Oral Answers to Questions

Faisal Rashid Excerpts

Tuesday 22nd October 2019 Commons Chamber

[Kwasi Kwarteng]

As I have said on three occasions now, we will consider the OGA report, and we will look at the evidence. We are very mindful of what local communities are saying and we will set out our future direction shortly.

[Faisal Rashid (Warrington South) (Lab)]

7. What recent assessment she has made of the adequacy of workplace access rights for trades unions.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

All workers in the UK have the right to join a union and to participate in union activities. That right is protected under trade union law, and 23% of UK employees are union members. That is higher than some European countries, including France and Germany, and it demonstrates that union rights to recruit and organise through individual members and officials are sufficient.

[Faisal Rashid]

This week shocking reports have emerged about dire workplace conditions at Amazon. Those exploited workers desperately need a union, but workers at Amazon have had their shift patterns interrupted just to prevent them from talking to union officials on the way to work. When will the Government put an end to those draconian anti-union practices, and will the Secretary of State launch an investigation into reports of workers’ rights being violated at Amazon?

[Kelly Tolhurst]

I thank the hon. Gentleman for his question. It is the right of unions and employers to come to an agreement about representation in the workplace. The Central Arbitration Committee is available if that is refused. With regard to workers’ rights, the good work plan represents the biggest reform of workers’ rights in 20 years. We are determined to continue on that path, because workers’ rights are important to this Government.

Retail Strategy

Faisal Rashid Excerpts

Wednesday 10th July 2019 Westminster Hall

[Liz Twist]

I most certainly agree that we are seeing a radical transformation and that we need a vision for the future. Our strategy must do more than just deal with short-term problems; it must look at the longer term. That will the burden of my speech.

Since I became the Member of Parliament for Blaydon just over two years ago, it has been my sad lot to visit stores and talk to too many staff who face store closures, including at Toys R Us, Homebase and House of Fraser. Thankfully, some of those stores, such as the House of Fraser store in Metrocentre, have had a respite, but their future remains uncertain.

[Faisal Rashid (Warrington South) (Lab)]

I am happy my hon. Friend has secured this important debate, and I congratulate her on doing so; she is making an excellent case. Some 74,000 retail jobs were lost in 2018, and the town centre vacancy rate in April 2019 was 10.2%—the highest ever. Does she agree that the UK retail industry is in crisis and needs immediate, comprehensive and radical action?

[Liz Twist]

I most certainly agree that radical action is needed so that we can stop the situation teetering into crisis and think of a plan that will allow the sector to remain vibrant and become stronger. As my hon. Friend points out, there are some really challenging facts.

I have visited larger stores and talked to staff, but I know—because people tell me when I go on social media —that many other stores, which may be smaller or less high-profile, have had to give up the struggle, although I did not know about them until later, which is very sad. I am keen to do all I can to support the retail sector in my constituency.

--- Later in debate ---

[Liz Twist]

Indeed. One of the Housing, Communities and Local Government Committee’s findings was that local authorities have an important part to play in ensuring the future of our high streets. I very much welcome my hon. Friend’s engagement with his local authority to ensure that it takes measures to improve what will be a changing high street, but a lively one.

Returning to the industrial strategy, I do not believe that retail has been given enough focus. I am aware that the Retail Sector Council has been set up, with representatives from the industry liaising with the Government, and that a number of workstreams have been drawn up and are already producing work. However, I fear that what we are doing in those workstreams is looking at the detail of current problems, rather than doing what we need to do, which is to produce a longer term strategy and vision to build and strengthen the retail sector, addressing the challenges we know about and those that may yet come, which we need to scan the horizon for.

There have been some examinations recently of the situation faced by high streets in particular—of course, high streets are one part of the retail sector, but not the whole part. I have already referred to the report by the Housing, Communities and Local Government Committee, which is called “High streets and town centres in 2030”. As we have heard today, many such reports have identified the current business rates system as a real problem and noted the huge disparity in costs between online businesses and shops, including the rents that shops pay. Clearly, that is not the only issue, but when many of us heard about the online tax in the Chancellor’s last Budget statement, we thought it would be a means of addressing this problem of the disparity between online businesses and physically present businesses and shops.

[Faisal Rashid]

Will my hon. Friend join me in urging the Government to heed the call by the Union of Shop, Distributive and Allied Workers to take urgent action to save our shops by implementing a comprehensive and co-ordinated industrial strategy for the sector?

[Liz Twist]

I thank my hon. Friend for his intervention. He could have been reading my mind.

Trade Union Access to Workplaces

Faisal Rashid Excerpts

Tuesday 4th June 2019 Westminster Hall

[Faisal Rashid (Warrington South) (Lab)]

I beg to move,

That this House has considered trade union access to workplaces.

Working people in the UK can thank our trade unions for fighting to give us the minimum wage, parental rights, holidays and sickness pay. With nearly 6.5 million members in the UK, trade unions are our largest voluntary and democratic organisations. Trade unions are on the frontline every day, fighting poverty, inequality and injustice, and negotiating a better deal for working people. This role has never been more critical than it is today, with in-work poverty on the rise and zero-hours contracts widespread, but a barrage of anti-trade union legislation over the past decade has meant that workers have found their ability to organise and take industrial action to challenge these injustices greatly restricted.

Under existing legislation, huge multinational companies such as Amazon and McDonald’s can employ legions of low-paid, insecure staff, often in terrible working conditions, all while turning record-breaking profits. It is boom time for large multinational companies, but their success is not passed down to employees. With British workers facing an uncertain and exploitative job market, trade unions are the perfect tool to make these workplaces fairer.

[Ged Killen (Rutherglen and Hamilton West) (Lab/Co-op)]

I congratulate my hon. Friend on securing this important debate. Does he agree that it is a real pity that some big employers do not see the benefit of having an organised workforce, which facilitates better industrial relations, improves dialogue between employers and employees, and is better for staff morale and for keeping staff turnover low?

[Faisal Rashid]

My hon. Friend makes an excellent point, which I will come to later in my speech. If employers look after their employees and they are happy, then they are more productive; in the end, everybody wins. That was a great point.

It is no exaggeration to say that working conditions at large multinational companies are, at times, reminiscent of the deplorable practices of the 19th century. Workers have recounted having to urinate in bottles for fear of being disciplined for a toilet break and heavily pregnant women report being refused permission to sit down for a break during 12-hour shifts. How can we allow this to happen in the UK in the 21st century? I have spoken to countless trade union officials who tell me that, despite the widespread desire for improved rights and conditions at work, efforts to unionise staff in such workplaces are often fruitless.

In large part, that is because there are currently no rights of access for trade unions to enter the workplace and speak to workers for the purposes of recruitment. Workers at Amazon have had their shift patterns interrupted and randomised simply to prevent them from talking to union officials on the way into work. Union representatives visiting branches of McDonald’s across the UK to speak to workers about the benefits of joining a trade union are routinely thrown out of stores, with their presence reported to senior regional managers.

When I raised these issues in Parliament several weeks ago, both Amazon and McDonald’s responded by denying that these practices were taking place in their stores. McDonald’s stated:

“We strongly dispute the notion that we are asking people to leave our restaurants based on their membership of a union. If anybody comes into a restaurant with the sole intention of disrupting our people while they work, or customers while they eat, we would ask them to leave regardless of their reason for causing disruption.”

Does that attitude not sum up the problem with the current legislation? The crucial work of our trade unions is simply a nuisance to these companies and is getting in the way of their exploitative practices and profiteering. The current laws simply let them get away with it.

[Laura Smith (Crewe and Nantwich) (Lab)]

Does my hon. Friend agree that our highly restrictive trade union laws and low collective bargaining coverage have helped to make the UK one of the most unequal countries in Europe and the OECD in terms of income inequality, and that guaranteeing trade union access to all workplaces would be a moderate and practical step in addressing these issues?

[Faisal Rashid]

Absolutely; that is an excellent point. I could not agree more.

Union members from the Bakers, Food and Allied Workers Union have recounted stories like that of Mohamed’s, a worker from north London, who was excited at the prospect of working alongside his colleagues to improve basic things at work, like getting his shifts 10 days in advance so that he could plan his life. Because of those efforts, he was informed by the management that he was banned from every McDonald’s store in the area. I note that in its statement McDonald’s did not dispute that account.

In its response, Amazon stated:

“If you want a true assessment of our working conditions just register for a tour at one of our fulfilment centres.”

A registered, company-sanctioned tour—effectively a corporate PR exercise—would hardly paint an accurate picture of working conditions at Amazon. Let the figures speak for themselves: from 2015 to 2018, a shocking 600 ambulance calls were made to Amazon warehouses. I have visited an Amazon warehouse in my own constituency in the past; the technology on show was indeed very impressive, but that hardly gives an accurate account of what it would be like to work a 12-hour shift in the warehouse. Nevertheless, I am happy to take Amazon up on its offer of another visit. Would I be able to bring representatives from the GMB union with me? Until now, many of them have consistently been denied access to the workplace.

It is not just Amazon and McDonald’s; these practices are widespread, particularly in poorly paid jobs. In its recently published report on InterContinental Hotels Group, Unite the union documented a workplace culture of fear and bullying, with management pressurising low-paid staff into working for eight to 10 days straight. IHG employees and subcontracted employees have been routinely denied the right to freedom of association and have stood little chance of exercising their right to collective bargaining.

[Rachael Maskell (York Central) (Lab/Co-op)]

I am grateful to my hon. Friend for calling this debate. While making the case about large employers, will he acknowledge that there is a lot of exploitation of workers by small employers, particularly bullying and harassment, and that they also shut their doors to trade unions? That is to the detriment of small employers, as well as to the detriment of their staff.

[Faisal Rashid]

I thank my hon. Friend for that brilliant point. It works for all stages in every sector, regardless of the size of the business. If large organisations practise fairly, it will filter down, especially through subcontractors. It is the responsibility of large businesses to show smaller businesses what they are doing. If they follow the right practices, that will filter down to subcontractors. Perhaps larger businesses could have some kind of contract to make sure that their subcontractors look after their employees in the same way as they do. Large businesses have to set a precedent.

Union members are vulnerable and live in fear of reprisals from their employer. Bupa is one of the largest and highest-profile providers of residential social care in the UK and part of an international health group that serves approximately 32 million customers in 190 countries. It consistently refuses to allow Unison officials access to workplaces to speak with staff and members regarding union rights and representation.

During 2017 and 2018, Unison North West regional officers were banned from every Bupa care workplace, despite assurances that visits could be conducted at the employer’s convenience and with due regard to operational and safeguarding concerns and priorities. I have just mentioned what McDonald’s said about disruption, but unions do not want to disrupt the business at all. They give adequate time before they come, and that is all I am asking for in the legislation. Of course I am pro-business and I support great businesses, but not at the cost of poor workplace conditions for employees.

I am sure I do not need to remind the Minister that the UK is a signatory to the European convention on human rights, article 11 of which states:

“Everyone has the right to freedom of peaceful assembly and to freedom of association with others, including the right to form and to join trade unions for the protection of his interests.”

Does he not agree that the examples I have listed constitute a flagrant violation of that right? If so, what does his Department intend to do about it?

I do not want to use this debate simply as an opportunity to criticise existing practices, but to propose a way forward. I hope the Minister will listen to my proposals, because it does not have to be like this. By expanding trade union access to workplaces, we can restore dignity and respect at work and put an end to the exploitation and misery we see on the rise today. As I said, I am pro-business and I want to see our businesses flourish, but that should not come at the cost of dignity and respect at work. An alternative is possible.

We can look to places such as New Zealand for inspiration, as well as for evidence that the legislation that I am proposing works. Under the Employment Relations Amendment Act 2018, trade unions there have far greater access to workplaces. Workers in New Zealand can speak to union representatives in their place of work, which has led to higher union membership, higher wages, and fairer and more just workplaces.

Under this legislation, all that is required is that the union provide a short period of notice that it will be visiting the workplace, allowing for management to add the extra staff member needed for the duration of the visit. The situation is beneficial for all involved: disruption to the business is kept to an absolute minimum, while workers’ legal and human right to join and form a union is properly adhered to.

[Ruth George (High Peak) (Lab)]

My hon. Friend is making an excellent case. Does he agree that that access is even more important when individual workers are undergoing disciplinary or grievance procedures, and that we need to see a full right to representation for workers in those procedures? At the moment the employers have an unequal force of arms, but resolving these issues could make workplaces better for all employees.

[Faisal Rashid]

My hon. Friend is absolutely right. I was a union rep at my workplace before I joined Parliament, and the number of cases in which I represented my colleagues is unbelievable. There are a number of things that union reps can achieve, working with the employer and of course the workers, and that is crucial.

With the success of New Zealand in mind, I want to see similar legislation adopted in this country. Last month, I presented a private Member’s Bill to that effect, which seeks to remove a number of restrictions on trade unions’ conducting business in workplaces. I have received a lot of support for the Bill from hon. Members, over 50 of whom were willing to co-sign it. However, to date I have not been supported by a single Conservative or Liberal Democrat MP.

Arguments against increasing the collective bargaining power of working people have long been discredited. It is a myth that strong trade unions drive down profit. If strong trade unions drive down productivity, why has the UK long suffered from a productivity gap despite having the most restrictive trade union laws in western Europe? In truth, a happy, well-respected workforce is also a productive one, but the stories I have heard from union officials paint the opposite picture: too many people in this country feel exploited and dispensable at work.

If we are to transition away from a low-wage, precarious economy, increasing the collective bargaining power of our workers is critical. That is why I am fighting to improve trade union access to the workplace. We need strong trade unions and a better deal for working people.

--- Later in debate ---

[Andrew Stephenson]

I can assure the hon. Gentleman that, as a fellow north-west MP, I am a passionate advocate of the positive role that unions can play. I have stepped into this debate today because the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. friend the Member for Rochester and Strood (Kelly Tolhurst), who is the Minister with responsibility for small business, consumers and corporate responsibility, has to take an urgent question in the main Chamber. This is her policy remit, but I will certainly speak to her to see what we can do to ensure that we lobby for things such as Unionlearn in the spending review. I am passionate about trade unions. In 2015, I helped to re-establish the Conservative workers and trade union movement in my own party, so Members have a friend of the trade union movement stood before them today.

Let me turn to the points made in the debate. I think it would be helpful if I set out the legislative position. Workers in the UK have a right to join a trade union. That right is protected under our trade union law. It is automatically unfair for an employer to dismiss an employee on the grounds of trade union membership or for being active in a trade union, and employers cannot subject their workers to detriment in attempting to deter union membership or participation in trade union activities.

All union members have the right to participate in union activities, which includes members who are union officials. They have the right, for example, to organise union meetings and consult their members. Furthermore, the right to be active in the affairs of a trade union is enhanced where the union is an independent union that is recognised by the employer for collective bargaining purposes. Officials of such unions may seek time off work with pay to discharge certain union duties. Members who are union learning representatives may also seek paid time off in order to carry out their functions. Individual workers can enforce these rights at an employment tribunal.

[Faisal Rashid]

I want to emphasise that the debate is about what happens before people become members of a union. The Minister is explaining exactly what members’ rights are, but we are not talking about those rights; we are talking about what happens before employees become union members.

[Andrew Stephenson]

I appreciate that point, and I hope I will get to address it slightly later in my remarks. I was trying to emphasise that those rights, as they exist, amount to the right for a union, through its individual members and officials, to recruit and organise in a workplace.

It is important that I address the argument about the UK’s general commitment to human rights. In particular, I wish to refute the argument that the right, under article 11 of the European convention on human rights, for workers to join a trade union and to organise is effectively being denied. That could not be further from the truth. The UK has a long-standing commitment to uphold human rights. The Government are satisfied that our trade union legislation complies with our international obligations, including article 11 of the European convention.

As I have set out previously, workers are free to join a trade union and to participate in trade union activities. That is protected by law. Unions are also free to organise and seek collective bargaining arrangements with employers. Where an employer refuses to recognise a trade union voluntarily, our legislation provides for a statutory recognition procedure. That allows independent unions to apply to the Central Arbitration Committee to be formally recognised for collective bargaining purposes. Unions that can demonstrate majority support for recognition in the workplace will secure statutory recognition from the committee.

--- Later in debate ---

[Faisal Rashid]

I thank all my hon. Friends who have taken part in the debate. Every one of them has made excellent and eloquent points. In the few seconds I have left, I wish to respond to the Minister. I am very disappointed, because 80% to 90% of his response was about what union members can do rather than about trade unions’ access to the workplace. I totally appreciate that he is substituting on his colleague’s behalf; however, I reiterate that he should go back and do some real thinking about what we on this side of the House are, with some common sense, proposing.

Motion lapsed (Standing Order No. 10(6)).

Budget Resolutions

Faisal Rashid Excerpts

Wednesday 31st October 2018 Commons Chamber

[Faisal Rashid (Warrington South) (Lab)]

Does my hon. Friend agree that it is utterly shameful that the Budget aims to claw back £700 million from the self-employed by reforming off-payroll working, yet only £400 million from the tech giants, which have avoided an astonishing £5 billion-worth of tax over the last five years?

[Mr Cunningham]

I agree, but I point out to my hon. Friend that between 4 million and 5 million people earn poverty wages in this country, which demonstrates that work does not pay under this Government.

To turn back to education, the bonus averages out at £10,000 per primary school and £50,000 per secondary school—around £50 per pupil. If we think about that, the Government took £4.5 billion out of education, then put £1.5 billion back, so they still owe over £3 billion. Analysis suggests that schools in Coventry have faced almost a £300 cut to funding per pupil since 2014, so a £50 one-off payment per pupil is a drop in the ocean—barely enough to buy two new textbooks. Schools do not need small change or “little extras”; they need funding to rehire special educational needs senior assistants, to re-offer dropped subjects and to fund teacher pay increases fully.

As hon. Members all know, Coventry will be the city of culture and while I welcome the £8.5 million for that, the Government still have not given us the same amount of money that they gave Hull—in fact, it is nearly half. The city centre will benefit hugely, and it will also benefit from cuts to business rates for smaller businesses. However, as I said, the £8.5 million is below the £14 million that was given to Hull for 2017. I will work closely with my colleagues in Coventry City Council. Coventry must receive its fair share of funding to help to make the most of the city of culture opportunity.

[Stephen Hammond (Wimbledon) (Con)]

It is a pleasure to follow the hon. Member for Coventry South (Mr Cunningham) and to make a short contribution to the debate. I was very lucky to attend one of the best state secondary schools in the country. I was taught by inspirational teachers, and I remember two in particular today. My history teacher said, “Remember that there are myths and rewriting of history.” As I listen to Labour Front Benchers today, I note that their economic history is certainly being rewritten.

I was also reminded of my English teacher, who taught us that the great Shakespearean themes are appearance and reality. For many, the appearance of Wimbledon is that it is a leafy suburb where we play a bit of tennis and not much else happens, but the reality is rather different. Like so many places up and down the country, there will be rejoicing on the high streets of Wimbledon Park, Raynes Park and Motspur Park at the news on business rates. High streets and local high streets are at the heart of our community, whether people live in a suburb such as Wimbledon, a smaller town or a rural area, and this is to be welcomed.

[Faisal Rashid]

Will the hon. Gentleman join me in welcoming the Chancellor’s decision to use the Budget to show his support for Labour’s plan for Government by taking on board our long-standing policy to take action to support ailing high streets?

Draft Small Business Commissioner (Scope and Scheme) regulations 2017

Faisal Rashid Excerpts

Tuesday 21st November 2017 General Committees

[Bill Esterson]

The hon. Gentleman is more familiar with what goes on in America than I am in that case. Certainly, the evidence that we were presented with when we discussed the matter in the Bill Committee suggested that that was not true of every contractual relationship in America. Perhaps we could discuss that outside and look further at the evidence. Payment on delivery is one way of addressing the point we have just been discussing.

Some questions emerge from the regulations before us. My understanding is that the commissioner, as constituted, has the power to name and shame. I wonder whether the Minister can shed some light on what the intention is for the use of those powers, and how quickly she feels the commissioner should look to set up some kind of naming and shaming system.

How many complaints does the Minister envisage the commissioner will be investigating every year? How many complaints does she expect him to receive every year? How many complaints could his office deal with every year? That relates to how many staff he has and what his budget is, which the Minister could perhaps address.

From some of the representations I have received, it appears there is a question mark over whether the construction sector will be included in the Small Business Commissioner’s work. Given that a significant number of the problems of late payment lie in the construction sector, can the Minister clarify whether that is true? The concerns around retentions of 5% or even 10% over a number of years are a very important part of why construction should be included.

[Faisal Rashid (Warrington South) (Lab)]

My hon. Friend mentions the construction industry. Does he agree that small businesses in the construction industry are more vulnerable to late payments because they do not qualify for some of the services available to alleviate them, such as invoice finance and invoice discounting?

[Bill Esterson]

Yes, there are opportunities, as there are in other sectors, to use other forms of invoice finance. One of the big concerns is retention, and I should have thought the commissioner would want to look at concerns about the very lengthy delays that often happen with retentions.

One of the questions we raised in the Bill Committee is how to raise awareness of the commissioner’s existence and the services his office can provide. One way is through a website, but not every small business uses a website; actually, quite a lot of them do not use the internet. What proposals does the Minister have to ensure that all small businesses know that this facility exists? One route is through advisers, including accountants, but that is not an answer for everybody. We will have to wait to see how effective the commissioner is after a period, but can the Minister tell us the process for review of the commissioner’s effectiveness and how that will be carried out?

The regulations talk about a limit of businesses with a headcount of fewer than 50. How many businesses does the Minister’s Department estimate will be covered by the regulations, and how many businesses will not be covered? While I recognise that 50 is a figure for a small business, a business with 51 members of staff is still not particularly big, and when it trades with a larger customer, there is still a power imbalance. Will she give some thought to support for the next grade of businesses above those covered by the regulations? One of the reasons these regulations come in is the cost of going to court. For a business with 51 or even 101 members of staff, it is still an exceedingly big expense to take somebody to court.

I want the Small Business Commissioner to be effective in tackling the scourge of late payments. The success of small businesses is crucial for the overall economy. We do not have enough small businesses that are able to grow and become larger businesses—it is one of the structural weaknesses of our economy—and the delay in payment is one of the reasons that businesses find it difficult to do so. In fact, talking to the accountancy and insolvency professions, the main reason for business failure is cash flow, and late payment in particular, so anything that can be done to improve that situation must help individual businesses, those who own them, those who work in them and the wider economy.

However, the commissioner has to be effective if those goals are to be achieved. The title of commissioner suggests a responsibility and a scope that goes beyond the single goal of tackling late payment in the private sector. At the moment, a small business late payments signposting service is being created. I hope that it becomes a commissioner in time and can achieve far more as a support for small business. I look forward to the Minister’s answers and assurances that, in a very short time, that support, advice and guidance, as well as the single role of tackling the scourge of late payments, is where the Small Business Commissioner can and will end up.