Oral Answers to Questions

Jo Swinson Excerpts

Thursday 8th January 2015 Commons Chamber

[Lilian Greenwood (Nottingham South) (Lab)]

8. If he will take steps to ensure that employees working on zero-hours contracts who are in practice working regular hours over an extended period have the right to a fixed-term contract.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson)]

Under flexible working legislation brought in on 30 June 2014, all employees with 26 continuous weeks of service have the right to request flexible working from their employer. Employees on zero-hours contracts can request a change in their contracts, which could of course include a request to move to fixed hours.

[Lilian Greenwood]

Over Christmas, Radio Nottingham carried reports of a zero-hours worker at SportsDirect who was so worried about missing a shift that he went into work despite being critically ill. I have heard from constituents working in health and social care who dare not raise concerns about health and safety or quality of care for fear of losing all their hours. Is it not now absolutely clear that the only way to end that exploitation is to vote Labour on 7 May?

[Jo Swinson]

Unsurprisingly, I disagree with the perspective at the end of the hon. Lady’s question. I agree that there are serious issues with zero-hours contracts. Although they work well for many people, as backed up by Chartered Institute of Personnel and Development surveys, there are other examples—she highlights some from her constituency—where that type of contract is not used as it should be. That is why we are taking action through the Small Business, Enterprise and Employment Bill to ban exclusivity clauses and why we are going further, with the development of sector-specific guidance to show what the proper and responsible use of these contracts looks like.

[Ann McKechin (Glasgow North) (Lab)]

The Minister will be aware that in parcel and distribution services there is not only widespread use of zero-hours contracts but, as we have seen with the collapse of City Link, increased use of self-employed contractors, who have ended up with no rights to redundancy, with losing pay, and with being increasingly abused. How will the Minister regulate the sector so that we halt this race to the bottom in labour conditions?

[Jo Swinson]

The hon. Lady raises a genuine point. The Government do recognise this as an area of concern, particularly as regards different employment statuses. My right hon. Friend the Business Secretary announced a review of employment statuses so that there can be greater clarity about the issues and we can see whether we need to make changes to the way in which different employment statuses are currently set out. The review is ongoing and we expect it to report over the next couple of months.

[Kelvin Hopkins (Luton North) (Lab)]

9. What recent assessment he has made of the effect of the UK’s EU membership on businesses and the UK economy.

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[Joan Walley (Stoke-on-Trent North) (Lab)]

17. What position his Department took at the Competitiveness Council discussions on 4 December 2014 on the product safety and market surveillance package and the provision of mandatory origin marking on consumer products manufactured or imported.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson)]

The UK’s position on the product safety and market surveillance package remains unchanged: we oppose the inclusion of mandatory country of origin marking in the consumer product safety regulation. The issue was briefly raised at the Competitiveness Council meeting on 4 December, but no formal discussion or decisions were taken.

[Joan Walley]

I thank the Minister for that reply, but I am disappointed. On the grounds of public health and putting British manufacturing on a level playing field, we desperately need to hold a consultation and do the necessary research to make the case for compulsory country of origin marking, so that when we turn over a cup or saucer we know exactly where it was manufactured. Why cannot the Government abandon their opposition to that deregulatory measure?

[Jo Swinson]

The hon. Lady is a long-standing campaigner on and advocate for that issue. I do not believe it is a product safety matter, but she is right to say that there is a genuine issue that businesses in her constituency and other parts of the country are concerned about. We are looking into the matter in more detail and we expect a UK study on country of origin marking to complete by next month. The Commission has announced its own study on origin marking, which we will consider closely.

[Grahame M. Morris (Easington) (Lab)]

18. If he will bring forward legislative proposals to prohibit firms from being asked to make pay to stay agreements to remain or become approved suppliers by large firms.

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[Mr David Heath (Somerton and Frome) (LD)]

As of last week, one could go into an Asda supermarket and buy four pints of milk for 89 pence. Milk, with all the work and care that goes into its production, should not be cheaper than plain water. Is it time to look again at the remit of the grocery code adjudicator to give her the opportunity to look at whole supply chains, especially when they greatly disadvantage primary producers?

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson)]

The grocery code adjudicator’s remit is set out clearly in primary legislation, but it is important that the Government keep these issues under review. The Department for Environment, Food and Rural Affairs has engaged significantly with milk producers on this issue. My hon. Friend highlights a real problem concerning the sustainability of those who produce this vital resource.

[Mrs Mary Glindon (North Tyneside) (Lab)]

T4. What does the Minister have to say to members of the Alliance for Inclusive Education, who consider that his requirement for disabled students to contribute £200 towards their computer equipment funded by the disabled students allowance is unacceptable and discriminatory?

--- Later in debate ---

[Ian Lavery (Wansbeck) (Lab)]

Most companies pay the national minimum wage, but increasingly we have seen more companies not wishing to pay it and developing numerous professional scams—making individuals pay for uniforms, non-payment of mileage, bogus employment and bogus apprenticeships. What will the Government do to police the national minimum wage effectively in respect of these companies?

[Jo Swinson]

The hon. Gentleman raises a very serious issues and alludes to today’s TUC report, which I look forward to reading in detail. We have expanded the resources available for the enforcement of the national minimum wage; we have increased the penalties; we have introduced the naming and shaming scheme; and we will continue to clamp down hard on those companies that break the law. Many of the practices he outlined, which would seem to be in the report, are already against the law. The pay and work rights helpline in Her Majesty’s Revenue and Customs will also help to clamp down on these employers.

[Jeremy Lefroy (Stafford) (Con)]

Just before Christmas, Alstom Grid announced its intention to construct a state-of-the-art factory and research facility in Stafford— a vote of confidence in this country’s skills, openness to investment and industrial strategy. Will my right hon. Friend join me in paying tribute not only to Alstom—soon to merge with GE—but to Staffordshire county council, which had the foresight to construct a state-of-the-art business park, in which Alstom will be the first investor?