Finances of the House of Commons

John McDonnell Excerpts

Thursday 21st November 2013 Commons Chamber

[John Thurso]

My belief is that that issue has, indeed, been addressed—and I think I have just had a little divine inspiration to confirm that. If, by any mischance, I have misinformed the hon. Gentleman, I will most certainly write to him, but otherwise he may take it that that has indeed been addressed.

The second issue I wish to touch on is what are termed zero-hours contracts. The Commission asked the Finance and Services Committee to look at that issue and prepare advice. We are in the final stages of preparing that advice and it will go to the Commission at its next meeting on Monday, so it is still, as it were, in draft, but I would like, if I may, to outline what the content of that advice is going to be.

In summary, we are advising that the House should not take on zero-hours contracts. Their key feature is that they do not have mutuality of obligation; that is the critical point that came out. We had a fascinating written and oral evidence session involving some very good employers ranging from supermarkets to the Royal Household and others, and what came out clearly was that good employers with good HR practices are not particularly keen on zero-hours contracts because of this lack of mutuality. We came to the firm view that, as that is the principal feature of zero-hours contracts, we should have nothing whatever to do with them.

We further go on to advise that where staff are currently being employed on a casual basis they should be placed on proper contracts that provide for full and appropriate employee rights with mutuality of obligation, and that that should be supported by best practice and, in particular, by the adoption of a code of conduct. I was particularly grateful to my right hon. Friend—if I may refer to him as that—the right hon. Member for Knowsley (Mr Howarth) who, with other colleagues, put together a report on this issue that included a model code, which we think is very fit and which we intend to recommend to the Commission.

This kind of call-off contract is a much better way of dealing with the perfectly legitimate need to have some casual staff within our service, particularly in regard to catering. We believe that by doing that in the way I have set out, and which we intend to advise the Commission to follow, we will be fulfilling our goal of being employers of the first order.

[John McDonnell (Hayes and Harlington) (Lab)]

I congratulate the hon. Gentleman on the work he is doing on this, which I think is very helpful. We have been in correspondence over the past year now about the interpretation of the contract of the staff in the Members’ Tea Room. Some of them have been working to certain customs and practice conditions for over 25 years and have had wage cuts as a result of a new interpretation of their contract. That still has not been resolved, and my understanding is that, following last week’s negotiations, the staff are still awaiting an offer from management. Can we try to resolve this situation as quickly as possible? It has gone on for more than a year and is undermining morale.

[John Thurso]

I am grateful to the hon. Gentleman for raising that issue with me. I do not have a specific answer to it, but I take very seriously what he said and will look at it, do what I can and come back to him.

The final point that we learned from our evidence session, and which absolutely every one of the HR directors of the various enterprises made, was: never allow HR and management to use zero hours as a sloppy way of managing staff. Our advice will contain a statement to that effect: that it is proper to have call-off contracts and to deal with casual staff properly, but it must be done with rigorous HR. I do not know what fellow commissioners may or may not say to all that, but I am hopeful that the Commission will accept the advice we are proffering.

The final point I would make on pay and conditions is that change is always difficult and unsettling, even in the best of organisations. I have had experience of, to use the jargon, “re-engineering” two businesses that were going bust to make them sustainable for the future. In making changes and asking people to change the way they do things, there are difficulties and there is absolutely no way round that. That is going on here, but what we are trying to ensure—and seeking to impress on the management—is that this be done as transparently and fairly as possible. There will be blips in morale from time to time, but everything possible should be done to mitigate that, and I believe the House service has listened to the points we have made.

There is of course one major area of disagreement on pay and conditions, which is going to end up being dealt with in court. That is regrettable, but as I understand it the legal advice on both sides is robust, and that is what happens in such situations. However, in most other areas —probably all—the discussions, based on good will, are likely to progress well, and I pay tribute, frankly, to the union representatives who have also engaged in those discussions with House management.