Employment Rights Bill (Sixth sitting)

Anneliese Midgley Excerpts

Committee stage
Tuesday 3rd December 2024 Public Bill Committees

[Greg Smith]

I will be brief in my response to these Government amendments, which make the requirement for the right to reasonable notice of cancellation or changing of shifts more onerous. I spoke to these principles during our debate on the previous set of amendments in my name, but I ask the Minister gently now, why were these provisions not included in the Bill on introduction? Was it an oversight? Will there be a repeat of the line, “It was the intention but we just didn’t do it”, or is it something else? I would be grateful for clarification.

As I argued during the debate on the previous set of amendments—this point is relevant to this set too—why are these amendments so necessary? Does the Minister really think it a proportionate burden to place on businesses, particularly in those cases where there will be fair and reasonable grounds for a business not needing to provide notice of a change in shift to an employee? What assessment have the Government made of the cost to businesses, given that they will now essentially have to pay for work not done, without recourse to force majeure provisions or whatever it might be—where it is genuinely not their fault that they cannot provide the work to their workers for whatever reasons? Force majeure is a well-established principle in all sorts of sectors across the world.

I urge the Minister to consider carefully how he can ensure that out-of-control eventualities are looked after in the Bill; otherwise I fear it will create a scenario where particularly the smallest businesses—those one, two or three-employee businesses—are placed in a very difficult financial position. I cannot believe that the Government believe that is the just and right thing to do, and that they could not come up with some other safeguards to protect those microbusinesses—those small enterprises—that might find themselves in a sticky spot.

[Anneliese Midgley (Knowsley) (Lab)]

I refer Members to my declaration of interests. I am also a member of Unite and the GMB. It was said in an evidence session last week that in hospitality—a sector that we are very focused on improving in the Bill—

“employers bring in too many workers for shifts and say: ‘Sorry, we do not need you any more. Go home.’ They then cancel a shift without any compensation for the workers for their travel time”. ––[Official Report, Employment Rights Public Bill Committee, 26 November 2024; c. 76-77, Q71.]

As many of my hon. Friends have said, while we are considering the burden on business, we must also consider the burden on workers. We are trying to level the playing field and make a more equal way, where workers are considered.

[Greg Smith]

I do understand the hon. Lady’s point. Nobody wants to see people turned away as they turn up for work, with their employer saying, “Sorry, no work today.” That is not a position that we want anybody else to find themselves in, but I am trying to make another point.

Let us take the hospitality sector as an example, which has had a pretty rough time since covid. It is one of the sectors—be it pubs, restaurants or attractions—that is struggling the most to recover from the pandemic. There are certainly times when I turn up to a pub in my constituency, perhaps on a Tuesday night, and it is completely empty and has no bookings. That is not necessarily the pub’s fault, but it will be a problem if there is an absolute requirement for the pub still to pay its full staff rota because it was full the previous Tuesday night and needed all those staff. I think this is one of those real-world examples where there has to be a little bit of flexibility; businesses have to be able to say, “Sorry, we’ve got no bookings tonight.” Worse than that, there might be the nightmare scenario that the beer delivery has not arrived and there is not actually any beer to sell.

[Greg Smith]

Fundamentally, I agree that it is not the worker’s fault either—I am absolutely at one with that. I made it very clear that I do not want to see anyone turn up for work only to be turned away and told, “Sorry, no work today.” That is not a great place for anyone to be. I absolutely understand and accept the hardship that that will place on someone who will perhaps not get that day’s wages, but I think there should be greater flexibility in circumstances where it is not the business’s fault either; those situations may be few and far between, but they will happen in hospitality, and they may happen in some manufacturing sectors where supply chain problems have occurred, as we discussed earlier.

If we force businesses into a place where they have to shell out significant amounts of money for no gain—as we discussed earlier, the workers are the ones who produce the services, goods, products or whatever it might be that enables the business to have the money in order to pay people in the first place—and we push them into a place where their low margin is eroded even further by paying for things that are completely outside their control, then those businesses may well go bust.

We are talking about the hospitality sector—and we are seeing pubs close virtually every week. That is a very sad state of affairs, particularly in rural communities, where the pub is often the beating heart of a village, or certainly the social hub. It is not just a place for a pint; pubs do a lot of social good as well. We are seeing pubs close far too frequently for all sorts of reasons, often because of the low margins and other factors that have come in—I will resist the temptation to go too hard on the Budget. There is a cumulative impact, and this measure could well be the straw that brings the whole house down. I want the Minister and Government Members to reflect on where we could bake in other forms of safeguard and flexibility, so that the Government do not put a number of businesses on to that sticky wicket.

[Anneliese Midgley]

Can I clarify whether the shadow Minister believes that workers should shoulder all the burden, and that businesses should bear no responsibility?

[Greg Smith]

No, I do not accept that. It is not helpful to see this as either/or. As I explained, there is a symbiotic relationship between businesses and their workers—their employees. Neither succeeds without the other. It is therefore not the case that I, in any way, shape or form, want to put all the burden on one or the other; what I am arguing for, and what I hope Members in all parts of the Committee can reflect on and appreciate, is some of those real-life, lived-experience and real-world examples, where things just do not go very well and people find themselves—

--- Later in debate ---

[Sarah Gibson]

The Minister made an extremely good point about the security that is required. It should not be an arbitrary 48 hours that is given. Specifying the time for each sector, presumably under guidance, would perhaps be the most appropriate thing.

I have talked many times to people in my constituency who work in the care sector and are employed to visit people in their own homes. They are given a start time for a shift and are quite often told that they will work a certain number of hours, but it is not clear until they turn up to the shift how much of a gap there will be between the times at which they are getting paid. That can leave them with shifts that last a considerable time but contain a gap of several hours, during which they might be miles from home and it might not be worthwhile going home for lunch, so they incur costs on their own time.

I welcome the attention to the lack of clarity about shift working specifically for home visits in the care industry. This is something that we need to look at. Perhaps there needs to be guidance on the time for each sector, because each sector has its own issues. That is certainly true when one looks at hospitality.

[Anneliese Midgley]

I am sorry for referring to the shadow Minister as “you” earlier, Mr Stringer; I was not suggesting that you needed to clarify whether you thought workers should shoulder all of the burden.

I want to remind hon. Members of some evidence that we were given last week in support of the right to reasonable notice of a shift. Matthew Percival from the CBI said that

“there are areas where the Bill can be a helpful step in the right direction. To give a few examples, we have previously supported the idea that it is wrong that you should turn up for work expecting an eight-hour shift, be sent home after two hours and only be paid for two hours. There should be a right for compensation there.”

Jane Gratton from the British Chambers of Commerce said:

“As Matthew said on the compensation of shifts, we certainly support that, and we would be very happy about the fair work agency to create a level playing field and measures around workplace equity.”––[Official Report, Employment Rights Public Bill Committee, 26 November 2024; c. 13, Q6.]

Allen Simpson from UKHospitality said:

“Again, reasonable notice is an important principle and there should be protections.”––[Official Report, Employment Rights Public Bill Committee, 26 November 2024; c. 43, Q39.]

[Justin Madders]

The way the shadow Minister was intervened on made it feel like this was an Opposition amendment, but it is actually a Government amendment to deal with the issue of split shifts and the anti-avoidance measures. This is about rebalancing the level of risk faced by a worker and an employer. At the moment, the balance is shifted too far one way. We estimate in the impact assessment that the cost to businesses of this policy could be up to £320 million a year. Clearly, a lot of that will end up being transferred directly into workers’ pockets. We hope that, through better workforce planning, that figure will go down and we will see improvements to the lives of those who will benefit from the Bill.

I will make one further point. The shadow Minister referred several times to force majeure situations. There is provision in a later clause, which we will not get to today, for us to set out in regulations when there might be exceptions to this provision. There are lots of potential arguments about whether the provision should apply, and we intend to consult further before the final regulations are published and debated.

Employment Rights Bill (Third sitting)

Anneliese Midgley Excerpts

Committee stage
Thursday 28th November 2024 Public Bill Committees

[Chris Law (Dundee Central) (SNP)]

Q I want to ask Joanne a little bit about USDAW’s experience dealing with Tesco. Tesco is one of the biggest employers in my constituency and it has a live case in the Livingston distribution centre regarding fire and rehire. I know that USDAW has put a lot of resources into taking Tesco to court over its distribution centres elsewhere—it won and then unfortunately lost on appeal. In our attempt to ban fire and rehire, do you think it is reasonable to include in this Bill a clause that basically allows a “get out of jail free” card? If we look at those who have tried to exploit fire and rehire so far, it is P&O, British Gas, Tesco, British Airways—they are not small companies. The clause says that if the company is in financial difficulties then fire and rehire could be continued. Do you think that should be taken out of the Bill altogether?

Joanne Cairns: We welcome the Government’s commitment to tackling fire and rehire. It is an issue not only when fire and rehire tactics are used, but when they are used by employers in negotiations as a form of threat to try to force unions or individuals to accept terms that they may not be happy with. Around a third of our members have been asked to change their contracted hours to support business need in the last 12 months, and one in five of them said that they felt forced into agreeing to the change, having been threatened with fire and rehire. It is a major issue. You referenced our legal case against Tesco, which demonstrates that this issue affects members in all sorts of workplaces.

Our preference would be for an outright ban on fire and rehire, and we would prefer the provision to be removed. If that provision stays in the Bill, our concern would be about the use of the word “likely”. We would like either for the word “likely” to be removed in reference to financial problems, or, at the very least, for there to be stringent guidance and a high bar set for the definition of “likely”.

Liron Velleman: At Community we had a similar case on fire and rehire back in 2021 with Clarks shoes. Our members at a distribution centre in Street in Somerset were threatened with a huge reduction in their hourly wage and the removal of their sick pay and coffee breaks. After a long campaign from our members in the union, and solidarity from across the UK, we managed to force the company to reverse its decision through ACAS mediation, but it clearly should not have been allowed to happen in that way at all. Our general secretary said at the time that, until fire and rehire is outlawed, no worker is safe from the harms that it can cause.

We hugely welcome the Government’s efforts to end fire and rehire, but we have similar concerns to USDAW about how the language about “likely” financial distress will be used in reality, given that it is rarely good-faith employers that use tactics such as fire and rehire in their workplaces. We do understand that there might be absolutely exceptional circumstances where the business would otherwise close. The question is whether the word “likely” will cast the net too wide and allow bad-faith employers to continue fire and rehire, even if the stated intention is for that not to happen.

[Anneliese Midgley (Knowsley) (Lab)]

Q In our evidence sessions earlier this week we heard concerns about changes to collective redundancy, and particularly the changes to the “one establishment” rules. What are your views on the provisions in the Bill?

Liron Velleman: We rarely deal with collective redundancy on multiple establishments, other than for a few establishments, but it is important for the Committee to understand that collective redundancy is not always a huge battle between employers and unions. It gets into the news that this employer and that union are fighting to the death over something, but usually collective redundancy is an opportunity for employers and unions to sit around the table and try to minimise the impact on the workforce. Even with employers that unions might have a difficult relationship with, collective redundancy is usually an opportunity to do that.

It is very well known that Tata Steel recently announced collective redundancies at its steelworks in Port Talbot in south Wales. The original stated redundancy figure was around 2,500, but after work between the unions and the employer, that number has been heavily reduced through cross-matching and through finding training opportunities. Unions are not there just to say, “We are going to keep our members’ jobs for the sake of it,” and scream from the rooftops. Collective redundancy is an opportunity to allow mitigations to protect workers. Any improvements to rules around collective redundancy—whether that is reducing the number of employees needed to start a collective redundancy scheme, increasing the timeframe for that to happen, or looking at the establishment rule—are hugely welcome.

Joanne Cairns: On the establishment rule, we are very pleased that the loophole is now being removed. We took a significant legal case on behalf of our members who were employed in Woolworths, where 27,000 employees were made redundant in a single redundancy exercise when the company went into administration. In 200 stores with fewer than 20 employees each, there were 3,000 employees who were not entitled to any protective award even though collective consultation had not taken place. That was purely because they were employed in establishments with fewer than 20 people, even though the decisions were being made far above that level and affected 27,000 employees. It is just common sense that that is now being corrected.

We are aware that the issue of scope has been raised in this Committee. We went back and looked at the Trade Union and Labour Relations (Consolidation) Act 1992. Clause 23 of the Bill would not alter what section 188 of the 1992 Act says about

“the employees who may be affected by the proposed dismissals or may be affected by measures taken in connection with those dismissals.”

It would not mean that workers are being consulted over redundancies that do not affect them; it would just mean that workers who are affected by the redundancies, or their representatives, would be consulted regardless of the size of the establishment that they are working at. We do not see people being involved in consultation exercises that do not affect them; that will not be a result of the Bill.

[Nick Timothy (West Suffolk) (Con)]

Q Further to a point that Mr Turner made, my recollection of the session on Tuesday was that re-unionisation was first mentioned by Mick Lynch, but we might want to check the record about that.

You are obviously pleased with the legislation, and I know you think it could go further; I just want to ask a little about how you would characterise your engagement with the Department. Was it very welcoming? How many meetings did you have with Ministers and officials? Were draft clauses shared with you? How constructive was it?

Liron Velleman: Community has a productive relationship with the Department for Business and Trade. We have had productive relationships with parts of the Department for a number of years, but unfortunately not on a political level for the last 14 years. It is welcome that this Government have seen a sea change in how they want to do relationships with trade unions.

Employment Rights Bill (Fourth sitting)

Anneliese Midgley Excerpts

Committee stage
Thursday 28th November 2024 Public Bill Committees

[Sarah Gibson (Chippenham) (LD)]

Q I am curious about whether you feel that the Bill’s provisions will encourage and support those who have been long-term unemployed, or those who find it difficult to get back into employment. Are the flexibilities embedded in the Bill going to help people back into work, as opposed to helping only those who are already in work?

Andy Prendergast: As a union that represents a large number of relatively low-paid people, we regularly come across the barriers to getting back into employment. One of the big ones we have seen is the expectation of flexibility, and specifically one-sided flexibility. We have a lot of people who are on benefits and want to work; unfortunately, often the only jobs they are offered are zero-hours jobs. It is difficult for people on benefits, because it is a bureaucratic nightmare to get on them, and people need to be supported to come off them to a guaranteed wage in a guaranteed job. Too often, they are offered zero-hours contracts, which replaces the guarantee of certain levels of benefit payments with uneven levels of reward. We want to get people back into meaningful work.

There are clauses in the Bill on removing exploitative zero-hours contracts—and the point there is “exploitative”. We look after thousands of Uber drivers, for example, and for them flexibility is very much the driving point. In the same way, a number of people benefit from being on genuine zero-hours contracts. At the same time, organisations such as McDonald’s and Wetherspoons have 80% to 90% of their staff on zero-hours contracts. There is no excuse for that. We find that the moment an individual chooses to exercise their flexibility is the moment they stop being offered shifts. That is a major block on people coming back to work, particularly when they are on universal credit.

We want to be able to give people genuine offers of employment so that they can better themselves, fully take part in the economy and deliver for them and their families. The Bill goes some way towards addressing that.

Mike Clancy: I should make a general point before addressing more specifically the part of the economy your question focuses on. A failure of our economy for many decades now—in contrast with other economies with high levels of unionisation, collective agreement and partnership—is that we have not taken the fear out of change in the economy. That can mean that people’s reaction to change, and their ability to operate in the labour market, is correspondingly reduced. A lot of economies are able to ensure that if people lose employment, they are able to come back into employment much quicker—there are either statutory minima or collective agreements between employers, trade unions and others to make that happen. The Bill asks some fundamental questions about how we want to organise ourselves in the economy and says that, actually, it is better to have places where we convene and talk about the challenges than to do it company by company and enterprise by enterprise, and have an atomised conversation.

Andy touched on zero-hours contracts; we represent a lot of self-employed people, many of whom value their self-employment. Indeed, it is part of the process in film and TV production. They have experienced the precarity of that environment in recent years, particularly in relation to covid, and subsequently there have been other issues in respect of production. The legislation needs to look holistically at the economy. It is important to talk about flexibility in a way that engages all types of worker, not just those who may be able to work hybrid or remotely. The fact that the Bill makes employers, unions and others think about the flexibility proposition has got to benefit people’s ability to come back into the workplace.

[Anneliese Midgley (Knowsley) (Lab)]

Q Before I ask this question, I refer Members to my entry in the Register of Members’ Financial Interests. I am also a member of the GMB.

I want to ask about balloting. What are the practical implications for your unions of paper balloting? What sort of difference do you think electronic balloting will bring?

Andy Prendergast: It has been a somewhat strange situation in that, as far as I am aware, the only legally required paper ballot relates to industrial action. That sometimes creates a major impediment for us taking industrial action when that is the clear view of the workforce. There was a certain irony, not lost on us, that when Liz Truss was elected, effectively as Prime Minister, that was done via an electronic ballot. We have been told consistently by people in this House that electronic ballots are not safe and secure, yet you can have one to elect a Prime Minister but you cannot have one to take industrial action. If I am absolutely honest, the state of the Post Office does not help. We often have to have a fast turnaround on a ballot. Where I live, I normally get the post about every eight days. We end up with an antiquated system that simply does not work for this purpose.

If you look at electronic ballots, the important thing is that people have the opportunity to take part in a democratic process. It is a process that is allowed under the International Labour Organisation freedom of association rules and the European convention on human rights. It is vital that people are able to partake in democracy. We believe it is something of a strange situation that the one area that currently requires paper ballots is industrial action law. If I were cynical, I would argue that that is specifically to stop industrial action taking place.

For us, industrial action is always an absolute last resort, but at times it is necessary. People do not always like industrial disputes, but when you look at what they have achieved over the years, from equal pay via Ford Dagenham to the eight-hour working day, having weekends off, and significantly improved health and safety, it is important that workers have the ability to hold their employers to account in that way. Ultimately, something that simply allows them to take part in that democratic process has to be a good thing.

Mike Clancy: For too long, the arguments for inhibiting electronic balloting have, in my view, been entirely bogus. If you look at it from an employer’s perspective, they want the most representative turnout if they have a trade union in their midst, particularly in the context of difficult circumstances where industrial action may be in contemplation—and so does the trade union. We want a representative turnout, and we also want to be able to send a clear message if we get to a juncture where bargaining or something else in the process is proving to be difficult.

Electronic balloting is going to enable exactly that. The idea—this is where I feel the argument has been very bogus—that it cannot be done securely is in the face of all the evidence to the contrary. The sooner this particular clause can be progressed and made real, the better. Clearly, it will improve not only engagement, but the validity of results, and I believe that is absolutely something that trade unions want. The sooner we can do it, the better.

[Chris Law (Dundee Central) (SNP)]

Q We have heard a general consensus breaking out around fire and rehire, but part of one of the clauses in the Bill has a bit of a loophole, to put it bluntly—“likely” financial difficulties. We have heard already today, and we heard on Tuesday, that that could be a back door for employers. I would like to hear your views on that more generally, but, Andy, you raised the situation with statutory sick pay. The witness from the Resolution Foundation was asked earlier today whether the Government have gone far enough, and he said that they have only gone “halfway”, in particular because statutory sick pay currently stands at £116.75, which is less than one fifth of the average weekly wage, and it has halved since it was introduced. It is the lowest of all the OECD countries. I want to ask both of you if that is something you want to see improved in the Bill, because there is no mention of any increase whatsoever.

Mike Clancy: I am sure we will both have our views on the subject, but on fire and rehire, this is the space in which some of the most egregious employer behaviour has played out—behaviour that probably most in the business community look away from, because it is not the way they want to conduct their business with their workforces. We therefore absolutely welcome the fact that the Bill focuses on that dynamic. It has no place in good employment relations. But of course there has to be a space in which you evaluate, if an employer has a genuine financial challenge, whether it has some form of defence in that regard.

I cannot emphasise enough—in a way, this is not seen enough in the national media, on social media and so on—that day in, day out, trade unions solve problems with employers. They face difficult business circumstances at times, and they work with employers, communicate with their members and the workforce, and come out with some form of proposition that goes some way to resolving the issue. Therefore, the number of times that employers should fall foul of these provisions should be very small. If you conduct your engagement with your workforce either through a trade union or workforce representatives and in compliance with the law, and you are not seeking to evade your responsibilities—you see the importance of open book and sharing the finances, because that is all part of keeping the workforce engaged —this is really a minimum platform to deal with the employers who might sit on the extremes. I think it is very important that this has been addressed. It is sending a message about how we should do business around here.

--- Later in debate ---

[Alex McIntyre (Gloucester) (Lab)]

Q One of our previous witnesses, Luke Johnson, said that one thing that he thought was bad for business in the Bill was increasing access to paternity leave. Mr Johnson publicly backed the now Leader of the Opposition in her leadership campaign, and she of course said that maternity pay had gone too far. Do you think, in reflecting on your evidence, that those comments belong to the 1950s, and do you see the benefits for both business and workers in protecting mums and dads in the workplace?

Dr Stephenson: Yes. What we know is that at every point at which women’s rights have been improved in the labour market—the Equal Pay Act 1970, the Sex Discrimination Act 1975 and the introduction of the national minimum wage, where women were the majority of those who benefited—there have always been some people who have said, “This will be disastrous for business and will lead us to stop employing women,” but that has not actually happened. The proportion of women in the labour market has gone up, and businesses have benefited from having an increased number of women in the labour market.

I think that what is proposed around paternity and parental leave is relatively minimal, compared with what is available in a number of other European countries, for example. I do not think that this will be disastrous for business. I do think that if we want women to be able to survive and thrive in the labour market, we have to redress the balance where women of child-bearing age are seen as much more of a risk for employers than men are. We know that in the long term we will all benefit from legislation that makes things better for parents and makes it easier for people to have children and to raise a family, because one of the crises that we are facing on a global scale is a falling birth rate. A society where there are not enough young people to work and pay the taxes that will support those of us here today when we are in our old age and to care for us when we are old is a society that is in trouble. Part of doing this is improving rights for parents when they have small children, so that people have the children they want to have, rather than thinking, “We can’t afford to do this.”

[Anneliese Midgley]

Q I want to follow on from the last question. A previous witness today said, “I think, if you introduce lots of rights like paternity rights and flexible working rights from day one, you risk having more problems and that will be a cost.” I just want to go a bit deeper into your assessment of that and whether you think family leave and flexible working should be viewed as a net cost.

Dr Stephenson: I am also an employer, and we have an incredibly flexible working policy. I think flexible work is largely beneficial for employers as well as workers, not least because it enables you to recruit and retain the best staff. At the moment, the labour market is relatively tight, particularly in some parts of the country and in some sectors. We have higher levels of, for example, economic inactivity among women than men and we know that this is something the Government want to do something about.

One of the reasons for economic inactivity among women is caring responsibilities. There are large numbers of women who are not in the labour market who said that they would like to be in paid work if they could find a job that gave them the flexibility they needed. That can only be a benefit to wider society, and ultimately to employers, first, because they can attract the best people and, secondly, because we are more likely to have a strong and growing economy.

[Uma Kumaran]

Q Thank you, Dr Stephenson. I am really proud that my constituency is the home of the match girls’ strike; the fight for women’s rights in the workplace runs deep in the history of my politics. How do you think the measures in the Bill will benefit women’s workforce participation? You have talked about some of the broader views, but if there is one thing in particular that you think will mark a real difference, I would be keen to know it.

Dr Stephenson: As I said, the flexible working provisions particularly benefit women’s labour market participation. Some of it is not just about participation, but about improved pay and conditions; for example, the end to exploitative zero-hours contracts improves women’s position in the labour market, which means they are less likely to leave the labour market.

Another thing is the fair pay agreements in social care, if they were seen as a starting point and extended so that, having started out with social care and looked at how it worked, you looked at other sectors such as early education and childcare. That is a sector very similar to social care, particularly now we have the big extension of funded hours coming in—largely private provision delivering public services that are majority publicly funded, with a majority female workforce on low pay and often working part time. That model of fair pay agreements could not just support women working in those sectors, but support more women into the labour market, if you had available, affordable early education and childcare.

We did some work with the Centre for Local Economic Strategies last year looking at the loss to the economy from women’s under-participation compared with men, and that loss comes to £88.7 billion. Enabling women to enter the labour market, to stay in the labour market or to increase their working hours has the potential to bring real benefit to both the national and local economy.

--- Later in debate ---

[Dr Tidball]

Q Seven children in every classroom of 30 in my constituency of Penistone and Stocksbridge are in poverty. Can you set out more broadly the economic benefits of the Bill, many of which were set out in the TUC’s report this week? In particular, while you have mentioned some just now, can you focus on the economic benefits for working people and working families?

Justin Madders: Obviously, the TUC report is not an official Government document, but it has some interesting figures. It reckons that we could gain up to £974 million from reducing the number of days that people take off due to stress and anxiety because of poor working conditions; another £930 million a year from improved staff wellbeing; £168 million a year from improved minimum wage compliance; £510 million a year from reduced industrial action; £8 billion a year, potentially, from improved industrial relations; and up to £2.6 billion a year from increased labour market participation—there are a number of reasons why that might be the case. We do not know how much of those figures will be delivered, because an awful lot of variables are in there, but it is an impressive attempt to quantify, in a way that we cannot, given the rules of Government the positive impacts of the Bill on the wider economy.

[Anneliese Midgley]

Q Minister, you spoke earlier about some of the engagement you have had on the Bill, and some of the witnesses earlier today spoke about tripartite meetings that they had been at between the Government, unions and businesses. Could you set out some of your planned future engagement on the Bill?

Justin Madders: Engagement continues, and there will be more next week—we are meeting a group of small and medium-sized businesses—but to date 140 different stakeholders have attended official or ministerial meetings. You will have heard from many of the witnesses that they have been quite impressed, I think, with the level of engagement and how we have listened to concerns expressed about the Bill. We also undertook extensive engagement in opposition. We will continue to do that. We are moving through some live consultations at the moment. As we develop the Bill and some of the regulations and codes of practice that will follow it, there will continue to be engagement throughout. We are very clear that that is the best way to deliver excellent legislation, and we will continue it.

[Laurence Turner]

Q Minister, over the past two years, we have seen some of the highest levels of industrial action since the 1980s. Could you tell us what effect you think the Bill will have on the conduct of industrial relations?

Justin Madders: I hope it will have a positive impact on industrial relations. The way strike action spiralled in recent years was probably the result of frustration with a Government who were not listening to the voice of workers, were not prepared to address their concerns, and were actively moving to frustrate legitimate acts by trade unions to take industrial action. It is about the culture and the level of engagement, as much as it is about the legislation, but there is no suggestion, as far as I can see, that the Bill will massively increase strike action, as some people might have suggested.

Employment Rights Bill (First sitting)

Anneliese Midgley Excerpts

Committee stage
Tuesday 26th November 2024 Public Bill Committees

[Michael Wheeler (Worsley and Eccles) (Lab)]

I also refer to my declaration in the Register of Members’ Financial Interests, and my membership of the Union of Shop, Distributive and Allied Workers and GMB.

[Anneliese Midgley (Knowsley) (Lab)]

I also refer to my declaration of interests. I am member of Unite and GMB.

[Alison Hume (Scarborough and Whitby) (Lab)]

I also refer to my declaration of interests and my membership of Unison and the Writers’ Guild of Great Britain.

--- Later in debate ---

[The Chair]

Anneliese Midgley is next. If we are brief with the question and answers, we will have time for one more question after this.

[Anneliese Midgley]

Q My question is for Mr Hale. Can you confirm if the FSB has an HR service that it sells to its members, and if so, does that provide an incentive for you to talk up the impact of the Bill to your members?

David Hale: No, it is the opposite. FSB provides services to members, and one of the biggest services it provides is legal advice. One of the biggest things it provides legal advice for is employment relationships. Obviously, it is in the narrow interest of FSB as an organisation for employment law to be more complicated and less usable. However, we do not come here to argue for things that make FSB a more valuable product; we come here to argue for reasons why we do not have to exist—because the Government have made life easy enough for small businesses. We are owned and run by our members, and we are constitutionally required to act in the interests of small businesses.

Obviously, the more complicated employment law is made, the more likely we are to have people join and call an employment line. It would be irresponsible of us to try and change the law to make it more complicated and to make a bigger use case for joining FSB. We would never do that and we do not do that. It would be in the narrow interests of FSB for employment law to be complicated, but that is not what we are here to do.

[The Chair]

Dom?

Dom Hallas: I do not have a view.

--- Later in debate ---

[The Chair]

I am going to move on to Anneliese Midgley for the last question very briefly, and with a brief answer.

[Anneliese Midgley]

Q Cathryn, earlier you identified that the CMI said that a lot of good employers and good businesses have already adopted a lot of the measures in this Bill, and other panellists have identified that as well. Could you say a bit more about why you think good employers and businesses already practise a lot of the measures in this Bill?

Cathryn Moses-Stone: I think it leads on from what Carly was saying. They see the direct benefits of creating happy, supported, trusting and inclusive workplaces. We have a lot of research that shows that really highly-trained managers and leaders create more inclusive workplaces, which has a really positive knock-on effect on both the business and people’s happiness. I think that everything I have said probably builds towards that same argument. It is better for the business as well as people.

[The Chair]

Thank you—that is a good point on which to finish. That brings us to the end of time allotted for the Committee to ask questions of the three witnesses before us in this sitting. I thank those witnesses for giving clear answers to the questions. The Committee will meet again this afternoon in the Boothroyd room.

Employment Rights Bill (Second sitting)

Anneliese Midgley Excerpts

Committee stage
Tuesday 26th November 2024 Public Bill Committees

[Michael Wheeler (Worsley and Eccles) (Lab)]

I refer to my declaration in the Register of Members’ Financial Interests and my membership of the GMB and USDAW.

[Anneliese Midgley (Knowsley) (Lab)]

I refer to my declaration of interests and my membership of Unite and the GMB.

[Alison Hume (Scarborough and Whitby) (Lab)]

I refer to my declaration of interests and my membership of Unison and the Writers’ Guild of Great Britain.

--- Later in debate ---

[Steve Darling]

Q I would like to give a personal perspective. I feel that unfair employment laws can often fan the flames of tribalism. I look over the way at Europe, where there is a more consensual approach and a more collaborative culture. How could the Bill drive a more collaborative culture with employers and unions?

Mick Lynch: If it makes us come to the table and some employers—employer groups, even—feel that they are not exempted from collective arrangements, that will be better. Some people will not like this, but in the ’70s, 82% of the workforce were covered by collective bargaining; it is now 20%. There are arguments about that and I do not want to relive the last 40 or 50 years, but that figure is clearly too low. The ILO, the International Monetary Fund and all sorts of bodies are saying that the lack of collective arrangements is forcing this race to the bottom.

But it is not just workers who get pushed to the bottom; these businesses get pushed to the bottom as well. People are now bidding on contractual margins that are completely unrealistic. I hear it from some of the clients I go into; when I am talking about contract cleaners or contract caterers—all sorts of people—they know that the people bidding for the business cannot make even a reasonable margin of maybe 2%. In a business, you would be hoping to get 5%, 10% or maybe even better, but people know that they are underbidding other people, because that is the poor state of employment law. But it is also because we have not got sectoral collective bargaining. You have had previous speakers here from the Engineering Employers’ Federation, as it used to be called—it used to run a massive collectively bargained sector in this industry. If we had that, we would have better arrangements all round and people would not be allowed to go rogue. I am hoping that there will be some provision for that in the law, so that all employers will know—whether I am working on a construction site, or the high seas, or running a window cleaning business—I cannot go below a certain level, and there will be no sweatshops or mass exploitation in the future. The trade unions must have a say in that. They must have a say even in non-union sites. That is what we used to get: the big firms used to set the trends and the perspective of where an industry should be, and many smaller businesses voluntarily followed the union agreement. They were not just union agreements but industry agreements. We have to get back to some idea of that, that the industry stands for this. But many of those employers’ federations have broken up now, and they do not even feel they need to talk to the trade unions.

I hope this Bill brings a lot of voluntary recognition, so that in the future many workers—certainly more than 50%—are covered by collective arrangements in one form or another. By the way, the EU wants 80%, for those of you still hankering after that. That is the new measure.

Martyn Gray: I believe it was in the early ’90s that the National Maritime Board last met, which used to undertake sectoral collective bargaining between the shipping industry, maritime trade unions—which then would have been both of our predecessor organisations—and the UK Chamber of Shipping, which would establish the rates of pay for both unions to then take away to individual employers and build upon. The situation exists elsewhere in the world. In the Netherlands, my colleagues are negotiating an agreement with the merchant navy equivalent in the Netherlands for commercial shipping. They are negotiating that as we speak with shipowner representatives and seafarer representatives, and they are setting what that standard looks like in the Netherlands for the minimum increase, and then we work with other employers to build on that with what we can do. It sets the minimum standard.

Envisioning what sits within this, sectoral collective bargaining will be key. We see the start of that with the fair pay agreements as they have been coming through, but sectoral collective bargaining will really help deliver the biggest gains and the biggest partnership between unions and between employers, as it should work—and does in many instances—in the maritime context. It will be crucial for solving one of the biggest challenges the UK faces at the moment—the productivity crisis. Actually working together to solve that will be done not only through sectoral collective bargaining, but by talking about how industry works. Unions, the workforce and experts in each industry should be setting the standard of what that looks like and working together to improve it and generate those productivity gains. Everybody benefits when productivity increases: workers have better pay and conditions, and employers make a profit, and have better operations and better certainty. It is win-win.

Gemma Griffin: We operate in a number of countries with sectoral agreements like this—France, Denmark, and the Netherlands—and it does make a level playing field for all competitors. You know there is a rate of pay that is fair, and that everybody else is paying, and you can focus on just doing business.

[Anneliese Midgley]

Q I refer once again to the most high-profile case that we have seen in recent times, when P&O unlawfully sacked 800 workers, many of whom were your members and were impacted by that. At this morning’s evidence session, Matthew Percival from the CBI said:

“In the fire and rehire proposals, there is a risk that we might be making it easier to make people redundant than to change contracts”.

Do you agree?

Mick Lynch: No, I do not agree with that at all. Defending fire and rehire, or fire and replace as P&O were doing, is defending the immoral. Maybe the CBI knows a thing or two about immoral behaviour—I do not know why they would be standing up against that. We negotiate contract changes all the time, and the great problem with P&O is that they deceived us. They told us that they were going to negotiate change for new technology, new vessels and new ways of working. There probably would have been some job losses, and we would have dealt with that through normal processes. They decided to sabotage that because it was quicker, and they wanted to get imported foreign labour on those vessels at £4 and £5 an hour, rather than a collective agreement. I do not see good employers struggling with that. I do not see decent businesses struggling with negotiating contract changes, staffing level changes or new technology agreements, which we will all need right across business. We will talk to DFDS about that, hopefully in the near future, as well as Stena and all the other good shipping companies.

We are talking about it on the railway. Every trade unionist who comes in front of any of you will say that we are constantly negotiating change. At the end of the second world war, my union had half a million members, while the railway employed 1.2 million people—that has obviously changed. We had sectoral collective bargaining all through that, and most employers had never heard of fire and rehire. You can retool an economy inside collective arrangements, and our European partners have shown us that. If you refit your economy based on consensus, change and looking after people who have to leave, you will have a more successful business. If you just guillotine the whole process, your reputation will be in ruins. I do not accept the CBI’s position. It was probably against the health and safety at work Act and the sex equality Act. All those Acts brought impacts on business, and there is no doubt that the Factories Act was a bit burdensome for the mill owners and mining companies of this country. Everything is difficult for a business, but you have to live inside the regulations in a democracy, and that is what it should be about.

Martyn Gray: I suppose to some extent it is the difference between doing what is easy and what is right. It is disappointing that there is an attitude among some elements of business in this country to opt for what is easy, as opposed to doing what is right.

Negotiating with trade unions is fairly straightforward. To use the example of P&O Ferries in 2020, at the height of the covid pandemic, we negotiated redundancies as it reduced its operations and went through that process. Mr Hebblethwaite did not want to get back around the table with us because we held P&O Ferries to account over its business proposals in 2020, and we ensured that the redundancies it made were absolutely necessary and were to rightsize the business. We fed back on all its proposals and we engaged very heavily in that process in 2020, when we went through two rounds of redundancies with that particular employer. P&O Ferries then said that we could not engage with what it was proposing, because it knew the proposals were wrong and morally reprehensible. It wiped out a long-standing, collectively bargained workforce that offered quality jobs, as well as employment and training opportunities, across many deprived coastal communities. The loss of those jobs is still being felt in Kingston upon Hull, Birkenhead, Liverpool and Dover. P&O Ferries was able to say, “Actually, because what we are suggesting is so wrong, we have just decided to push ahead and do it anyway, knowing that there will be limited repercussions,” and that is to some extent why we are here talking about it.

That highlighted just how easy it was for businesses to make the wrong decisions. It is shocking and abysmal, but unfortunately not surprising, that the CBI did not recognise that those easy options are what are putting us in this position, where regulation needs to be developed. I disagree with what the CBI said, and I disagree that this Bill would make it the preferred option to go through a redundancy, or fire and rehire, rather than to engage with trade unions. When negotiating with trade unions, we understand the business operations and we can help, and we have helped.

I have been engaged in countless redundancy conversations with employers in the maritime industry where we have been able to look at things differently. We have been able to support what those businesses are going through by talking about the number of redundancies that potentially need to be made, and we have supported them in building jobs back in, in their plans for growth and in their changes to terms and conditions. That has protected jobs, and we have negotiated our way through that for the betterment of the business and the people that it employs. For the CBI and some business elements to take the approach that it is easier to fire and rehire, instead of negotiating, is really short-sighted and problematic for the future.

[The Chair]

I am going to try to get in three more Members in five minutes, but would you like to respond to that, Gemma?

Gemma Griffin: Just to say that jobs either exist or they do not. It is very black and white for me. Fire and rehire is always a bit of a horror story, particularly when you look long term at the skills and intelligence that the people have on your operation on how to work. For me there is always another solution. That is my point of view.

Oral Answers to Questions

Anneliese Midgley Excerpts

Thursday 5th September 2024 Commons Chamber

[Lauren Edwards (Rochester and Strood) (Lab)]

9. What recent progress his Department has made on introducing an industrial strategy.

[Anneliese Midgley (Knowsley) (Lab)]

12. What recent progress his Department has made on introducing an industrial strategy.

[Rachel Hopkins (Luton South and South Bedfordshire) (Lab)]

14. What recent progress his Department has made on introducing an industrial strategy.

--- Later in debate ---

[Jonathan Reynolds]

It is also great to see my hon. Friend in her place. I enjoyed working with her in her previous role in local government, and she brings all that expertise and achievement with her to this House.

I wish to embed our industrial strategy for the long term. I want to focus it on long-term, sustainable, inclusive and secure growth that will cover many sectors of the economy, as my hon. Friend has mentioned. That will mean the Government having to work in partnership not just with business, but with civil society, trade unions and local and regional leaders in a way, to be frank, that we have not been doing for some years. We will make sure, as she requests, that that is a priority, and is visible in the work that we do.

[Anneliese Midgley]

A Labour Government brought secure, well-paid working-class jobs to Knowsley with Ford Halewood. My dad getting a job there changed my family’s life and lifted us out of poverty. It did the same for thousands of families like ours. Does the Secretary of State agree that any successful industrial strategy must provide good-quality, unionised jobs to lift living standards in areas such as mine?

[Jonathan Reynolds]

It is also a pleasure to welcome my hon. Friend to her place, and I thank her for those comments, with which I thoroughly agree. This is what it is all about—good work and good wages in every part of the country. I will work with anyone to deliver that. Her personal story shows the difference that such a policy can make. I often reference, for instance, the difference that Nissan’s investment made to communities in Sunderland. When such investment is made and got right, it delivers long-term benefits for communities and for the UK—more so perhaps than any other policy area. If we want to address, as I do, the UK’s profound regional inequality, policies such as these are so important, so I thoroughly endorse her comments. The industrial strategy is only one part of the growth mission, but it is at the heart of the pro-worker, pro-business agenda not just of my Department, but of the whole Government.