Strikes (Minimum Service Levels) Bill

Florence Eshalomi Excerpts

2nd reading
Monday 16th January 2023 Commons Chamber

[Grant Shapps]

I will give way in just a moment, but I would like to get through a bit more first.

All that we are saying is that, in certain services in these important sectors, the right to strike must be balanced against the needs of the public to rely on a basic level of life-saving care. The legislation simply brings us into line, as my hon. Friend just said, with many other modern European nations, such as Spain, Italy, France and Ireland. They use minimum service levels in a common-sense way to reduce the impact of strikes. The International Labour Organisation itself states that minimum service levels can be a proportionate way of balancing the right to strike with the need to protect the wider public. That is what we are doing. Our own unions subscribe to and support the ILO, as do we.

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

On the claim of minimum safety levels across Europe, is the Secretary of State aware that, according to the OECD, France lost, on average, 112 days per 1,000 workers between 2008 and 2018? Spain lost 76 strike days, and Italy lost 42. Yet the UK lost only 20 strike days. Will the Secretary of State admit that this law is just to ban people from taking the legal action to strike?

[Grant Shapps]

I agree that we have had a good working relationship for the last several decades. The hon. Lady is right to point out that, as a result, over the last two or three decades we have typically suffered fewer strikes than some in continental Europe. As I have explained a number of times, we have seen in recent months a flare-up of strikes that are putting people’s lives and livelihoods at risk. This Government will not stand by and watch that happen.

--- Later in debate ---

[Chris Loder (West Dorset) (Con)]

It is a pleasure to speak in the debate. I start by declaring that I am not a member of GMB, Unite the union or Unison—I apologise to Opposition Members if I have missed one out. My remarks relate to the transport industry, as I worked for the railways for 20 years before I was elected; indeed, I was previously a member of two trade unions.

I warmly welcome this important Bill. Those of us who are, and have been, sensible and constructive trade union members know that we can still take strike action without closing down the whole network or shutting down an entire operation. This whole debate is about balancing the right to strike with the right of our citizens to have access to key services when they need them—the right of citizens to get to work, the right of children to get to school, and the right of small business owners to continue their business.

Hard-working union members who feel pressured to strike, who believe that eight days of strikes in quick succession is too much, or who do not agree with having six days to respond to a ballot referendum instead of the standard 14, want the situation tempered and want their needs and rights to be recognised, rather than the ideological ones of trade unions. [Interruption.] I hear the moans of Opposition Members, but union members are fed up of being used as political pawns, which is why the strikes are breaking across the railway today. Individual members and individual areas are saying, “No. Enough is enough.”

[Florence Eshalomi]

Will the hon. Gentleman give way?

[Sam Tarry]

Will the hon. Gentleman give way?

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[Chris Clarkson (Heywood and Middleton) (Con)]

I welcome you to your place, Mr Deputy Speaker, and it is a pleasure to follow the hon. Member for Norwich South (Clive Lewis). I was struck by something he just said. Yes, the rich and powerful can always buy influence—we need only see the number of people who have made declarations this evening.

This simple and effective Bill is aimed at ensuring that the right to collective bargaining and the withdrawal of labour does not conflict with the right of the average British citizen to access lifesaving or potentially important services while unions and the Government negotiate. The debilitating strikes of the past six months have wreaked havoc on this country, dragging us into a virtual state of second lockdown, and preventing workers from travelling to offices and shoppers from accessing high streets, and putting additional pressure on the NHS. We understand that this is driven in part by the inflationary pressures that we are encountering as a nation.

No one is disputing the right of workers to withdraw their labour as part of a negotiation, however unreasonable some of those demands end up being; no one is saying that at all. All that we are asking for is some proportionality and responsibility in how that is done. Our nation should not be held hostage and have lives risked simply for want of minimum safety standards. That is what we are talking about.

We are not talking about blanket enforcement; just recognition that some services are simply vital. Those include health, fire and rescue, health and education. Few of us will forget the impact of shutting down schools during the pandemic. They also include transport—the Mayor of London cannot stick to his zero strikes pledge—the decommissioning of nuclear installations; the management of radioactive waste, which is surely a no-brainer and one that we can all agree needs to go on; and border security.

The Bill ensures that people can access an ambulance when they call for one, count on fire responders in an emergency, send their children to school and travel to work. Why should people be held to ransom by militant, unelected trade union officials? If they want that power, they should stand for election and not simply buy support from the Labour party.

[Florence Eshalomi]

Will the hon. Member give way on that point?

[Chris Clarkson]

No, I will not.

Minimum service levels are not an anomaly. France, Spain and Italy have given minimum service levels during strikes, and I thought that the Labour party was in favour of more European alignment. The Government do not want to use the Bill, but it is vital to have in place a system that allows the British public to access services during strike days and go about their lives in an ordinary way.

We have to ask ourselves: what are the strikes really about? I will highlight rail because I am a regular commuter. Union bosses have refused to accept that the pandemic has fundamentally changed how travellers use the rail network. Modernising the network is essential to ensuring that it is sustainable for future generations. The Government stepped in with support of more than £30 billion for the rail industry during the pandemic. That is not pocket change.

I have seen at first hand the impact of what rail strikes have done to the west coast main line, where at one point we faced coach journeys of up to 10 hours because of the lack of flexibility. That is fine for me because I can afford to be flexible with my working arrangements and I have a good, guaranteed wage. However, plenty of my constituents do not have that, so if the service is not there when they need it, they are in serious trouble. The hypocrisy of the trade unions, who say that they are fighting for workers, is palpable. Travel is unavoidable for millions of workers who do not have the option of working remotely. Those people are driving Britain’s economy, despite the obstacles put in front of them by the trade unions. Let us look at the collateral effects: December’s rail strikes cost UK hospitality £1.5 billion, and huge swathes of businesses and jobs were lost.

The simple fact of the matter is that, with more than £15 million donated by the trade unions to the Labour party, it is no wonder that Labour Members sit on their hands while trade unions cripple our vital services. Even the Leader of the Opposition knows it—that is why he is not here leading the debate but instead rubbing shoulders with bankers in Davos.

The strikes have become contagious, spreading from one sector to another, holding the British public hostage in the hope that the Government will surrender. That is not how a democracy works. I support workers’ rights, but that is not limitless. I welcome the commitment to the rights of the British public to access vital services during strike action, and I look forward to supporting the Bill later tonight.

Fertility Treatment and Employment Rights

Florence Eshalomi Excerpts

Tuesday 1st November 2022 Westminster Hall

[Nickie Aiken]

I absolutely agree with my hon. Friend. There is so much pressure on the NHS, and on the provision of proper fertility treatment, that many people have to spend their savings or remortgage their home to pay for private facility treatment. I hope this debate will lift the lid on the lottery that still exists.

Women are, of course, protected from pregnancy-related unfair treatment and discrimination throughout the protected period. However, for those undergoing fertility treatment, this protected period would begin only at implantation, not before. That means employers are unlikely to be liable for pregnancy discrimination in relation to any unfair treatment prior to implantation. That leaves people vulnerable to unfavourable treatment or dismissal during the earlier stages of treatment, and without any legal recourse.

Data from Fertility Matters at Work shows that one third of people going through IVF treatment have considered leaving their job rather than facing workplace discrimination. The organisation’s findings also indicate that many people feel uncomfortable discussing IVF treatment openly with their employer, and struggle through the journey largely unsupported and in silence. Some said that they feared that the fact that they were having fertility treatment would be held against them, and that they would not be considered for the next promotion, or might even face redundancy.

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

I thank the hon. Lady for making a passionate speech on such an important issue. Given that 3.5 million people in the UK face fertility issues, should not employers look at how they can come up to date and make sure that there is space for their staff to discuss the issue in the workplace?

[Nickie Aiken]

I completely agree. One in six couples experiences fertility issues. That is a huge number of people, as she says. If we are to retain brilliant people in their jobs, we must do more to support them at such a difficult and emotional time.

The Fertility Matters at Work research found that when people spoke to their employers, many felt that what they said was used against them when it came to future opportunities and progressing in the company. The reality of the issue was brought to light by a constituent of mine. I commend her for her bravery in sharing her story; it led to my campaign. She had been working in finance for 19 years. Everything was going well. She was a senior person in her organisation. Sadly, she found she could not conceive naturally, and realised that she had to go for IVF. She did everything under the radar because she did not feel that her employer would be supportive. Sadly, complications in the treatment led to her being in hospital for two weeks; there was then a further four weeks of recovery. The hospital wrote a sick note for her employer that said, “complications due to IVF.” The cat was out of the bag.

When my constituent went back to work, her employer immediately called her into a meeting and told her that she was being moved abroad; she had no choice. She stuck to her guns and went through the IVF. She was told that if she went for the implantation, she could be sacked. She went for the implantation and then decided that she would have to go off work because of stress.

Energy Prices: Support for Business

Florence Eshalomi Excerpts

Thursday 22nd September 2022 Commons Chamber

[Mr Rees-Mogg]

This House, when called upon, can act remarkably swiftly. The intention is that we should introduce legislation in October, pass it by the end of October, and that it should take effect from 1 October, to ensure that non-domestic users in the whole of the United Kingdom are helped, and that everybody in Northern Ireland is helped. That is the broad timeframe, and I hope that the House will co-operate with it, because it is necessary for expedited legislation.

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

So many big energy companies have posted obscene profits while constituents, businesses, charities and schools across my Vauxhall constituency continue to suffer. As the Government were so reluctant to introduce the windfall tax, will the Secretary of State confirm how they will ensure that the energy companies are compelled to pass the subsidy on to businesses?

Covid-19: Small Businesses in Streatham

Florence Eshalomi Excerpts

Tuesday 18th January 2022 Westminster Hall

[Bell Ribeiro-Addy]

The hon. Member is absolutely right. I will make that point later. We have to do everything we can to support our small businesses.

Examples of business closures in Streatham include acclaimed live music and hospitality venue the Hideaway, where I and others across the city have spent many a good night out. This has been a major loss for the area—an independent venue at the heart of the community that for many years has been growing local and international music and comedy. Due to the number of lockdowns, the slow response for those in the night-time economy, and social distancing requirements, its business model was untenable. We also saw the closure of Fal Patel’s local convenience shop in Clapham Park and E & A Wates furniture shop on Mitcham Lane, which once undertook restoration work for the parliamentary estate during its 120-year history.

Many start-ups that would have grown to become high street businesses were unable to access any grants due to not having a high street premises, which has impacted the long-term economic growth of the area as our cafés, co-working spaces and performance spaces, and the buoyancy of our local business hubs, rely on the small enterprises of the daytime economy.

These are only some of the publicised closures within the constituency. It is fair to say that the demise of small businesses is so vast that we all personally know of someone in our local community who has lost out on their business during the pandemic; maybe it was a local restaurant, an appliance shop, a corner shop, a pub, a bar, a butcher, a baker, a greengrocer, a hairdresser—the list goes on.

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Ms McVey. My hon. Friend is making a really good speech, outlining the many issues faced by businesses in Streatham. In my neighbouring constituency in Lambeth, we face a number of similar issues. She outlined that many businesses missed out. A number of those businesses also missed out on loans offered by the Government. To see the Government want to wipe away £4.3 billion of loans given to fraudsters is another kick in the teeth to those businesses that folded because they were not eligible for any support. Does my hon. Friend think that the Government should rethink that proposal?

[Bell Ribeiro-Addy]

I thank my hon. Friend for her intervention. She is absolutely right. The Government need to rethink that proposal because it is leading to the closure of high street businesses and small businesses. Let us not forget that, when these 50 businesses a day shut up shop across the country, that is 50 people a day, along with their families, who depend on their business as a primary source of income, now out of work. It is not only the economic value that is disappearing from our high streets; the wider cultural contributions that these businesses make to the community disappear too, all because Government support was inadequate.

Supporting business in my constituency and my hon. Friend’s constituency are Brixton business improvement district, This is Clapham BID and the mighty InStreatham BID headed by Louise Abbotts. Our BIDs have worked tirelessly over the past few years against a tide of transport issues and the growth of online sales to keep people going out and shopping locally. We cannot forget the impact this has had on their budgets and capability to continue sustaining our local businesses in the long term. Even before the pandemic began, small businesses found themselves on an uneven playing field, and the original form of Government relief saddled small businesses with further debt, offering them loans at high interest rates through commercial and retail lenders or effectively deferring their rent payments. At the start of the pandemic, these no-strings-attached loans were offered to companies registered in tax havens, yet uptake on small business loans remained low. The 2017 business rates revaluation meant that the average small shop would see a £3,663 hike over the next five years while supermarket chains would see 6% reductions. It cannot be fair that some independent businesses, such as small cafés, contribute to the taxman at a higher effective rate than big corporations and high street names. Business rates are a 20th-century system of taxation, yet we are already over a fifth of the way into this century. Four out of five retailers say they may have to close some locations without an urgent easing of the burden of business rates. Retail pays over the odds at the moment; it accounts for a quarter of the business rates bill while representing a mere 10% of economic output. The current system does not work for our local public services, as the funding of local councils is linked to rates revenue in an area, rather than local needs. We need a system that is fit for the 21st century.

There is an emerging economic consensus that the state has a role to play in helping the economy to function properly, although it is a role that the party of government seem reluctant to accept. In the early days of the pandemic I called on the Treasury to impose financial conditions on loans for big companies asking for state support. It is galling that it ignored this call, and instead gave no-strings support to companies that were registered in tax havens, paid out huge dividends to shareholders and paid CEOs and senior executives ridiculous compensation packages, in some cases while laying off their rank and file workforce—all while small businesses have languished.

While businesses were grateful for the little support they received during the covid-19 pandemic, it simply was not enough. More substantial support is desperately needed to fight the onslaught of rising costs in food, inflation, energy and the major recruitment crisis that Brexit and covid have created for business communities. The Government’s own figures suggest that we will see our household economy shrink by £1,250 per year because of their trade deal with the EU. It will not be the Amazons of the world or big Government contractors that feel this loss—it will be ordinary people and small independent businesses.

Figures that we have seen show that smaller businesses lack the infrastructure to respond to the challenges that Brexit has presented compared with larger companies. A recent survey by the British Chambers of Commerce found that half of small businesses are finding it harder to export to the EU. Due to the new complexities of the trading relationship, the Government set up a small and medium-enterprise fund offering grants to help our businesses overcome those challenges. However, this fund has rightfully been criticised for being too complex. At the end of last year, we saw a report from City A.M. on information from the cloud accounting provider FreeAgent that found over half of businesses experienced shrinking customer bases, while 43% were impacted by supply chain issues. Meanwhile, two in five SMEs said that their costs had increased since Brexit, particularly to import goods, while 16% suffered a shortage of talent as they are finding it harder to recruit staff. Nearly one in five SMEs have considered closing their business during Brexit and one in five did not think their business would survive Brexit.

The Government have been found wanting yet again; instead of looking forward and trying to alleviate these situations we are instead told to keep calm and carry on, as if Brexit has not impacted us. We can clearly see that it has. The Chancellor’s £1-billion hospitality support package has come too late. It is woefully short of what is needed to ensure the survival of our small businesses and was woefully slow to start, coming in on 22 December when plan B restrictions had already been in place for 19 days. It is estimated that during this period of no support, £4 billion in revenue was lost from the hospitality and leisure sector. When cases rose and the demand on our high streets slumped, small businesses were not getting the support they needed, and workers were being sent home without pay and their shifts cancelled.

During the festive period, local authorities stated that the detailed guidance for the grants was only issued on 30 December and updated on 12 January, when businesses were desperate for support to meet various costs at the end of last year. Both the Federation of Small Businesses and UK Hospitality criticised the Chancellor’s support package for being far too slow to help the most vulnerable hospitality businesses during the omicron surge. It is ridiculous for the Government to put March as the timeframe for the grants to be paid when businesses needed this support months ago.

My local business non-profit organisation, InStreatham BID, has stated:

“The grants are valued but won’t cover the cost of wage bills and food waste for that period of November and December which is usually what covers the costs for hospitality in the new year when things are naturally quieter.”

We should not have to drag the Government into supporting workers and businesses because Ministers are too preoccupied with who gets the top job to focus on the crisis at hand. Proper support packages should be announced alongside public health measures as and when they are needed. Streatham BID said:

“A £6,000 grant in no way compensates for the dramatic loss in trading hospitality businesses in particular are facing, and more important they can’t wait weeks for financial aid.”

This incoherence is exactly why small businesses are increasingly frustrated and want clearer and quicker decision making from this Government. Because the new omicron variant has hindered growth in retail, hospitality and leisure, a reduction in VAT or retaining the 5% VAT rate for hospitality is seriously needed. A business rates holiday applied until December 2022 and a reform of business taxation to level the playing field would be most helpful to businesses over the next 12 months.

We could also put in place flexible and targeted furlough throughout the ongoing pandemic—not just until the end of September—to help businesses to retain their staff. It would also be incredibly helpful during this period when many businesses have just recruited full staffing levels to sustain a busy Christmas period, only to be hit with cancellations in the region of 40% to 50% because restrictions were reintroduced. The TUC has stated that furlough needs to cover at least 80% of workers’ wages and that the Government must guarantee that no one who is furloughed is paid less than the minimum wage. That is exactly the type of furlough we need.

We also need decent sick pay that is paid at the real living wage and is available to everyone so that workers can afford to self-isolate when they need to. It has been insisted on by many hon. Members across the House over the past couple of years, but it is still being played around with by the Government as a short-term concession during a crisis, not a long-term employment right available in law.

The Government need to do more to step up and deliver the necessary support measures to the businesses of Streatham and those across the country and ensure the democratic, cultural and economic benefits of our small businesses. If the Government claim to be the party of business, why they are presiding over the decimation of our small businesses, which make up 99% of the total UK business population? It seems the unfortunate truth about coronavirus business measures is that the smaller the business, the smaller the Government’s concern for its survival.

The economic case for stronger Government intervention could not be clearer and the stakes could not be higher. The cost of bankrupt businesses, unemployed workers and lost tax revenue far outweighs the cost of acting now. Allowing small businesses to go bust is not only bad policy—risking a deeper recession and job losses—but deeply damaging to our local communities, which makes it all the more important for the Government to learn from mistakes so far and prioritise the survival of our small businesses.

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[Lee Rowley]

I am grateful for the hon. Gentleman’s intervention, and I completely appreciate the challenge that he gives to Government and the points that he makes. I know that the Government are looking at all times at what is the most appropriate kind of support for businesses and for communities as a whole. Although we hope—we pray—that we are moving into a new phase of living with the virus that allows businesses to get on with what they are doing, I know that the Government will review what is possible on a regular basis.

Although I congratulate the hon. Member for Streatham on the outline that she has given of her constituency, it will not surprise her that we disagree on a number of the points that she has made, and I will spend a few minutes on those. We disagree about the support that has been given. It is not reasonable to suggest that what the Government have done over the past two years does not demonstrate a level of commitment to our communities and to our businesses—small, medium and large—to try to get people through the most extraordinary time of our lives. We cannot simply suggest that £400 billion—nearly half of the United Kingdom’s annual spend in the years since I have been a Member of Parliament—is not a substantial amount of money and not unprecedented in our political lifetime, and beyond, as a response to a public health emergency. I do not think that under any circumstances that can be suggested to be minimal financial support.

Because the hon. Lady has quite rightly dealt specifically with Lambeth and Streatham, it is important to read into the record the amount of support that has been given to the area. I do so not because the support is perfect, not because there have not been challenges and not because lots of rules do not mean, inevitably, that unfortunately there are some businesses that can benefit but some businesses that cannot—one of the reasons I am in politics is in principle to try to reduce the number of rules, where that is possible—but because we need to recognise the amount of money and support that the Government have provided. We have provided 2,000 local restrictions support grants; 147 LRSG open grants; 399 restart grants; 4,000 retail, hospitality and leisure grant fund grants; 1,163 LRSG open allocations up to 28 March, and 10,000 LRSG closed allocations; restarts of nearly 1,700 grants, which is nearly £15 million in terms of spend; and nearly £10 million of additional restrictions grants.

I have information about literally dozens of additional grants for the Streatham constituency and for the Lambeth Council area. That demonstrates central Government’s level of commitment to ensuring that businesses can, where possible, get through an extraordinarily difficult time and are able to face the future with confidence.

[Florence Eshalomi]

I appreciate that the Minister has outlined some of the figures for Streatham and for Lambeth, which includes my Vauxhall constituency. However, does he appreciate that the nature of inner London boroughs such as Lambeth, which includes my constituency and that of my hon. Friend the Member for Streatham (Bell Ribeiro-Addy), means a number of businesses do not qualify for any support because of their high rateable values? A number of our constituents who work in self-employed businesses—the very same people who should be supporting these small businesses—have formed part of ExcludedUK. They did not receive any help whatsoever. Can the Minister address those points?

[Lee Rowley]

I am grateful to the hon. Lady for her intervention. I completely appreciate that there are businesses and individuals who, over the past 18 months, have not been able to secure the support that they wanted and felt they needed. In an ideal world, when making public policy we would perhaps spend literally years trying to design policies to ensure that the right level of rules were around them, but we simply did not have that time in the period in which we had to move. We had to move quickly and ensure that we got as much out there to as many people as possible. The Chancellor and others have explained the reasons why the rules were drawn in that way, and I think that most people accept that, although there were difficulties, a huge amount of work was done, notwithstanding some of the challenges that have been outlined.

The second area that I will touch on is a disagreement on the situation that faces us. I accept that there are challenges, but some of the surveys and economic data coming out of London demonstrate the resilience of London businesses, and the ability of small businesses and others, not just in Streatham but across the Greater London area as a whole, to move forward, build, achieve what they can, and look to the future with confidence. Although the situation is difficult, and we have been through extraordinarily difficult times, I gently take issue with the suggestion that it is dire. Ultimately, businesses are helping us to get through it. They are doing the work that they need to do to build the economy that we need in order to pay for the extraordinary amounts of spending that have happened, and the even larger amounts of spending that the hon. Member for Streatham wants, given some of her statements.

Supporting Small Business

Florence Eshalomi Excerpts

Tuesday 19th October 2021 Commons Chamber

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

It is an honour to follow my hon. Friend the Member for Ilford South (Sam Tarry), who raises so many valuable points about businesses up and down the country.

My hon. Friend the Member for Bradford West (Naz Shah) mentioned weddings. I come from a Nigerian background, in which weddings are such a joyous occasion for families and an opportunity for many people to travel to the UK. They come not just for the wedding but to support our local businesses. That is the time when many of those family members have their annual holiday, and they shop, supporting so many businesses, and stay in our hotels. It is not just the wedding industry that benefits; so many other people benefit from having that tourism and trade coming into the UK.

Over the past 19 months, businesses in Vauxhall have really suffered. They have seen footfall through their doors reduce. If we are honest, the measures introduced to tackle coronavirus have led to many businesses having to shut their doors. Others have had to adapt to new ways of commerce, and those that needed to stay open found themselves having to change, in some cases overnight, as the Government guidelines changed.

Many of the businesses in Vauxhall that I have spoken to operate on tight margins for both cost and revenue, and they face another double whammy in the coming months. Not only do they face having to repay large debts that they have stored up because of covid and the Government failure to support some key businesses, but many of the businesses in my constituency have a higher rateable value, so they did not qualify for the business rates relief. They are still struggling now. They have lost a large chunk of the tourists who come through, and they are having to rely on local people to help support them. The Government may have lifted restrictions in the UK, but our high infection rates mean that many countries continue to place restrictions on travel from this country. I chair the South Bank Partnership Forum, which brings together many businesses in and around the south bank. The forum’s figures estimated that 100 million people passed through Waterloo station each year alone. We have not seen those figures come back, and they will probably not come back for a very long time.

We cannot pretend that the impact of this pandemic is over for businesses. The Government need to take real measures to support businesses not just in Vauxhall but right across the country. Saving our high streets is a vital part of that. It makes economic sense, because as many hon. Members have said, high streets provide an economic boost to so many of our communities. I started my working life on our high street in Clapham in Sainsbury’s, in that bright orange uniform many hon. Members may remember, but so many of our high streets and their shops are closing. Yesterday, I met members of Lambeth Pensioners Action Group. They highlighted issues around returning to the high street and getting to the high street.

I hope the Government will listen to all the issues Labour Members have raised and support the motion. We cannot just keep talking about reforming business rates; it is time for us to act and reform them once and for all.