Employment Rights Bill

Baroness O'Grady of Upper Holloway Excerpts

Committee stage
Thursday 5th June 2025 Lords Chamber

I have stressed both the internationalness and the length of time this has been an issue because, very often, when we hear from the Government on all these issues to do with so-called artificial intelligence, we hear that we have to wait to see what happens. I am afraid that is not good enough and not an appropriate circumstance. How these tools are deployed and where they are used and not used are matters of political decision-making. We can make choices; we can make laws. They are not independent actors outside our control, and neither should be the giant companies that largely promulgate them. We need to—dare I coin a phrase?—take back control and say there are places where this is inappropriate or needs to be extremely tightly controlled.

[Baroness O'Grady of Upper Holloway (Lab)]

My Lords, following the invitation from the noble Baroness, Lady Bennett, I do feel obliged to say some very brief words on this group of amendments. I was at the helm of the TUC when we produced an AI manifesto for workers and that manifesto was AI-positive and optimistic about the potential for AI to help us create more satisfying work for workers and also boost productivity if we share those gains fairly. But it was also realistic, because the real experience of workers at the sharp end in terms of technology more generally is that it has often been used to drive, for example, the gig economy that this Bill proudly is looking to tackle in terms of insecurity and low pay.

Workers also experience oppressive surveillance, with Amazon being right at the top of the rogues’ gallery in that respect. And, of course, technologies such as facial recognition have been developed that bake in race discrimination. So, of course workers are right to be wary and concerned. That is why one of the key demands in that AI manifesto was, as the noble Lord has talked about before, the right to a human review when it comes to decisions about hire and fire. The right to a human review is a fundamental human right. Critically, the manifesto called for a voice for workers in agreeing new technology, including AI agreements, so that workers’ concerns are addressed directly and agreements are made with employers about how AI is introduced and used.

Given that, in a very welcome sense, there has been such broad interest and concern expressed in this short debate, can the Minister reassure us that we will be addressing not just problems such as the gig economy that we saw growing in the 20th century but the new challenges of the 21st century, where workers urgently need protection?

[Lord Sharpe of Epsom (Con)]

My Lords, I thank my noble friend Lord Holmes of Richmond, the noble Lord, Lord Clement-Jones, and the noble Baroness, Lady Bennett of Manor Castle, for their amendments in this group and for their thoughtful introductions and contributions to what is clearly a vital and timely discussion around the future of artificial intelligence in the workplace.

Amendments 148, 149 and 150, tabled by the noble Lord, Lord Clement-Jones, seek to define AI systems in statute, mandate a workplace AI risk and impact assessment, known as a WAIRIA—I was not sure how to say it—and impose statutory consultation duties on employers prior to the deployment of such systems. In my respectful opinion, these measures go a bit too far at this stage.

To begin with the proposed definition of an AI system, I fully accept the need for clarity in legislation, but the definition offered here is overly expansive and risks capturing a vast range of tools, from predictive text and email sorting to payroll systems and basic data analytics. Technology evolves rapidly, and we think that any attempt to lock such a broad and fluid concept into rigid statutory language at this point risks hindering innovation and forcing employers into compliance regimes for systems that may pose no meaningful risk at all.

On the proposal for workplace AI risk and impact assessments, the intentions behind this are understandable. However, the execution here reads a little more like a blueprint for a full-scale regulatory regime rather than a light-touch safeguard. Employers would be expected to carry out detailed documentation, consult staff, assess and monitor impacts on mental health, contractual terms, pay and more, and then repeat that process at least annually or upon any system change—and that is no small task. For large employers it might be possible, but for SMEs it would surely be burdensome and, in many cases, entirely unworkable. Our concern is not with the principle of transparency or fairness but with the disproportionate bureaucratic weight that these provisions would place on businesses, particularly those outside the technology sector, which simply may not have the capacity or technical knowledge to meet such a standard.

The third proposal, which is a statutory duty to consult employees or trade unions at least one month before deploying AI systems, again assumes a degree of foresight and technical certainty that may not always exist in practice. The development and use of AI systems is often iterative, and definitions, use cases and impacts evolve over time. Requiring formal consultation at every turn risks paralysing technological progress and may well deter even the cautious adoption of beneficial systems.

I recognise that the amendments are rooted in a desire to protect workers and uphold ethical standards, but we have to resist the temptation to reach immediately for sweeping, front-loaded legislation in a domain that is still very much in its infancy. Regulation in this space, as I am sure all noble Lords would agree, must be agile, proportionate and grounded in practical reality.

We are entering a new phase where AI is no longer confined to research labs or boardrooms. It is appearing across ordinary workplaces, public and private alike. There are tremendous opportunities to improve productivity, streamline operations and foster collaboration between human workers and AI tools, yet we think many of the proposals in this group—including those seen elsewhere, such as the mandatory appointment of AI officers, rights to personalised algorithmic explanations, opt-in clauses, and statutory principles of fairness and explainability—share a common shortcoming, which is that they attempt to legislate about highly technical and fast-evolving systems with a degree of rigidity that may prove counterproductive.

We on these Benches share the Government’s ambitions to become a world leader in this space, and therefore we must remain mindful of all those factors, as well as of existing protections. Several of these proposals risk duplicating duties already present under UK GDPR, data protection law and various existing employment safeguards. The creation of overlapping, inconsistent or duplicative regimes could confuse employers and regulators alike, all while doing little to prevent truly harmful practices.

While we acknowledge all the opportunities that are potentially offered by AI, we must remain vigilant to the risks that it poses, including algorithmic bias, opacity and decision-making—which we have heard a lot about—and the misuse of personal data. But that vigilance must be coupled with regulatory restraint. We ought to be cautious to not impose premature, overly burdensome rules that stifle innovation and overwhelm well-intentioned employers, particularly in low-risk use cases, such as rota planning, document handling or payroll automation.

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[Lord Barber of Ainsdale (Lab)]

My Lords, I have Amendment 322 in this group, which requires the Secretary of State, after the establishment of the new arrangements to deliver fair pay in the social care sector, to set out a timetable and process for an assessment of whether this approach could deliver similar benefits in tackling labour market problems in other sectors of the economy. The assessment should also take account of the process of establishing the school support staff negotiating body, in effect restoring arrangements abolished in 2010 by the coalition Government.

Setting up this new machinery in social care will be a major step forward in addressing the crisis in this sector. Low pay and poor working conditions are endemic across the sector, contributing to record levels of staff turnover and unfilled vacancies. This badly affects those who need care services and those who provide them. But this will be no simple matter establishing an entirely new bargaining structure for the first time in this part of the economy. All the parties—the Government, the employers and the trade unions—will need to navigate a number of significant complexities to establish this new body.

How should the membership of both the employer and the trade union sides be constituted? What should be the practical working arrangements to bring the parties together to work constructively to address the huge challenges faced? Will there be resistance in the sector to the changes coming out of this initial process? If so, how can they be overcome to establish the new body with the credibility and authority it will need if it is to become an enduring positive part of the social care landscape? This will be a learning process for all involved, and this amendment is intended to ensure that the learning is effectively captured from the process to inform the consideration of whether similar fair pay agreements could deliver benefits and tackle labour market problems in other sectors.

Agreements covering the terms and conditions across a sector exist in our major public services. In the private sector, as recorded in my register of interests, I also serve on the board of the JIB, the Joint Industrial Board, in the electrotechnical part of the construction industry, which brings together the employers’ body, the Electrical Contractors’ Association, with Unite the Union.

Working together, they maintain the core collective agreement setting out the terms and conditions in that part of the economy. They also work together in delivering a hugely valuable card scheme, recognising the key skills of the individuals working in the sector. This was referred to in the earlier debate by the noble Baroness, Lady Coffey. In addition, they provide an effective dispute resolution process for member firms and workers in the industry with a very high success rate.

Lessons can be learned in considering the possibility for other sectors from all these different arrangements. This is not to suggest that establishing new sectoral bargaining arrangements more widely in the economy is some kind of magic bullet, but in sectors with low pay, high turnover, recruitment and retention difficulties, and demonstrably inadequate investment in skills, they have the potential to play a part in transforming sectors that currently appear to have a labour market characterised by a race to the bottom to ones that build success based on decent pay and high labour standards. So, once the new social care body has been successfully established, let us develop a considered process, consulting all the relevant parties—employers, unions, ACAS—to learn the lessons and assess whether there are other sectors that could achieve similar benefits from such an approach. I hope that the Minister will be able to respond positively to this proposal. I beg to move.

[Baroness O’Grady of Upper Holloway (Lab)]

My Lords, I will speak to Amendment 322 in my name and those of my noble friends Lord Barber and Lord Monks, who regrets he cannot be in his place. It addresses the same principle as the amendments of my noble friend Lord Hendy: extending collective bargaining is a common good.

I strongly welcome Labour’s commitment enshrined in the Bill to introduce a fair pay agreement in social care. As we have heard, social care staff put their health on the line during the pandemic to care for our loved ones, and it is only right that they should be front of the queue for a fair pay agreement. But that cannot be the sum total of our ambition. This amendment seeks to ensure that the Government make a timely assessment of other sectors that could benefit too.

There are around 4 million low-paid and insecure workers in Britain today. During the pandemic, many of these workers were classified as key workers—the people who kept Britain running in the toughest of times. They remain essential to our collective security, but their terms and conditions do not always reflect this. Very often, dominant companies in the sectors where they are employed could and should pay more but instead look to squeeze and undercut smaller companies that want to do the right thing.

There is little incentive to invest in new tech or equipment, which is essential to boosting productivity when labour is so cheap. As we know, young people are on the sharp end with over one-third of UK graduates employed in jobs well below their qualification level, representing an enormous waste of talent. Organisations from the Resolution Foundation to the Low Pay Commission have already documented which jobs and industries are both holding down workers’ aspirations and holding back productivity gains. The Government can use their convening power to bring employers and unions together to bargain for a better deal, not just on pay but with progression, training and skills too.

Collective bargaining is based on the simple premise that workers can achieve more together than we can ever achieve alone. In the UK, we have a national minimum wage. There is also an independent and voluntary real living wage, calculated on the real cost of living. In my book, though, the definition of a fair wage is different: a wage is only fair when workers have a collective say over it and agree it.

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[Baroness Coffey (Con)]

My Lords, I shall speak in particular to the amendments regarding communication with workers. I think it was Amendment 207 but, whichever one it is, I think noble Lords will know. The reason I bring this up is that my noble friend has just referred to aspects of cybersecurity. By the way, I am not suggesting that any trade union would be seeking to cause this havoc, but we know this is a particular challenge. I am struggling to understand how, under wider confidentiality, how anybody would have access to this or be expected to. It may be that the employer is required to pass on an email, I do not know.

I am also struggling to find the justification for this. In introducing the Bill, the Government did not make any reference to digital communication or this other communication; they referred only to physical access. I cannot find any justification put forward by the Minister for this. I cannot find the amendment in Committee, and I am struggling to find the amendment on Report, in the Bill documents on the parliamentary website. I am sure they are there; I am just struggling to find them. I certainly cannot find any reference by the Minister in the other place to why this is deemed necessary. I appreciate that it is not necessarily the job of the Government to do my research for me, but that would be very useful to hear, because it certainly was not in the Bill introduced to the Commons.

I would be grateful if the Minister could give this House a justification, because one of the things that is causing concern among employers’ representatives is this sort of process. It is fairly well established that trade unions are often invited in; that is all part of good industrial relations. The legislation talks about being able to organise. I think the Minister in the other place talked about using it as an opportunity to recruit new trade union members, to organise, to have meetings and so forth. I want to clarify something. The Bill states, in line 15 on page 75, that

“the access purposes do not include organising industrial action”,

so I would be grateful to understand this better. How is the Minister in the other place saying that you can organise different from organising industrial action?

I am genuinely concerned that anyone can just be told, “Please email all your employees with this material”. Fortunately, at the moment, it does not seem that we have prescription that the Secretary of State will write the words that need to be said—I expect they would not be writing on behalf of the trade union—but, again, I am trying to understand why employers would need to allow that to happen. On that, I will draw my comments to a conclusion.

[Baroness O’Grady of Upper Holloway (Lab)]

My Lords, I too shall be very brief. I strongly welcome this new right for workers to have reasonable access to their union representatives at their place of work—that is very important. It is also worth stating the good news that there are many voluntary access agreements already in place. I have had the pleasure many a time of visiting companies, big and small, walking the floor with the managing director and the union representative and having really good discussions, with an opportunity to meet workers and talk about the success of the business.

However, as a union official, I have also been in the position where I have had to meet workers in cafés, pubs, church halls, homes or anywhere, because they were too scared to be seen speaking to a union official outside their workplace with CCTV cameras trained on them. That is the reality that we are also dealing with, but there is plenty of good, practical practice to build on.

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[Lord Sharpe of Epsom (Con)]

Before the noble Baroness sits down, she has had a go at Amazon twice tonight. I wonder whether it might be of interest to her to know that it employs 75,000 people in the UK. No one who works there is on a zero-hours contract. The minimum annual starting salary is between £28,000 and £30,000. It provides flexible working opportunities from day one, including term-time contracts, which it is currently advertising on the radio. That, obviously, allows parents, grandparents and carers guaranteed leave during school holidays. Since 2010, Amazon has invested more than £64 billion in this country and £12 billion in the last 12 months. It also supports a network of about 100,000 UK-based small and medium-sized businesses. It may not be perfect on unions in the noble Baroness’s terms, but it deserves a bit more respect.

[Baroness O'Grady of Upper Holloway (Lab)]

I am sure the noble Lord opposite would agree that those workers who joined a union and wanted to have a union voice at work to improve their pay and conditions deserve respect, too, and that union-busting techniques and approaches to avoid even meeting unions to come to an agreement is, frankly, unacceptable in a modern, civilised society.

[Lord Goddard of Stockport (LD)]

My Lords, I will be brief. This group of probing amendments relates to new provisions in the Bill concerning trade union access to the workplace. Amendments 208A, 209A, 210 and 210A would narrow the definition of access by removing or limiting references to communication with workers, including through digital channels. These changes would raise questions about how access is intended to operate in practice, particularly in light of evolving workplace models. It would be most helpful to hear from the Minister how these changes are expected to support the overall objectives of the Bill and whether they risk narrowing the scope of access in ways that may affect its effectiveness.

Amendments 209, 211 and 213 in this group would also address the application of provisions to small and medium-sized enterprises. Others, including Amendments 213AA and 213B, introduce specific considerations for sectors including healthcare—all very laudable and quite reasonable—or for the timing and method of access for those applications. These amendments appear to probe the balance between ensuring orderly access and managing operational pressures. Could the Minister clarify how the framework, as currently drafted, is expected to work in different types of workplaces as I have alluded to, and how it ensures that both the employers’ and employees’ work interests are taken into account?