Aviation Sector

Emma Lewell-Buck Excerpts

Thursday 10th September 2020 Commons Chamber

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

The star award for using covid as an opportunity to demoralise and destroy its workforce has to go to British Airways. One of my constituents—a long-standing employee of 25 years—told me that after months of toxic bullying and mental anguish, she has been offered a new contract that is so deliberately ambiguous that she feels she has to take it or face redundancy. The worrying proposals in the new contract include, for example, that she may be forced to relocate temporarily or permanently to anywhere in the world. An associated company may also take over her holiday entitlement; that company will also have access to her health records and, bizarrely, the right to search her and her property. All that for a 40% reduction in her pay, while the outgoing chief executive is £3 million better off.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

The hon. Lady has made an important point. Does she agree that because this appalling behaviour towards the workforce has gone unchecked, it has been replicated by other companies such as Centrica? Does she also agree that the Government should support the Employment (Dismissal and Re-employment) Bill, sponsored by my hon. Friend the Member for Paisley and Renfrewshire North (Gavin Newlands), which would stop this appalling practice?

[Mrs Lewell-Buck]

The hon. Member’s intervention leads me nicely on to my next point. My constituent tells me that some of her colleagues have actually taken their own lives and some have suffered heart attacks. The Government are not powerless. They can put a stop to these awful fire and rehire practices before they spread through other industries.

Our easyJet base in Newcastle has also closed. Our neighbours in Europe, recognising the value of regional connectivity, jobs, skills and a supply chain that benefits the wider local economy, have given substantial bailouts—not loans—to their operators. They have also substantially extended furlough, which the Government here rejected outright yesterday. I spoke to an easyJet pilot who asked me to put to the Minister why the Government are not considering travel corridors on a region-by-region basis in the same way they have applied measures in the UK. It does not make sense to shut down access to an entire country when just one part of it has an outbreak of coronavirus.

I am sure that the Minister will tell us that the Government have set up the aviation engagement unit, but can he tell us exactly what it has achieved? From what I can see, it has achieved very little so far. My constituents’ futures and jobs are on the line. It is in the Government’s gift to do something. Why don’t they?

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[Robert Courts]

Yes, I am very happy to meet the hon. Gentleman and other honourable colleagues. Indeed, I look forward to engaging with Members from across the House on this vital sector. He does very well to remind me of the importance of the aerospace sector, which hopefully I will come to in a moment, and regional connectivity, which I will also comment on.

As Members are aware, this is an incredibly challenging time for the crucial aviation sector. It underpins our economy by unlocking trade, investment and tourism, and it provides regional connectivity, but it has been badly impacted by covid. The Government are clear that aviation will recover and will play a crucial role in driving our economy forward. We are helping it to do that by supporting it through the crisis.

The steps that the Government have taken have been truly unprecedented and have enabled airlines, airports and ground handlers to benefit from a very significant amount of taxpayer support. These measures include the Bank of England’s covid corporate financing facility, which has enabled the sector to draw down £1.8 billion in support, helping airlines’ liquidity, and the coronavirus job retention scheme, which has seen the passenger and air freight transport sectors benefiting from £283 million of support, with 56,400 staff furloughed. These support measures, as well as the coronavirus business interruption loan scheme, have all been available to the sector. Members will be mindful that I cannot comment on any commercially confidential matters relating to individual companies, but I can remind the House that the Government have been clear that we have always considered providing support to strategically important companies that can reasonably be expected to have a long-term viable future and whose failure or distress would cause disproportionate harm to the UK economy or society.

The support that the Government have provided has gone long beyond financial. In addition to the unprecedented cross-economy package of support that the aviation sector has utilised extensively, we have put in place several other practical measures to help the sector. In June, we published safer air travel guidance for passengers and operators, providing information that enables passengers to travel confidently by following the recommended measures to keep themselves and others safe. We have ensured connectivity between Northern Ireland and the rest of the United Kingdom. We have protected consumers and supported the sector by confirming that we will stand behind the air travel trust fund.

The hon. Member for Feltham and Heston asked what the engagement unit has done. Well, I will tell her: we were the first country to produce safer travel guidelines for passengers and operators; we have introduced a unique travel corridor system to support the reopening of the sector while other countries kept their borders closed; we and the unit are continuing to work to establish options for possible testing approaches, ensuring that the health of the country is protected while supporting the sector’s recovery; and we have continued to work with the Civil Aviation Authority on regulatory easing during this unprecedented situation.

As we have heard from my hon. Friends the Members for Arundel and South Downs (Andrew Griffith) and for North West Durham (Mr Holden) and the hon. Member for Caerphilly (Wayne David), these are also challenging times for the aerospace sector. The Government will be providing the sector with over £8.5 billion of support over the next three years through the covid corporate financing facility. I am particularly aware of the concerns of my hon. Friend the Member for Pendle (Andrew Stephenson) and the hon. Member for Birkenhead (Mick Whitley) about job losses from Rolls-Royce in their constituencies. We have heard a great deal about job losses and redundancies.

[Mrs Lewell-Buck]

Will the Minister give way?

[Robert Courts]

I am so sorry, but I am short of time; I would give way if I could.

The Government do understand the scale of adjustment that the aviation sector has had to make and the tough commercial decisions that companies have faced, including redundancies. We have heard from my hon. Friends the Members for Beaconsfield, for Bracknell (James Sunderland) and for Winchester and the hon. Member for Liverpool, West Derby (Ian Byrne) on this issue. The impact of redundancies on employees and their families is serious. As Aviation Minister, I expect companies to approach these matters sensitively, remembering the dedication and professionalism that their employees have shown over many years, as the hon. Member for South Shields (Mrs Lewell-Buck) has quite rightly made clear; we have all met such employees in our constituencies. I commit to working openly with all sectors, as I hope companies will commit to working openly with their workforces to resolve these matters. I encourage companies to go beyond the minimum legal obligations at this time, and will be offering my support.

There are a number of things that I would like to speak about but cannot because I am out of time, including border health measures, travel corridors and testing. I apologise for not having given way to Members due to the amount that I have had to speak. I will conclude briefly by simply saying that the Government remain committed to working with the sector to ensure that this country remains the aviation nation.