Job Insecurity

Debate between Huw Irranca-Davies and Chuka Umunna

Wednesday 5th February 2014 Commons Chamber

[Mr Umunna]

My hon. Friend is totally correct to raise that issue. Not only is it an issue of justice in the workplace, but it is also—[Interruption.] I have completely forgotten the point I was going to make—one of those moments. Ah, the thought has returned to me: it is also bad for the economy. If people are frightened out of their wits about whether they will retain their jobs, they will hardly go and spend money in our economy.

[Huw Irranca-Davies (Ogmore) (Lab)]

May I draw my hon. Friend’s attention to another historical parallel that goes beyond the Morecambe bay tragedy? A few years ago we marked the centenary of the Tonypandy riots—Members might or might not be aware of them—which took place in the constituency of my hon. Friend the Member for Rhondda (Chris Bryant). The significance of those riots, and the parallel with today’s situation, is that mine owners and the representatives on the Government Benches argued tooth and nail that they could not afford to pay a fair wage to miners working in the most difficult seams in the south Wales valleys. Those miners were living in poverty. I suggest that the parallel is that we should all be working together, with businesses and others, to ensure that people are paid a proper wage.

[Mr Umunna]

That is absolutely right. I will explain how we are seeking to promote that through the payment of the living wage.

--- Later in debate ---

[Mr Umunna]

I am not sure that the hon. Member for North West Leicestershire (Andrew Bridgen) is having a very good day.

Several hon. Members have already raised the issue of zero-hours contracts, and let me explain how we would stop their exploitative use. We would prevent employers from insisting that people on zero-hours contracts are available to work even when there is no guarantee that they will be given any work. We would prohibit zero-hours contracts that require workers to work exclusively for one employer. We would prevent the misuse of zero-hours contracts. When, in practice, employees regularly work a certain number of hours a week, they are entitled to a contract that reflects the reality of their regular hours.

[Huw Irranca-Davies]

Will my hon. Friend speculate on why for some reason my M4 travel-to-work area, where there is some good and encouraging news on jobs, has the highest level of food bank usage in the whole of Wales and has seen a tenfold increase in payday loans, including to people in work, during the past year?

[Mr Umunna]

We know that there has been stagnation in wages. My hon. Friend has given the clearest evidence of the impact of that in his constituency. That relates to the points that I have made to Government Members. Of course it is a good thing that people who have not been in work are getting work. The key thing is that it must be decent work that prevents people from having to go to food banks because they are not earning enough.