Zero Hours Contracts Bill
Debate between Ian Mearns and Ian Murray
Ian Mearns
If the hon. Gentleman had been listening, he would have heard me point out that Ministers in his own Government were admitting to 200,000 such contracts only three years ago, but there are now 1.4 million of them, which is a massive burgeoning in the use and exploitation of workers through the abuse of zero-hours contracts.
Ian Murray (Edinburgh South) (Lab)
My hon. Friend is making a powerful speech on the use of zero-hours contracts, but is not the proof of the pudding always in the eating? Although unemployment has gone down in this country, the tax-take to the Treasury from income tax has stayed flat, despite the Treasury predicting a huge increase. That shows that we have under-employment and a massive explosion in zero-hours contracts.
Ian Mearns
I am grateful to my hon. Friend for making that point. Government Members celebrate the fact that 3 million workers have been taken out of tax completely, but they are also celebrating the fact that 2 million of them are earning £200 or less a week. I do not think that is anything to celebrate in this day and age.
Given the variety of employers now using zero-hours contracts, from Sports Direct to Buckingham palace even, it is clear that they are not just filling a niche; they are also being exploited by unscrupulous employers looking to dodge their responsibilities to their staff.
Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill
Debate between Ian Mearns and Ian Murray(11 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Ian Murray
It absolutely would. Given the evidence of blacklisting that has emerged over the past few years, particularly in relation to the inquiry by the Scottish Affairs Select Committee, it would be perfectly reasonable to assume either that someone might not wish to join a trade union, or that an existing member might wish to leave, on the ground that their membership could affect their employment prospects. That matter has not been dealt with in the Bill, as a result of the slapdash way in which it has been put together and placed before the House.
The Data Protection Act imposes strict conditions for processing sensitive personal data. Anyone processing such data must satisfy one of more of the conditions for processing that apply specifically to such sensitive data, as well as one of the general conditions that apply in every case relating to non-sensitive data. It is arguable that the Bill does not satisfy those conditions, which merely emphasises how incompatible it is with the Data Protection Act.
The conditions in schedule 3 of the Act for processing sensitive personal data are as follows. First, it is necessary for the data subject to have
“given his explicit consent to the processing of the personal data.”
The members would therefore have to consent explicitly, meaning that the assurer would have to contact all the members on the membership list, should they require the data. That would surely be impractical and, as my hon. Friend the Member for Aberdeen North (Mr Doran) said earlier, a requirement that the assurer contact everyone to obtain their explicit consent would impose an onerous burden of cost and bureaucracy on the trade unions.
The second condition in the Act states that the processing should be
“necessary for the purposes of exercising or performing any right or obligation which is conferred or imposed by law on the data controller in connection with employment.”
Unless I am mistaken, however, the proposal in the Bill has nothing to do with employment law. The third condition states that the processing must be necessary
“(a) in order to protect the vital interests of the data subject or another person, in a case where—
(i) consent cannot be given by or on behalf of the data subject, or
(ii) the data controller cannot reasonably be expected to obtain the consent of the data subject”.
That should not apply in the case of a trade union member. The processing must also be necessary
“in order to protect the vital interests of another person, in a case where consent by or on behalf of the data subject has been unreasonably withheld.”
I would imagine that, in relation to trade union membership, those conditions could be satisfied fairly easily. It is not clear that any of the proposed process is designed to protect the individual. It could therefore be argued that the Government have failed to tell us what problem they are trying to resolve, and what process they are trying to protect.
The fourth condition states that the processing must be carried out by a not-for-profit organisation and should not involve disclosing personal data to a third party unless the individual consents. Extra limitations apply to this condition, in that individual consents are required for disclosure to a third party. Will the Minister tell us whether the assurer or the certification officer are third parties? Would any investigator appointed by the certification officer be deemed to be a third party, given that they are deemed in the legislation to be independent? That would not be compatible with the responsibility of the data controller in the trade union.
In addition to those conditions in the Data Protection Act, regulations set out several other conditions for processing sensitive personal data. Their effect is to permit such processing for a range of other purposes—typically, those cases that are substantially in the public interest and that must necessarily be carried out without the explicit consent of the individual. The Government would have to put up a strong argument to convince us that checking a trade union’s membership list was substantially in the public interest, and I cannot see how the provisions in part 3 of the Bill can be deemed to be fulfil those conditions. It is difficult to construct a public interest test in relation to the annual membership list of a trade union. The nature of the consent required to satisfy the condition for processing sensitive data must be explicit. The Act particularly mentions the word “explicit”, yet it is not mentioned in the proposed new clause.
We have tabled amendment 108 to ensure that the assurer is a person of suitable calibre. The Secretary of State should explicitly set out regulations to ensure that the assurer can demonstrate a strong knowledge of and previous compliance with the Data Protection Act and other regulations relating to data protection. Our amendment 109 provides for the removal of an assurer if they are in breach of any of the confidentiality conditions, or if the trade union has any reason to believe that it would be inappropriate for them to remain in post. Amendment 118 would raise the bar on confidentiality, requiring the assurer to take “all steps necessary”, instead of the present “all reasonable steps”, to secure obligations under the Data Protection Act and other legislation.
Ian Mearns (Gateshead) (Lab)
The inherent reason for legislation and regulation of trade unions seems to be that some of those unions donate money to the Labour party, but can my hon. Friend find any provisions within this Bill that impose similar regulations on organisations such as the United and Cecil Club or the Royal Automobile Club, which donate money to the Conservative party? Given that the RAC is a membership organisation, would it be covered by this legislation?
Ian Murray
My hon. Friend makes an interesting observation. No, the RAC would not be covered by part 3, which deals exclusively with trade union membership. In our lengthy debate on the preceding group of amendments, we found that the Conservative party will not even tell us how many members it has, despite the fact that it could well be argued that it has a major vested interest in public opinion and how the laws of this country are determined. Should not the Conservative party therefore be obliged to tell us how many members it has and whether or not its membership lists are accurate? That seems to be falling on deaf ears with the Government. I pressed Members from across the Committee to provide a figure on Conservative party membership, but it has still to come forward.
Ian Murray
That is a legitimate point. I do not know whether my hon. Friend was present during the last debate, but I can tell him that the certification officer figures are pretty stark. There have been 10 determinations since 1987, none in the last eight years and six between 2000 and 2004, of which five were dismissed and the sixth did not even constitute a formal determination. A new, erroneous part of the Bill could easily cause a certification officer to be dragged into a position that affected his neutrality—which, incidentally, trade unions and their members respect. Unions and certification officers work closely together, and certification officers are always keen to make the point that they are not opposed to each other, but share the aim of ensuring that unions operate correctly and within the law.
Let me now deal with the proportionality issue that arose from the case relating to article 11 of the European convention on human rights. Liberty states that the current regime satisfies the requirement that scrutiny be undertaken to ensure public confidence in the status of any register, and that the current measures to undertake that scrutiny are proportionate.
The increased powers of the certification officer are also disproportionate. First, it may invoke its increased powers if it thinks there is good reason to do so. That is very broadly drawn, and what constitutes a good reason in any case? Might it be a vexatious claim from a national newspaper to the certification officer to have a look at a particular membership list? That was the driver behind our amendment 103 to the previous clause, which the Government have just rejected.
Secondly, the certification officer can view not only the register, but any other document that may be relevant to determining whether there is a breach of section 24(1) of the 1992 Act and it can require people to give explanations.
Thirdly and ultimately, under clause 37 as currently written, the certification officer does not owe a duty of confidentiality to the union. The addition of a third-party inspector would be particularly intrusive and that inspector owes a duty of confidentiality only to the certification officer, not the union.
Liberty rightly concluded:
“These measures clearly go beyond what is necessary and proportionate to achieve any legitimate aim behind the proposals, if indeed there is one at all, and as such constitute a breach of Article 11 of the Convention.”
There is, indeed, a compelling argument to be made that clause 37 breaches article 11. The justification for that claim arises from the fact that there is already legislation in place to deal with many of these issues.
Amendments 111, 112, 166 and 115 are intended to clarify the need for a trade union to take “all reasonable steps” to ensure membership lists are accurate. We discussed some of that language in our debate on the amendments to clause 36. This is completely consistent with obligations under the 1992 Act to take all reasonable steps. That language and responsibility should be reflected in clause 37. There will be an inconsistency of language if we remove the reference to taking reasonable steps in the 1992 Act and replace it with language that is more stringent on the trade unions.
The primary responsibility for the alterations to any membership list lies with the individual. That is already set out in section 24(1) of the Act. However, all too often a union member may move house, change jobs or even pass away and those details will not be passed on to the union membership officer for recording in a timely fashion. In some circumstances, it cannot be reasonable for a trade union to be held wholly responsible for every part of a membership list. People can take a complaint to the certification officer resulting in an in-depth investigation at great cost to both the public purse and the trade unions, when the 1992 Act clearly states that the responsibility for ensuring the accuracy of an individual’s data on a trade union membership list lies with the individual, not the union. If the union has taken “all reasonable steps” to make sure that list is accurate, such a matter should not fall within the remit of this Bill.
It should be the case that the assurer can make a determination that the union has, in so far as is reasonably practicable, ensured the entries in the membership register are accurate. That is what amendments 111 and 112 would achieve. They would give the assurer the power to qualify the membership audit certificate to say that information from employers or members has not come forward in a timely fashion and the union has taken all steps to ensure the information is accurate.
The issuing of any membership certificate will be based on information for just a snapshot in time of that particular moment and day. We have learned from the—late—impact assessment that about 9% or 10% of trade union membership flows in or out of a trade union at any given period. For a major trade union, that amounts to an awful lot of people to keep track of. If a union has taken “all reasonable steps” to ensure their membership list is accurate, it should be taken into account that the list will only be a snapshot of a particular moment in time. It should be possible to clearly state on the audit certificate that any inaccuracies are not the fault of the trade union and therefore the audit certificate is issued with that qualification. The clause as currently drafted would not allow for that.
Importantly, for that process to operate correctly the employers also have a duty of responsibility to the trade union membership audit certification process. Amendment 115 would give the assurer the right to access reasonable information from employers if it was determined that that information would be necessary for the performance of the assurer in determining the accuracy of a membership list. It would also allow for access to data that may satisfy the assurer that the trade union has taken all reasonable steps in compiling the membership register. Many unions have indicated that a lack of information from employers provided in an efficient manner is the main cause of the vast majority of inaccuracies in their membership lists. Giving the assurer the powers to make reasonable requests to employers for information means that there can be confidence that membership registers are indeed accurate. If anything comes out of this process and this bad part of the Bill, it might be that the assurer, as an independent person, could help the trade unions with some of those relationships with the employers, to ensure that the data coming from the employers make the lists that trade unions have far more accurate.
Ian Mearns
One wonders what thought is driving the Government to ask trade unions to do what the Bill requires. I cannot for one moment see a situation where the Government would ask for the same accuracy in electoral lists held by returning officers in particular areas at any given time. It would be almost impossible to provide. The amount of bureaucracy and administration required to keep such lists up to date would be beyond the financial capability of most local authorities.
Ian Murray
That is a good comparison to make, because I would bet that every one of the 166 trade unions registered with the certification officer in this country has far better membership records than any electoral register held by an electoral office. That is not a criticism of the valuation joint boards or local councils; it is simply because people are transient and move in and out all the time, so it is impossible to keep a 100% accurate record. I would guess that the trade union membership lists are far more accurate than such electoral registers.
Finally, I wish to deal with the rather unusual terminology used in clause 37. The word “satisfactory” appears in the proposed new section 24ZD(3) whereas the term “not satisfactory” appears in the proposed subsection (4). The use of that incredibly strange terminology could result in a lack of consistency and direction for assurers. It only fuels the fire in terms of us thinking that that this proposed piece of legislation is designed either to create additional casework or additional case law as some of these issues are taken through the courts, or to keep trade unions busy in the courts trying to justify what is “satisfactory” and what is “not satisfactory”.
The Oxford English Dictionary defines satisfactory as either
“satisfying demands, expectations, or requirements; adequate”
or “atoning” for one’s sins. I hope that the Liberal Democrat Minister will satisfactorily atone for her sins before the next general election—[Interruption.] I would be more than satisfied if she atones for her sins by accepting our amendments on this part of the Bill or, indeed, deletes the clause altogether.
Just how badly this Bill is drafted is shown by the fact that it contains such wide definitions of a term that relates to its fundamental objective in terms of the production of a membership audit certificate. Will the Minister, or indeed the Secretary of State, be determining by guidance what “satisfactory” and what “not satisfactory” means in this context? Will the definitions of and guidance on those two terms have them as exact polar opposites? It is important that that is made clear.
I would term this entire clause 37 as not satisfactory, in sympathy with what is not a very satisfactory Bill. I will be interested to hear what the Minister has to say about the Data Protection Act, the significant and real concerns about blacklisting, and the responses from lawyers from Liberty and various other organisations about the inadequacies of this clause in respect of the European convention on human rights. I ask hon. Members to support our amendments.