Employment Rights Bill

Jayne Kirkham Excerpts

2nd reading
Monday 21st October 2024 Commons Chamber

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I beg to move an amendment, to leave out from “That” to the end of the Question and add:

“this House notes the balanced reforms made by previous Conservative governments to improve workers’ rights, including the National Living Wage, the prohibition of the use of exclusivity clauses or terms in zero hours contracts and the introduction of shared parental leave and pay, and declines to give a Second Reading to the Employment Rights Bill because it has been rushed into Parliament without full consultation to meet an arbitrary 100-day deadline and Monday 21 October 2024 Business Today: Chamber 19 has not been accompanied by an Impact Assessment considering the impact on the Employment Tribunal, especially as a result of the removal of the qualifying period for the right to claim unfair dismissal or the impact of the extra red tape on SMEs or the impact of establishing the Fair Work Agency; because the repeal of trade union laws will lead to more strikes and intimidation in the workplace, and will force taxpayers to foot the bill for inflation-busting pay hikes without public service reform; because the Bill undermines choice for workers about whether they want to fund political campaigning and forces firms and public bodies to bankroll more trade union facility time, including trade union diversity jobs; and because the Bill is contrary to the Government’s stated goals of improving productivity and economic growth and will increase costs for businesses and consumers.”

The Conservative party will always be the party of business, but we are pro-business and pro-worker, not least because many Conservative Members have been both workers and people who have started and grown their own businesses. Those who have done so are the first to appreciate the symbiotic relationship between the two. We acted during our time in office to improve workers’ rights in several areas: flexible working, parental leave, redundancy protections, ensuring that workers keep the tips left for them by their customers, and significant increases to the national living wage.

I started my first significant business back in 1992. Over three decades, we grew to become a national business employing hundreds of people. We valued every one of those people. We were one of The Sunday Times’s best 100 companies to work for and were certified by Investors in People. I believe that business is a force for good and that businesspeople do great service to our communities and the wider economy. As Winston Churchill put it, they are the strong horse that pulls the whole cart.

The question I now ask myself is whether I would start that small business again today if the Bill were in place. Sadly, the answer is probably no—certainly not a business that employed any people. The very high cost of these measures will be borne by all companies and passed on in the form of higher prices, reduced wages and lost jobs. The measures will fall most heavily on small businesses, for which they could be existential.

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

Does the hon. Member remember 1997 and 1998, when the Conservative party said that the social chapter and the national minimum wage would cost half a million jobs? In the late 1990s, half a million jobs were actually created.

[Kevin Hollinrake]

I was not here at the time, but it is clear nevertheless that the minimum wage and the national living wage have had a positive effect on prosperity in this country, and I would be the first to admit it. I want the hon. Lady, and other Government Members, to understand that those measures fell equally on all businesses across the UK. The measures in this Bill fall disproportionately hard on small businesses.

What the right hon. Member for Ashton-under-Lyne (Angela Rayner) fails to understand is that the implication of these measures, such as a day one right to an employment tribunal, is that even a spurious case of unfair dismissal costs time and money. It is potentially tens of thousands of pounds to defend that case. As one business organisation put it, “You lose when you are accused.” Most small businesses saddled with such a cost would be sunk without trace. It is not just that, but the deterrent effect, which it would have had on me, and which will be felt right across the economy and by every existing and aspirant business person across this entire nation. When the Deputy Prime Minister reflects on what she is hearing from people who have actually run a business, will she at the very least consider exempting small and medium enterprises from this catastrophic Bill?

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[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

As an MP from Cornwall, where we have seasonal workers aplenty, I should say that although the Bill talks about a suggested reference period of 12 weeks, after which average hours will be offered, employees do not have to accept that if they do not want to. They can choose to stay on zero-hours contracts.

We have a large demand for social care in Truro and Falmouth. Our population tends towards an older demographic. As many people leave friends and family to retire to Cornwall, the availability of care is especially important. Assistance for people who have disabilities, so that they can live independent lives and be supported into work if they choose that path, is crucial. Skilled care workers are chronically underpaid for what they do—they are often on the minimum wage—and good people leak out of the system, as it pays more to work in the local supermarket.

I worked as a teaching assistant at a local secondary school—I declare my interest in the register as a Unison member—and I was also an equity partner in a trade union law firm, so I have some experience of employing people, too. The pay for working in a school in a supporting role can also be very low—sometimes minimum wage. What the care and school sectors have in common, apart from poor rates of pay, is that, as others have said, they involve highly skilled jobs that are incredibly important for our society, and those who work in them are far more likely to be women. The Bill has many provisions that will help with sick pay and parental leave, and will give protection from unfair dismissal from day one. It also improves family-friendly rights, provides for flexible working, and has measures to tackle zero-hours and minimum-hours contracts. However, it also specifically gives respect and recognition to social care workers and school support staff through a fair pay agreement for adult social care, and by reinstating the school support staff negotiating body. This will be a game changer for those low-paid workers, mostly women, who work in care and in schools. It will mean that pay, terms and conditions for care workers and school support staff are negotiated nationally, and that a minimum is set across the country.

I am so pleased that the Government have chosen those two sectors as the first to have the opportunity for fair pay agreements. Women with caring responsibilities are often limited in the hours they can work. Historically, that has meant that, however skilled and important their jobs are, they have not been properly rewarded or looked after. Changing that will be transformational.

Truro and Falmouth has Cornwall’s only acute hospital and the seat of Cornwall unitary council within its boundaries. That means that we have a large number of people who work in the public sector. Many of those jobs have been contracted out, and the terms and conditions for those roles have been gradually eroded. This Bill enables Ministers to create a code to prevent the emergence of a two-tier workforce when outsourcing occurs. A new national procurement statement will make sure that the Government use their contracts to raise employment standards, not dilute them. This employment Bill is a huge step forward, and I am proud of it.

Employment Rights Bill

Jayne Kirkham Excerpts

Report stage
Wednesday 12th March 2025 Commons Chamber

[Mr Louie French (Old Bexley and Sidcup) (Con)]

As any sensible people would know, changes to business regulations need to strike a careful balance to not deter both business investment and job creation, but I am afraid that this Bill gets the balance wrong. Labour’s weakening of a variety of trade union laws, particularly on the threshold for industrial action, is a recipe for disaster for both the public and businesses, particularly SMEs.

As a London MP, I have heard this fairytale from those on the Labour Benches before, because London has too often been paralysed by strikes under Mayor Sadiq Khan. Infamously, the London Mayor promised our city “zero days of strikes” in 2016, but he has comprehensively broken that promise. In Sadiq Khan’s first two terms, there were more than 135 strikes, which is almost four times more than the number of strikes under his predecessor —a record that Mayor Khan labelled a “disgrace”. If 35 strikes are a disgrace, the 135 under Mayor Khan represent a catastrophic failure. My fear is that this Bill and the Labour Government’s amendments will make strikes even more common in London.

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

Does the hon. Member recall how many strikes there were under the last Conservative Government?

[Mr French]

As we have seen already—this is what I was talking about—the fairytale says that if we improve industrial relations and give trade unions all the money they want, suddenly there will not be any strikes. But what has happened in practice since the Labour Government came in? Trade unions have been given all the money, and they are still threatening to go on strike.

This Bill really does read like a militant trade union wish list. Strike mandates have doubled from six to 12 months, allowing trade unions to impose rolling strikes for a whole year without balloting their members. Turnout requirements have been abolished so that a minority can call strikes, and the Government have removed the requirement for 50% of members to vote and 40% to support industrial action. The Bill reduces the notice for strikes by four days and gives employers less information, making strikes even more damaging to businesses and disruptive to people’s lives. It also allows unreasonable paid facility time for trade unions, making the taxpayer and companies pay out even more for trade union representatives at the same time that the Labour Government are raising everyone’s taxes and cutting public services.

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[Mrs Russell]

I thank the hon. Lady for her point, but I think it is a very difficult distinction to make: that they are pro-trade union but anti things that make it easier for trade unions to effectively represent workers.

To return to my point, access to trade unions means access to good-quality advice, quicker resolution of disputes and a reduction in unrepresented litigants in person, which, in my experience, can make life genuinely difficult for well-meaning employers. Every single thing in this Bill will be good for workers, but it will also be good for employers, and I will be very pleased to vote for it later today.

[Jayne Kirkham]

I refer to my entry in the Register of Members’ Financial Interests and declare my Unison membership, although I am also an ex-solicitor. I am going to address the Government amendments relating to enforcement, rather than trade union rights.

We have a large demand for social care in Cornwall, as is the case in the constituency of my hon. Friend the Member for Congleton (Mrs Russell). Our population tends to an older demographic and, with many people leaving friends and family to retire to Cornwall, the availability of care is very important. Our social care system is close to breaking point due to the combination of years of underfunding and a fragmented privatised system. Skilled care workers are chronically underpaid for what they do, often at minimum wage, and we struggle to get and retain care workers.

The Bill contains many provisions that will help: strengthened sick pay; parental leave; protection from unfair dismissal from day one; improved family-friendly rights and flexible working; measures to tackle zero-hours contracts, including for agency workers and workers at umbrella companies, as well as for direct employees; and strengthened redundancy rights. The Bill also specifically gives social care workers respect and recognition through a fair pay agreement, and reinstates the School Support Staff Negotiating Body. It will be a game changer for those low-paid workers—mostly women—who work in care and schools.

[Daisy Cooper]

The hon. Lady will be aware that there is a debate on the National Insurance Contributions (Secondary Class 1 Contributions) Bill next week, where we will debate whether health and social care providers should be excluded from national insurance contributions. Would she care to comment on whether Labour Members will support that amendment made in the House of Lords?

[Jayne Kirkham]

Local government funding will, of course, be increasing to take that into account, and funding for adult social care is rising and will rise further in the next three-year settlement under this Government.

To return to my speech, in Cornwall we have seen the rise of care workers coming from other countries to work on sponsorship visa schemes. These workers are often in a financially precarious situation, which increases their dependency. Some have been charged by their employers for induction, travel or training; in some cases, workers receive a salary below the minimum wage to make up the cost of their flights to the UK.

[Matt Rodda (Reading Central) (Lab)]

I refer colleagues to my entry on the Register of Members’ Financial Interests. My hon. Friend is making an excellent speech about the situation in her county. Does she agree that this is a national problem that affects all our constituencies? It is certainly the case in Berkshire, and in Reading in particular, that we need better pay for care workers and more understanding about the pressures they face in their very valuable work.

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[Jayne Kirkham]

I agree with my hon. Friend. This matter affects the entire country. Unison, for example, has a campaign about migrant care workers, so, yes, this is a national issue.

In Cornwall, those care workers are often given the early morning and late evening shifts with no flexibility. Some sit on benches, stranded in Cornish villages that buses do not pass through, waiting from their morning shift to their first evening shift.

Many health and social care workers on sponsorship visas are afraid to raise concerns about their employment and living conditions for fear of losing their employer’s sponsorship. Employers in turn can be aware of that, and some even use it as an explicit threat. That brings me to the enforcement provisions in the Bill. Enforcement of statutory pay and employment rights is poor in the social care sector. Pay enforcement relies on individual workers reporting breaches. His Majesty’s Revenue and Customs investigates fewer than 1% of care providers each year. International workers and those from minority ethnic backgrounds are particularly vulnerable. For individual rights to become a reality, a collective voice in the workplace and effective enforcement are key.

The Law Society reports that the backlog in employment tribunal cases stands at 44,000, which is 18% higher than it was in 2023. This backlog needs clearing and investment needs to be made in employment tribunals.

The new Fair Work Agency will have a crucial role to play in reducing the burden on the employment tribunal system by providing a focal point for advice on enforcement under Government amendment 208, in enabling the disclosure of information under Government amendment 212 and in taking on some of those enforcement powers under Government new clauses 57 and 58 on behalf of those workers. Those powers could really help low-paid or migrant workers who do not have access to funds or to union representation to enforce their rights, or who fear dismissal if they take steps in that direction.

Government amendment 249 will allow the Fair Work Agency to investigate and combat fraud and exploitative employers, thereby tackling the kind of modern slavery of international workers in the care industry that we have seen recently.

Government new clause 60 will also give the Fair Work Agency the power to recover the cost of enforcement, which would help with the funding of the system. However, real investment will need to be made into enforcement for the new powers to have teeth, with a timeline, resourcing and fast-track procedure for the new Fair Work Agency. I welcome confirmation of the Government’s commitment in this area.

[Madam Deputy Speaker (Caroline Nokes)]

May I give Members a brief reminder that we are today talking to the new clauses and amendments on trade unions, industrial action, enforcement of labour market legislation, and miscellaneous and general provisions?