Trade Union Bill

Baroness Donaghy Excerpts

Monday 11th January 2016 Lords Chamber

[Baroness Donaghy (Lab)]

My Lords, I have been a public servant for most of my working life and an active member of a public service trade union. I am very proud to have been a trade unionist, and I take this Trade Union Bill rather personally.

I regret that we are starting the new year in our tribal groups, emphasising differences, rather than promoting co-operation and employee involvement. I believe that, in pandering to their backwoods supporters, the Government will find that the Bill will do more harm than good. It will make David Cameron’s negotiations with European leaders on a reformed Europe more difficult—perhaps that is the intention.

While top employers are earning 180 times the average wage, and that gap is growing, the government response is to try to weaken trade union influence. In my contribution I want to cover the Certification Office, the deduction of subscriptions from source and the right to strike.

As noble Lords will know, the Certification Office is part of the ACAS family. The coalition Government made it part of the bonfire of the quangos: does everybody remember that one? The Certification Office was considered so insignificant that it was merged with another organisation so that BIS could claim it had halved the quangos in this area. Although it was a great PR exercise, the tiny office and tiny staffing remained the same—but it did lose one photocopier.

Then came the Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill in 2013. The Certification Office was rescued from the bonfire in Part 3 and its powers were increased to allow more investigatory powers and to tie up the trade unions and employers’ organisations with more red tape. I urged the then Government to avoid politicising the role of the Certification Officer. Now a Conservative Government has come along—presumably adding the bits the Lib Dems did not like—trying to create a Trojan horse whereby trade unions can be investigated on the initiative of any Nick, Sajid or Anna when the spirit moves. It is this kind of clear-sighted vision which makes politics so admired.

The Certification Office will not only become a highly political, sectarian and controversial organisation but will raise money from its own statutory activities. That is a conflict of interest. Before the Government say that ACAS raises income from its activities—a point carefully placed in the Explanatory Notes—let me make it clear that any revenue-raising in ACAS is associated with assisting organisations to improve their employment relations. This is no longer a statutory duty of ACAS, which I personally regret, and has nothing to do with ACAS’s statutory conciliation duties. One cannot help but wonder whether this proposal is the thin end of a very large wedge. Will the Minister assure us that levying fees will not be extended to the central work of ACAS? I hope the Government will reconsider some of these damaging proposals and draw back from the payment of fees and the powers over political fund expenditure.

Turning to the proposal to outlaw public sector deductions of union subscriptions from source, when I was active in my union I had a lot of experience of collecting union subscriptions before deductions from salaries was introduced in my workplace. This is nothing new. It was an inefficient use of my time when I could have been solving problems with my employer. My question to the Minister is whether the Government will recognise in the Bill the need for facility time for trade union representatives to collect subscriptions. Failure to do this would expose the Government to accusations that they were intent on sabotaging the ability to recruit.

Some members cannot afford to pay an annual subscription all in one go, either in cash or through their bank. Some cannot persuade their bank or building society to deduct subscriptions monthly, because their pay is either too low or too sporadic or both. This could affect school employees in particular. The physical collection of subscriptions will therefore have to take place and representatives will need time to do it. Has the Minister consulted public sector employers about this move? I ask because it will mean that they have no idea who is in a trade union if this proposal is carried.

In my former union, UNISON, the majority of the 1.3 million members have their subscriptions deducted straight from their wages, a process that is beneficial for both employers and members. No employer is required to provide the service. UNISON covers the cost of the administration of check-off whenever asked. The Minister knows that this highly controversial proposal was not in her party’s manifesto. Is she seriously saying that the Government would rather ban check-off than accept union payment for services? Is that because the Government do not trust public sector employers? I am certain that this will be the subject of many amendments.

My final points concern the right to strike. Further restricting the right to strike and removing the ban on the use of agency workers during strikes will worsen employment relations. The Government are well aware that the number of days lost to industrial action per year has fallen substantially. If they really cared about union democracy they would allow electronic voting and the extension of workplace ballots. All the additional legal hurdles contained in the Bill will make settlements more difficult, with or without strike action, and will certainly increase the chance of legal challenges against the union and encourage employers to sit out a dispute.

I am concerned, too, about the use of regulations to cover vitally important areas affecting the democratic rights of workers. This is a pattern with this Government—the framework Government—whereby legislation as flimsy as a pack of cards is put through and the really important bits are presented much later in the form of regulation. In this Bill, we will not know precisely who will be covered by the 40% threshold in Clause 3.

[Lord Hunt of Chesterton]

Therefore, my comments on this methodology and the proposed change of removing the House of Lords’ ability to deal with secondary legislation will be even more powerful.

[Baroness Donaghy]

I thank the noble Lord for that additional piece of wisdom.

In this Bill we will not know precisely who will be covered by the 40% threshold in Clause 3 until the regulations come out. There will be no opportunity to amend or give proper scrutiny, which is our job. This is anti-democratic, as is treating abstentions as no votes for industrial action. Of course strike action should be the last resort, but poor employment relations lead to worse things—absenteeism, presenteeism, low morale and low productivity. This wretched Bill has no contribution to make in these areas.