Employment Rights Bill (Sixteenth sitting)

Greg Smith Excerpts

Committee stage
Tuesday 7th January 2025 Public Bill Committees

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

It is a pleasure to see you in the Chair, Sir Christopher. I wish you a happy new year. As always, I will start by referring to my entry in the Register of Members’ Financial Interests.

I shall attempt to navigate this mega-grouping of clauses, amendments and new clauses. Clause 50 will amend section 168 of the Trade Union and Labour Relations (Consolidation) Act 1992 to provide that an employer that permits an employee to take time off for carrying out trade union duties, including as a learning representative, must, where requested by the employee, provide the employee with accommodation and other facilities for carrying out their duties or undergoing training related to their trade union duties, as is reasonable in all the circumstances. “Facilities” could include office and meeting space and access to the internet or intranet. In providing the employee with facilities, the employer should have regard to a relevant code of practice issued by ACAS.

The clause will also strengthen the existing right to reasonable paid facility time for union representatives, including union learning representatives, by establishing a presumption that the employee’s view on what is considered reasonable time off is reasonable in all the circumstances, having regard to any relevant provisions of a code of practice issued by ACAS. The clause will require that the employer show that it was not a reasonable amount of time off at an employment tribunal, in the event of legal proceedings.

Despite the fact that most union representatives receive paid time off, it is often insufficient to allow them to carry out all their trade union duties, and many union representatives use significant amounts of their own time to do so. This Government want to ensure that union workplace representatives can take sufficient paid facility time and have sufficient access to facilities to enable them to fulfil their union representative duties. That will lead to improved worker representation and industrial relations by giving trade unions and workplace representatives the freedom to organise, represent and negotiate on behalf of their workers and to increase co-operation between employers and unionised workers, leading to beneficial outcomes for the economy.

The Government will not support the shadow Minister’s amendments 114 and 115, which would place an unnecessary restriction on trade union equality representatives’ ability to take time off during working hours to carry out their role as equality representatives. Equality representatives have a key role to play in raising awareness and promoting equal rights for all members, as well as developing collective policies and practices that will enable organisations to realise all the benefits of being an equal opportunities employer. Placing a performance condition on the right to paid time off for equality representatives is at odds with existing rights and protections for other trade union representatives, such as union learning representatives.

In addition, the Bill is clear that the amount of time off that an employee is permitted to take, the purposes and occasions for which it is taken and any conditions subject to which it may be so taken are those that are reasonable in all the circumstances, having regard to any relevant provision of a code of practice issued by ACAS or the Secretary of State. The existing code of practice on time off for trade union representatives will be updated in due course to cover equality representatives. The Government would therefore strongly argue that the additional condition is not required for equality representatives.

Clause 51 will insert new section 168B into the Trade Union and Labour Relations (Consolidation) Act 1992. The proposed new section requires that an employer must permit an employee who is a member of an independent trade union recognised by the employer and an equality representative of the trade union to take paid time off during the employee’s working hours for the following purposes: carrying out activities for the purpose of promoting the value of equality in the workplace; arranging learning or training on matters relating to equality in the workplace; providing information, advice or support to qualifying members of the trade union in relation to matters relating to equality in the workplace; consulting with the employer on matters relating to equality in the workplace; obtaining and analysing information on the state of equality in the workplace; and preparing for any of the things mentioned previously.

The above applies only if the trade union has given the employer notice in writing that the employee is an equality representative of the union and has undergone sufficient training to enable them to carry out the activities listed above, or if the trade union has in the past six months given the employer notice in writing that the employee will be undergoing such training—this can be done only once in relation to any one employee—or within six months of the trade union giving the employer notice in writing that the employee will be undergoing such training, the employee has done so and the trade union has given the employer notice of that. “Sufficient training” is that which is sufficient for fulfilling the purposes of an equality representative, having regard to any relevant code of practice issued by ACAS or the Secretary of State.

Clause 51 will also require an employer to permit an employee to take paid time off during working hours to undergo training relevant to their role as an equality representative and, where requested, provide the employee with accommodation and other facilities to enable them to fulfil their role, having regard to a relevant code of practice issued by ACAS. Should an employer fail to permit the employee to take time off or provide the employee with facilities as required, the employee may present a complaint to an employment tribunal, at which it will be for the employer to show that the amount of time off that the employee proposed was not reasonable.

Trade unions have long fought for equality. Equality reps have a key role to play in raising awareness and promoting equal rights for all members, as well as developing collective policies and practices that will enable organisations to realise all the benefits of being an equal opportunities employer. Clause 51 therefore recognises in statute the role of trade union equality representative, which is defined in proposed new section 168B(12) as a person appointed or elected in accordance with the trade union rules and defined by reference to, and in a manner consistent with, the Equality Act 2010.

I turn to the shadow Minister’s amendments 113 and new clause 18. I should start by stating that sections 168 to 170 of the Trade Union and Labour Relations (Consolidation) Act 1992 are long-standing provisions that require employers to provide facility time for union representatives and union learning representatives of a recognised trade union.

Our legislation also requires employers to make payments to union representatives for time off for carrying out their union duties. Despite the fact that most union representatives receive paid time off, it is often insufficient to allow them to carry out all of their trade union duties, and many union representatives use significant amounts of their own time to do so. We want to ensure that union workplace representatives can take sufficient paid facility time and have sufficient access to facilities to enable them to fulfil their union representative duties. That is why we are strengthening the rights of trade union representatives in the Bill. As part of that, we are also providing—in clause 51, which will insert new section 168B into the 1992 Act—new rights for time off for union equality representatives. Equality reps have a key role to play in raising awareness and promoting equal rights for all members, as well as developing collective policies and practices that will enable organisations to realise all the benefits of being an equal opportunities employer.

The shadow Minister’s new clause 18 would require Ministers to commission a cost assessment of facility time for trade union representatives and for union learning representatives and the prospective costs of time off for equality representatives across all sectors of the economy. It would also require Ministers to lay a report before both Houses of Parliament once the assessment has been made. Amendment 113 would further require that the provisions of clause 51 could not come into force until after completion of the assessment referred to in new clause 18.

New clause 18 is not necessary. We do not need such a time-consuming assessment across all sectors of the UK economy. Also, union representatives under our legislation are already entitled to reasonable paid facility time to enable them to carry out their duties. As I have said already, we know that many union representatives do not have sufficient time; the Bill is intended to rectify that. I also note that no such assessment of facility time, sector by sector, for the entire UK economy was ever carried out by the previous Government.

Clause 52 will repeal sections 13 and 14 of the Trade Union Act 2016 by removing sections 172A and 172B of the Trade Union and Labour Relations (Consolidation) Act 1992. Regulations made under section 172A, inserted by section 13, require relevant public sector employers to publish information relating to facility time for relevant union officials. Section 172B, inserted by section 14, provided a power—although I do not think that it was ever implemented—to impose a cap on public sector facility time. Repealing these sections will help to ensure that trade union representatives have sufficient time to represent workers, negotiate with employers and conduct training.

The removal of the reporting requirements represents a significant step in resetting the relationship between public sector employers and trade unions by recognising the importance of union representatives and the time needed for them to fulfil their duties effectively. The removal of the regulations will reduce the annual administrative burden on many public sector employers, freeing up more time to focus on delivery for the public.

This Government believe that it is for each employer to work in partnership with their own recognised trade unions to determine the facility time needed to ensure that their trade union representatives can properly represent their members and the workforces within which they operate. It is unnecessary to require annual reporting or to introduce an arbitrary cap on facility time. I therefore ask the hon. Member for Mid Buckinghamshire not to press amendments 113 to 115 and new clause 18. I commend clauses 50 to 52 to the Committee.

[Greg Smith (Mid Buckinghamshire) (Con)]

It is a pleasure to serve under your chairmanship, Sir Christopher. I, too, wish you a very happy new year.

I will start with amendments 114 and 115, which stand in my name and those of my hon. Friends on the Committee. The amendments would prevent facility time from being provided for equality representatives unless—this is the important bit—the relevant public sector organisation is meeting its statutory performance targets.

In workplaces in which a trade union is recognised, trade union workplace representatives have a right to paid time off for the purpose of carrying out their trade union duties or to take part in union training. That right currently applies to workplace representatives, health and safety representatives, union learning representatives, and information and consultation representatives. The Bill will extend that right to equality representatives, who will now be allowed paid time off to carry out

“activities for the purpose of promoting the value of equality in the workplace”;

to arrange

“learning or training on matters relating to equality in the workplace”;

to provide

“information, advice or support to qualifying members of the trade union in relation to matters relating to equality in the workplace”;

to consult

“the employer on matters relating to equality in the workplace”;

and to obtain and analyse

“information relating to equality in the workplace.”

I make no criticism or comment about the value of those activities, but what I would say is that they are straightforwardly set out in the law already, and employers already have a duty to consider them. Creating a duty to allow more facility time for this purpose seems to be at cross-purposes with what employers are already, rightly, under an obligation to consider.

The amendments are an attempt to ensure that the taxpayer gets something out of this latest concession from the Labour Government to the trade unions. We would like to make sure that equalities representatives working for public sector employers are entitled to facility time only if that employer is meeting any statutory targets that it has. We suggest that if the employer is not meeting those targets, that is more important to taxpayers than facility time.

New clause 18 and amendment 113 also stand in my name and those of my hon. Friends on the Committee. As the Minister says, new clause 18 would require the Secretary of State to undertake a sectoral cost assessment of trade union facility time. It would require the Secretary of State to undertake an assessment of the cost, and prospective cost, by sector of that facility time. Amendment 113 would provide that clause 51, which will introduce facility time for trade union equalities representatives, could not come into force until after the completion of the review referred to in new clause 18.

That is an eminently sensible step. I cannot see how anyone could object to a cost analysis and assessment being done before provisions come into effect. People need to know what they are dealing with and how much it will cost them, whether that is in the public sector or the private sector, a Government Department or a Government quango, a council, an NHS trust or a private business. It is not reasonable for these things to be asked for without a true assessment and understanding of the cost.

The Opposition are concerned about the increased impetus that the Bill places behind facility time and about extending it to equalities representatives. We would therefore like to make sure that the Government have done their homework and understood the cost to business of these changes before they implement them.

[Laurence Turner (Birmingham Northfield) (Lab)]

It is a pleasure to serve under your chairship, Sir Christopher. I draw the Committee’s attention to my declaration in the Register of Members’ Financial Interests. I am a member of GMB and Unite.

The shadow Minister has set out a number of new restrictions that he is seeking to impose, but in 2014 he brought a motion to Hammersmith and Fulham council that said:

“Council staff will not be paid for any time they spend on trade union activity.”

Is that still what he believes?

[Greg Smith]

I am grateful to the hon. Gentleman for bringing that up. He has clearly been doing his homework and researching the wonderful transcripts from my time on that local authority. I have some very happy memories of it—I remember cutting council tax by 20%, which I am very proud of—but he is really going to stretch my grey matter if he wants me to remember that particular motion. However, I am certainly of the view that it is not for taxpayers to fund trade union activities; it is for trade unions to meet their own costs. It is for trade unions, just like any other body, not to require taxpayer subsidy or the state to step in and help them meet their costs. I certainly remember campaigning on the expansion of facility time back then, with many across the Conservative party. From memory, my right hon. and noble Friend Lord Pickles took a particular interest in the issue.

My direct answer to the hon. Gentleman’s question is no: taxpayers should not be funding trade union facility time. That is for the trade unions themselves to fund out of their membership fees and other income streams, where they have them, so that they can go about doing their work. I repeat that it is really not for taxpayers to fund that. There needs to be wider reform to protect taxpayers from indirectly—or directly, in this case—funding third-party organisations such as trade unions.

We have to consider the extra burden to employers in the round. Along with other elements of the Bill, such as the provisions on unfair dismissal, and the growth-stunting hike to employers’ national insurance contributions in the Budget, this is another straw that may yet break the camel’s back for a number of businesses. The Government are carelessly piling cost and red tape on employers with this Bill and other measures, and are just expecting those burdens to be absorbed. We would like to be reassured that it is possible to find a better way that does not burden the taxpayer or private businesses with the provisions that we find in this Bill. We have tabled these amendments to rectify that and to put those protections in place.

[Steve Darling (Torbay) (LD)]

Happy new year, Sir Christopher. I have a small amount of sympathy with the shadow Minister—I understand the cost to business, so I welcome that element of the amendments—but I have great fears. One need only have listened to the radio this morning to have heard about the issues for McDonald’s workers that have not been sorted out. I accept that that is the private sector, and the amendments are about the public sector, but it demonstrates that if equalities issues are not taken seriously in the workplace, it can cause major harm to employees and to the culture of improvement that we need to see.

[Greg Smith]

Nobody is suggesting that equalities issues should not be taken seriously. The point that I was making about our amendments is that the law is already very clear about equalities, and employers should be held to that law. There is no need to place this additional burden on the public sector or the private sector. Equalities are incredibly important—nobody in the Opposition is denying that—but we must find the right vehicle to ensure that equalities duties are enforced. This Bill is not it.

[Steve Darling]

I am concerned that the hon. Gentleman is taking a Panglossian approach that all in the world is perfect. It is far from perfect, which is why I welcome large tracts of the Bill, as long as we are supporting employers on the journey.

--- Later in debate ---

[Justin Madders]

The clause will enable us to strengthen the protections against blacklisting. The Consulting Association scandal, in which thousands of union workers were blacklisted, underscored the need for strong anti-blacklisting laws. Blacklisting persists, yet the rules have not been updated for over a decade. That is why we are taking steps to modernise them.

The clause amends section 3 of the Employment Relations Act 1999. It will enable regulations to be made that extend prohibitions to lists that are not prepared for the purpose of discrimination, but are subsequently used for that purpose. Secondary legislation and guidance can then make clear that blacklisting prohibitions extend to lists created by predictive technology.

The clause also extends the scope of the powers, so that prohibitions no longer have to be limited to employers or employment agencies. First, the reference to employers or employment agencies is removed from section 3(1)(b) of the 1999 Act. Secondly, an amendment to section 3 adds a power for the Secretary of State to make regulations in relation to third party use of blacklists. It is important that the Government continue to make it clear that blacklisting is unacceptable, and updating the law supports that.

[Greg Smith]

This is one of the less contentious clauses in the Bill. The Minister is right to say that something that has not been updated for a decade probably should be looked at again, especially in the light of some of the technology that we see emerging. We will not oppose clause 53 standing part of the Bill.

[Steve Darling]

I strongly welcome this modernisation of approach.

Question put and agreed to.

Clause 53 accordingly ordered to stand part of the Bill.

Clause 54

Industrial action ballots: turnout and support thresholds

Question proposed, That the clause stand part of the Bill.

--- Later in debate ---

The Government are committed to bringing in a new era of partnership in which employers, unions and Government work together in co-operation and through negotiation. By removing the additional administrative burdens laid on trade unions by the Trade Union Act 2016, we are freeing up their time to engage in bargaining and negotiation with employers and allowing them to devote more time to representing their members’ interests. This will help put an end to the worst period of strikes that we have seen in decades. On that basis, I ask the shadow Minister not to move the new clauses.

[Greg Smith]

This is another bumper grouping for us to debate. As the Minister said, new clause 32 would require the Secretary of State to consider whether sufficient measures are in place to prevent workplace intimidation before making any order to allow balloting to take place by any means other than a postal ballot. The Bill liberalises the law on balloting and industrial action, and I am normally very much in favour of deregulation and liberalisation, but on this occasion, there are considerable concerns, which is why the Opposition tabled this new clause.

The Bill lowers turnout and support thresholds and allows electronic balloting on industrial action. It is important that there are protections in place for workers in that. We want to make sure that, before allowing electronic balloting for industrial action, the Secretary of State is reassured that unions have sufficient measures in place to prevent workplace intimidation.

If balloting can take place electronically, it can take place in workplaces, where it is much easier for pressure to be put to bear on union members in terms of casting their ballot—that hand on the shoulder, that peering over to see what someone is doing, or the potential requirement from those up to no good to demand proof of the way that someone has cast their ballot, be that on their mobile phone, iPad, tablet, laptop or computer, or whatever it might be. These are practices that I am sure every Member of this House would condemn and say are totally unacceptable and inappropriate, but that I can see happening without robust measures in place to prevent them.

We want the Secretary of State to be able to reassure the House that sufficient protections are in place to ensure that ballots are free fr.om intimidation and coercion before they are allowed to take place electronically. I listened carefully to the Minister’s appeal to the Opposition not to move our new clauses, but I am yet to hear a compelling and reasoned argument why the Government cannot support new clause 32. Surely, we all wish to ensure that intimidation and coercion have no place in any part of our society, least of all in the workplace. I do not understand why the Government are so reticent to take what I would argue is a very moderate and reasonable step to strengthen the Bill and tackle intimidation and coercion.

New clause 33 would prevent voting in trade union ballots and elections from being done in the workplace. Many of the arguments I made on new clause 32 very much apply here; in a similar spirit, we have tabled new clause 33 to create a little more balance and protection in the Bill. It is important that all those exercising their right to vote on industrial action can do so free from pressure from colleagues or trade union members, and that is why the new clause would stipulate that voting in trade union ballots and elections should not happen in the workplace. We also do not believe that workers should spend time when they are being paid to do their jobs voting on trade union matters. Such voting should be done in members’ personal time outside the workplace, and employers should be protected from having to pay for it.

Before I move on to new clause 43, I want to emphasise that while that last point is important, it is a matter of principle that in this country, we believe in the secret ballot. If there was any suggestion that any of our elections, whether elections to this House, council elections or police and crime commissioner elections, could take place on someone’s phone in front of other people without the protections we all enjoy at the ballot box, there would be outcry—there would rightly be outrage. When it comes to something as significant as voting for or against industrial action in a trade union ballot, it is absolutely the same principle: the integrity of the secret ballot should be upheld, in the same way that we would expect in any other walk of life.

Indeed, we have protections in the 1922 Committee in this House. We have the occasional leadership election, and mobile phones are not permitted into the room in which we vote, to stamp out the very possibility of people looking over others’ shoulders and the secret ballot being compromised. I am not sure what the parliamentary Labour party does. The secret ballot is an important principle enshrined in our democracy that should apply equally to trade union ballots. This moderate, measured request to ensure that those ballots do not take place in the workplace is an important step to protect the secrecy of the ballot.

[Laurence Turner]

The shadow Minister talks about the 1922 Committee, which I think my predecessor as representative of Birmingham Northfield knows more about than me. A few years back, the Conservative party membership effectively elected the Prime Minister through an electronic ballot. That is a comment on the process and not the merits of the outcome. Why do the shadow Minister’s arguments against electronic balloting in industrial matters not apply to that situation too?

[Greg Smith]

I think we were still on paper ballot papers, for the large part, the last time there was a change of leader of the Conservative party while we were in government. The election of the current Leader of the Opposition did happen by electronic ballot, but that is not the point of new clause 33. It does not seek to prevent electronic balloting; it seeks to prevent it from taking place in the workplace—the very place where trade union organisers, or other colleagues or employees, could put pressure on those who have a vote. They might bully their way into seeing how someone has voted, or put pressure, either nakedly or slightly less visibly, on someone to vote in what they might consider to be the right way or otherwise. If ballots could only take place outside the workplace, while not a perfect solution, it would take away the pressure that might be brought to bear in the workplace on the way individuals vote. That could—I emphasise “could”—lead someone to vote in a way that they do not want to, for fear of the way that their vote might be perceived by others in the workplace.

--- Later in debate ---

[Michael Wheeler (Worsley and Eccles) (Lab)]

Does the shadow Minister accept that the strikes he talks about happened under an incredibly restrictive regulatory and legislative regime? The measures in the Bill seek to foster a better industrial relations environment, which will lead to fewer strikes, not more. Under the previous Government, we saw an incredibly restrictive environment, which ratcheted up the tension and resulted in more strikes.

[Greg Smith]

I hear the hon. Gentleman’s argument, but the proof of the pudding is in the eating. I gently ask him how a no-strings-attached bumper pay rise for the train drivers worked out in practice when it came to strikes over the Christmas period. We have heard repeatedly from Labour party politicians that they will prevent or stop strikes. The most visible example of that in our newspapers and on our television screens was the Mayor of London, who made some pretty bold promises about stopping strike action. Londoners and those coming into London for work, pleasure or hospital appointments have suffered multiple times during his tenure. I am not sure I fully accept the hon. Gentleman’s point that the Bill will somehow magically reduce the number of strikes, when the reality on the ground has been very different.

Given the prolonged and repeated strike action made easier by the Bill, it could almost certainly lead to large costs across the economy. We think it is only right that a level of transparency similar to that applied to Government Departments should be applied to trade union decisions. Trade unions should exercise some responsibility and consider the consequences of their decisions to undertake strike action. We would therefore like trade unions to assess the likely impact that their going on strike will have on real people and their lives, journeys, hospital appointments, theatre tickets, enjoyment, pleasure or whatever it might be that the strike action will prevent them from doing—and, of course, on our children’s education, which is so important.

New clause 43 would require trade unions to carry out impact assessments and family tests, to publish the reports of those, and to inform members of the trade union about their contents, before a ballot for industrial action can take place. It is hardly a controversial position that people should know what they are voting for before they are asked to cast a ballot on it, and that they should understand the consequences of the strike action not just for them, but for the wider economy and people’s health, education, and so much more across our great country. We think it is only right that trade union members should be fully informed of the consequences before they cast their votes. Such information would provide some public transparency about the cost and inconvenience that trade unions are willingly inflicting on the British public.

[Steve Darling]

I have some sympathy with the desire to understand the cost, but to me, the vast majority of the Government proposals before us today are about modernising the system appropriately. I am concerned that this afternoon we have seen the official Opposition one minute say that all in the garden is rosy and there is no need for equality, and the next flip over and catastrophise about the Government’s proposals. We need to get a firm hand on the tiller and see that the vast majority of these proposals simply entail modernisation. I welcome them.

[Justin Madders]

The shadow Minister asked why we cannot support new clauses 32 and 33. The simple answer is that there are already legislative protections in section 54(12) of the Employment Relations Act 2004, which sets out the conditions that must be adhered to in order to ensure that balloting is done in a secure and safe manner. He made some interesting points about people peering over others’ shoulders when votes are taking place. Clearly, his colleagues in the parliamentary Conservative party cannot be trusted to behave themselves when electronic voting takes place. That is something he will no doubt address with his colleagues in private.

If the shadow Minister is concerned about the impact of electronic balloting in all spheres—I am sure there are sometimes reasons in his own party to question the outcome of the electronic ballot—we can look at that, but there is already clear provision in law about how any trade union ballot is to be conducted. The working group will be considering that. If the Conservative party thought there were concerns about the use of electronic ballots for industrial disputes, they might not have commissioned the Knight review back in 2017 to consider the matter. That they did so suggests that they considered that it is right and appropriate that we modernise trade union practices to allow for electronic balloting for industrial action.

Moving on to the assessments the shadow Minister is requesting, the Government are pretty clear that, through new clause 43, the Opposition seek to add another administrative hurdle for a trade union that wants to take industrial action. There is no doubt that any such tests or assessments that were undertaken would lead to a multitude of satellite litigation, delay resolution of disputes, and divert both parties’ focus from resolving the disputes to arguing about impact assessments. I am not quite sure what the family test is. I think there is a family and friends test that some organisations use. It is a little vague. It is also unclear who would be the arbiter of whether these tests and assessments were being done sufficiently accurately. It is also fair to say that trade union members know, when they take industrial action, that there will be consequences. They are well aware. They do the job every day, they know the impact, and that is why they always take these matters very seriously.

The central point that the Bill will lead to more industrial action is counterintuitive, given that we are, in the main, reversing provisions of the 2016 Act. As we know, there has been more industrial action in recent years than there has been for decades. Perhaps there is not a cause and effect relationship between that and the 2016 Act, but I would suggest that the evidence points to it.

Question put and agreed to.

Clause 54 accordingly ordered to stand part of the Bill.

Clauses 55 and 56 ordered to stand part of the Bill.

Clause 57

Industrial action: provision of information to employer

[Greg Smith]

I beg to move amendment 167, in clause 57, page 69, line 16, leave out “seventh” and insert “twenty-first”.

This amendment would increase, from seven to 21 days, the notice period that trade unions are required to adhere to when notifying employers that they plan to take industrial action.

The amendment would increase from seven to 21 days the notice period that trade unions are required to adhere to when notifying employers that they plan to take industrial action. As we noted in the debate on the previous group, the Bill liberalises trade union law and repeals legislation passed by the last Conservative Government that brought some balance to the relationship between employers, the British public and trade unions. We think it is fair to require trade unions to provide 21 rather than seven days’ notice to employers that they plan to take industrial action, particularly given that the Bill repeals the minimum service levels legislation passed by the last Conservative Government to ensure sufficient levels of critical public services during strike action.

Given that the British public no longer have that protection, we think it is only fair that employers should have more time to prepare to mitigate some of the damage that occurs during strike action, particularly in vital public services such as ambulance and rail services. When strike action takes place, while of course employers have to prepare to mitigate its effect and put in place other steps to ensure that people still get their healthcare, education or critical services such as transport, the general public also need to make considerable preparations. Preparing properly and putting in place other ways of doing things often cannot be done at the last minute.

I would rather the minimum service levels legislation remained in place and, indeed, was strengthened, but when there is strike action on the railway, for example, it takes place at the drop of a hat—I consider seven days’ notice as at the drop of a hat. I think of the number of children in my constituency who get on at Wendover and Stoke Mandeville stations to travel to Dr Challoner’s grammar school in Amersham, and the number of my constituents who rely on the railway to get to hospital appointments, often in London. Some 7% of Buckinghamshire cancer referrals are to Mount Vernon, which is within London, and most of my constituents who go there for chemotherapy try to travel by train. To put in place a different route to that key chemotherapy appointment, or for parents to mitigate against or make different arrangements for their child to get to school, takes more than a handful of days.

I appeal to the Government to listen to us on what I argue is a moderate and reasonable amendment. Increasing the time limit would give people a fighting chance to put in place different ways of getting to their hospital appointment and getting their kids to school.

[Laurence Turner]

rose—

[Greg Smith]

I will come up with another example when the hon. Member for Birmingham Northfield is finished.

[Laurence Turner]

I thank the shadow Minister for giving way; he has been characteristically generous in the number of interventions that he has taken. Can he name a single country that applies a limit of 21 days or more? Was it his intent to propose a limit higher than that which the International Labour Organisation Committee on Freedom of Association has found is consistent with freedom of association?

[Greg Smith]

My straightforward and simple reply is that I want to get this right in the United Kingdom’s interest. No, I cannot name another country that has 21 days’ notice, but that does not mean we should not do it ourselves. It would give all our constituents a fighting chance to find a way through the challenges that they face when there are train strikes, doctors’ strikes and industrial action in our schools. It would help them to find alternative provision to ensure that their children are looked after, so that they themselves can still go to work and meet their commitments. It would ensure that life can still go on around strikes, particularly in critical services such as healthcare and education, which I am sure no Member of the House wants their constituents to be denied; I certainly do not. I could easily propose a period longer than 21 days, but I have not done so in the interests of trying to reach a compromise and appealing to the Minister’s better instincts. I want to get on the table something that we can work with and that gives all our constituents a fighting chance.

[Justin Madders]

As the shadow Minister eloquently set out, amendment 167 seeks to increase from seven to 21 days the notice that a trade union must give an employer of industrial action after it has secured a ballot mandate and before any such action is taken. As we know, the Trade Union Act 2016 brought in a requirement for unions to provide 14 days’ notice to employers. As we are committing to repealing the 2016 Act through this Bill, it stands to reason that if the clauses are agreed to, the seven-day notice period that was required prior to the 2016 Act will apply in its place.

We want to reset the relationship with both employers and unions to resolve disputes through meaningful negotiations. Far from supporting the economy, the effect of the legislation in recent years has been an increase in strikes. In 2023, close to 2.7 million working days were lost to strikes, up from 2.5 million in 2022. Both those figures were the highest since the 1980s.

However, we recognise the importance of striking a balance between allowing for effective strike action and ensuring that employers can reasonably prepare. That is especially important in public services such as the NHS, as the shadow Minister has mentioned, where managers need adequate time to plan for periods of industrial action, and that includes adequate time to agree patient safety mitigations with unions. That is why we have given employers, workers, and trade unions the opportunity, through a consultation, to comment on what notice of industrial action should be provided to employers. That consultation closed on 2 December 2024 and our response will be published in due course.

It seems to me that the shadow Minister’s proposal of a 21-day period is effectively a finger-in-the-air job rather than something considered. If he had tabled an amendment to keep it at 14 days, that would at least have been consistent with his party’s previous position. His statement that it is important to change this in the light of the repeal of the minimum service levels legislation is slightly erroneous given that, to our knowledge, no one has ever actually used the provisions of that Act. When we consider the consultation responses, we will look at whether there is a case for changing the length of the notice period from seven days. I therefore suggest that the amendment is unnecessary, and I ask the shadow Minister to withdraw it.

[Greg Smith]

I accept the Minister’s point about where precisely the number of days should sit. I slightly take issue with him when he says that the 21-day proposal was a finger-in-the-air job. Most people would describe that three-week window as a reasonable notice period to enable people in many walks of life to make plans, such as alternative provision for childcare.

If the Minister is offering up 14 days, we might well take him up on that, but I suspect he is teasing us rather than making a firm offer. Therefore, we stick with our belief that all our constituents deserve fair and reasonable time to plan and make provision in their daily lives to mitigate against strike action and industrial action, which have such a devastating impact on our economy and on people’s healthcare and their children’s education. We wish to see amendment 167 in the Bill, and we will press it to a Division.

Question put, That the amendment be made.

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[Justin Madders]

I will not detain the Committee long, because we have kind of had the debate already. Clause 57 seeks to repeal section 8 of the Trade Union Act 2016 by amending section 234A of the Trade Union and Labour Relations (Consolidation) Act 1992. This will revert the notice period that trade unions need to provide, after securing a successful mandate, from 14 days to seven days.

As I have said, the Government are committed to modernising employment laws, striking a balance between enabling effective industrial action and ensuring that employers can reasonably prepare for such action. We have sought views on what notice period is suitable for modern working patterns and practices through a formal consultation, which closed last month, and we will be reporting on its outcome in due course. I commend the clause to the Committee.

[Greg Smith]

The bulk of the argument to be had on the clause was made in the debate on amendment 167. The Opposition still believe that the time period stated in this clause is insufficient to enable real people to plan. I therefore urge the Government to go back and consider this, and to see what more reasonable compromise they might be willing to offer our Great British public on Report.

Question put and agreed to.

Clause 57 accordingly ordered to stand part of the Bill.

Clause 58

Union supervision of picketing

Question proposed, That the clause stand part of the Bill.

[Justin Madders]

The clause seeks to reverse the effect of section 10 of the Trade Union Act 2016, thereby removing the requirement under section 220A of the Trade Union and Labour Relations (Consolidation) Act 1992 for trade unions to appoint a picket supervisor and to meet other bureaucratic and administrative burdens in relation to the supervisor, such as taking reasonable steps to provide their name to the police. As the period of disruption between 2022 and 2024 has shown, administrative requirements and bureaucratic hurdles do not prevent strikes; they only make it more difficult for trade unions to engage in good faith negotiations with employers. These changes will bring trade union law into the 21st century and fix the foundations for industrial relations that have not delivered for workers, employers or unions in decades, costing the economy £3.3 billion in lost productivity in the last two years alone.

The Government recognise that regulations governing picketing lines are important, however. That is why the Bill repeals only those measures introduced by the Trade Union Act 2016 in relation to the role of the picket supervisor. Other legislation and an amended code of practice on picketing will remain in place. We are returning the law on picketing to what it was prior to 2016, when I believe that it was working well and was clearly understood by all parties. I therefore commend clause 58 to the Committee.

[Greg Smith]

I will not take much of the Committee’s time on this. The Opposition do not understand why the Government wish to remove perfectly sensible measures from the statute book, other than that the trade unions have clearly demanded that the change be made. It does not seem proportionate or reasonable to us, and we think that those picket supervisors should instead remain on the statute book, as they are the status quo.

[Justin Madders]

Our view was that the legislation was not required when it was introduced in 2016. There was no evidence at the time that there were issues with picketing, and there was already a code of practice in place to deal with abuse and intimidation on picket lines. Therefore, we believe that reverting to the pre-2016 position, when in most people’s opinion everything was working as it should, is an entirely reasonable move.

Question put and agreed to.

Clause 58 accordingly ordered to stand part of the Bill.

Clause 59

Protection against detriment for taking industrial action

Amendment made: 83, in clause 59, page 71, line 4, leave out “three” and insert “six”.—(Justin Madders.)

This amendment would increase the time limit for bringing proceedings under the new section 236A of the Trade Union and Labour Relations (Consolidation) Act 1992 from three months to six months.

[Greg Smith]

I beg to move amendment 166, in clause 59, page 72, line 21, at end insert—

“236E Actions short of a strike: exemption

(1) The right of a worker not to be subjected to detriment under section 236A does not apply in cases where the worker is involved in one or more of the following activities—

(a) intimidation at picket lines;

(b) protests organised by trade unions in furtherance of a dispute—

(i) at the premises of a company;

(ii) at the private residences of senior managers; or

(iii) at the premises of other organisations that are connected with the dispute;

(c) harassment or bullying of non-striking workers, or those who are covering for striking workers;

(d) victimisation or harassment of senior managers; or

(e) action aimed at damaging property or disrupting business contingency planning.

(2) The Secretary of State must ensure that the circumstances under subsection (1), in which the right of a worker not to be subjected to detriment do not apply, are set out in a code of practice.”

This amendment would disapply the right not to suffer detriment as a result of industrial action in certain circumstances.

Amendment 166, which was tabled in my name and those of my hon. Friends the Members for West Suffolk, for Bridgwater and for Mid Leicestershire, would disapply the right not to suffer detriment as a result of industrial action in certain circumstances. This amendment is designed to target what has become known as leverage, which is action taken by a trade union other than traditional industrial action to put pressure on an employer to settle a dispute or meet various demands. When describing leverage in the context of the Grangemouth dispute, Unite said:

“Leverage targets all areas of weakness of an employer, group of employers or sector—both direct and indirect. Leverage is an extension of the understanding that ‘weight of argument’ does not change the position of an employer. Leverage analyses what will change the position of the employer. Leverage is the translation of an organising mind-set into the planning and implementation of a campaign strategy, underpinned by the escalation of pressure to create uncertainty.”

Those are not my words, but the words of a spokesperson for Unite the union. Unite was also of the view that in a leverage campaign

“the employer is routinely treated as a target to be defeated not a friend to be convinced.”

I am not sure that is the good faith relationship between trade union and employer that Labour Members have tried to paint as the normal back and forth between the two. I would certainly condemn as unacceptable any relationship between a trade union and an employer in which

“the employer is routinely treated as a target to be defeated not a friend to be convinced”.

That is not good faith.

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[Laurence Turner]

Even if I accepted the hon. Gentleman’s perspective, which I do not, does he accept that there are some issues with the amendment as drafted? For example, subsection (1)(b)(i) is about protests organised by trade unions in furtherance of a dispute at the premises of a company. I have been part of protests at the premises of a company that were not on land owned by the company but were immediately adjacent, on the public highway. If that were tested in court, that could conceivably fall under the definition of “at”.

Similarly, the amendment seeks to carve out an exemption to the protection of protests at the private residences of senior managers. Conceivably, protests could be organised outside the home of a middle manager or someone lower down the organisational structure. I am sure that is not what the hon. Gentleman is seeking to achieve.

[Greg Smith]

I welcome the hon. Gentleman’s constructive approach. If he accepts the principle of what we are saying, we will work with the Government to polish it, and to ensure the amendment gives the maximum protection and protects junior managers as well as senior managers, and land adjacent to a premise that may not be owned or leased by the company. I will happily work with him and the Minister in a constructive tone to ensure the protections against leverage are as strong as possible. I will happily withdraw the amendment if the Minister commits the Government to working with us and coming up with a stronger amendment on Report that will stamp out the practices I have outlined. I dare say that we will see in a few moments whether he does so.

[Justin Madders]

I think it would be helpful if I set out why we are seeking to address the issue of detriment within the Bill. The reason is that new section 236A of the Trade Union and Labour Relations (Consolidation) Act 1992 is required because of the Supreme Court’s ruling in April 2024 that section 146 of the 1992 Act is incompatible with article 11 of the European convention on human rights, because it fails to provide any protection against detriments intended to deter or penalise trade union members from taking part in lawful strike action organised by their union. Hopefully, Members will accept as a starting proposition that we cannot continue to be in breach of our international obligations under the ECHR.

The intention is to rectify that situation by inserting new section 236A into part V of the 1992 Act. This will provide that a worker has the right not to be subject as an individual to detriment of a prescribed description by an act, or any deliberate failure to act, by their employer, if the act or failure to act takes place for the sole or main purpose of preventing or deterring the worker from taking protected industrial action, or penalising the worker for doing so. The prescribed detriments will be set out in secondary legislation following consultation, which will take place after the Bill gains Royal Assent.

The shadow Minister made some interesting points in his speech. However, his amendment seeks to prejudge the consultation on this issue. He made some valid points and I am sure that we will discuss this issue again in future, because there is a need for us to clarify what is considered a detriment, for the reasons that I have outlined.

Some of the examples that the shadow Minister gave are of things that are already catered for in the law. The protection from prescribed detriment only applies where the sole or main purpose of an act or a failure to act is to subject the worker to detriment, to prevent them from or penalise them for taking protective industrial action. For example, if a worker is subjected to detriment solely because, for example, they have damaged property, the protection would not apply. That is the existing position.

Of course the criminal law would still apply to pickets, just as it applies to everyone else, so no person involved in activities associated with pickets or organising pickets has any exemption from the provisions of the criminal law as it applies, for example, to prevent obstruction and preserve public order, or to regulate assemblies or demonstrations. There is already a relevant code of practice in place for that. Consequently, although I understand the points that the shadow Minister is making, I say to him that this issue will be dealt with in detail in a forthcoming consultation. I therefore ask him to withdraw his amendment.

[Justin Madders]

My hon. Friend is correct. That is indeed the purpose of the—well, we will get to the clause stand part debate shortly, when we will hopefully deal with that issue. However, this measure is about dealing with a particular ECHR judgment. Therefore, as I say, I ask the shadow Minister to withdraw his amendment.

[Greg Smith]

I understand the point that the Minister makes about prejudging any consultation, notwithstanding the points he makes about international obligations, but this is one of those areas where we have a particular identified problem in leverage that is not being challenged. I should be grateful if the Minister would provide further detail, not in Committee this afternoon but perhaps in writing, on where he thinks that protections exist around this.

From our perspective, it looks very much like this practice is happening and there are no protections against it. If there are protections against it, they are not being enforced. If they are not being enforced, there needs to be a mechanism to enable and allow that enforcement to take place. In good faith, I will withdraw the amendment for now and reserve the right to bring it back on Report, but notwithstanding some of the legitimate points made by the Minister, it is incumbent on us to properly stamp down on this practice and see it as very separate and distinct from the more traditional form of industrial action—strike action. The public understand that in a way that means that there would be even less sympathy when it comes to leverage. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Question proposed, That the clause, as amended, stand part of the Bill.

[The Chair]

With this it will be convenient to discuss clause 60 stand part.

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[Greg Smith]

We debated clause 59 at length in the debate on amendment 166, so I will not dwell on it further, but I am grateful for the Minister’s commitment to write to me on the provisions around leverage.

I will focus my remarks on clause 60 and the removal of provision for a 12-week protected period, with the result that the period would be extended indefinitely. I worry about the potential to create a bit of a lawyers’ charter, where someone will for evermore be challenged, if they are dismissed, on whether it was because they once took part in some form of industrial action. There needs to be some protection and commitment around that, to ensure that employers who have a legitimate reason for dismissing an employee that is not related to their participation in industrial action, are still able to dismiss the employee without fear of industrial action and of constantly being dragged back by lawyers, or potentially trade union representatives, seeking to exploit the removal of the 12-week period.

I accept that this is a niche and hypothetical point, but so much of the law and regulation that we pass in this place can be open to pretty wide interpretation. I think it is important, during line-by-line scrutiny of the Bill, that commitments are made by the Minister that the courts can look back on in years to come to see the true meaning of what the Government are trying to bring about with clause 60. Without those commitments, which in my opinion can be given verbally as part of the debate, some might find themselves in a very sticky spot.

[Alison Hume (Scarborough and Whitby) (Lab)]

It is a pleasure to serve under your chairmanship once again, Sir Christopher. I know that the shadow Minister likes us to draw attention to our union membership, so I again draw attention to my membership of Unison.

I welcome clause 59 because it addresses the critical issue of protecting workers taking part in industrial action, ensuring that they are safeguarded not just against dismissal but against other forms of detriment. As my hon. Friend the Member for Birmingham Northfield has previously mentioned, the case of Fiona Mercer, a care worker suspended after participating in legal industrial action, highlights why the reforms are needed. Like so many care workers, Fiona dedicated her career to supporting some of the most vulnerable in our society—in Fiona’s case, adults with learning difficulties. Yet she faced suspension for standing up for fair pay and better conditions. Her case is a pertinent reminder of the vulnerabilities faced by workers in critical sectors such as social care when their legal rights are not adequately protected.

Therefore, I welcome the clause’s introduction of protections against detriment, ensuring that employers cannot punish workers like Fiona for exercising their right to strike. This provision is essential to safeguard the ability of care workers and others to advocate for fair treatment without fear of suspension, demotion or other retaliatory measures. The removal of the arbitrary 12-week protected period for unfair dismissal means that workers like Fiona can continue to fight for justice without compromising on protections.

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[Justin Madders]

The clause seeks to repeal the Strikes (Minimum Service Levels) Act 2023, which provides powers for the Government to make regulations to set minimum service levels during strike action in some essential services. The previous Government introduced regulations to implement minimum service levels in rail, border security, fire and rescue, and ambulance services. No work notice, however, has ever been issued by an employer to require individuals to work to meet the minimum service level during strike action. This demonstrates the futility and misguided approach of the Act and I urge Members to support its repeal. Minimum service levels unduly restrict the right to strike and undermine good industrial relations. As a result, our plan—it is a clear manifesto commitment—pledged to repeal the Act to give trade unions the freedom to organise, represent and negotiate on behalf of their workers.

The clause amends the Trade Union and Labour Relations (Consolidation) Act 1992. Subsection (1) repeals provisions of the 1992 Act as inserted by section 1 of the Strikes Act, with sections 234B to 234G falling away. A number of further amendments are made by the clause to the 1992 Act to reverse other changes made by the Strikes Act. As a result, all associated powers, regulations, provisions and defined terms related to minimum service levels will also fall away. We want to reset the relationship with both employers and trade unions to resolve disputes through meaningful negotiations, and repealing the Strikes Act will help us to achieve that.

I will now turn to new clause 27 and amendment 133, which were tabled by the hon. Member for Mid Buckingham- shire. The Government will not support his proposals, which unnecessarily ask for an assessment of the ability of essential public services to provide minimum service levels during industrial action, and to lay a report containing the findings before the House. The Government have already produced a comprehensive set of impact assessments, including an assessment covering the repeal of the Strikes (Minimum Service Levels) Act 2023. This was published alongside the Bill at Second Reading and is based on the best available evidence about the potential impact on business, workers and the wider economy. The assessment is hamstrung by the fact that the Act has never been implemented, so we are in some difficulty in seeing whether there was an impact from it.

The analysis we undertook, however, included labour market and broader macroeconomic analysis, including sectoral analysis on industries providing essential services, potential influence on collective bargaining and dispute resolution processes, while also addressing the balance between employer needs and union representation. We want to reset the relationship with both employers and trade unions to resolve disputes through meaningful negotiations, and believe that the Act was a hindrance to doing so. I therefore ask the shadow Minister not to move his new clause or amendment.

[Greg Smith]

I will focus my remarks predominantly on new clause 27 and amendment 133, which stand in my name and those of my hon. Friends. New clause 27 would require the Secretary of State to assess the impact of clause 61, which, as the Minister outlined, repeals legislation passed by the last Conservative Government that implemented minimum service levels in vital public services during periods of strike action. Amendment 133 would specify that regulations could not be laid to repeal minimum service levels legislation until the reports required by new clause 27 had been approved by a resolution of the House of Commons on a motion moved by a Minister of the Crown.

We think that is fundamentally right because, with no justification or explanation, the Government will repeal legislation designed to ensure that, during a strike, levels of service are maintained to ensure public safety. We consulted on minimum levels of service for the ambulance service, fire and rescue services and passenger rail services during the last Parliament. It is an important principle that members of the public, who pay through their taxes for lifesaving public services such as ambulance and fire services, should be able to rely on those services at all times, including when members of those services choose to take strike action. Equally, members of the public depend on rail services and in many cases will have already paid for them through season tickets. They have a right to an acceptable level of service, even when members of unions decide to take strike action.

Therefore, before the Government can commence the repeal of the minimum service levels legislation, we think it is only right that the Secretary of State should demonstrate and reassure the House that, in the sectors that the Conservatives specified as suitable for requiring minimum service levels during strike action—to recap, because I think it is important that we get this back on the record, those are health services, fire and rescue services, education services, transport services, services involved in the decommissioning of nuclear installations and management of radioactive waste and spent fuel, and border security—minimum levels of acceptable service can be provided to the public. I make that point not on a whim, but as a matter of public safety and public convenience, and I would be grateful for reassurance from the Minister on it.

If I may humanise it for a moment, this is not about simply saying that people should not be allowed to strike, or taking away rights or anything, although I am sure it will be painted as that; it is about expanding an established custom and precedent in this country about certain sectors, such as the police, being unable to strike. My father was a police officer for 31 years before he retired. We have always accepted as a country that the police should not be able to strike, because they are there for the fundamental purpose of public safety. We know that when we need them, they will be there and available. The same core public service, which we all pay for through our taxes, is provided by the other professions I outlined, not least fire and rescue services, border security and the niche but important services involved in the decommissioning of nuclear facilities, and there absolutely must be minimum service levels there too. Any one of us could need an ambulance at any point at no notice. Whether or not that minimum service level is in place is quite literally the difference between life and death. This is a serious issue.

The Labour party has always been opposed to minimum service levels. It opposed the legislation in the previous Parliament, and through this clause it is taking the quickest action possible to repeal it. I urge Labour Members to consider the practical, life-and-death consequences of not ensuring minimum service levels for fire, ambulance and border security services. If they have issues with some of the detail of the minimum service levels legislation, they should by all means strengthen it, but it would be simply negligent to allow the minimum service levels to drop and to leave any of our constituents—even just one—in a position of potentially life-and-death danger by repealing the legislation.

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[Justin Madders]

Clause 62 seeks to reverse the effect of section 7 of the Trade Union Act 2016. It will remove the additional reporting requirements imposed on trade unions for their annual returns to the Certification Officer regarding details of industrial action taken during the reporting period. Specifically, trade unions will no longer be required to include information on any industrial action taken during the reporting period, the nature of the trade dispute relating to the industrial action, the type of industrial action taken or when it was taken, or confirmation that the relevant thresholds covering industrial action ballots have been met. Additionally, trade unions will no longer be required to include information regarding the results of industrial action ballots—for example, the number of votes cast and the number of those who voted yes or no.

Subsection (1) removes section 32ZA from the Trade Union and Labour Relations (Consolidation) Act 1992, which sets out the additional reporting requirements on trade unions. Trade unions will still be required to submit an annual return to the Certification Officer. However, the amount of information they will be required to include will be reduced. By removing these additional administrative burdens on trade unions, we are freeing up their time to engage in bargaining and negotiation with employers and allowing them to devote more time to representing their members’ interests.

Clause 63 seeks to repeal amendments made to the 1992 Act by section 12 of the Trade Union Act 2016 and thereby remove the requirement for trade unions to include political fund expenditure in their annual return to the Certification Officer. Currently, this information must be provided where a union spends more than £2,000 per annum from its political fund. Subsection (2) removes section 32ZB from the 1992 Act, which sets out the information to be included in a union’s annual return on political expenditure.

Other subsections of clause 63 make other amendments to the 1992 Act that are consequential on the removal of section 32ZB, including as to its enforcement and its application to employers’ associations. Section 12 of the 2016 Act itself is repealed by subsection (7). Trade unions will still have to report to the Certification Officer on their income and expenditure. That includes reporting on the income and expenditure of the political fund. Moreover, all political parties will still be subject to the reporting requirements in the Political Parties, Elections and Referendums Act 2000, which requires certain donations and loans to be recorded and reported to the Electoral Commission.

Clause 64 seeks to repeal the remainder of the effect of section 18 of the 2016 Act. It removes the power of the Certification Officer to publicise a trade union’s failure to include the required industrial action data in its annual return. Clauses 62 and 63 remove the requirement for trade unions to include details of industrial action and political expenditure in their annual returns, so there is clearly no need for the Certification Officer to retain powers to enforce such a requirement.

Enforcement relating to details of political expenditure is addressed in clause 63, and enforcement relating to details of industrial action in clause 64. Therefore, clause 64(2) removes section 32ZC of the 1992 Act, thereby removing the powers of the Certification Officer to enforce the additional annual return requirements relating to industrial action. The Certification Officer will retain the powers to enforce the remaining annual return requirements in relation to a union’s financial affairs and governance.

Clause 65 seeks to reverse the effect of section 17(1) and (2) of the 2016 Act, which inserted schedule A3 to the 1992 Act. It will repeal the enhanced investigatory powers of the Certification Officer, including the power to launch investigations by inspectors, the ability to compel trade unions to produce documents, and the related powers of enforcement. Schedule A3 to the 1992 Act sets out the details of the Certification Officer’s investigatory powers as introduced by the 2016 Act.

Clause 65(5) removes section 256C of the 1992 Act and subsection (6) removes schedule A3 from the 1992 Act. Subsections (2), (3) and (4) make more minor amendments that relate to the removal of schedule A3. Consequentially, subsection (7) removes section 17(1) and (2) of the 2016 Act, and schedule 1 to that Act, and makes further minor amendments to schedule 4 to that Act and to section 43 of the Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Act 2014.

The enhanced powers created by the 2016 Act were unnecessary. There was no evidence of regulatory failure, and unions have consistently complied with their statutory obligations in relation to their finances, governance and reporting requirements. Since their introduction, the Certification Officer has never used those additional powers. Removing onerous regulatory burdens from trade unions is part of the Government’s commitment to bringing in a new era of partnership that sees employers, unions and Government work together in co-operation and through negotiation.

Clause 66 seeks to remove the powers of the Certification Officer to investigate trade unions proactively without first having received a complaint from a member of that trade union. Those powers were added to various provisions of the 1992 Act by schedule 2 to the 2016 Act. The enhanced investigatory powers created by the 2016 Act were unnecessary. There was no evidence of regulatory failure, and unions have consistently complied with their statutory obligations in relation to their finances, governance and reporting requirements. In fact, since their introduction, the Certification Officer has never used those additional investigatory powers either.

Subsections (2) to (9) of clause 66 remove the ability for the Certification Officer to proactively investigate a range of issues, reverting to the position pre-2016, when the Certification Officer could only consider and act upon a complaint from a member. Trade unions are voluntary associations, run by and for their members. We are returning the Certification Officer’s role to one of adjudicating when it receives members’ complaints in relation to a union.

Clause 67 seeks to reverse the effect of section 19 of the 2016 Act to remove the ability of the Certification Officer to impose financial penalties on trade unions. The previous Government presented no evidence as to why the Certification Officer needed those additional powers. Since they have come into force, no financial penalties have been imposed on any trade union.

Schedule A4 to the 1992 Act sets out the detail of the power to impose financial penalties. Clause 67(2) removes section 256D of the 1992 Act, which gave effect to the schedule, and subsection (3) removes the schedule. As a result, the clause removes subsections (1) to (3) of section 19 of the 2016 Act and schedule 3 to that Act. The Certification Officer will retain the power to issue enforcement orders, and if those orders are not complied with, the union may be found in contempt of court.

Clause 68 will repeal sections 257A and 258(1A) of the 1992 Act, as inserted by section 20 of the 2016 Act. That will remove the levy charged by the Certification Officer on employers’ associations and trade unions. Furthermore, the Certification Officer will no longer be required to report on the levy as part of its annual report to Parliament. The levy is an impediment to the rights of voluntary associations, and it attracted criticism from international bodies, including the International Labour Organisation.

Clause 68(2) removes section 257A of the 1992 Act, which sets out the requirements for a levy to be paid to the Certification Officer by trade unions and employers’ associations. Subsection (3) removes the requirement in section 258(1A) of the 1992 Act for the Certification Officer to report on the levy. The Government believe that we should interfere as little as possible in the activities of social partners, which are voluntary associations.

Clause 69 seeks to reverse the changes made by section 21 of the 2016 Act to the 1992 Act so that the right of appeal against decisions of the Certification Officer to the Employment Appeal Tribunal is on questions of law only, rather than on questions of law and fact. That brings the appeals process back in line with the position before the 2016 Act and with many other enforcement bodies of employment law. For example, appeals against the decisions of employment tribunals are considered only on points of law, not points of fact. I hope hon. Members were keeping up with that; I shall be asking questions later.

New clause 44 would place a new duty on the Certification Officer, the regulator of trade unions and employers’ associations, by requiring it to advance the objectives of the international competitiveness of the economy and its growth over the medium to long term when carrying out its statutory functions.

It is helpful at this stage to set out the role of the Certification Officer. It has been the regulator of trade unions and employers’ associations since 1975 and not only carries out regulatory functions, but has administrative and supervisory functions and a significant quasi-judicial function, where it adjudicates on complaints raised by trade union members and other parties. As part of our repeal of the provisions of the Trade Union Act, we will be repealing the Certification Officer’s enhanced investigatory and enforcement powers and the levy imposed on trade unions and employers’ associations. As such, we will be returning the role much to what it was before the Trade Union Act was implemented.

The Certification Officer’s primary role is to ensure that both unions and employers’ associations adhere to the statutory requirements in relation to their finances and governance that Parliament has decided they are required to observe. Its statutory functions are to maintain lists of trade unions and employers’ associations; determine complaints from union members against their unions relating to alleged breaches of statutory duties and some other types of union rules; determine union independence; ensure that annual returns are made; supervise mergers, political fund ballots and members’ superannuation schemes; and investigate alleged financial irregularities and breaches in relation to trade union membership. The Certification Officer therefore has no locus in relation to industrial action and no role in making assessments of how unions and employers’ associations impact the economy. It has no economists or statisticians on its payroll.

In view of the Certification Officer’s functions and role, the new clause is not appropriate. It is not clear how the Certification Officer, in making decisions on whether a union or employer association has breached its statutory obligations, will act to advance the objectives of international competitiveness of the economy and its growth in the medium to long term. Hopefully the shadow Minister will set out how that would work in practice, because it is not obvious to me how the Certification Officer could take those factors into account when determining the statutory obligations that unions and employers’ associations have to observe under Acts of Parliament. For that reason, I ask him not to press his new clause, and I commend clauses 62 to 69 to the Committee.

[Greg Smith]

I congratulate the Minister on his marathon run through clauses 62 to 69. I will focus my comments particularly on new clause 44, which, as the Minister has outlined, would require the Certification Officer to advance the objectives of the international competitiveness of the economy and its growth in the medium to long term.

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[Justin Madders]

I am grateful to the shadow Minister for taking slightly less time than I did on this grouping. For the record, I am fully supportive of the Prime Minister’s action plans, milestones, missions and all other types.

[Greg Smith]

Can he name them?

[Justin Madders]

I am afraid that would be out of scope of the Bill Committee. I hear what the shadow Minister says. His essential argument is that we should be able to judge the actions of trade unions in terms of the damage or disruption they cause to the UK economy. Of course, we want to see growth and we want to see industrial action minimised. We believe that by having a more harmonious set of industrial relations, we will see that.

Unfortunately, the shadow Minister’s new clause really mischaracterises the Certification Officer’s role. He is not, as the hon. Gentleman said, there to preside over strikes; he is there to preside over the governance, finances, reporting requirements and statutory obligations of trade unions and employers’ associations—I noted that the hon. Gentleman did not mention employers’ associations. The Certification Officer is not there to preside over industrial disputes and strikes. There are courts to intervene if a party feels aggrieved about the way industrial action has been observed, whether lawfully or not. I can see the intention of the new clause: the shadow Minister wants the Government to succeed in their growth mission. We all do, but I do not think the Certification Officer is the right or appropriate vehicle for that to take place.

Question put and agreed to.

Clause 62 accordingly ordered to stand part of the Bill.

Clauses 63 to 69 ordered to stand part of the Bill.

Clause 70

Regulations subject to affirmative resolution procedure

Question proposed, That the clause stand part of the Bill.

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[Justin Madders]

The clause amends section 293 of the Trade Union and Labour Relations (Consolidation) Act 1992, with which I am sure all Members are now very familiar, to require that regulations made under the following new sections of the 1992 Act are subject to the affirmative resolution procedure. This therefore will apply to the following regulations: section 70ZC, on access agreements, response period and negotiation period; section 70ZE, on access agreements and the period to make an application to Central Arbitration Committee; section 70ZF, on access agreements and determinations by the Central Arbitration Committee; section 70ZI, on the enforcement of access agreements and the maximum penalty; and section 236A, on detriment for taking industrial action. Any other regulations made under section 293 will continue to be subject to the negative resolution procedure. I therefore commend clause 70 to the Committee.

[Greg Smith]

I will not detain the Committee with a commentary on this clause.

Question put and agreed to.

Clause 70 accordingly ordered to stand part of the Bill.

Clause 71

Devolved Welsh authorities

Question proposed, That the clause stand part of the Bill.

[The Chair]

With this it will be convenient to discuss the following:

New clause 30—Repeal of Trade Union (Wales) Act 2017—

“The Trade Union (Wales) Act 2017 (anaw 4) is repealed.”

This new clause repeals the Trade Union (Wales) Act 2017.

[The Minister for Equalities (Dame Nia Griffith)]

We now turn to clause 71 and will resist Opposition new clause 30. Clause 71 is the final of the package of clauses to repeal the Trade Union Act 2016. It makes a consequential amendment to the Trade Union (Wales) Act 2017 following the repeal of the Trade Union Act 2016. Section 1 of the 2017 Act disapplied some of the provisions of the Trade Union and Labour Relations (Consolidation) 1992 Act, as introduced by the Trade Union Act 2016, from applying to devolved Welsh authorities. As the Trade Union Act 2016 and the relevant provisions of the 1992 Act are being repealed, section 1 of the 2017 Act is now redundant. There are also consequential amendments to the 1992 Act to remove the relevant references to devolved Welsh authorities.

New clause 30 seeks to repeal the Trade Union (Wales) Act 2017 in its entirety. Section 1 of this Act disapplies certain provisions of the Trade Union Act 2016 to devolved Welsh authorities. Repealing the Trade Union Act 2016 means that these provisions are no longer necessary. It is for that reason that we are repealing section 1 of the Trade Union (Wales) Act 2017 through clause 71 of this Bill. Section 2 of the 2017 Act is not impacted by the repeal of the Trade Union Act 2016. It prevents a devolved Welsh authority from using agency workers to replace striking workers. This Government support a prohibition on using agency workers to cover industrial action and therefore we are content to leave this in the Trade Union (Wales) Act 2017. New clause 30 is therefore unnecessary and I ask the shadow Minister to withdraw it. I commend clause 71 to the Committee.

[Greg Smith]

I will focus my remarks on new clause 30, tabled in my name and that of my hon. Friends the Members for West Suffolk, for Bridgwater and for Mid Leicestershire. It is good to see the Minister in her place on her first outing in the Committee of the day, and as she said, new clause 30 would repeal the Trade Union (Wales) Act 2017. Prior to the 2017 Act, there was legal ambiguity in post-devolution case law of the degree to which trade union legislation was a reserved or devolved competence. Following the passage of the Trade Union Act 2016 in the UK Parliament, the Labour-led Welsh Government then passed Welsh legislation—the Trade Union (Wales) Act 2017—to disapply a number of trade union measures in Wales in relation to devolved public services. The Wales Act 2017 was subsequently passed with cross-party and cross-institution agreement, and re-established that industrial relations were a reserved competence.

The Conservative-led UK Government at the time pledged to unwind the Welsh Government’s Act and reapply the full 2016 Act to Great Britain following the passage of the Wales Act 2017. However, re-asserting such common trade union law across Great Britain would require primary legislation in the United Kingdom Parliament. Given that the Wales Act 2017 established industrial relationships as a reserved competence, we would like to understand when the Government intend to resolve the changes implemented by the Welsh Government’s Act, which disapplied some of our 2016 Act. I do not think it is an unreasonable ask of the Government that we seek to resolve through the new clause.

[Dame Nia Griffith]

The point is very clear, isn’t it? In the legislation we are providing now, we are making the first part of the Trade Union (Wales) Act unnecessary, and therefore it is perfectly appropriate to put through a clause in this Bill to keep things in line with what we are doing across the UK. It is perfectly in order to have a clause that seeks to bring that particular legislation in line with the situation in which we now find ourselves.

On the second part of that legislation, as I have just said, that is already something on which we agree with the Welsh Government. We therefore see no particular reason why there should be a repeal of that legislation in the Bill, and we do not propose to do so. I suggest that the shadow Minister’s new clause is not necessary in the current Bill.

Question put and agreed to.

Clause 71 accordingly ordered to stand part of the Bill.

Ordered, That further consideration be now adjourned. —(Anna McMorrin.)