Unionised Workers in the Housing Sector: Pay Discrimination

Anneliese Midgley Excerpts

Tuesday 28th January 2025 Commons Chamber

[Anneliese Midgley (Knowsley) (Lab)]

Thank you, Madam Deputy Speaker, for granting this debate. I refer the House to my entry in the Register of Members’ Financial Interests as a member of Unite the Union.

I have spent my life in the trade union movement, so it is no surprise that my first Adjournment debate focuses on the principle of collective bargaining. A dispute in my constituency appears to expose a gap in the legislation, whereby an employer can offer pay increases exclusively to non-unionised workers—an unacceptable practice that can be exploited by employers not just in Knowsley, but across the country.

Livv Housing, the largest housing association in my constituency, manages 13,000 homes across Liverpool and the north-west. In March 2024, Livv reported reserves of £110.6 million. Over the past five years, it has recorded annual surpluses ranging from £14 million to £25 million, yet the workers who keep Livv running have faced years of real-terms pay cuts. Pay has fallen by over 30% in real terms since 2011.

It is no wonder that Unite and Unison members have been taking industrial action since October last year. Livv has refused to engage in meaningful discussions with the unions, but it has also declared the negotiations exhausted. The stonewalling has prolonged the dispute, and it is evident from my inbox that it is having an impact on my constituents who depend on Livv’s services. The casework load involving Livv is mounting up, and it is having a bad effect on people’s lives. Nothing is getting fixed, because its management will not sit down and settle the dispute.

In December, Livv wrote to all staff to say that they could have a 5% pay rise if they replied in writing to confirm that they were not a member of a trade union. The email says:

“If you are a non-union member and would like to accept the pay award offer of 5%, please can you send confirmation of your acceptance and confirm that you are a non-union member. A one-line email to confirm you wish to receive the pay award and that you are not a union member will be enough.”

This practice is completely contrary to the spirit of the Employment Relations Act 2004, which sought to protect workers’ collective voice and to stop inducement and similar practices. However, some employers keep trying to find a way around the protections, and we have to put a stop to it.

I have personally written to the chief executive officer of Livv on multiple occasions, urging the housing association to engage constructively with the unions and to seek a fair resolution, but Léann Hearne has gone as far as to inform me that she will no longer engage with me in writing. I have written to Livv and asked it to bring an end to the dispute, as has Mayor Steve Rotheram, and Knowsley council has passed a motion that asks it to get around the table and solve the dispute with the unions. This is all that any of us wants, especially the workers currently in dispute. Instead of doing that, Livv has focused its efforts on undermining collective bargaining.

We all know that workers get the best deal when they collectively bargain for pay and conditions. The strength of workers standing together is the only thing that can balance the power of an employer, which is why bad employers have done everything they can over the years to undermine the ability of workers to collectively bargain.

Some Members of the House will remember the 2021 case of Kostal UK Ltd v. Dunkley, in which the employer tried to undermine the collective voice of Unite workers.

Before talks had been exhausted, Kostal made a direct offer to the workforce and informed staff that they would not receive their Christmas bonus if they did not accept it by a deadline. Does that sound familiar? Like Livv, Kostal thought it had found a loophole in the law, but that was unanimously rejected by the Supreme Court. In its ruling, Lord Leggatt said:

“Such conduct denies the union its seat at the table and does not allow the union’s voice to be heard.”

Today, Livv Housing is doing just that.

What this behaviour does is create a two-tier workforce, pitting colleagues against each other. Imagine going into a workplace with a culture like that. If some employers can get away with this, you can bet that other employers will follow. It was Winston Churchill who said:

“The trade unions are a long-established and essential part of our national life. We take our stand by these pillars of our British society as it has gradually developed and evolved itself, of the right of individual labouring men to adjust their wages and conditions by collective bargaining, including the right to strike.”

I understand that the Minister cannot comment on individual disputes, but this is clearly something that can be exploited by employers across the country. The Employment Rights Bill provides a clear opportunity to close this loophole that we thought was closed so long ago, so I ask the Minister to commit to looking at amending the Bill to stop employers seeking to undermine collective bargaining by offering non-union members preferential treatment in pay awards, and to update me on those plans.