Employment Rights: Government Plans

Baroness Laing of Elderslie Excerpts

Monday 25th January 2021 Commons Chamber

[Madam Deputy Speaker (Dame Eleanor Laing)]

I advise the House that Speaker has selected the amendment in the name of the Prime Minister.

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[Andy McDonald]

My hon. Friend is absolutely right. We have had an erosion of protections and rights over many years, and we have to deal with it and review it comprehensively.

This also includes British Airways, whose use of fire and rehire was described by the cross-party Transport Committee as

“a calculated attempt to take advantage of the pandemic to cut…jobs”

and weaken the terms and conditions of its remaining employees, and it deemed this “a national disgrace”. The Leader of the Opposition was right to call for fire and rehire tactics to be outlawed, saying:

“These tactics punish good employers, hit working people hard and harm our economy. After a decade of pay restraint—that’s the last thing working people need, and in the middle of a deep recession— it’s the last thing our economy needs.”

We have repeatedly warned that the practice would become increasingly common, triggering a race to the bottom, and I take no delight in observing that this warning has come to fruition. Research published today by the TUC reveals that fire and rehire tactics have become widespread during the pandemic. Nearly one in 10 workers has been told to reapply for their jobs on worse terms and conditions since the first lockdown in March, and the picture is even bleaker for black, Asian and minority ethnic and young workers and working-class people. Far from levelling up, the Government is levelling down, with nearly a quarter of workers having experienced a downgrading of their terms during the crisis.

Fire and rehire is a dreadful abuse and allows bad employers to exploit their power and undercut good employers by depressing wages and taking demand out of the economy. It is all the more galling when those very companies have had public funds to help them to get through the pandemic. The economic response to the 2008 financial crisis in Britain was characterised by poor productivity and low wage growth. The Government fail to understand that well-paid, secure work is good for the economy, and greater security for workers would mean a stronger recovery. If the Government had listened to the Leader of the Opposition back in September, countless workers could have been spared painful cuts to their terms and conditions, but it is not too late for the Government to act. They can act now to introduce legislation to end fire and rehire and give working people the security they need. If they do that, they will have our full support.

Finally, I turn to the Government’s amendment, in which they say that

“the UK has one of the best employment rights records in the world”

and that the UK

“provides stronger protections than the EU”.

That is simply not the case. The UK ranks as the third least generous nation for paid leave and unemployment benefits out of the US and major European economies. A UNICEF analysis of indicators of national family-friendly policies has the UK at 34th on one index and 28th on another, lagging behind Romania, Malta and Slovakia and just edging ahead of Cyprus.

The Government’s amendment also “welcomes the opportunity” to strengthen protections for workers, but what are the Government doing with the opportunity that they so welcome? What have they been doing on fire and rehire? All we have had is sympathy and hand-wringing, when action was and still is required. Where were they on Rolls-Royce at Barnoldswick? It was Unite the union and the courage and determination of those brave workers that fought to secure their jobs, not this Government. What works best for the UK is what works best for its working people, and undermining their rights and protections does not cut it. Accordingly, Labour will not be supporting the Government’s amendment.

Why did the Secretary of State’s Department embark on this review, and how can it be that his Department has sought responses from companies without the consultation being published? Can he confirm that it is now dead in the water, or does he intend to bring it back at a later date? We were promised an employment Bill that would make Britain

“the best place in the world to work”.

The Opposition would very much welcome a Bill that did exactly that, but given his track record, we have major doubts. Perhaps he can tell the House when we will see that Bill introduced.

From this point on, it is about how we rebuild our country and secure our economy. That objective has to have working people—their interests and their health and wellbeing—right at the forefront. As a bare minimum, that has to include maintaining the basic protections that employees have had up to now and then building on them. Sadly, workers will find no hard evidence of this Government enhancing their rights and protections, but it is what they were promised, and it is what they are expecting, so we will be holding the Government to it.

[Madam Deputy Speaker (Dame Eleanor Laing)]

It will be no surprise to Members to learn that a very long list of people have indicated that they wish to speak. Not everyone will have the chance to do so, but we will begin with an immediate time limit of three minutes for Back Benchers.

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[Kwasi Kwarteng]

What I will mention is the introduction of the national living wage—[Interruption.] I will also mention the fact that we have doubled the personal allowance, which was at £6,450 when we came to office in 2010 and is now hitting £12,000. We take no lessons or lectures from the Labour party on helping the most vulnerable people in our society. This Government have a proud history of protecting and enhancing workers’ rights, and we are committed to making the UK absolutely the best place in the world to work.

Before I open the Floor to other Members for their contributions, I can confirm to you, Madam Deputy Speaker, that the amendment in the name of the Prime Minister will not be moved this evening.

[Madam Deputy Speaker (Dame Eleanor Laing)]

For the avoidance of doubt, the Secretary of State has not moved the selected amendment, as he has just said, and therefore the question before the House remains the question already proposed, as on the Order Paper. We now go to the Scottish National party spokesman, Drew Hendry.

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[Clive Efford (Eltham) (Lab) [V]]

I wish to speak in favour of the motion in the name of my hon. and right hon. Friends. I declare at the outset that I am a member of the GMB and Unite unions.

The fact that the Government have consulted businesses on these changes shows that there is an outdated attitude towards industrial relations and workers’ rights at the heart of the Government. Good employment law protects the good employers from the bad. Employees are people; they are not tools that can just be laid aside on the whim of an employer. People have lives to lead, bills to pay, mortgages and rent; many of them have families that they need to support—to feed, to clothe and to plan holidays with. A contract of employment is a way of being able to plan ahead with security for those things. The terms should not be changed just on the whim of an unscrupulous employer.

Creating a culture where workers feel insecure in their jobs undermines the economy; it makes them less likely to spend money or to take out loans for bigger items. Creating such an environment is not just immoral but self-defeating, and attitudes need to change. Businesses need to understand that they need to act for the common good. It is no longer good enough for them to hide behind the fact that they are serving shareholders and to say, “This is why we are forced to rape the economy or pay poverty wages,” and fail to protect workers’ rights.

The covid pandemic, climate change and the state of the global finances make it imperative that we all work together for the common good. The solution is not to enfeeble workers or trample on their rights, yet companies such as British Gas and British Airways are telling their workers that they will be sacked and rehired on worse conditions. Those are hardly the British values that we want to promote globally.

British Gas/Centrica is sacking 20,000 of its workforce. It is telling them that they must sign new contracts dictated by the company or consider themselves to be sacked in April. Doing that at the time of a pandemic is grotesque. Centrica as a group had an operating profit of £901 million for 2019. In the first six months of 2020, the operating profit of its domestic heating business in the UK was £229 million, up 25% on the same period the previous year. Why are the workers who delivered that being treated so appallingly by that company?

I met workers from British Gas. Between them, they have many years of service to the company; some are the second or third generation in their family to work for British Gas. They are proud of the company that they work for; they value the jobs they do and the customers they serve.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. The hon. Member has exceeded his time.

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[Matt Vickers (Stockton South) (Con) [V]]

I must start by saying that I am slightly confused as to how the Opposition have concluded that UK employment rights are an area of weakness in which to attack the Government. So far, aside from the usual baseless scaremongering, I still have not heard much in the way of common sense, fact or understanding. The United Kingdom has one of the best records in workers’ rights in the world, going further than the EU in so many areas. As the Government have stated time and again, that is not going to change.

Now that we have left the EU and regained full control of our laws, we can use this historic moment to enhance workers’ rights, not row back on them, ensuring that we can be a high-wage, high-employment economy that works for everyone, as we do right by the millions and millions of people in this country who work hard, get on and do the right thing.

I think all in this place can agree that the global pandemic has changed almost everything in daily life, including the world of work. Perhaps at no other stage in any of our lifetimes has it been more crucial that we stand shoulder to shoulder with the workers, grafters and go-getters who knuckle down and get on with it—the hard-working people of this nation who can turn sparks of inspiration into the tangible outputs of a dynamic economy.

To take politics out of it, all of us in this place and all well-run businesses know that providing employees with safe, secure and rewarding work environments is the way to get the best out of them. The package of measures we will maintain and strengthen builds on some of the best examples of good practice that are already in Britain’s best businesses. Before I got into politics, I saw a whole range of workplaces: I pulled pints, laid bricks and shovelled pick ‘n’ mix at Woolworths. I saw how a workforce that is tret well is a workforce that goes above and beyond to deliver results.

When it comes to workers’ rights, this nation is a world leader in countless areas, particularly when compared with the EU. For example, the EU has no requirement for a living wage. Here in the UK, it will be £10.50 an hour from 2024. The EU has no minimum requirement for sick pay. Here in the UK, it is 28 weeks. The EU’s minimum standard for maternity leave is just 14 weeks, compared to 52 weeks here in the UK. The EU’s minimum annual leave requirement is just 20 days, compared with a minimum of 28 days in the UK. Then there is the right to flexible working for all employees, on which this nation has led the way, and it has made a huge impact on the quality of life for so many families in my constituency and across the country. We introduced it and have maintained it in the UK since the early 2000s. The slow, glitchy and creaky EU agreed rules on it very recently, and it will offer the rights only to parents and carers.

I believe that one’s true character and nature is seen when the chips are down and crisis strikes. Even their staunchest critics would have to concede that this Government have stepped up. They know on what side their bread is buttered. When it comes to supporting businesses and workers, whether that is by taking unprecedented action to protect jobs and livelihoods across the UK—

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. The hon. Gentleman has exceeded his time, and I have to be strict, as so many people are waiting to speak.

[Tonia Antoniazzi (Gower) (Lab) [V]]

Today is the Welsh Valentine’s day, so I wish all key workers and everyone in the Chamber dydd Santes Dwynwen hapus.

So here we are, and what I am listening to is absolutely disgraceful. Workers in this country are facing the biggest crisis in generations, yet the Government have decided to strip away the rights of those key workers who are keeping this country going, and we know that those with low paid jobs are going to lose out the most. Managers, directors and, yes, even Members of Parliament like us will not be the big losers in any erosion of employment rights. It will be those on zero-hour contracts, those at the beginning of their careers and, as usual, women who will be disproportionately affected.

The Prime Minister proudly told us that he would not do anything to undermine workers’ rights, yet here we are facing a shake-up of the protections that are in place to defend workers and consumers from unsafe situations. Earlier this evening, I heard the Secretary of State say that his Government’s record stood for itself. Well, if we want to catch a glimpse of what we can expect from this Government, we need look no further than how they treat their own workers—yes, their own civil servants at the DVLA offices in Swansea. During the first lockdown, my office was contacted by numerous constituents complaining that they had family members shielding and they were at high risk themselves, but during this lockdown the situation has escalated. Since September 2020, 535 cases of covid-19 have been recorded among DVLA staff, sparking an outbreak in the call centre that has been declared an incident across all other sites of the DVLA.

I have been inundated with calls since the news broke on a weekend, and before. Many people are petrified of going into work there, but they have all asked for anonymity because they are scared of a backlash from senior management if it is found out that they have complained. This is the senior management team that would not engage with the local health protection team. It is incredible that a formal notice under regulation 8 of the Health Protection (Coronavirus Restrictions) (Wales) Regulations 2020 had to be given in order to get the DVLA management to co-operate with the incident management team. Even this evening, I am receiving messages about this. This is utterly shocking behaviour from one of the biggest employers in Swansea, and that employer is this Government. This is a Government agency that is treating its staff in a wholly unacceptable way. That is unacceptable, but thanks to the First Minister in Wales, the PCS and other agencies, it is being dealt with—

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. The hon. Lady has exceeded her time. I am wondering whether people who are participating virtually know that there is a clock on their screen. I hope that they can see it, because three of the last five speakers have spoken past their three minutes. I hope that the system is working. If by any chance it is not, I hope that someone will tell the broadcasting team.