefit from the guaranteed hours policy, and 9 million people who have been with an employer for less than two years will benefit from the right to claim unfair dismissal from day one. It seems to escape the understanding of many Conservative Members that this does not mean that employers cannot dismiss people; it means that they cannot dismiss people unfairly.

The Conservatives are arguing for the right of employers to dismiss people unfairly. As it stands, before this legislation comes in, the only way that workers can claim unfair dismissal from day one is if it is a discriminatory dismissal. To be clear, an employer could, six months into someone’s contract of employment, say, “I’m sacking you because I don’t like people who wear green jumpers,” or, “I’m sacking you because I find your voice irritating.” That would be unfair dismissal. As it stands, people do not have the right not to be unfairly dismissed until they have accrued two years of service, and the Conservative party needs to come clean about that.

Before I move on to my new clause 6, I want to say that I welcome many of the Government amendments and the amendments tabled by Labour Back Benchers, including the many important amendments tabled by my hon. Friend the Member for Middlesbrough and Thornaby East (Andy McDonald), who did such a good job at developing employment policy in opposition; the important amendments on sick pay, tabled by my hon. Friend the Member for Bradford East (Imran Hussain); and the important amendments tabled by my hon. Friends the Members for Walthamstow (Ms Creasy) and for Luton North (Sarah Owen).

My new clause 6 would right what I consider to be a historical wrong. The last Labour Government brought in the groundbreaking Equality Act 2010, which we can all be proud of. As part of that, they introduced statutory discrimination questionnaires. When I was an employment lawyer before becoming a Member of Parliament, I lost track of the number of times that we used statutory discrimination questionnaires to smoke out discrimination in the workplace in relation to age, disability, sex, race, sexual orientation, pregnancy and maternity, gender reassignment, religion or belief, and marriage and civil partnership.

I bumped into an old colleague who is a trade union lawyer on a train, and he made the point that statutory discrimination questionnaires also—[Interruption.] I make no apologies for having a friend who is a trade union lawyer—I think the Conservatives need to get out a bit more. He made the point that statutory discrimination questionnaires showed when a claim did not have a good chance of succeeding at an employment tribunal, helped to manage potential claimants’ expectations, and thus led to an unmeritorious claim either not being pursued or being settled. Such questionnaires helped to smoke out discrimination in workplaces, helping not just the individual employee, but tackling discrimination against workers more widely in that workplace. The truth is that in 2025, given some of the rhetoric from politicians in this country and around the world, it is as important as ever to have mechanisms in place to tackle discrimination in workplaces across the country.

That was part of the last Labour Government’s pioneering Equality Act. Shamefully, the Conservative Government abolished statutory Equality Act questionnaires in 2014 as part of their attack on workers’ rights. In their consultation, 83% of respondents said it was wrong to remove this important mechanism for workers to unmask and tackle discrimination—83%—yet the Conservative party when in government, aided and abetted by some of their erstwhile friends, ploughed ahead in any event.

I tabled new clause 6 because this is an important opportunity for our new Labour Government to right the wrong done by that Conservative-led Government and reinstate a very important advance made in the last Labour Government’s Equality Act. I look forward with interest to hearing the Minister’s response. If he will not accept this amendment to the Bill, I invite him to come forward with a proposal to reintroduce statutory discrimination questionnaires as soon as possible. They made a real difference. They helped to stop some claims going to tribunal that should not have gone to tribunal, but, more importantly, they empowered workers to smoke out discrimination in their workplaces not only for their benefit, but for the benefit of their colleagues in that workplace and for the benefit of wider society. We need that now in 2025, and I look forward to the Minister’s response.

Draft Trade Union and Labour Relations (Consolidation) Act 1992 (Amendment of Schedule A2) Order 2024

Andy McDonald Excerpts

Wednesday 20th November 2024 General Committees

[Andy McDonald (Middlesbrough and Thornaby East) (Lab)]

It is a delight to see you in the Chair, Mr Mundell. I had wondered whether it was necessary to speak, but given some of the comments I have just heard, I feel compelled to do so.

I congratulate my hon. Friend the Minister on the Employment Rights Bill, on the back of the “New Deal for Working People”. The Bill will be the single and foremost change to working people’s terms and conditions in this country for more than a generation. It is long overdue. When I first saw this order, however, I got quite a shock. I thought, “Is this it?”, although I suppose a 25% uplift is better than nowt. But of course it has not come from our Front Bench, thank goodness; it is something we have inherited.

I want to look at this draft measure through the prism of fire and rehire—actually, not fire and rehire, but fire and replace—that we came up against in P&O Ferries and Peter Hebblethwaite. I was a member of the Business and Trade Committee that heard evidence from that chief executive. He made it abundantly clear that he was quite prepared to break the law of the land on consultation periods and to price it into the compensation, the pay-off, of his workforce.

All we got from the then Government was a wringing of hands, a condemnation and very little else. The draft order seems to be the sum total of their response to that travesty. I have to tell the Committee that the 25% uplift would be a doddle to the likes of P&O. It would not be impacted one jot. I am delighted that the Minister mentioned interim relief; when we go forward with our excellent Employment Rights Bill, I am sure we will discuss what that will look like.

I gently say that if we are going to be able to stop another P&O, we will need injunctive relief because trying to bring out interim relief after the horse has bolted will be no good whatever. I also gently suggest that the sorts of financial penalties that need to be imposed on the egregious behaviours of the likes of P&O will have to be significantly higher. There was discussion about unlimited fines being visited on those who had deliberately prepared to break the law for their own ends. We have to look at those issues very carefully.

In addition, now that we have the opportunity we have to reflect on the appalling record of enforcement across the piece. The number of tribunal awards that are not paid out by employers is legion, and the ability of people to then pursue their enforcement is sadly lacking. It is critically important that we should have rights and protections for our workforce and the powers to have those enforced. I will close with that; I just express my relief that we did not bring the measure forward—

[Graham Stuart (Beverley and Holderness) (Con)]

You are bringing it forward—that’s what we are doing here!

[Andy McDonald]

I get the right hon. Gentleman’s point, but the legislation did not originate from the Government side. We are taking this first step, but I put the Opposition on notice that it is simply a first step.

Post Office Board and Governance

Andy McDonald Excerpts

Wednesday 28th February 2024 Commons Chamber

[Kevin Hollinrake]

Thankfully, not me. I have nothing against Mr Staunton personally. He had a strong track record as the chair of various large organisations, as he said yesterday. I think we would all agree that the Post Office is a specific organisation with specific challenges. Yesterday’s evidence from Ben Tidswell, the senior independent director, was interesting. He felt that Mr Staunton’s behaviour changed in November last year and became far more “erratic”—his word. I do not know the reasons for that specifically, although Mr Tidswell suggested some yesterday. Whatever the reason, Mr Staunton’s recent conduct is not consistent with remaining chair of the Post Office. That is why we decided to act.

[Andy McDonald (Middlesbrough) (Ind)]

I thank the Minister for his work in this area. He has been assiduous in his attention to detail—I cannot say the same of the Secretary of State. Nevertheless, yesterday was unedifying, and we are sick to death of the “He said, she said” business—we are not interested, except that two witnesses yesterday took the oath and spoke to the same issue: as to whether Mr Read had ever tendered his resignation or threatened to. It was totally conflicting evidence from the two people; they both cannot be right, so I suggest that one might have been a little economical with the truth. From Dr Neil Hudgell, though, the message came loud and clear: these schemes are way too “over-engineered” and far too “bureaucratic”, and that has led to the delay in getting the money out of the door. I have to correct the Minister—only 20% of the fund is out of the door as yet. We have to speed it up.

Finally, I ask him to take on board the words of the predecessor Select Committee, the Business, Energy and Industrial Strategy Committee, in February 2022, which said that the best way through this was to remove the Post Office from the system. Now, it may be too late to do that, but my goodness, was not the Committee right to say that? Can we find ways to relegate the role of the Post Office, because that is the only way we will get justice for postmasters? Ultimately, that is what this is about—getting them compensated.

[Kevin Hollinrake]

I totally agree with the hon. Gentleman’s final point, and a number of the points he made. It is fair to say that on the compensation schemes, we could use the old phrase, “If you were going there, you wouldn’t start from here.” I think that Sir Wyn Williams has said that, but the best way now is to say, “When you’re going through hell, keep going.” We have to improve the schemes we have got. The hon. Gentleman made an interesting point about the Post Office, and he will have heard what I said earlier. I think the fixed-sum awards do take the Post Office out of the schemes completely, because no disclosure is required for them.

On tendering resignation—again, I thought it was extraordinary that a chair would disclose confidential and private conversations that he has had with the chief executive. I have to say for the record that Mr Read has never tendered his resignation to me or to the Secretary of State. Others would be better than me to comment on the nature of those conversations, but I do not think that it was right for Mr Staunton to comment at all.

I assure the hon. Gentleman that the Secretary of State has given me 100% support in everything I have done in trying to address these matters. I accept what Neil Hudgell said—I spoke to him afterwards, and we have spoken before about the schemes being over-engineered—and he suggested some ways to try to accelerate compensation. We are of course looking at those to see what the best way is to ensure that they are not over-engineered, but deliver rapid and fair outcomes as quickly as possible.

Post Office Horizon: Compensation and Legislation

Andy McDonald Excerpts

Monday 26th February 2024 Commons Chamber

[Kevin Hollinrake]

I thank my hon. Friend for her engagement with this issue and for her work on behalf of her constituent, whose case I am very aware of. Yes, we absolutely should be taking a view where evidence is impossible to obtain. Of course, it is fair to request certain bits of information to support a claim, but where such information is not available because it pertains to 20 or 25 years ago, it would be unreasonable to expect that as the basis for a claim. As I said earlier, where there is an absence of evidence but a broader claim that is compelling, there is no doubt that the claimant should get the benefit of the doubt, and I am very keen to make sure that her constituent gets compensation as quickly as possible.

[Andy McDonald (Middlesbrough) (Ind)]

I thank the Minister and his predecessor for their work on this. I know that he has been paying a lot of attention to it. On the issue of full and fair compensation, may I express a worry about the £600,000 option? It has been said that this is a complicated process, but it does not have to be. Schedules of past and future loss are regular events when calculating these matters, and if ever there were a case for aggravated and exemplary damages, surely this is it. My fear is that people who are up against time limits and perhaps getting older will want to accept the £600,000, which will be a vast undersell of the true value of their claim. What mechanisms is the Minister putting in place to ensure that people do not undervalue their claim and take that easy option to bring the matter to a close?

[Kevin Hollinrake]

The hon. Gentleman makes a fair point. Full and fair compensation lies at the heart of this matter, and we do not want people to feel that the £600,000 is the only option for getting compensation in quick time. It is there for those who want to take the money, walk away and draw a line under the matter, particularly where they think their claim is below that figure. As the hon. Gentleman might have heard me say earlier, on the recommendation of the advisory board and others involved in the process, as soon as a full claim is received, individuals in the overturned conviction cohort will get their interim compensation of £163,000 topped up immediately to £450,000. That will ease the financial pressure and reduce what he suggests might be an incentive for people to take a lower amount than they deserve. A significant amount of money will be paid forward on that basis while the remainder of the compensation claim can be properly assessed.

Oral Answers to Questions

Andy McDonald Excerpts

Thursday 14th September 2023 Commons Chamber

[Ms Ghani]

I am responsible for supply chains and critical minerals too; several months ago, I refreshed our critical minerals strategy. We are looking at how we ensure that we are building resilience and ensuring that our supply chains are stable.

I am also working with a number of industry representatives to put in place an import supply chain strategy as well. We know that there are kinks in supply chains and that there are issues of economic coercion around the world. We want to ensure that we have stable supply chains to protect our advanced manufacturing sector. [Interruption.] From a sedentary position, my right hon. Friend the Secretary of State points out that I am also the sanctions Minister. We are ensuring that that work is now co-ordinated, not only across Whitehall but internationally.

[Andy McDonald (Middlesbrough) (Lab)]

Those of us on the Business and Trade Committee are very much aware of the sterling work done by officials in furtherance of the trade deal with India. However, in the revelation at the G20 summit of the Partnership for Global Infrastructure Investment—the counter to China’s belt and road project through a US-backed trade corridor to speed up links between Europe, the middle east and India—there was no mention of the UK. Did our Government decline to be involved or were we not invited?

[Ms Ghani]

I was in front of the Select Committee; that session would have been afterwards. I have just been informed that the Prime Minister is very much focused on securing a trade deal and on the other details that the hon. Gentleman raised. Because it is a Select Committee issue, I will make sure that he gets all the details in writing.

--- Later in debate ---

[Kemi Badenoch]

The hon. Gentleman is right—there is one thing that I find regrettable, and it is the fact that he continues to bang on and on about this even after the rest of the world has moved on post the referendum. The fact is that we have left the EU and we are not going back into it—certainly not under the terms that would require us to do so. He should be focusing on the benefits of Brexit, such as having more control over our laws, our borders and our money, as well as being able to deregulate, including through our smarter regulation programme. If he looked at that, there might be opportunities he could deliver for the people of Scotland.

[Andy McDonald (Middlesbrough) (Lab)]

As the UK automotive industry wrestles with the looming increase in the rules of origin thresholds, European Commission President Ursula von der Leyen has just announced a probe into the flood of cheaper Chinese electric cars coming into the market. Although there has undoubtedly been much for the UK to welcome, with announcements from Jaguar Land Rover and BMW, what additional measures are the Government taking to ameliorate the impact of cheaper and heavily subsidised Chinese imports?

[Kemi Badenoch]

That is an excellent question, because it raises something fundamental. The transition to net zero will change the nature of the UK supply chain and, as I said earlier this week, China poses a systemic challenge here. The path to net zero creates a risk of even greater reliance on China, especially when it comes to the battery manufacturing needed for zero emission vehicles. We cannot be naive about that. That is why I am working hard to ensure not only that business competitiveness is at the heart of our transition, but that British national interests come first. We cannot depend on a single country. We must protect our national security, so we are working with like-minded allies. My hon. Friend the Minister for Industry and Economic Security has spoken about our critical minerals strategy and we are working to diversify and build those supply chains. That is what the Atlantic declaration, which I mentioned earlier, is also about. We are very aware of this point, but I think it is important to reinforce it.

Strikes (Minimum Service Levels) Bill

Andy McDonald Excerpts

Consideration of Lords message
Monday 17th July 2023 Commons Chamber

[Alan Brown]

It is a pleasure to follow the shadow Minister, the hon. Member for Ellesmere Port and Neston (Justin Madders). I agree with all his comments, but I hope that Labour stays resolute on this. If it comes into government, we do not want to see another U-turn, given what we heard at the weekend.

The Minister put forward the myths again about how this Bill is about saving lives and livelihoods. I do not know how he can talk about saving livelihoods, as he is bringing forward a Bill that is going to allow workers to be sacked more easily. Workers’ livelihoods are at stake because of the Bill and the intentions behind it. I would like to put on record my thanks to the Lords for the fight they have brought on this, but I am a wee bit disappointed that the Lords amendment is only about the consultation. Even if we manage to defeat the Government tonight, the Lords amendment does not provide any additional proper protections for the unions or the workers, because it is all about consulting. At least consulting would draw out some transparency, because the Government would need to publish responses and allow the House or a Joint Committee to debate those. In itself, however, the amendment does not provide any additional protections.

[Andy McDonald (Middlesbrough) (Lab)]

Does it not speak volumes about the way in which this Government conduct their business that they go through a consultation process and are not prepared to publish the results of that consultation? What have they got to hide?

[Alan Brown]

That is a fair point. Obviously, I cannot answer on what the Government have to hide, other than to say that we know about a raft of answers that show how unworkable and prejudiced this Bill is.

Subsection 5(b) in the amendment is about consulting the ILO. The Government keep telling us that this Bill brings the legislation in the UK into line with international norms, but it clearly does not; the ILO has said that the UK already has some of the most draconian strike legislation, even before this Bill. So there is no doubt that the Government are frightened to consult the ILO because they are frightened about the answers that will come back and the evidence about how draconian this really is that will be put into the public domain when it is published.

As I say, it looks as if the Lords are going to back down after this. There is no more scheduled business to allow further consideration of the Lords message, which suggests they are not going to push the amendment beyond that. That is disappointing, especially given that the Government have tried to argue before that this is a manifesto commitment. The actual manifesto commitment was to require a minimum service for transport. That commitment is not as wide ranging, so the Lords would be completely justified in continuing to resist for as long as possible.

As the shadow Minister said, because the amendment is to consult, as opposed to what was set out in previous amendments, unions are still at risk of facing big fines. Unions are still going to comply, effectively helping employers disrupt strikes and single out workers. Worst of all, workers can now get sacked for not complying with a work notice that they have not received.

Why the Government would not even consult and publish an impact assessment on that is beyond me. Again, they know that it allows employers to unfairly discriminate, pick out the awkward squad, then discipline and sack them, with no recourse to a tribunal. Welcome, Madam Deputy Speaker, to 21st century authoritarian Britain, where sacking workers like that brings the UK in line with Russia and Hungary, not the international norms, although the Minister and Government try to tell us otherwise.

I will be voting against the Government motion to disagree with the Lords. I hope the Lords do not give up the fight, but I am frightened they will. That is why we want away from this Union, because it is certainly not working for anybody.