Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill

Lord Cryer Excerpts

Wednesday 11th September 2013 Commons Chamber

[Ian Murray]

My hon. Friend is absolutely right. We will move on to clause 37 later this afternoon, when we will address some of the issues relating to confidentiality and the European articles. [Interruption.] The Leader of the House chunters from a sedentary position that we should speak to the amendments. As I understand it, Mr Speaker has grouped the stand part debate with the amendments, and I am addressing why I think clause 36 and part 3 of the Bill are deficient, which I think is perfectly appropriate.

I was talking about the Beecroft report’s ideological attack on working people and how the Government are making it easier to fire, rather than hire, employees. That is reflected in the thrust behind amendment 103— I say this for the benefit of the Leader of the House—and subsequent amendments in this group. The Government have yet again failed to produce any evidence whatsoever on what problem they are trying to resolve and what the impact will be on membership lists. Not only do they have no evidence, but, as I mentioned at the start of my speech, they do not even have an impact assessment for this part of the Bill and they have done no suitable consultation.

[John Cryer (Leyton and Wanstead) (Lab)]

My hon. Friend will remember that Adrian Beecroft appeared before the Enterprise and Regulatory Reform Bill Committee last year. When asked detailed questions, he could give absolutely no evidence whatsoever for what he was suggesting, yet some of those suggestions can be found in this Bill today.

[Ian Murray]

Absolutely, which is why we should be addressing those issues in the Beecroft report, because they influence part 3 of the Bill. Perhaps Ministers, rather than chuntering from a sedentary position, might at last answer some of these questions when they come to the Dispatch Box.

I was talking about the lack of suitable consultation. As far as I am aware, the Government have still not published an impact or cost assessment for part 3 —[Interruption.] The Minister says that they have, but it was not there at 10.30 this morning. They did publish assessments for parts 1 and 2 back in July. In fact, the equality assessment states:

“A full impact assessment will be developed after, and informed by, a period of targeted consultation and engagement of a range of experts.”

But the Committee is debating this Bill before any of that work has been either completed or formally published.

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[Ian Murray]

That has absolutely nothing to do with the registration of 7.2 million trade union members. If an individual member of a trade union on that list has a complaint, I do not see any reason why they would not raise it.

[John Cryer]

My hon. Friend will be aware that the legal strictures on trade unions with regard to balloting are among the tightest in the world; they are certainly the tightest in the European Union. I can think of one ballot for industrial action that was ruled illegal because a comma was in the wrong place. The idea that trade unions—this is the notion suggested by the hon. Member for Huntingdon (Mr Djanogly)—are conducting fraudulent ballots left, right and centre is simply illusory.

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[Stephen McPartland]

I am delighted to hear that hon. Members believe that the issues I am raising have already been dealt with. That is fantastic news. However, if those issues are already dealt with, I see no reason for people to be arguing that there is no reason for this part of the Bill; I see no reason to be against it. There seems to be a lot of anger being expressed.

Not all Government Members have an issue with trade unions or trade unionists. Whenever anybody mentions the words “trade union”, it seems as if we have to have an ideological argument between the two sides of the House. I do not agree with that. We should look at the facts, and the facts relating to clause 36 are very simple: there is a duty to provide a membership audit certificate if a union has more than 10,000 members; otherwise people can self-certify.

[John Cryer]

There is a genuine point—the hon. Gentleman may or may not have taken it on board—about the big general unions. Because of the changing nature of work and the increasing casualisation of the work force, it is possible for unions to lose as much as 12% of their membership during the course of a year, so they will have to recruit 12% just to stand still. Under those circumstances, as I am sure the hon. Gentleman can imagine, keeping bang-up-to-date records is extremely difficult.

[Stephen McPartland]

I completely agree with the hon. Gentleman. The biggest challenge those unions face—it is perhaps a reason that the Bill might help them focus more resources on the issue—is simply the fact that people move home. It is not a matter of losing members of the trade union movement; it is simply a matter of trade unionists moving house between different areas. That creates a massive turnover. We all have experience of moving house and know we have to pay the Royal Mail a fee to redirect our mail for a year. Moving home is a big issue; it is one of the key problems surrounding the clause. Clause 36 encourages the focusing of more union resources on tackling the problems of membership turnover.

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[John Healey]

I think my hon. Friend is right, but our problem is that we are having to intuit the intention behind these provisions and this clause because the Government have not supplied evidence of a problem, have not supplied a purpose for these provisions, and have not supplied any reason for this unreasonable tightening of the legislation.

[John Cryer]

My right hon. Friend talked about legal action being taken against trade unions. The other problem is that an employer has six years in which to take that legal action. I can remember dealing with cases where a legal firm said, “Let the ballot and industrial action go ahead because we then have six years during which, at any point, we can take legal action against the union.”

[John Healey]

My hon. Friend has more experience in this area than I have, and he is right to point that out, and he might have gone on to say, “And what a stark disparity with the legal requirements on trade unions to take any industrial action they may have balloted upon within days, not years, and then to give further fresh notice to the employer before the start of that industrial action.” The legislation is already hugely unbalanced and is, as the hon. Member for Huntingdon (Mr Djanogly) argued, ripe for reform—although I think he and I would disagree on the nature of the reform that is required.

The Opposition’s arguments against this clause and my particular objections are clear, and our amendments highlight them. Regardless of what the Government are prepared to say about its purpose now, it is designed to tighten the current legislation binding trade unions. It is designed to make it more difficult for trade unions to take proper legal, legitimate industrial action and in particular for members facing problems in their workplace to stand up to an employer as a last resort and say, “You’re treating us in such an unfair, discriminatory and unacceptable way that we are prepared to take industrial action as a last resort.” If we allow this provision and this part of the Bill to proceed unamended it will become much more difficult for ordinary people as union members in the workplace to stand up for themselves through their union against their employer.

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[John McDonnell]

I fear when Governments start seeking to regulate civil society generally. That is what the clause does: it is a step along the path of regulation of wider civil society organisations. What else? The Countryside Alliance? We might be up for that, just to see where the money comes from, but there are a range of organisations whose rights, privileges and privacy we want to be respected for reasons of basic civil liberties. Why are trade unions being singled out in this manner? The Bill is being targeted and comes at a time when the Government are predicting that they will be faced with trade unionists who are very angry about not being able to share in what is supposed to be an economic recovery. It is about the exercise of trade union rights.

My hon. Friend the Member for North Ayrshire and Arran (Katy Clark) mentioned the legality of the Government’s legislation. Let me be clear that our Governments have been condemned by the International Labour Organisation and other international organisations for two decades now because of their trade union legislation. It is not just about the right to strike; it is about certain basic and fundamental trade union rights. The clause, yet again, imposes further duties that I believe to be completely contrary to ILO conventions. Yet again, this country will be isolated in the world and condemned for its attack on trade union rights, which are incorporated in all those international statutes and conventions as a basic human right.

In summary, that is why I oppose clause stand part and support the moderate, pragmatic amendment. If we reach that stage in our consideration of the Bill, I will discuss the amendments I have proposed, which basically say that if the Government want the legislation—which we do not support—to go forward, they should at least have some form of trigger, such as a complaint or concern that has been raised and assessed. If there has been a complaint and there needs to be further action, fair enough. That is not the case at the moment and I think that this is just biased prejudice against trade unions and trade unionism overall.

[John Cryer]

First, let me say what a compelling speech my hon. Friend the Member for Hayes and Harlington (John McDonnell) just made. He made some strong points—this is about the evisceration of the industrial and political opposition over the next few months because the Government can see some serious problems on the horizon emanating from the policies they are pursuing. They want to neutralise any resistance to those policies and their consequences through the Bill and other measures.

I have a series of questions on this clause that I would like the Minister to deal with. My first question has been asked before, but it is specific. What specific complaints about union record keeping have been made and by whom over the last, say, three years? Secondly, as an addendum to that, what evidence is there that unions are not keeping accurate records? As we have heard before, under the 1992 legislation there is already a duty on trade unions to keep their records up to date. What has changed since then? What enormous problems are associated with trade union record keeping that have led the Government to their current position and to change things in such a radical way?

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[Andrew Gwynne]

My hon. Friend is absolutely right that many trade union members, for whatever reason, do not wish their employer to know that they are a member of a trade union but very much value their membership. Does he agree that those members’ concern is that their personal information might get into the hands of their employer and could be used against them in the workplace, particularly for future blacklisting?

[John Cryer]

That is a very good point. We have had all sorts of debates in this place on blacklisting recently; it is a problem that goes back many decades and persists in many sectors today.

My next question for the Minister is whether there has been any assessment specifically of the effect of the future legislation on the sectors of the economy that are particularly casualised. I am thinking of construction, agriculture, hospitality and catering. In construction and agriculture, particularly, the fluid nature of the work force means that it is difficult to keep accurate records of membership.

I have worked for three trade unions in the past and trade unions, more now than at any time in their history, devote enormous resources—as many as they possibly can—to organising records and keeping them up to date. As I said when I intervened on the hon. Member for Stevenage (Stephen McPartland), large general unions, particularly Unite and the GMB, can easily lose 12% of their membership, particularly at a time such as this. Their membership tends to stand still because they can recruit another 12% in the same sectors to take the place of those members who have been lost because of jobs being lost, factory closures and so on, but just to stand still they have to recruit 12%. The level of churn means that it is difficult to keep records up to date, no matter how many resources are devoted to record keeping. Of course, up-to-date records are dependent on members informing the union that they have moved house, for instance, or changed occupation. That does not always happen.

[Katy Clark]

I congratulate my hon. Friend on how he is presenting his case. He is correct that unions put a huge amount of resources into trying to keep accurate membership records, especially because of the number of legal challenges that employers take against them in the courts. Does he agree that the changing nature of the work force, with the increase of zero-hours contracts and under-employment that means that people have more than one part-time job, makes it even more difficult for unions to keep accurate records?

[John Cryer]

I completely agree with my hon. Friend. There is also the situation involving payroll companies. If such a company offers to take over an employer’s payroll responsibilities, the duties to pay pensions, national insurance and sick pay are divested to that payroll company, meaning that that semi-detached element in the workplace is responsible for maintaining many records, which makes keeping everything up to date even more complicated and difficult. Another aspect is the casualisation of the workplace, because there are some sectors of the economy in which full-time permanent employment is almost being abolished. Again, that situation will make it more difficult to comply with the Bill’s strictures.

[John McDonnell]

My hon. Friend makes a crucial point about the difficulty of communicating with trade union members. I have been a branch secretary, so I know that it is difficult enough to communicate with just a branch. The key aspect of the Government’s motivation in previous legislation has been to address balloting procedures, which I understand to a certain extent, because there is a need to ensure that there is an accurate record of membership when taking a ballot. However, what is sinister about the Bill’s proposals, with reference to the Government’s assessment, is that they are about ensuring that the general public and employers are

“confident that voting papers and other communications are reaching union members”.

The Bill therefore covers a wider range of activities than just balloting, so there could be challenges from employers and others about just whether a trade union had adequately communicated with its members, by post or other means, about any matter.

[John Cryer]

My hon. Friend makes a good point. Perhaps the Minister will tell us whether any other section of civil society is as heavily regulated as trade unions. Unions will be subject to even more regulation because every piece of communication with members will be covered by statute, which represents an extraordinary intervention into people’s lives.

Will the Minister tell us how the 1992 Act relates to the Bill, and especially to clause 36, because that Act makes provision for keeping accurate and up-to-date records? Will she tell us what has specifically changed since the implementation of that consolidation Act that has brought about an enormous problem that now must be dealt with?

[Julie Elliott]

Given the regulation on trade unions’ membership records that already exists, does my hon. Friend agree that unions probably are the most regulated membership organisations in the country and have the most accurate records? What is the need for extra regulation, other than to constrain the legitimate actions of trade unions?

[John Cryer]

I could not agree more—my hon. Friend puts it far better than I could.

[Charlie Elphicke (Dover) (Con)]

I speak as someone who, like many Conservatives, believes in trade unions’ right to use their economic power collectively. However, is the hon. Gentleman saying that trade unions should be subject to less regulation than at present?

[John Cryer]

Yes, I am. I am interested to hear that the hon. Gentleman believes in the collective strength of trade unions, and I am sure that he will be known in Dover as Red Charlie after that comment.

The trade unions are subject to enormously heavy regulation, so I do believe in less regulation. Successive Governments have carried out all sorts of investigations into the burdens of regulation on every sector of the economy, but I agree with the hon. Member for Huntingdon (Mr Djanogly) that there should be an investigation into the regulatory burdens on trade unions. As a trade union officer in a past life, I have seen such burdens, and while I would be out of order if I talked about my experiences, they were extraordinary. I suspect that a number of Government Members would be surprised to hear how heavily regulated trade unions are.

[Charlie Elphicke]

While I support trade unions’ use of legitimate economic power, taking the step of using that serious power can have great economic consequences. Does the hon. Gentleman agree that that power should be exercised within a framework that has been carefully set out so that the people at the top of trade unions cannot abuse it?

[John Cryer]

Of course I agree, but there has always been a legal framework for taking industrial action. The idea that anyone ever takes industrial action—not only strike action, but action short of strikes—lightly is a myth. That just does not happen in the real world.

[The Temporary Chair (Sir Edward Leigh)]

Order. The hon. Gentleman has been very well behaved so far and has stayed entirely in order, but he has been led astray by the hon. Member for Dover (Charlie Elphicke). He should now return to the clause.

[John Cryer]

I am told that the hon. Member for Dover (Charlie Elphicke) regularly leads people astray—[Interruption.] I do not mean that; I am joking.

As has been said repeatedly, we were first led to believe that this measure would be a lobbying Bill, but since then parts 2 and 3 have been added. We had been promised a lobbying Bill for three and a half years, but all sorts of things have been bolted on to that. Why was there no consultation paper on not only part 2, which we dealt with yesterday, but part 3 and provisions such as clause 36? Why could not the Government have issued a consultation paper so that people could have contributed to the process, rather than ramming the Bill through in a few days, despite introducing it just before the recess? These measures should have been thought through carefully and a consultation process to which people could contribute should have been held, but that simply did not happen.

[Mr Doran]

I declare an interest as a member of the GMB union, which has funded me in the past, and as secretary of the trade union group of Labour MPs. I wanted to say that because, like most of my colleagues, I am tired of the way in which trade unions are demonised, especially by the Government, who are putting as many obstacles as possible in the way of trade unions carrying out their normal and reasonable functions, as is apparent from part 3 of the Bill. The points that hon. Members have made about this group of amendments, which we have been discussing for some time, are relevant to virtually every other provision, because we need to hear from the Government why part 3 is necessary, which is the point on which I shall focus my speech.

I have had some experience of working with the certification officer. In 1993, when the unions were approaching the 10-year ballot for their political fund, I was appointed by a group of trade unions—more than 30 of them—to run the campaign, along with a colleague, Derek Gladwin, who became Lord Gladwin. Sadly, he is now dead. We ran that operation, balloting more than 6 million trade unionists. I did it in close co-operation with the certification officer and I learned a little about the way in which certification officers operate.

If we look back at the history of the regulation of trade unions, it is fairly clear that trade unions are used to regulation and the requirements of regulation. My hon. Friend the Member for Edinburgh South (Ian Murray) pointed out forcefully the very small number of complaints from members about the processes and about the way in which the unions operated— 10 complaints, I think, since the 1980s. Given the numbers involved, that is remarkable.

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[John Cryer]

My hon. Friend will know that over the years, under Governments of both political complexions, there have been all sorts of reports on what are generally referred to as the burdens on business. In line with the suggestion from the hon. Member for Huntingdon (Mr Djanogly), does not my hon. Friend think it would be a good idea to have an assessment of the burdens on trade unions? I would not recommend someone such as Adrian Beecroft to conduct the review, but it would be a good idea to have some sort of report on those burdens, just so that we can set out the argument in objective terms, in contrast to this very subjective piece of legislation that is being rammed through Parliament.

[Ian Lavery]

Of course that should be the case, but I am not sure that the Opposition should ask the coalition Government even to try to be sympathetic to the trade union movement. I would be afraid of their response. I know that it would not be positive. Perhaps instead of taking away 90% of trade unionists’ facility time, they would take 95%. That is an example of the ways in which the trade unions have been attacked by the coalition Government.