Draft Trade Union (Deduction of Union Subscriptions from Wages in the Public Sector) Regulations 2023

Debate between Chris Stephens and Nia Griffith

Tuesday 30th January 2024 General Committees

[Dame Nia Griffith]

I agree with my hon. Friend. The guidance issued has considerable flaws. It was not even available when the regulations were debated in the other place in December. The guidance is non-statutory. That means that employers do not necessarily have to follow it and can decide for themselves what they consider to be “reasonable costs”. Even within the guidance, there seems to be no mechanism for trade unions to challenge employers’ calculations of reasonable costs. The guidance states baldly:

“If no agreement can be reached and the relevant trade unions do not agree to pay the amount, then the employer may wish to consider taking steps to stop administering Check-off”.

In other words, it is take it or leave it. There is no pathway or mechanism for trade unions to challenge the employers’ calculations of reasonable costs or their decision to terminate check-off. In other words, there is no redress, and the trade unions are put in a position where their only options are to pay what the employer demands or end check-off. What a disgraceful way to treat their loyal workers and their workers’ representatives.

It is as if the Government have completely forgotten, or are choosing to ignore, the immense benefits of having trade union recognition in the workplace. Up and down the country, in both the private and public sector, on a daily basis we see trade unions and employers sorting out a whole range of issues amicably. Time was when Conservative Members recognised the valuable role of trade unions, but now one would almost think that the Government are looking to pick a fight with the trade unions and their own hard-working public servants. The Government’s draft impact assessment suggests there may be

“some loss of goodwill with employees and trade unions”.

There may indeed, and I would not underestimate the value of goodwill in services where so often we find individuals going above and beyond to deliver a good service.

Returning to the guidance, it looks as if the employer has carte blanche to allege additional cost. The example is given of additional cost being justified in the case of what is called “late” notification being given by a trade union of a change in membership fees—whatever “late” may be. This is from a Government who talked about a 12-month period, then a six-month period, and now they want to implement these changes by 9 May, leaving barely three months to have everything worked out. This is from a Government who, in September 2022, with no notice sent the financial institutions into a spin and left people overnight with hundreds of extra pounds to pay on their mortgages or their rent.

On the matter of consultation, according to the draft explanatory memorandum, it sounds as if the consultation was simply to identify the various public bodies that would be covered by this legislation. We read:

“No public consultation was carried out as the principles of this provision were debated extensively in Parliament during the passage of the Trade Union Act in 2016.”

Furthermore, we are told:

“Trade union officials and others gave evidence during the passage of the Act and the Government listened to their comments.”

Make of that what you will, Mr Paisley, but I do not think the Government were doing much listening. To say that now there is no further need to seek advice or comment or to consult more widely is shocking.

There has been no opportunity for either the public or the main parties affected by this legislation—namely, the employees and the trade unions—to feed back on its implementation, because, the Government say, they did this seven years ago. If there had been proper consultation on the implementation, there would have been an opportunity for the trade unions to raise the issues of how an employer would determine costs and what the process for resolving a disagreement over the costs would be, rather than the situation of no redress that the Government are now trying to push through.

[Chris Stephens]

The hon. Lady is making an excellent speech. Is she not concerned, as I am, that there was not only no public consultation, but no consultation with the devolved Administrations? Given that the regulations will affect public sector workers and public bodies in Scotland, it is extraordinary that there was no consultation with the Scottish Government, who are their employer and who have clear manifesto commitments on industrial relations.

[Dame Nia Griffith]

Indeed I am. As the hon. Member will know, reflecting the will of the people of Wales, the Trade Union (Wales) Act 2017 disapplied devolved Welsh public sector employers from the provisions of the Trade Union Act 2016. Non-devolved bodies that operate in Wales are subject to the jurisdiction of the 2016 Act, however, so there is certainly an impact on people in Wales. There should have been full and proper consultation with the devolved Governments.

I hope the Minister will address this in his concluding remarks, but will he look again at what happens if the charges that the employer wishes to impose upon a trade union for providing check-off are considered unreasonable by the trade union? Will he look at working with trade unions and employers to agree some form of mechanism to resolve a disagreement?

In the draft impact assessment, the estimates for the scale of the use of check-off range from the 10-year-old TaxPayers’ Alliance figure of 90% of the workforce to the more recent Department for Business, Energy and Industrial Strategy figure of 65% of the workforce. The TaxPayers’ Alliance says that some 22% are already paid for by trade unions, whereas the Local Government Association says that 67% are already paid for. One would think that the Government could, without relying on external organisations, produce an accurate figure for how many employees are served by check-off and whether the costs are recovered from the trade unions. They certainly expect trade unions to have accurate information on whether their members are up to date with their subscriptions when they ballot for industrial action.

The current cost of check-off, which is estimated to be some £1.5 million, pales into insignificance when compared with the latest figures we have of nearly £10 billion wasted on personal protective equipment. Only last Thursday, the Department of Health and Social Care published its annual accounts, and figures showed that some £9.9 billion of the £13.6 billion-worth of PPE that the Department bought between 2020 and 2022 was unusable, and its value is now less than the Government paid for it. Rather than scrabbling to claw back a few pence from their employees, the Government should be making much more effort to chase down those who ripped off the British taxpayer by millions and billions, but they have done nothing to recoup that money. That is why Labour is committed to creating a powerful covid corruption commissioner to help recoup billions of pounds that has been lost to waste, fraud and flawed contracts.

Defence Industry and Shipbuilding

Debate between Chris Stephens and Nia Griffith

Wednesday 11th July 2018 Commons Chamber

[Nia Griffith]

My hon. Friend makes a very good point about the need for certainty and long-term planning, so we can give business the confidence to invest here.

As well as ensuring that our armed forces have the very best equipment, a core objective of our defence industrial strategy should be to promote our national prosperity. We can only do that properly if we factor in the true value of defence contracts to the UK economy. Buying British is not just about the basic fact that a UK-based company will pay UK tax; it is also about the broader economic and social benefits, and the value of the skills and apprenticeships that the industry creates.

[Chris Stephens (Glasgow South West) (SNP)]

Is it not the case that if the fleet solid support ships were built in the UK, 20% of that cost could be recovered by the workers working on those ships paying tax and national insurance?

[Nia Griffith]

Indeed—at least that amount.

Reports by Oxford Economics highlight that the UK defence industry has an output multiplier of 2.3, meaning that £100 million in UK industry generates some £230 million to the UK economy. Its reports also highlight that each additional job created in the manufacturing element of the defence industry results in a further 1.8 jobs being created in the wider economy.

At present, the Government do not routinely factor in these wider socioeconomic values when making a procurement decision. We on the Labour Benches believe that to be a serious mistake. It is particularly anomalous when companies that bid with the Ministry of Defence are quite used to having to set out the socioeconomic value of contracts when bidding with Governments of other countries. Labour is committed to expanding the definition of good value to include wider employment, industrial or economic factors when making procurement decisions.