Employment Rights Bill

Baggy Shanker Excerpts

Report stage
Wednesday 12th March 2025 Commons Chamber

[Baggy Shanker (Derby South) (Lab/Co-op)]

I, too, refer the House to my entry in the Register of Members’ Financial Interests. I have been a proud member of Unite the Union for over 35 years, although many Members may find that hard to believe given my youthful looks.

[Mr James Frith (Bury North) (Lab)]

A member since you were five years old!

[Baggy Shanker]

Absolutely.

I welcome the measures in the Bill, which I know will make a real difference to the lives of working people and their families in Derby and across the UK. I will focus on how the Bill will, through Government amendment 163, transform employee access to trade unions, empowering more employees to act as a collective so that they can secure better pay and conditions. When I speak to business leaders in small and large employers, they all say that their biggest asset is their people. The Conservatives can harp on about trade unions as much as they want, but in practice the best solution is for employers to work with employees and trade union reps to create the best working conditions for businesses and individuals to succeed.

I know about the importance of union membership from first-hand experience. When I left school at the age of 16 and began work as an engineering apprentice, I joined the union on day two. I knew how important that would be in supporting me and my colleagues at work. Much later on, when campaigning to save Alstom in Derby last year, I saw how hard Unite and other trade unions fought to secure jobs at the Litchurch Lane facility. They stood up for working people in our local community when it mattered most.

However, employees cannot access the benefits that union membership can bring if they do not know about the support offered by trade unions in the first place.

[Chris Vince (Harlow) (Lab/Co-op)]

I congratulate my hon. Friend on his youthful appearance. Does he agree that, just as businesses are about the employees, trade unions are about their memberships and giving individual members their rights?

[Baggy Shanker]

My hon. Friend is absolutely right. This is about individual members coming together to do what is right for themselves, for their trade unions, and for the companies and businesses that they work for.

I welcome the Bill’s introduction of a right of access for unions to meet with workers. Government amendment 163 expands union access agreements, so that unions can communicate with workers digitally as well as by entering the workplace. I urge meaningful implementation of those digital access rights to enable direct conversations between unions and workers, as would take place during in-person meetings in the workplace.

When we work together, we get more done. It is important that workers have access to union representatives and know how joining a union can support them in the workplace. I welcome the measures in the Bill to expand that access, which will further strengthen the rights of working people in Derby and beyond.

[Sarah Bool (South Northamptonshire) (Con)]

There are 5,310 businesses registered in my constituency of South Northamptonshire. Of those, 99.6%—or specifically 5,245—are small businesses. This Bill, among many of the Government’s policies, is a calamity for those small businesses. Not only are many of them rural, meaning that they will be affected by the family farm tax and now by the removal of the sustainable farming incentive, but as the chair of the Federation of Small Businesses has said, these small and medium-sized enterprises will struggle to adapt to the 28 major changes that the Bill makes to employment law.

First, it was the Government’s jobs tax, then it was their cuts to rate relief for hospitality businesses, and now they are smothering SMEs with red tape. Analysis published by the Department for Business and Trade says that this will impose a cost on businesses in the low billions of pounds per year, but that is not money that many of my small businesses can afford right now. This is why the Opposition have called for small businesses to be exempt from the parts of the Bill that would heap unsustainable costs on them.

Why do the Government seem to hate small businesses so much? Perhaps it is because the majority of the Cabinet have spent their careers in the public sector and have zero understanding of what life is like for the many entrepreneurs with SMEs across the UK, including in my constituency. We learned this week that, for the first time since records began in 2012, the number of companies registered at Companies House has fallen. Growth forecasts have been downgraded and the number of vacancies has declined. All this is a result of the choices the Government have made and continue to make in this Bill.

With all of this, the UK risks becoming a globally uncompetitive economy, particularly when other countries such as the United States are slashing regulation and unleashing their businesses to grow their economies. The Opposition have tabled new clause 90 for exactly this reason. It would ensure that when the Secretary of State makes regulations under part 4 of the Bill, he has to have regard to growth in the medium to long term. I join the shadow Minister, my hon. Friend the Member for Mid Buckinghamshire (Greg Smith), in calling on the Government to support new clauses 89 and 90 to ensure that growth happens. Our economy is already struggling under the weight of Labour’s tax rises. Why are the Government opposing our efforts to ensure that they consider how burdensome regulation might impact on businesses?

--- Later in debate ---

[Baggy Shanker]

Will the hon. Gentleman give way?

[Gregory Stafford]

I will not, because I have only a minute to go.

Perhaps it is time that the Government started listening to the real industry experts—those with practical experience in the sector—not just the trade unions or those within the confines of Whitehall. The Conservatives have tabled key amendments to support growth, in new clauses 89 and 90; international competitive duty, in new clause 87; and a limit on trade union influence on our business-driven economy.

We need to ensure that the Government’s policies do not burden our businesses, stifle innovation or lead to long-term economic harm. This Bill is not just poorly thought-out, but a direct threat to the very fabric of our economy, and we must challenge it before it causes irreparable damage and crushes our already crippled economy.