Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill
Debate between Jo Swinson and Andrew Gwynne(11 years, 2 months ago)
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Jo Swinson
It is has been interesting that various hon. Members have highlighted some of the difficulties faced by unions when trying to keep large lists up to date, given the extent of churn. We recognise that considerable efforts are made, but that is a difficulty, so we want to reassure the public, union members and others in workplaces that proper processes are in place to make that happen. We are trying to plug a specific gap—
Jo Swinson
I hope that the hon. Gentleman understands why I wish to finish my response to the hon. Member for Scunthorpe (Nic Dakin) before I give way again.
Our modest and reasonable measure is a specific response to that gap, but it has given rise to a bit of hyperbole throughout the debate.
Andrew Gwynne
I am grateful to the Minister for giving way, but in what I can describe only as her rather waffling answer to my hon. Friend the Member for Scunthorpe (Nic Dakin), she failed to identify exactly what the problem is and why the measures are required. Will she tell the Committee what evidence she has to show that there is a problem?
Jo Swinson
If that is how the hon. Gentleman describes my answer to his hon. Friend, I would be interested to hear how he would describe several of the speeches we heard during the debate.
Trade unions have a significant impact on the lives of people in our country. We want to ensure that their membership lists are up to date, and everyone has an interest in that being achieved. As hon. Members have said, we know that that can often be a challenging process, for good reasons, so we want to provide assurance that it will happen.
Clause 36 will give wide assurance that unions know how to contact their members so that their decisions will reflect what their members want. We do not want to change the vital and positive role that unions play in society, but we do want to give confidence in their accountability.
Under section 24 of the Trade Union and Labour Relations (Consolidation) Act 1992, unions have to ensure that their lists of members’ names and postal addresses are accurate and up to date
“so far as is reasonably practicable”.
That section allows any union member to find out whether there is an entry relating to him or her and to see a copy of the information. Clause 36 builds on that by making unions give the certification officer an annual membership audit certificate alongside the annual return that they already submit. Clause 37 provides that a union with more than 10,000 members will have to appoint an independent assurer to produce the certificate, as well as setting out what is required for that process, but clause 36 states what smaller unions with fewer than 10,000 members will have to do. They will be able to have a union officer sign off the certificate with a statement that, to the best of their knowledge, the union has complied with its duties under section 24. I hope that the Committee will agree that that is a pretty light-touch approach and that the duty is not onerous in the slightest. Of course, we expect that smaller unions will have a less complicated register, so it is reasonable that a union officer would know the content well enough to be able to make such a statement.
As the clause is designed to give widespread assurance, all unions of any size will have to let anyone who asks to see their most recent certificate to do so, for which they may charge a reasonable amount, if they want. The certification officer will have to keep copies of all certificates and to allow the public to look at them. Subsections (3) and (4) allow a trade union to fulfil the new duty on behalf of its branches and require that federated unions comply with the new duty. Our aim is not to change what unions should already be doing to maintain their membership data, but to get them to provide assurance of what they are doing to their members and the public.
Jo Swinson
As I recall it, the hon. Member for Wansbeck was talking about whether he would be in a position to do that where he had been elected within a union. I have made it clear that that would not be appropriate for union officers, because they need to be independent of the process. What is clear is that there will be an order published about assurers, which I will come on to shortly, and hopefully that will answer the question. We need to look at the terms of the order as it develops—it may well be that the hon. Gentleman has a promising career ahead of him as an assurer. It will be up to unions themselves to define the assurer’s contract terms, subject to minimum requirements, to ensure that they fit the nature of the organisation and are not disproportionately costly.
Various Members have raised concerns about data protection, and about an assurer’s access to membership details could risk breaching data protection rules. I hope to provide reassurance to Members that that concern is unfounded, but I recognise that it has been expressed. The assurer will be bound by current data protection rules, as well as by the additional confidentiality provisions set out in clause 37. The assurer owes a duty of confidentiality to the trade union, which is built into the appointment. They must not disclose the names and addresses of members, except where the member consents, where it is required for the purposes of their functions under the Act, or for criminal proceedings. They must also take all reasonable steps to ensure that there is no prohibited disclosure by other parties.
A certification officer and any inspector appointed by the certification officer have access to membership data, but that is immediately limited to the performance of their functions in relation to the register and the audit requirements under TULCRA—the Trade Union and Labour Relations (Consolidation) Act 1992. It cannot be used for any other purpose. The duty concerns just the register of members’ names and addresses under section 24 of the 1992 Act. Other information should not generally need to be provided; the minimum amount only will be needed. Information is, of course, sensitive personal data. We absolutely accept that people’s names and addresses—often their home addresses—and whether they are members of a union are sensitive data. That will, therefore, fall under the protection of existing data protection rules. That will apply to any other personal data accessed under the powers in this Bill.
The hon. Member for Edinburgh South (Ian Murray) raised the ability of the certification officer to provide documents and a test of what a good reason would be. The certification officer will be able only to request documents that are relevant and where there is good reason to do so—a consistent test that is used elsewhere under the TULCRA legislation. For example, it is already applied by the certification officer for investigations of financial affairs.
It is important to note that there is no evidence of a problem with how the certification officer has exercised discretion. Indeed, respondents to the targeted consultation we undertook over the summer said that they did not feel there was necessarily a problem. I do not believe that hon. Members are necessarily making the charge that they would be concerned about how individuals undertook their duties. However, it is important to note that the test is available. If a union believes that the certification officer is overstepping their remit, it can withhold the information, and, ultimately, there is a right of appeal if there is an order made by the certification officer requiring production of the information.
Andrew Gwynne
Earlier, the hon. Lady mentioned that the details would be provided in an order and that they would be subject to the minimum requirements for the post of assurer. Will she explain what those minimum requirements are, so that we can assess how to vote? Also, how will she militate against potential conflicts of interest between the assurer and other clients they might have?
Jo Swinson
I will come on to the issues relating to the assurer. I would like to deal with data protection sensitivity and turn to the issue of blacklisting before I come back to the specifics about the assurer, if the hon. Gentleman will bear with me.
The hon. Member for Edinburgh South was asked by the hon. Member for Birmingham, Selly Oak (Steve McCabe) about penalties if there is a breach of data protection or confidentiality issues. Various protections are in place. The assurer would have to comply with the Data Protection Act. If they did not do so, they would be in breach of their contracts, so as well as being removed, the union could sue them. However, the assurer would also be a data controller, so the Information Commissioner could take action. The Information Commissioner has significant powers under the Data Protection Act, which include serving an enforcement notice setting out action that the data controller must take and—where required to address a serious contravention of the duty—imposing a fine of up to £500,000. Failing to comply with an enforcement notice by the Information Commissioner is also an offence, so there are significant protections in place.
The hon. Member for Hayes and Harlington (John McDonnell) and others raised the important issue of blacklisting. Let me reiterate on the record—my right hon. Friend the Secretary of State and I have said this on various occasions in the House—that the blacklisting of trade union members is unacceptable and illegal. Following an investigation, of which the Committee will be aware, that uncovered the Consulting Association’s blacklist, the law was strengthened at the end of the previous Parliament by the Employment Relations Act 1999 (Blacklists) Regulations 2010. That was also when the maximum fine for a breach of data protection rules was increased to £500,000.
The Committee will also be aware that the Select Committee on Scottish Affairs has been conducting an inquiry into this issue. In July, the Committee contacted the Secretary of State to say that it had new information that blacklisting continues. We have always encouraged anyone with evidence of blacklisting to come forward so that we can investigate. The Scottish Affairs Committee is the first to get in touch formally to say that it possesses new information. We are grateful to the Committee for passing that information to the Department. We have referred it to the Information Commissioner’s Office, as the appropriate body to investigate any breaches of the Data Protection Act. I understand that the office is requesting more information from the Committee, so that it can examine it and investigate. My right hon. Friend and I will of course continue to take a close interest in this matter. If any evidence of blacklisting is found, the perpetrators must feel the full force of the law.
Let me turn to the amendments in this group. Amendment 107 would make the assurer owe a duty of confidentiality to the union and its members—this deals with the concerns raised about data protection. I hope that the protections I have outlined will reassure hon. Members about compliance with the existing legislation, even though it is not explicitly mentioned in part 3—the convention is to keep legislation concise and not to repeat existing legal requirements. I am happy to reassure the Committee and put it firmly on the record that compliance with the Data Protection Act will be necessary for anyone who handles sensitive data.
Amendment 108 would require the Secretary of State to set out eligibility criteria for the assurer—this goes to the point about the future career ambitions of the hon. Member for Wansbeck—along with what qualifications, status and experience assurers must have. Our approach will be the same as for independent scrutineers of trade union ballots and elections. It is important that the assurer has widespread credibility with unions, their members and the public. The order will say which organisations are eligible or list the criteria that must be met. We imagine that assurers will probably be recognised professionals, such as solicitors, auditors or independent scrutineers. The responses to our targeted consultation over the summer supported that approach. I am not sure whether the hon. Gentleman falls into any of those categories, but he might be interested to know that we will need to consult on the content of the order, and I give the Committee an assurance that we will do so. There will therefore be an opportunity—this is important—for unions, their members and the public, as well as the hon. Gentleman, to comment.
Jo Swinson
I gave some examples of where there might be a conflict of interest, such as where somebody was already an officer of the union, which would not be appropriate, as they would need to be independent. However, as I have set out, there will be a process in the order for outlining eligibility.
Jo Swinson
I have already given way to the hon. Gentleman and I want to make some progress.
Amendment 110 would mean that unions do not have to set out in their rules how they will appoint and remove an assurer. Not only is the amendment unnecessary, but it is more prescriptive than what we have set out in the Bill. Our intention is to allow unions more discretion over when they remove or appoint an assurer.
Amendment 109 would prevent the appointment or reappointment of an assurer when there was a breach of confidentiality or a breach of their statutory duties or terms of appointment, or when there were reasonable circumstances not to reappoint. Of course it is important that the assurer should take their duty of confidentiality seriously, but the amendments are not necessary to achieve that aim. We can trust the unions to do this, and they will be able to pass a resolution to get rid of an assurer for any reason. It will be up to the unions to decide. The relationship between the assurer and the union is rightly one for the union to define. We have added a minimum level of protection in the Bill to ensure that an assurer is not reappointed if they are not qualified, are incapacitated or have decided that they do not wish to be reappointed. In general, however, it is better that the union should be responsible for the terms of the relationship with the assurer. That will allow much more flexibility to deal with the individual circumstances of each union.
Amendment 111 would expect the assurer to give an opinion as to whether the union had complied with the duty to keep its membership register accurate and up to date. This would replace the current proposal to give an opinion on whether the union’s system for compiling the register was satisfactory for that purpose. What is being proposed in the amendment would be far more costly and onerous to the union. In some cases, the assurer might conclude that they needed to carry out a thorough audit of all the content of the register. We believe that a systems check is more proportionate, and that is what we are setting out.
Amendment 112 has been mentioned by the hon. Member for Sunderland Central (Julie Elliott) and others. It would add an additional requirement to the membership audit certificate. This would be to include the assurer’s opinion as to whether the employer had shared “timely and accurate details” with the union. The hon. Lady took the view that bad employers would try to prevent unions from having the right information. As I mentioned earlier, there is already statutory protection to ensure that unions cannot be held accountable for information that they do not possess, or for inaccuracies that are beyond their control. It is also important to note that we will produce guidance for employers, to help them to assist unions to comply. It is important that employers should comply with their requirement to provide information to unions, and we believe that that additional guidance will be helpful in that regard.
Amendment 166 seeks to assist the assurer by requiring the Secretary of State to produce guidance and define in statute what is “satisfactory” and “not satisfactory”. The amendment is either necessary or desirable. What is satisfactory or not will vary from one union to another, and a one-size-fits-all definition would be onerous for some and ineffective for others. Our approach is to retain flexibility. Assurers will be professionals, and it is reasonable to rely on their professional judgment and ability to apply these phrases appropriately. Ultimately, the membership audit certificate represents only the opinion of the assurer. It is only the certification officer who has the power to make a determination.
Amendment 116 would mean that the union’s assurer was entitled to require only the union’s data controller to provide the necessary information. This would be instead of being able to approach
“the union’s officers, or the officers of any of its branches or sections”,
as set out in the Bill. That could result in the assurer being unable to ask questions of the right people. They should obviously be able to question those who handle sensitive membership data, but they should also be able to question others who understand how those data are kept up to date. In some cases, that might be one and the same individual, but in others it might not be. So the form of words that we have used in the Bill, which is also used throughout the Trade Union and Labour Relations (Consolidation) Act, is much better.
Amendment 115 seems to suggest that a union should not be penalised for errors when the correct details are held by the employer. I have already set out why existing legislation renders such an amendment unnecessary. There is already a “reasonably practicable” test, and we will be issuing improved guidance. Amendment 117 would mean that the union could supply information to the assurer to help them to carry out their role only if it did not conflict with the union’s responsibility to comply with data protection requirements. I have already outlined the safeguards relating to data protection. The assurer will have to be able to see the register if they are to carry out their responsibilities effectively, and the amendment could prevent that from happening.
Amendment 119 also seeks further reassurance on the Data Protection Act, but that is unnecessary because it will already apply. Amendments 118 and 128 propose replacing the words “all reasonable steps” with “all steps necessary”. I must ask the hon. Member for Edinburgh South what steps he can imagine that are necessary yet unreasonable. Is he really suggesting that we want necessary and unreasonable steps to be taken?
Amendment 120 would change the disclosure requirements, but I have already set out the safeguards, so the amendment is unnecessary.
I hope that I have been able to reassure the Committee on a few points of concern. These measures will not present an unreasonable burden on unions and the safeguards in place against the misuse of data are more than adequate. This clause is necessary to provide independent assurance of the maintenance of large and complex registers. Clause 37 should stand part of the Bill, and I urge the hon. Member for Edinburgh South not to press his amendments.
Oral Answers to Questions
Debate between Jo Swinson and Andrew Gwynne(12 years ago)
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Jo Swinson
I thank the hon. Lady for her question. She does a wonderful job in championing her local breweries and the BIS Committee was very positive about the relationship that family brewers have with tenants. I may have to disappoint her by not giving her the commitment that she asks for today, but the Government are open-minded. As I have said, when we receive the industry’s response, which we have asked for by 23 November, we will consider the matter further.
Andrew Gwynne
On 12 January, this House supported unanimously a motion stating that the Government should commission a review of the self-regulation of the pub industry, to be conducted by an independent body, by the autumn of this year. It is now November and there has been no action. Why does the Minister hold the decision of the House of Commons in such contempt?
Jo Swinson
I do not think that that is an accurate representation of my view. I came into the post just a couple of months ago and I am looking at the issue very seriously. My right hon. Friend the Secretary of State has written to the industry and it is appropriate to proceed on an evidence base. Once we receive the written responses, discussions will be required with the industry and, as I have said, we will return to the House with further information on what has been presented to us.