Enterprise Bill [Lords]

Baroness Hayman of Ullock Excerpts

Tuesday 8th March 2016 Commons Chamber

[Kevin Brennan]

I thank the hon. Lady for promoting me temporarily. I agree with her, and I know that she has been campaigning on that issue, as has my hon. Friend the Member for Ynys Môn (Albert Owen), who we may hear from later. She is absolutely right. The employees of these companies would never have imagined for one second that they would be hit by the Government’s proposals and the Conservative manifesto commitment to cap public sector exit payments. We raised the issue in Committee, but the Minister refused to guarantee that they would be excluded from the exit payment cap.

The companies listed are in a unique position. They are mostly engaged in managing the safe closure of nuclear facilities, which is a task of huge national importance. By its very nature, it involves working towards a specific end date, at which point the employees will effectively make themselves redundant, provided that they have done a good job. That is what they are doing: they are working to make themselves redundant.

[Sue Hayman (Workington) (Lab)]

Does my hon. Friend agree that it is completely inconsistent to include employees of companies operated by the private sector? My constituents who work at Sellafield are very worried about the proposed redundancy cap. I am concerned that it will lead to highly skilled, experienced workers leaving the industry, which would undermine our ability to deliver the safe decommissioning of our nuclear facilities.

[Kevin Brennan]

I agree. My hon. Friend will have noticed that Sellafield Ltd is included in new schedule 1, for the very reason she has highlighted.

As I said, the workers in question are working towards making themselves redundant. They accept that their work is a task and finish activity of national importance. In order to get somebody with the necessary skills to commit to that kind of proposition in their early or mid-30s, we need to ensure that they know that they will be provided for if they successfully complete their task by the time they reach their mid to late 50s, when they might find it extremely difficult to find re-employment, given their very specific skills.

If the companies listed cannot afford the packages necessary to compensate someone for the loss of their role when their task has been completed, they will find it extremely difficult to prevent highly skilled workers, who are mobile in the earlier parts of their careers, from leaving. That in itself will drive up costs for the nuclear decommissioning industry and exacerbate an already difficult skills shortage in the sector.

Legislating now to override the long-standing arrangements in the nuclear industry, as the Government are doing, when employers have kept their end of the bargain faithfully, is, to be frank, unconscionable. How can it be right that workers who have stayed with a company to deliver successfully the safe decommissioning of a site see the Government renege on their promised redundancy compensation when it is due to be paid?

--- Later in debate ---

[Albert Owen (Ynys Môn) (Lab)]

I congratulate my hon. Friend the Member for Cardiff West (Kevin Brennan) and the hon. Member for Aldershot (Sir Gerald Howarth) on the eloquent way in which they spoke to new schedule 1. I will not repeat what I said on Second Reading, except to reiterate the point that the people and companies listed in that new schedule are in no way fat cats. I think we need an apology from the Government about that because these are hard-working, ordinary people who have worked in difficult circumstances for many years, and signed up to agreements in good faith with the Government of the day.

I want the Government to honour their promise to safeguard the conditions of service that were agreed between companies and employees over many years, and I will touch on the definition of public sector workers. In no way are the people listed in the schedule public sector workers. Many of them work for private companies. If this cap is imposed on them, it will not benefit the Treasury at all; it will benefit the private companies that have taken on the contract. There will be no great saving, but there will be a breach of trust, and a considerable loss to those individuals who have been given protection.

I know that this Minister listens to reason and I am sure she agrees that many people will be caught unintentionally under the Bill. The protected status goes back to the privatisation of the electricity industry in the 1980s, and regulations were introduced in 1990 to protect many of the categories listed. More than 120 Magnox workers have written to me. As the hon. Member for Aldershot said, they were given protection, with other nuclear industry employees, under schedule 8 to the Energy Act 2004. When the recent pensions Bill was going through Parliament and their conditions were threatened when a vote in the House of Commons took away their protected rights, an amendment in the House of Lords restored that protection. Those protections were given to the workers by Mrs Thatcher and Cecil Parkinson in the 1980s, and they were honoured by other Conservative Ministers.

[Sue Hayman]

It is also important to point out that the Treasury did not actually allow the employees of those companies to remain in public sector pension schemes when they were privatised, so it is completely inconsistent now to call them in.

[Albert Owen]

There is huge inconsistency because the workers I am referring to were protected in 2004. They were given that protection in statute. The Government are using a crude analysis by the ONS that these are public sector workers and fat cats, and that they should be treated all the same, but they are breaking their own promises. That is the strong feeling I got in the letters I received from the employees. The safeguards given by previous Governments during privatisation are now being taken away on a whim. I say to Conservative Members that taking away the protected status of these people was not in the Conservative party manifesto. The opposite is the case: it talked about city hall fat cats. Many of us agreed that people should not be rewarded for failure, but the people we are talking about are doing dangerous work now. The measure is due to come in in October, and many private companies are refusing to put through redundancies now. They are holding them back until October so that the workers receive reduced conditions of service. That is wrong.