Insecure Work and the Gig Economy

Jim Cunningham Excerpts

Wednesday 20th June 2018 Westminster Hall

[Stephanie Peacock (Barnsley East) (Lab)]

I beg to move,

That this House has considered insecure work and the gig economy.

It is a pleasure to serve under your chairmanship, Mr McCabe. I declare an interest as a proud member and former officer of the trade union GMB. I thank GMB for its support, and I refer hon. Members to the Register of Members’ Financial Interests.

Today’s debate is predicated on one simple issue: work in the UK is becoming increasingly insecure. A changing economy over the past decade has led to a boom in new jobs, which have combined to create a worrying picture of employment rights across our economy. Often under the pretence of offering flexibility, employers have exploited working practices to maximise profit at the expense of workers. The experience of being trapped in a low-paid job with no guaranteed hours, wages or security of employment, and of being unable to plan past this week’s rota or pay cheque, with fewer rights and lower pay than colleagues, is all too familiar for people across the country.

It is notoriously difficult to measure insecure work, which is in itself part of the problem, but some estimates put the number of people trapped in insecure employment well into the millions. The number of people in zero-hours or agency contracts alone is near the 1 million mark, while nearly 3 million people are underemployed and left seeking more hours than they secure week after week.

[Mr Jim Cunningham (Coventry South) (Lab)]

I congratulate my hon. Friend on securing the debate. We had an instance in Coventry a few years ago with a company called City Link. At Christmas, about 1,000 van drivers were laid off; those drivers rented their vans, and were left high and dry and could not get any redundancy money—so this is a timely debate. I hope that she will touch on the Taylor review, which I think did not go far enough. It could be called a whitewash, quite frankly.

[Stephanie Peacock]

I thank my hon. Friend for his intervention; I will indeed talk about that. He is right that the problem is not confined to small sections of our economy, but spread throughout. From tourism to retail, hospitality and our public services, the economy is dependent on these jobs. It goes far beyond genuine short-term work, such as meeting seasonal demand over the Christmas rush in retail, or the busy summer period at a caravan park. The balance of power is woefully skewed in favour of employers who use short-term contracts to minimise their responsibilities and maximise their profits at the expense of job security for their employees.

Areas such as my own in Barnsley are disproportionately affected. Former industrial towns and coalfield areas are disadvantaged communities that have been left behind by the economy and are taken advantage of. Where average wages lag far behind national levels, unemployment is higher and social mobility is appallingly low. Unscrupulous companies can offer insecure, low-paid work where the alternative is often nothing. In Barnsley, the switch to gig employment and short-term work in areas such as distribution in warehouses and our public sector means that too many people in my constituency simply cannot be certain that their job will last longer than the next rota. No matter how hard they work, their precarious employment leaves them with no chance to save up or plan for the future.

--- Later in debate ---

[Justin Madders (Ellesmere Port and Neston) (Lab)]

It is a pleasure to serve under your chairmanship, Mr McCabe. I congratulate my hon. Friend the Member for Barnsley East (Stephanie Peacock) on securing this important debate and the powerful way in which she introduced the subject.

The world of work is evolving rapidly. The plethora of court cases and the growing uncertainty are a reflection not only of how technology is changing the employment relationship, but of how new and unscrupulous employers are seeing that as an opportunity to loosen the relationship further, usually to the detriment of the worker.

I, too, pay tribute to the GMB, which has pushed back against this wild west frontier approach, but it should not just be down to trade unions to try to make the best of 20th-century laws in the 21st century. Parliament should be setting out a new, comprehensive settlement to take us into the new world. We should do it in a way that ensures dignity, certainty and fairness for those who work in the gig economy. That is why it is completely unacceptable that, weak though it is, there has been no progress on the Taylor review a year after it reported.

I am talking about the 21st century, and I have to say that I was rather amused and disappointed by the comments made by the founder of Pimlico Plumbers.

[Mr Jim Cunningham]

The important thing is that we are now creating a new animal in our economy: the working poor. That is what people tend to miss, and it is happening as a result of the gig economy. We had an incident in Coventry a fortnight ago on a Saturday night between black cab drivers and Uber drivers, and it ended in a certain amount of violence. Surely, things cannot go on like this.

[Justin Madders]

I thank my hon. Friend for that intervention. Whole ways of working are being disrupted in ways that really are undermining the economy. I go back to the Pimlico Plumbers judgment, which found that someone who had worked for the company for six years was entitled to some basic workplace employment rights. The founder of Pimlico Plumbers said:

“We had five judges in the top court in the country and an opportunity to bring our employment law into the 21st century and unfortunately they missed the point.”

I have to say that he has rather missed the point, if he thinks that in the 21st century it is acceptable for someone to work at the same company for six years and not be entitled to any basic workplace protections. That sounds like something out of the 19th century, not the 21st.

I had rather more sympathy with him when he said:

“We can’t get our heads around this word ‘worker’ and what it means.”

I am sympathetic to that, because the truth is that the worker category has always been an unsatisfactory halfway house between employed and self-employed. If we leave aside the question of agency workers, there should be no halfway house—a person is either employed by someone or not. If we can offer a bold and clear legislative framework, with the presumption of employment if someone is carrying out the work personally, we can end the uncertainty and hopefully begin to end the exploitation that we see in the sector.

Those who advocate these new relationships often present them as providing a choice to those who work under them, but it is an utterly false choice. It is a choice that is no choice at all. A choice is ordering food from a menu or choosing to have gammon and deciding whether to have egg or pineapple with it. The choice here is whether someone accepts what is served up or does not eat at all. That is not a real choice. It is a business model and a culture that says people are as disposable as coffee cups. It says, “If we don’t have enough work, tough. If you fall ill, tough.” And, crucially, it says, “If you question our methods or challenge any of our payments, you should not expect to get any more work from us in the future.”

Without job security, people have no security. How can they plan for the future, look to buy a house, have a family, save for retirement or maybe even start their own business if the labour market is so cutthroat, insecure and parasitic that it takes everything that they have got just to keep their head above the water? I think we can do better than that. We need to enter a new world where people are valued as much as the product that they are producing. At the moment, we are in a world where exploitation is all. It has to come to an end.