Trade Union Bill (Eighth sitting)

John Howell Excerpts

Thursday 22nd October 2015 Public Bill Committees

[Stephen Doughty]

My hon. Friend makes a very important point. If the Government were genuinely concerned about the levels of electronically based elections in the private sector, they would legislate to require all bodies to use postal-only ballots, and they would re-run the election for the candidate for Mayor of London using a postal-only ballot.

I simply cannot understand the Government’s argument, and nor can the public. On the one hand, the Government say that they want to increase participation, that we need to ensure that everybody has their say, and that strikes and actions must not take place without everybody’s consent. But they will not extend the most simple modern methods to allow people to participate in a democratic process, which is their right as established in many conventions—indeed, in this country’s historic laws and principles. The Government seek to deny unions the right to exercise that franchise. It simply does not make sense.

It certainly does not make sense, given that secure workplace balloting is already used, as I have described. Why can it not be extended to industrial action ballots and other elections that unions undertake? It is certainly bizarre, given that I can list 40 or 50 different organisations that use e-balloting. The Electoral Reform Society and others have produced plenty of evidence that such methods can be used securely, safely and effectively. They meet all the tests that any Government, employer or union would want to apply to ensure they are safe and secure on both sides. The Government’s arguments and their refusal to engage do not make sense. I hope, given that the Minister said that he will reflect on other parts of the Bill with the best of intentions, that the Government will look at this issue again. I hope they look favourably on our new clauses and commit to supporting them, or at the very least pledge to introduce Government amendments mirroring ours on Report.

I turn briefly to the specifics of the amendments and new clauses. Amendment 39, which I have not touched on in detail so far, relates to the section on political funding. It is absurd and ludicrous that the Bill requires individuals or their authorised agents to deliver opt-in, renewal or withdrawal notices to the trade union head office or branch office personally or by post. The amendment would enable trade union members to renew their opt-in via email or online. Most trade unions are concerned that they will have just three months—we will come on to that issue—to sign members up to their political funds after the Bill comes into force. If members do not opt in within three months, they will no longer be considered valid contributors. That is unworkable and unreasonable, and in practice it will mean that many trade union members who want to pay into the union political fund will be prevented from doing so.

The provisions also fail to recognise that trade unions will be required to revise their rule book to comply. Many trade unions hold their rule-making conference once a year, every two years or, in some cases, every five years. It is therefore unreasonable for the Government to expect trade unions with a political fund to convene a special rule-making conference within three months to comply with the legislation. For many trade unions, it would be simply impossible to book venues and make the relevant logistical arrangements in time. The costs are likely to be astronomical, representatives might not be able to secure the time off to attend the conference and there might be problems with quorums and so on. Again, they will not be able to use electronic methods. People will have to hand in a hand-written notice to a head office or a branch office. Again, it reveals the Government’s true intent. If the Minister does not want the public and trade union members to believe that that is the intent behind the Bill, why does he not go some way towards a compromise and provide methods to encourage the maximum participation, both for opting in to political funds and for ballots?

I have detailed the new clauses. Briefly, for the Committee’s benefit, new clause 1 would permit trade unions to decide to use electronic voting for industrial action ballots. For example, union members would be able to vote online, on smartphones or via secure phone lines. They would also be able to vote electronically in workplaces using secure laptops or electronic booths. New clause 2 would permit unions to use electronic voting in other statutory elections and ballots, including the election of general secretaries, political fund ballots and ballots on mergers. New clauses 4 and 8 would permit trade unions to decide to use similar electronic means to those in new clause 1, or workplace ballots, similar to those used in statutory recognition ballots, for industrial action ballots. In workplace ballots, union members would be able to vote using paper ballot papers and secure ballot boxes in a secure location at the place of work. New clauses 5 and 6 would permit trade unions to use electronic and workplace ballots for all other statutory elections and ballots.

This comprehensive set of amendments and new clauses is about bringing trade unions into the modern age, as the Government say they want to do, and being able to use modern methods that are already used elsewhere and are seen to be successful. Frankly, I cannot see any reason why the Government would wish to oppose them.

[John Howell (Henley) (Con)]

I accept that electronic voting is gaining widespread political support, but I disagree with the hon. Gentleman’s interpretation of the evidence that was put to the Speaker’s Commission on Digital Democracy, particularly the evidence from the Open Rights Group. The Guardian commented:

“The chief fear of many is that…electronic voting would make electoral fraud easier, not harder. In the worst-case scenario, rather than forging ballots”—

an individual—

“could simply flip a switch and win the election with no trail in sight.”

The executive director of the Open Rights Group, Jim Killock, said:

“This is a very hard problem to solve and so far nobody has managed it. Accountability in most software systems means a clear audit trail of who did what, which of course would violate the basic question of secrecy.”

Regardless of that, the other part of that argument is that the system has to be made so secure and the voting equipment has to be trusted to such an extent that accountability is open to doubt.

[Stephen Doughty]

On the basis of that argument, I have to ask whether the hon. Gentleman considers the election of his colleague, the hon. Member for Richmond Park (Zac Goldsmith), as the Conservative candidate for Mayor of London to be unsound in some way.

[John Howell]

I thought the hon. Gentleman would ask that question, so I thought of an answer. The answer is that I am not suggesting that anything at all was wrong with that election or, indeed, other elections that have used electronic voting, but I urge extreme caution where it is applied to elections that are enduring and on a statutory basis.

To finish—I wanted this to be only a brief intervention—I go back to Jim Killock of the Open Rights Group. He said:

“Given the vast numbers of machines that are infected by criminally controlled malware and the temptation for someone to interfere in an election, internet voting is a bad idea.”

[Nick Boles]

Will my hon. Friend tell us where he unearthed those comments from Jim Killock to ensure that Hansard can record that for all Members?

--- Later in debate ---

[John Howell]

I am grateful to the Minister. Part of it comes from my role as the co-chairman of the all-party parliamentary group on design and innovation—it did a lot of work in this area before the election—at the time that the Speaker’s Commission was working, and part of it comes from an article in The Guardian. The Minister will appreciate that, as a lively reader of The Guardian, I pick up these things wherever I can. I can probably give him the exact date on which the article was published, if he wants to know that.

[Chris Stephens]

We are not talking about an election, though, but a ballot, which will be a binary choice. It will either be yes or no. What specifically would concern the hon. Gentleman about introducing electronic balloting in a case of industrial action or to confirm or otherwise the political fund arrangements of a trade union?

[John Howell]

I think there is a great deal of similarity between using electronic means for an election and for this sort of statutory balloting. The thing that most concerns me is that, as in the words of the Open Rights Group that I just quoted:

“This is a very hard problem to solve and so far nobody has managed it.”

The question is how we deal with the problems of security and particularly of accountability.

[Stephen Doughty]

I think that it is important to test this point. The hon. Gentleman is referring to decisions that have statutory implications, are regulated and so on, but these methods are also used by major financial institutions. For example, the Nationwide Building Society, the Yorkshire Building Society, J.P. Morgan and others—

--- Later in debate ---

[Stephen Doughty]

At their annual general meetings, which are often taking very serious and significant decisions, which are bound by the financial law set out by this House, those organisations are using these systems, so what is the problem? Why is this the only part of our democracy that is not able to use them?

[John Howell]

I think that a number of hon. Members want to intervene. First, does my hon. Friend the Member for South Ribble want to intervene on me, as she could not intervene on the intervener?

[Seema Kennedy]

Sir Edward, I apologise. I am a relative novice, including on interventions. Are you aware that in the last year alone, online banking fraud has increased by 48%? Hon. Members are talking about the use of electronic methods in the financial and banking sector.

[The Chair]

Order. I am not aware of anything, especially not in The Guardian. When you say “you”, you are addressing the Chair. Anyway, you have got the message.

[John Howell]

I think that that question was directed to me, Sir Edward. I am aware that online banking fraud is up by 48%. That is an example of what I am talking about—

[Julie Elliott]

Will the hon. Gentleman give way?

[John Howell]

Not at the moment.

[Julie Elliott]

Just on that specific point.

[John Howell]

Not at the moment. If we look at Barclays bank, for example, we see that the level of tolerance of this is phenomenal. It is frightening to see that; in fact, it makes one wish to change one’s account straightaway.

In answer to the question asked some time ago by the hon. Member for Cardiff South and Penarth about other organisations that use these methods, I fully accept, as I said at the beginning, that electronic balloting—electronic voting—is gaining wider and wider significance and acceptability. However, the organisations using these methods are approaching that in a systematic way. All I wanted to say at this point was that tremendous caution needs to be exercised. I shall finish again with the opinion of Mr Killock that

“internet voting is a bad idea.”

[Dr Cameron]

It is a privilege to serve under your chairmanship, Sir Edward, and to speak on clause 8. At the outset, I declare again my interests as a member of Unite the union and a former representative of Unite.

We are having a very interesting debate, but we must put it in the context of modern times. This is the way events are moving. It is what the public expect and want, and trade union members are very used to voting electronically or using electronic means in many realms of their lives. We therefore have to ensure that as a society and in this legislative process, we are modernising and it is in kilter with society.

I seek to question whether people’s opinion is based on evidence. Perhaps they are right to some degree to suggest caution, but is it based on evidence from such ballots having taken place in other realms, such as the candidate selection for Mayor of London, which has already been mentioned. However, there does not appear to be any evidence from these actual cases that anything untoward has happened. All of this, apart from being grounded in modern society and the way we live our lives, has to be grounded on an evidence-based approach rather than an opinion-based approach.

Our amendment advocates electronic and workplace balloting. Currently, all ballots and elections in trade unions must be conducted on a fully postal basis. Unlike major companies and other membership organisations, including political parties, trade union members have not been allowed to vote online. We cannot continue to leave trade union members behind; the system must be modernised. I was pleased to hear earlier that the Minister accepts electronic contact and communication in other areas relevant to the Bill.