Employment Rights Bill

Gregory Stafford Excerpts

Report stage
Wednesday 12th March 2025 Commons Chamber

[Liam Byrne]

Thank you, Madam Deputy Speaker. I will start with my declaration of interests, as a former member of the Confederation of British Industry and a current member of the trade union Unison.

I will try to introduce a few points of consensus to the debate. I am old enough to remember when Conservative Members such as the former Member for Harlow were writing pamphlets for think-tanks such as Demos with titles like “Stop the union-bashing; why conservatives should embrace the trade union movement”. Of course, that was an echo of something that Harold Macmillan famously used to say in the 1950s: “We used to think that we could not have a modern industrial society without trade unions. I still think that.”

I think we would all benefit from a little acknowledgment that industrial relations in this country have not been in a good place. In 2023 more days were lost to strikes than at any point in the past 30 years, and the Office for National Statistics calculated at the back end of 2022 that 2.5 million days had been lost to strike action. That is not a record that any one of us in this House should be proud of. It is incumbent on all of us to modernise industrial relations in this country, so that we are not divided in the workplace in this way.

As such, I welcome the measures in this Bill. I hope that the Minister will seize the moment—not only the fact that we have the Bill, but the advent of an industrial strategy that will introduce governance arrangements that get businesses and unions around the table to talk about economic growth in our country. That is a big opportunity; it is a big moment in which we can bring our country together around a modern industrial strategy. I hope that once the Minister has got this Bill done and has had a little bit of a rest—maybe gone on holiday for a bit—he will think about how the Government will then publish a modern industrial strategy for the future, backed by the restoration of some of the data that we used to have in this country, such as the workplace employee survey. We had that until about 2012, when it was stopped. We need to be more thoughtful about harmony in the workplace, because that is in the interests of the constituents we serve.

[Gregory Stafford (Farnham and Bordon) (Con)]

The right hon. Member used the term “modernising industrial relations”, which sounds a little like a euphemism. Taking him at his word, however, is he not therefore surprised that the pay rises that have been given to doctors, train drivers and a number of other unions since this Government came in have not been accompanied by any requirement for increased productivity? If we are to have modernised industrial relations, surely the increased pay that unions want should be combined with the productivity gains that this country needs.

[Liam Byrne]

The hon. Member will no doubt have heard the remarks made by the Chancellor of the Duchy of Lancaster at the weekend. I suspect that the hon. Member, like every Member of this House, will see some pretty radical steps taken in the comprehensive spending review to improve the efficiency of the civil service. Of course, the civil service grew very significantly in the years after covid, and now it has to be reinvented for new times. I am confident that those productivity gains will come.

My second point was to draw the House’s attention to some of the evidence taken by our Select Committee. That evidence is contained in our report, which I commend to all hon. Members. What struck me about the evidence we heard from the most productive firms in the country, such as Jaguar Land Rover, Rolls-Royce and BAE Systems, was that those are world-beating companies—some of the most productive companies in our country—and what characterises the workplace arrangements of all of those companies is that they have very long-standing, robust and deep partnerships with good trade unions. Those trade unions help make decisions, help de-conflict things and help businesses thrive and succeed. That is why stronger collective rights are important.

We also took evidence from companies where, I am afraid to say, there was not that harmony, such as Amazon. It has had to call ambulances to its warehouses 1,400 times in just five years. We on the Committee received whistleblower evidence from workers who were literally having to urinate into bottles because they did not dare take time out from their tasks to go to the bathroom and back. We heard all kinds of whistleblower complaints about injuries being sustained, and pay is rising much more slowly than sales.

When we had executives from that company in front of us, they could not—or would not—tell the Committee why strike action had been taken by workers in their firm. If a company executive cannot explain to a Select Committee of this House why so many of their workers are on strike, that is not a story of harmony or a recipe for success. That is why the measures that the Minister has brought forward in this Bill to improve the opportunities for trade unions to organise—in a way that was recommended by the former Member for Harlow, actually—are a good thing.

The Minister has gone some way in recognising recommendations made by our Committee, such as improving the window in which complaints can be heard beyond 24 hours, bringing in template access agreements and strengthening the role of the Central Arbitration Committee in dispute resolution. There is just one further step that I suggest, which is the subject of amendment 282. We suggest that access rights for trade unions should include digital access rights, because in the modern workplace, of which Amazon is a case in point, there simply is not an opportunity for workers to get information about the opportunities to join a trade union and make a fair choice one way or the other in the way that there could be in the modern economy.

My final point is about enforcement. The first factory Act passed by this House was the Health and Morals of Apprentices Act 1802. It was celebrated in parliamentary history as an Act that failed because there was no enforcement attached to it. Enforcement of this Bill is essential if it is to succeed, but labour market enforcement today is much too weak. Just 21 employers have been prosecuted for minimum wage enforcement since 2007, despite the fact that we all know that abuses of this sort are taking place in our constituencies.

Spending on labour market enforcement has been flat since 2014, and we are well off the International Labour Organisation target of one labour market inspector for every 10,000 workers. New clause 82 in my name would require the Secretary of State to set out a road map for reaching that ILO target, for ensuring there is greater use of penalties where appropriate, and for much stronger partnerships between the Home Office, the police and the Fair Work Agency. We cannot have a situation in this country where the best of British firms are being undercut by the worst labour market practice.

In conclusion, I welcome this Bill. Some of the amendments that have been tabled would improve it, but ultimately we have to remember that if we want to create a genuinely pro-business, pro-worker economy, the measures in this Bill are long overdue.

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[Zarah Sultana (Coventry South) (Ind)]

I refer the House to my entry in the Register of Members’ Financial Interests. I am a proud trade unionist and a member of Unite the union. I have been supported from across the labour movement with the cleanest money in politics, which I do not think Conservative Members can say about themselves.

For over a year, Swedish Tesla workers have been on strike demanding the basic right to collective bargaining. Their struggle has inspired solidarity across industries. Postal workers, painters, electricians, cleaners and dock workers have all launched secondary action in support. Denmark’s largest trade union, 3F Transport, has also joined the fight, preventing Danish dock workers and drivers from handling Tesla shipments bound for Sweden. This level of solidarity is possible because Swedish trade unions are not shackled by restrictive laws designed to suppress collective action. Unlike here in the UK, the legislative landscape in Sweden does not act against the interests of organised labour. Almost 90% of Swedish workers are covered by collective agreements, and their labour laws ensure that workers have the right to negotiate and defend their conditions without undue interference.

As a result, Swedish trade unions are more than a match for billionaires like Elon Musk. When Tesla refused to sign a collective agreement, it was not just Tesla workers who fought back—the entire trade union movement did. That is what real industrial democracy looks like, and it is a powerful reminder of what British workers have been denied for too long by some of the most draconian anti-union legislation in the western world.

While I welcome the repeal of the Strikes (Minimum Service Levels) Act 2023 and much of the Trade Union Act 2016, the fact remains that many of the worst Thatcher-era anti-union laws are still in place. One of the most damaging is section 224 of the Trade Union and Labour Relations (Consolidation) Act 1992, which makes secondary action unlawful. That ban on sympathy strikes isolates workers, weakens their bargaining power and prolongs disputes—all to the benefit of exploitative employers. That is why I have tabled new clause 31 to repeal that restriction and return power to working people.

Secondary action built the trade union movement as we know it. It helped us secure the very rights that we all benefit from today. But in an era of outsourcing and subcontracting, the ban is even more harmful than it was three decades ago. Under current legislation, two workers performing the same job in the same workplace cannot take industrial action together if one is directly employed and the other is outsourced. Employers exploit that loophole to divide workers. They shift responsibility through complex corporate structures, like what we are seeing at Coventry University in my constituency, and undermine union action by transferring work or hiving off companies. Workers are even prevented from taking action against parent companies and suppliers during disputes.

In many ways, secondary action is more essential than ever in the fight for fair pay and conditions. Most European nations, including Denmark, Norway, Sweden, Belgium and the Netherlands, allow secondary action in some form. Even those with restrictions, such as Germany, France and Spain, stop short of imposing an outright ban. Labour’s new deal for working people committed to repealing anti-union laws and ensuring that the UK’s industrial action laws comply with international obligations, including those under the International Labour Organisation and the European social charter. Yet, as it stands, the Bill fails to deliver on that promise.

International bodies have repeatedly condemned the UK’s ban on secondary action. The European Committee of Social Rights and the ILO criticised the UK for that restriction most recently in 2023 after the P&O Ferries scandal, when 800 crew members were sacked via video call and replaced with agency workers. P&O knew that it could get away with its disgraceful actions because the law prevents other workers from striking in solidarity.

I also support a number of amendments, including those tabled by my hon. Friend the Member for Middlesbrough and Thornaby East (Andy McDonald), such as new clause 61, which would define employment status in law to end bogus self-employment. That is long overdue. For too long, employers have exploited gaps in employment law to deny workers basic rights. Today, in our country, black and Asian workers are disproportionately trapped in precarious, low-paid jobs on bogus self-employment contracts and denied statutory sick pay, holiday pay and protection from unfair dismissal. This two-tier system must end.

Every single worker deserves dignity and respect in the workplace, and by strengthening the Bill with these amendments, we would be taking a step forward towards rebuilding the power of the working class. I urge Members across the House to stand on the right side of history and with the workers who keep this country running.

[Gregory Stafford]

I rise to speak again on the second day of Report stage to raise serious concerns about the role of the Bill in facilitating unprecedented and dangerous access for trade unions and the destruction of business, especially small businesses. I am glad the Minister is in his seat because yesterday he was challenged to name a small business that supported the Bill, and 24 hours later he still cannot. That is due not to the assiduity of the Minister, who I am sure is very assiduous, but to the simple fact that no small business supports the Bill.

[Andy MacNae (Rossendale and Darwen) (Lab)]

Will the hon. Member give way?

[Gregory Stafford]

I have hardly started. There cannot possibly be anything that the hon. Gentleman wants to intervene on me for just yet, but I will come to him.

[Andy McDonald]

Will the hon. Member give way?

[Gregory Stafford]

I will come to the hon. Gentleman in a minute.

Yesterday, we heard that Labour clearly does not understand business, and today we get to what it really does understand: how it can support its trade union paymasters. Government Members have given us a masterclass in how to support trade unions. Opposition Members have mentioned the 1970s. When I heard Government Members speaking, especially the hon. Member for Blyth and Ashington (Ian Lavery), John Williams’s score from “Jurassic Park” soared in my mind. But instead of Jeff Goldblum being savaged by the dinosaurs, the dinosaurs that walk among us today will be savaging our economy. We know that because the growing influence of the unions, especially under the Bill, impose a heavy burden on corporations, stifling their ability to operate efficiently. As new businesses struggle to adapt to the new regulations, which the Government’s very own impact assessment predicts will cost £5 billion to implement, industry leaders have publicly shared their fears—

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[Madam Deputy Speaker (Caroline Nokes)]

I thank the hon. Member, but he will be aware that that was not a point of order. As the hon. Member for Blyth and Ashington (Ian Lavery) has spoken in the debate, it is perfectly in order to refer to the comments that he made.

[Gregory Stafford]

I return to what industry leaders are saying. They have shared their fear about

“union influence slowing down decision making and hindering flexibility”,

making it harder for companies to remain competitive in global markets. The Chartered Institute of Personnel and Development’s survey found that 79% of organisations expect measures in the Employment Rights Bill to increase employment costs, placing further strain on companies that are having to grapple with increases to national insurance contributions and the rising national minimum wage. It is also likely that the measures will lead to

“more strikes, more disruptions, and ultimately less productivity.”

[Antonia Bance]

The hon. Member has referred a number of times to yesterday’s proceedings. I am sad that he was not able to join us in the Division Lobby in voting against the amendments and in favour of the Bill, given that 73% of his constituents in Farnham and Bordon support statutory sick pay for all workers from day one, and 67% of his constituents support banning zero-hours contracts.

[Gregory Stafford]

I am sorry that I am such a disappointment to the hon. Lady, but maybe she will get over it.

The Bill is a roll-back of the most important changes that we made when we were in government. It is no surprise that trade unions have warmly embraced the legislation, over 200 amendments having been hastily shoehorned in to satisfy those who line the Government’s pockets. Perhaps it is purely coincidental that their wishes have been granted, although one might wonder if the £5.6 million in donations the Labour party has received since July has something to do with it.

[Graham Stuart]

Despite her proud membership of trade unions, the last Labour Member to be called to speak, the hon. Member for Coventry South (Zarah Sultana), did not mention the more than £9,000 that she received just in the last year, any more than the Labour Member who spoke before her, the hon. Member for Derby South (Baggy Shanker), mentioned the £24,000 plus that he received. If Labour Members were truly proud of the way that they have been bought and paid for by the trade unions, perhaps they would be open about how much they have received.

[Gregory Stafford]

My right hon. Friend makes a key point. The change since yesterday has been interesting. Yesterday, Labour Members were clear about declaring that they were members of trade unions, but only today have they suddenly realised that they should be declaring the amount of money that they are receiving directly.

We heard yesterday from the shadow Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake), that the legislation will allow unions to bypass current rules, such as the rules on opting out of political donations. It must be fantastic news to the Labour party that it will now receive donations from workers by default, while businesses will face reduced notice periods for strikes, leading to even more disruption and economic damage. It is clear to me, and to the hundreds of businesses that have pulled their support for this Government, that this is not about protecting employment rights, but about consolidating union power.

Let us briefly look at some of the amendments. Amendment 292 would require trade unions to notify their members every year of their right to opt out of the political fund, and to obtain an annual opt-in. That change would ensure that unions do not continue to fill Labour’s piggybank, and do not lock workers into automatic donations unless they actively opt out, which is as much a memory test as an admin task. Unamended, clause 52 is not about transparency, but about keeping the money flowing to the political party with the most to gain.

Likewise, there are new clauses and amendments that would have introduced transparency about the facilities provided to trade union officials, learning representatives and equality representatives. Clauses 54 and 56 are designed to reduce transparency and accountability for union spending, allowing union officials to continue to benefit from facility time without proper scrutiny.

[Sir Gavin Williamson (Stone, Great Wyrley and Penkridge) (Con)]

Will my hon. Friend give way?

[Gregory Stafford]

I will, for the last time.

[Sir Gavin Williamson]

Does my hon. Friend agree that there is an interesting contrast in the Government’s approach? They are quite happy to put extra burdens, responsibilities and work on businesses of all sizes, yet when it comes to any element of transparency or giving members of trade unions a real choice and understanding of where their money is going, they refuse to do that.

[Gregory Stafford]

The disparity—I will put it no stronger than that—that my right hon. Friend mentions is stark. Anybody watching these proceedings outside this House will absolutely agree that the Government want to put extra burdens and regulations on business, but when it comes to the trade unions, transparency goes out the window. Why is that happening? The answer is simple and clear: unions have significant influence over this Government. While the Deputy Prime Minister and her Cabinet colleagues are pushing for these changes, they do not even do what the measures state. Key figures including the Chancellor, the Foreign Secretary and the Home Secretary are all guilty of hiring under terms that are odds with the new regulations. Why would they introduce such a Bill when they themselves do not comply with it?

Just like the more than 200 Labour MPs who have taken union donations, the Deputy Prime Minister has her own interests to consider. In her opening remarks yesterday, she proudly disclosed her union membership while conveniently admitting to the £13,000 in union donations that she has taken. It is clear that union influence is driving this legislation and most likely writing the speeches of Labour Members. The Government claim to be

“pro-growth, pro-business and pro-worker”—[Official Report, 21 October 2024; Vol. 755, c. 46.]

[Baggy Shanker]

Will the hon. Gentleman give way?

[Gregory Stafford]

I will not, because I have only a minute to go.

Perhaps it is time that the Government started listening to the real industry experts—those with practical experience in the sector—not just the trade unions or those within the confines of Whitehall. The Conservatives have tabled key amendments to support growth, in new clauses 89 and 90; international competitive duty, in new clause 87; and a limit on trade union influence on our business-driven economy.

We need to ensure that the Government’s policies do not burden our businesses, stifle innovation or lead to long-term economic harm. This Bill is not just poorly thought-out, but a direct threat to the very fabric of our economy, and we must challenge it before it causes irreparable damage and crushes our already crippled economy.

[Dr Allison Gardner (Stoke-on-Trent South) (Lab)]

I declare that I am a proud member of Unison, and I refer the House to my entries in the Register of Members’ Financial Interests.

I rise to speak in support of this groundbreaking Employment Rights Bill, which will deliver pro-business and pro-worker reforms. It will establish day one rights, such as rights to parental and bereavement leave for millions of workers, and, crucially, will put more money into people’s pockets—people who have had to endure low pay, job insecurity and a cost of living crisis created by 14 years of Tory rule. By strengthening protections for the lowest-paid workers and preventing exploitative employment practices, the Bill will give our working people the solid foundations on which to build a better quality of life.

I will very briefly comment on a couple of topics debated yesterday, which are of personal relevance and relevant to my constituency. [Interruption.] No? I will skip it; I did not think I would get away with that. This Bill will give a voice to working people by tackling the exclusion of independent unions from workplaces. If anyone has experienced a management of change process—I once did, almost three weeks into joining a new job, which was not fun—or workplace bullying, they will know the value of having a union backing them. Unions are fab. I personally thank Unison, including the incredible Trudie, for supporting me in my workplace.

I have seen the impact on those who have experienced issues such as workplace bullying when they have not had the backing of a union, or a union in their workplace, and the stress and pressures on them were immense. Indeed, they ended up with the choice of either putting up with it, leaving—we then have worker turnover—or going off sick. I have known people to go off sick for quite a period of time, which is of course comes at great cost to the company.

When a person joins a union, I have seen the difference that backing and advocacy makes to them, and the voice it gives them. I have experienced that as a normal person who once had a proper job, who was not a union activist but felt the value of unions—I make that comment as an observer. The work that unions do with management for the workers, to provide a workplace that is productive and secure, benefits companies as well. It is not in the interests of unions for businesses to fail; everyone wants a productive working environment.

It would be remiss of me, however, to not acknowledge the concerns that many small business owners have raised with me in recent months. They have been worried about this Bill, and I am grateful to many businesses that have reached out, including 1882 and Crossroads Care. I also want to thank Rachel Laver of the Chamber of Commerce for her excellent engagement, and for giving a voice to local businesses—I have engaged with them regularly. Their concerns are noted, but I also note comments like that from Claire Costello, chief people and inclusion officer at the Co-op:

“It’s our belief that treating employees well—a key objective of this Bill—will promote productivity and generate the economic growth this country needs.”

That comment has been echoed to me by local businesses.

My businesses in Stoke-on-Trent South have my word that I will support them and their workers, and so will this Labour Government, by delivering improved productivity and growth. I am sad that the Conservative party, which has tabled blocking amendments, does not want to support the working people of this country. This Bill’s comprehensive set of impact assessments show that the Bill will have a positive impact on growth, with vital measures such as those on sick pay boosting productivity and growth. Protecting the super-rich and relying on the myth of trickle-down economics have failed. It is time for trickle-up economics, and empowering the working people of this country.