Economy and Jobs

Jack Dromey Excerpts

Monday 20th January 2020 Commons Chamber

[Jack Dromey (Birmingham, Erdington) (Lab)]

I congratulate my hon. Friend the Member for Cynon Valley (Beth Winter) and the hon. Member for Arundel and South Downs (Andrew Griffith) on giving their maiden speeches. They come from two different traditions and two very different constituencies, but Cynon Valley and Arundel and South Downs both have strong voices in this House.

Labour was accused by the Chancellor earlier of being out of touch, so I hope he forgives my saying that I represented workers in the world of work for 35 years. What I learned from that is that key to the success of any company or country is its workforce and how they are treated. I used to argue that there are two simple truths: that the difference between the average and the world-class lies in the extent to which we untap the endless potential and creativity of employees, and that how workers are treated is key to the quality of the service they provide or the product they produce. I worked with many world-class companies in world-class sectors, such as Jaguar Land Rover, Airbus, Siemens, British Aerospace, Rosyth and Devonport dockyards—all good employers that are rightly praised by their workforces.

However, there is another world of work on which we must also focus in this debate: the growing gig economy and the growth of work insecurity. Some 3.7 million people now work in insecure jobs, and 8 million work in relative poverty. Even in companies that purport to be good employers, the sad reality is different, and I want to focus on Amazon, which employs 27,000 people here in Britain. I have worked with the GMB both to stand up for the workforce and to challenge some pretty shameful practices.

I remember one particular woman—a team leader—who was asked to attend a disciplinary hearing. She was 38 weeks pregnant. The charges were for gross misconduct, and her crime that caused downtime during work was pregnancy. She was made to attend a five-hour disciplinary hearing and was not offered food or drink. She got off as a consequence of representation by a GMB official, but when she sought to appeal against the final written warning, Amazon set up the appeal on her due date. She was distraught at how the company had treated her. I also met a young man at the gates of the giant depot at Rugeley who had been sacked at 6 o’clock in the morning, and he had his child with him because of the difficulties of managing life and shift patterns. He wept, as did his child in the back of his car.

One can look at the evidence given to the Business, Energy and Industrial Strategy Committee—I praise the work done by my hon. Friend the Member for Leeds West (Rachel Reeves) in rightly focusing on this situation—about the targets being set for Amazon workers. One worker said:

“In Amazon, there is—I am not sure if this is the correct expression—a rat race. There is always a fight for the target. You need to hit the target, and if you do not,”

they come after you. Drivers complained that they sometimes have to do 200 drops in one day. A worker at Rugeley was asked, “What’s it like to work for Amazon?” and they responded, “Prison camp.” Another worker at Rugeley was asked, “In your own words, is Amazon a safe place to work?” and the answer was, “No. Productivity is put first. It could be much safer.” A worker at the Dunstable depot was asked, “What’s it like to work for Amazon?” and the response was, “They act in a cynical way. If someone raises a complaint, they—the management—will start to do things until that person feels undervalued and leaves Amazon.” People are being pushed out by the company.

A worker at Peterborough was asked, “Are there enough facilities for everyone, such as washrooms, toilets, drinking water, canteens, etc.?” and the answer was “No! Given the size of the building and the number of people working there, there are not enough toilets or handwashing facilities.” A worker at Tilbury was asked, “In your own words, describe what it is like to work for Amazon” and they said, “To work for Amazon in my opinion is slavery in a modern world.” Finally, a worker at Gourock was asked the same question and the answer was, “This is the most stressful environment in over 40 years of working” that they had experienced and endured.

[Sir Edward Leigh]

For what it is worth, I agree with everything the hon. Gentleman says. Amazon is taking us for fools based on what it is doing to our high streets and on how little tax it pays. We need to find a creative solution—I am looking at the Treasury Bench—to ensure that these American digital giants are paying their fair due and treating their workers properly.

[Jack Dromey]

I totally agree with the right hon. Gentleman, and I am going to go on to that topic next. To add insult to injury, not only is there the treatment of workers employed by Amazon, but there is, to be frank, tax dodging. The Guardian reported in September 2019 that Amazon UK Services, one of Amazon’s key British divisions, paid £14 million in tax despite making £2.3 billion in sales and £75.4 million in pre-tax profits. In March 2018, the Daily Mail reported that Amazon paid only £20 million across its eight British-based companies— £4.5 million in corporation tax—despite registering £2.9 billion in UK sales. The issue was also focused upon by the Public Accounts Committee, which found:

“Amazon has a reported turnover of £207 million for 2011 for its UK company (Amazon.co.uk), on which it has shown a tax expense of only £1.8 million, however it shows a European-wide turnover of €9.1 billion for its Luxembourg based company (Amazon EU Sarl) and a tax of €8.2 million.”

I could go on, but the figures are stark and tell the story to which the right hon. Gentleman referred. It is completely unacceptable. Amazon is owned by Jeff Bezos, one of the wealthiest men in the world, and shame on him that he presides over a company that treats workers in such a way on the one hand and dodges paying the tax on the other.

What should be done about this situation? I applaud the tremendous work done by the GMB in standing up for the workers of Amazon, and there is now a global network, because the problem exists not just in Britain, but in Amazon’s companies worldwide. The Government talk about the dignity of labour and respect. The Government talk about wanting to be the champions of working people. What are the Government going to do or say about how Amazon conducts itself? There is a set of commercial relationships between various arms of Government and Amazon, so where do the Government stand? Why not call upon Amazon to do what I proposed when I went into the giant Rugeley depot? I was told, “We are very interested in that idea,” but nothing was done about it. There have been 600 ambulance calls to that and other depots. Why not agree to the proposal that there should be an independent investigation conducted jointly by the HSE and the GMB into the health and safety practices? The Government have power, including the power of advocacy, but will the Government speak out?

In conclusion, I have certainly dealt with some bad employers throughout my life, but I have also dealt with many good employers, and I celebrate how they treat their employees. This country is seeing the growth of insecure employment, under which millions of people endure a difficult life, so the Government should not only bring forward the Taylor proposals, which do not actually go far enough, but speak out. When it comes to the response to today’s debate and to what the Government have to say to Amazon, I am not holding my breath, but I hope the Government say, “Amazon, you need to up your game in terms of your working practices and agree to sit down with the GMB and sort the undoubted and deep-seated problems within the company.”