Retail Store Closure: Boxing Day

Bill Esterson Excerpts

Monday 12th December 2016 Westminster Hall

[Bill Esterson (Sefton Central) (Lab)]

This has been an excellent debate, Mrs Moon. I congratulate my hon. Friend the Member for Warrington North (Helen Jones) on making a comprehensive, passionate plea to support working people in the retail sector. That was supported by nearly everybody who spoke, and the contributions made by hon. Members around the Chamber were entirely consistent with what she said. The hon. Members for Belfast East (Gavin Robinson) and for Kettering (Mr Hollobone) were entirely sympathetic, as were my hon. Friends the Members for Makerfield (Yvonne Fovargue) and for Newcastle upon Tyne North (Catherine McKinnell) in their interventions. The one discordant note came from the hon. Member for Morley and Outwood (Andrea Jenkyns), who frankly gave a description of retail that many workers in the retail sector would not recognise.

On Christmas day, my children will wake my wife and me early—we are still in that stage of family life. We will go and visit other family members, and we are lucky to be able to do so, but such a happy family scenario is not available to everybody in this country. As other hon. Members have mentioned, many workers in sectors beyond retail have to work over the festive period, for very good reasons. My hon. Friend the Member for Warrington North said that shopping is not a matter of life and death, but for key workers in the NHS, the care sector and in our police and fire services, working is a matter of protecting life and sometimes dealing with death. Sadly, that includes on Christmas day and Boxing day. We can take this opportunity to thank everybody who works in the emergency services and the care sector for the contribution that they make every day of the year, and especially at the festive time, when most of us are able to take time to be with family and friends.

Many people have to work in the hospitality sector over Christmas, as has been mentioned, and it is right to recognise the realities for such people. There are also some in retail, in small shops, who work on Christmas day and sometimes Boxing day—typically shop owners. The Association of Convenience Stores has said that smaller shops tend not to want what it describes as “paid staff” working—staff who are not owners or family members—because of the costs. However, it recognises as part of that equation the desirability of paid staff—again, the ACS’s term, not time—being able to have time off to spend with their families.

That leaves us with the large stores. The successful USDAW campaign saw the private Member’s Bill introduced by my hon. Friend the Member for North Durham (Mr Jones) become law in the Christmas Day (Trading) Act 2004. At the time, the internet was not as advanced as it is now—I will come to some points made about online trading later. What happens to staff on Boxing day is increasingly a concern, and it has led to this petition, which has been signed by a very large number of people. The petition was the result of an increasing number of large retailers opening on Boxing day—and opening earlier and for longer.

As we have heard—I have heard this from constituents of mine—people are finishing later and later on Christmas eve. They still have to prepare for Boxing day, sometimes on Christmas eve, and sometimes on Christmas day itself. I heard a story about a major high street retail name that opens at 5 am on Boxing day, and staff have to be there at 3 am or 3.30 am. They have to travel—what time do they get up? Are some of them even starting on Christmas day? What kind of a Christmas is it for someone who knows they have to be at work at 3 am or 3.30 am on Boxing day? I cannot even begin to think what that must be like. However, that is where some large retailers are headed—that is the reality—and why there has been this petition. When we look at the consequences for family life, I think we can all understand and share people’s concerns—as everybody in the Chamber did, with one sad exception so far, although we have yet to hear from the Minister.

Like my hon. Friend the Member for Warrington North, I am a very proud member of USDAW. Its survey said that 16% of workers say that they face working longer hours this year, 7% say the hours will be shorter and 77% say the number of hours will be much the same. The number of hours that staff are being asked to work is therefore increasing. We have heard about the impact of long hours in the run-up to Christmas and about the inability of most staff to take time off for a considerable time—time off that would enable them to recuperate—and about the impact on families, especially those with children. Parents who finish late on Christmas eve then have to come back and put the stockings together.

[Helen Jones]

Put the toys together.

[Bill Esterson]

Yes, and the toys—I thank my hon. Friend. They also have to prepare the food for Christmas day with very little time to enjoy themselves.

[Mr Hollobone]

I am enjoying the hon. Gentleman’s speech hugely. We are all sympathetic to the plight of retail workers at Christmas time. I am not a member of USDAW, but my grandparents were small shopkeepers. To my mind—and in answer the petitioners who have gone to such efforts to draw this plight to our attention—the point is that the Christmas Day (Trading) Act 2004 prohibits large shops from opening on Christmas day. Are Her Majesty’s Opposition in favour of a Boxing day trading Act, which would prohibit large shops from opening on Boxing day?

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[Bill Esterson]

I had not realised just how much I had in common with the hon. Gentleman. Like him, I had grandparents who ran a cornershop—I am assuming his grandparents ran a cornershop?

[Mr Hollobone]

indicated assent.

[Bill Esterson]

The hon. Gentleman is nodding; so we both had grandparents who ran cornershops.

[Mr Andrew Smith]

You’re not cousins, are you?

[Bill Esterson]

I am struggling to make progress, Mrs Moon, because I am being given all sorts of interesting suggestions.

My grandad told me that if people cannot afford to pay decent wages, they should not open a shop. That is a good piece of advice about being a responsible employer. He might have amended that, in the context of this debate, to say that if employers cannot give decent time off over Christmas, they should not be opening a shop, especially on Christmas day and Boxing day. The hon. Member for Kettering is suggesting one option. Only 1.5% of the thousands of staff surveyed by USDAW said they wanted to work on Boxing day, so something needs to be done and it needs to be addressed. One option, undoubtedly, would be to amend the Christmas Day (Trading) Act 2004; another would be to have a Boxing day trading Act. I wait to see what the Minister has to say on that score. I suggest to the hon. Gentleman that if nothing is done through that piece of legislation, there should be action to ensure—this goes back to his earlier comments—that staff who do not want to work on Boxing day will not be under pressure to do so.

The hon. Gentleman reminded us that he voted against the Government’s attempt to include relaxation of Sunday trading in the Enterprise Bill in Committee and on Report. He will remember from that debate that points were put forward very forcefully and that extremely strong evidence was presented to us that many staff are simply unable to take time off on Sundays because of concerns and pressure, and the same applies to Boxing day, even though the legislation is different unless Boxing day is on a Sunday. We have to find some way of addressing the issue. I do not think the answer is necessarily for the Opposition to be prescriptive, but we need to get to a point where no one has to work in a large store on Boxing day unless they want to. Like the rest of us, they want to enjoy Christmas. They want to travel, see family and enjoy Christmas eve, not to feel under pressure through to Boxing day.

USDAW’s view is that the only staff who should be available to those large retailers at that time are volunteers. I suppose the point it is making is that if a store could manage purely with volunteers, there would be no objection in principle to that store opening. However, if stores are relying on only the 1.5% of staff who are prepared to work and the 5.5% of staff—I think that was the figure —who are non-committal, most stores would struggle to open without forcing staff to work.

Let me turn to the points about online trading. Things have changed since 2004. The nature and scale of online trading is very different. A number of hon. Members have made points about the impact of online trading on high street and, indeed, out-of-town stores. Perhaps the time has come to look at the needs of staff working in the warehouses such as those that the hon. Member for Kettering described in his constituency. Perhaps it is time to look at what the Government’s responsibility is towards staff who work in warehouses or for internet retailers, and the way in which they are treated. Those staff have a right to a Christmas day and at the moment they are not covered by the Christmas Day (Trading) Act, let alone by what we are talking about for Boxing day. The time has come to consider how that might be addressed and how we might get the kind of fairness that we would all expect for our own families.

Points have been made about the level of trading over Christmas. One estimate is that more than £77 billion will be spent in the Christmas period in the retail sector. Most of the people who work in retail, of course, are very low paid. As we have heard, premium pay is now a thing of the past in most businesses. In that context, is it too much to ask of the major retailers to do more to support their staff by not trading on Boxing day? Remember that those major retailers all have their own internet retail presences, so it is not as if they cannot trade online. By the way, plenty of people go online on Christmas day. It is not just Boxing day, is it?

Some online retailers do not necessarily fulfil orders. The hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) made the point from his own experience in the internet retail sector—he may want to intervene to set me straight on this—that there are plenty of opportunities to delay fulfilment of orders. There are plenty of retailers that do just that, so they are not open 24/7.

[Drew Hendry]

I am grateful for the opportunity to underline that point. There is room for retailers to be innovative by using the new technology—what would in other circumstances be the challenge of internet retailing —to help to create a much more equitable situation with in-store retail. The big benefit of having in-store staff is that they can give advice. Boxing day is a day when people are picking up units. They do not need advice; it is just about picking up the goods at a discount.

[Bill Esterson]

I am grateful for the hon. Gentleman’s intervention because it really adds to everybody’s understanding of the challenges, opportunities and some of the realities. Perhaps the Minister can take some of these points away and, as well as responding to them, look at how online and offline retail operate and at what might be appropriate in supporting staff in both parts of the industry.

I want to talk a bit about some of the retailers who have so far resisted the pressure to open on Boxing day, because not every major retailer does. The initial consultation for the Christmas Day (Trading) Act, which was carried out in 2002, suggested that competitive pressure was one reason the Act was needed. Although at the time not every retailer by any means was opening on Christmas day—indeed, it was only a few—the sense was that in the end everybody would have to do so to keep up or they would lose ground.

A similar pressure now applies with Boxing day. So far, retailers including Lidl, Aldi and John Lewis have resisted the pressure, and have done so successfully, which suggests a public appetite for delaying shopping to a degree. In the last year, those retailers have seen their trading figures go up at the expense of some of their competitors, but we do not know for how long that will continue. Earlier evidence suggests a concern across the sector that businesses will ultimately all have to work and trade on Boxing day unless there is Government intervention—nobody else can make such an intervention.

The Conservatives say that this is nothing to do with them—that it is a free market and that it is up to businesses to decide what to do. The problem, if we follow that argument, is who will prevent abuse. The problems with Sunday trading, and now with Boxing day, mean that workers are unable to take time off. Who will intervene to look after workers and ensure fairness between employers on the one hand and staff members on the other?

We have seen far too many abuses recently. We have seen the behaviour of Sports Direct, and some of Amazon’s behaviour in Scotland was highlighted over the weekend. A number of us will have constituents who have been affected by the cuts in pay and conditions at Marks and Spencer. It is all our responsibility, and particularly the Government’s responsibility, to intervene on the side of working people, whether on fair pay or hours of work.

Who looks after responsible businesses? The businesses I mentioned, Lidl, Aldi and John Lewis—and there are many more like them—want to do the right thing and act responsibly. How will they be encouraged and supported unless the Government introduce the necessary conditions so that they can do that without succumbing to competitive pressures? As we discussed when we were considering a statutory instrument last week, the Prime Minister is consulting on boards having a representative with responsibility for staff. It is regrettable that the Government appear to be walking away from having elected worker representation on boards, but will such board representatives be strong enough? Will they have the interest to ensure that staff are treated fairly? The concern is that the measure just will not go far enough. This is an example of where Government intervention cannot just be left to the market. It cannot just be voluntary.

Perhaps the time has come to consider a cautionary tale. We can either go down the route of supporting responsible businesses and treating workers fairly, or we can consider what has happened historically. I have mentioned some of the more recent cases, but we saw all sorts of horrors before there was Government support. I am not suggesting that the Minister is in any way interested in repeating what happened hundreds of years ago, but my mind goes back to “A Christmas Carol”. I wonder who Ebenezer Scrooge might be in this scenario. Surely not the Prime Minister.

Where is the line if the Government say they will not intervene? We used to send children up chimneys in Victorian Britain, and I know the Minister is not suggesting that, but let us remember the ghost of Christmas past and make sure that the ghosts of Christmas present and Christmas future show fair treatment for workers and responsible businesses. That is the way forward, and the right solution will ensure that workers are looked after on Boxing day, that family life is protected, that responsible businesses are encouraged and that there is the right balance between online, high street and out-of-town shopping. I challenge the Minister to deliver on that.

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[Margot James]

It would be interesting to look at the picture when Boxing day falls on a Sunday. Presumably that would give people greater rights, at least on those rare occasions. Any changes to the legislation that I have mentioned would require primary legislation. I would hope that there were other ways to afford shop workers some protection without recourse to primary legislation. The law is a balance that Parliament has accepted, and the Government are reluctant to disturb that balance. To change the law would risk opening new disagreements; new primary legislation would create new demands and new risks.

[Bill Esterson]

The Minister is making some reasonable points, but she said that she hoped that there was some recourse for the Government other than primary legislation. I thought that she was going to tell us what it was, but she seems to have moved on to another point. If I can bring her back, what does she see as the recourse, other than primary legislation, to ensure that staff who want time off get it?

[Margot James]

I have no suggestions at the moment to put to the hon. Gentleman, and I would not like to give the impression that the Government are exploring that. We are opposed to a ban on retail trading on Sundays. More generally, Boxing day is a day on which some people like to get out of the house. It has long been a major day for shopping and other events, and I have covered the point that an increasing number of workers in other sectors are busy at work.

Another argument against banning offline retail—that is what it is now—from opening on Boxing day is that many other workers would want to know why we were making an exception for the offline retail trade when employees in other sectors work on Boxing day. There are many aspects to the issue other than the threat posed to retailers by an outright ban, particularly, as I have mentioned, to retailers without a strong online presence.

May I respond to a few of the points made by the hon. Member for Warrington North in her interesting and well researched speech? Workers have many protections under the working time regulations, including entitlements to rest breaks, daily and weekly rest periods, and a maximum working week of 48 hours, normally averaged over 17 weeks. However, workers can choose to opt out of the 48-hour limit, and I accept that some jobs are more or less conditional on their exercising that opt-out. The qualifying period for unfair dismissal, which the hon. Lady also mentioned, is intended to strike the right balance between fairness for employees and flexibility for employers.