Oral Answers to Questions

Justin Madders Excerpts

Thursday 31st October 2024 Commons Chamber

[Ian Lavery (Blyth and Ashington) (Lab)]

2. If he will take steps to increase the use of sectoral collective bargaining.

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

The Government are committed to strengthening the collective voices of workers and restoring the principle that work should always pay. That is why we introduced the Employment Rights Bill, which will restore the school support staff negotiating body and introduce a framework for a fair pay agreement in adult social care. Combined with other measures in the Bill, that will empower workers, unions and employers to come together to negotiate fair pay, terms and conditions.

[Ian Lavery]

I thank the Minister for that answer. It was fantastic of the Labour Government to bring in the Employment Rights Bill within their first 100 days—an absolutely brilliant achievement. Experts say that sectoral bargaining is a force to be reckoned with for both employees and employers, so what plans might the Government have to extend sectoral collective bargaining in other sectors of the economy?

[Justin Madders]

My hon. Friend is right to say that there is plenty of evidence worldwide that collective bargaining improves terms and conditions and the overall vitality of the economy, but we must start somewhere. About 5% of the entire working population are employed in adult social care, and with a 25% turnover rate and rampant abuse of zero-hours contracts and the minimum wage laws, we felt that that sector needed the most attention first. We must make a concerted effort to drive up working conditions, because those who work in that area have been undervalued and underappreciated for far too long, and that has to change. We must focus on getting it right in adult social care, and we will see where that takes us.

[John Cooper (Dumfries and Galloway) (Con)]

Undoubtedly, Government legislation is empowering the unions—we saw that this week when the Secretary of State for Scotland was unable to meet CBI Scotland, an important body, because he could not enter his own building because of a picket line. We read in the papers this morning that ASLEF, a rail union, insists on using fax machines and will not allow its members to use email. How is that helping collective bargaining?

[Justin Madders]

I have to educate the hon. Member on what trade unions do. ASLEF is not a union in the adult social care sector, which is what we are talking about here. We want to work on a tripartite basis—business and workers, together with the Government—to get terms and conditions right. Given that we had the lowest increase in living standards on record under the Conservative Government, I would have thought that he would want to support that too.

[Mr Speaker]

I call the shadow Minister.

[Gareth Bacon (Orpington) (Con)]

The Government’s impact assessment for the adult social care sector confirmed that collective bargaining will be very costly for business. If pay awards match those of junior doctors, the cost of the increased wage bill will be £5.8 billion, driving up business rates, reducing employment or hours, and imposing further costs on business. Can the Minister confirm when further collective bargaining will be rolled out, to which sectors, and by how much those businesses can expect to be clobbered?

[Justin Madders]

If the shadow Minister is complaining about the state of the adult social care sector, he should look to his own party and how the sector was left to rot for 14 years. The impact assessment says that the overall cost to employers will be 0.4% overall and, as the economic analysis says, the make work pay package will help to raise living standards across the country and create opportunities for all. I think 0.4% is a fantastic achievement to get such a deal. If he does not want to support improved working conditions for people, an end to fire and rehire and better maternity protections, he should continue to vote against the Employment Rights Bill, but I do not think his constituents will thank him for that.

[Joe Morris (Hexham) (Lab)]

4. What recent progress he has made on developing a new industrial strategy.

--- Later in debate ---

[James Asser (West Ham and Beckton) (Lab)]

5. What recent steps he has taken to help prevent e-bike battery fires.

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

The Office for Product Safety and Standards within my Department has been working across Government and industry to protect consumers and understand the causes of any safety issues. That has included giving consumers clear information that enables them to purchase, use and charge products safely; assessing the compliance of manufacturers and importers to ensure that products are safe when placed on the market; and a programme of work to address the sale of non-compliant products available through online marketplaces, including e-bikes and their batteries. Last week, I visited the OPSS’s Teddington laboratories, where we launched the Department’s new “Buy Safe, Be Safe” consumer campaign.

[James Asser]

Two weeks ago, there was a fire in a 10th floor flat in Plaistow in my constituency. Thankfully, the quick reaction of the residents and neighbours and the good work of the London Fire Brigade meant that they were all able to be evacuated quickly and there were no serious injuries. Clearly, this could have been worse. Does the Minister agree that it is a perfect example of why we need to continue to work to make these batteries safer and run awareness campaigns, so that residents understand the safety issues and how they can be mitigated, and how the batteries can be disposed of if they need to get rid of them?

[Justin Madders]

My hon. Friend is absolutely right. Manufacturers must already ensure that products are safe and provide instructions for safe use, including safe charging. I pay tribute to the London Fire Brigade for the work it is doing on this issue. Unfortunately, as we have heard, there are far too many fires. That is why we launched our awareness campaign last week. We are hoping, through the Product Regulation and Metrology Bill, to make sure we have powers to keep up with technological developments and ensure that e-bikes can be sold safely to consumers in the UK.

[Matt Turmaine (Watford) (Lab)]

6. What progress his Department has made on delivering the make work pay programme.

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

As the Chancellor announced yesterday, the national living wage will rise to £12.21 an hour, meaning that a full-time worker can earn an extra £1,400 a year. We have also announced the stopping of the use of minimum service levels and tackled late payments for the self-employed. Of course, we have now introduced the Employment Rights Bill, which will raise living standards across the country and provide better support for businesses engaged in good practice. It also makes good on our promise to the British people that we will now make work pay.

[Matt Turmaine]

I thank the Minister for his answer. In my constituency of Watford, many people are employed in the hospitality, retail and construction sectors and, with a big hospital, in the health and social sector. Will the Minister confirm that the Government’s Make Work Pay plan will bring long-lasting benefits to them and to other workers?

[Justin Madders]

Absolutely. We are determined to ensure that the particular sectors that my hon. Friend mentioned, where low pay and insecurity are rife, will benefit. We are working closely with businesses and employers across the spectrum to ensure that we get the proposals right because, for too long, insecurity and low pay have been rife in the UK economy. That has to change.

[Mr Speaker]

I call the shadow Minister.

[Jerome Mayhew (Broadland and Fakenham) (Con)]

After receiving millions from the trade union paymasters for its election, Labour is rewarding them with a package of 1970s, French-style workplace regulations, which will increase the cost of doing business in the UK to the tune of £5 billion a year, disproportionately falling on SMEs. That is before the £25 billion body blow to business delivered by the Chancellor yesterday in her anti-business Budget of broken promises. Does the Minister agree with the Office for Budget Responsibility that this Government’s decisions will make workers poorer, not richer, as increased employment taxes are passed on in lower wages, and that business investment will fall, not rise, as a direct result of this Government?

[Justin Madders]

I find it incredible that the Opposition quote French-style labour laws, because when they introduced the minimum services legislation, they always held up France as the example of where that works already. I wish they would make their minds up. The implication behind the question about trade union funding says rather more about their attitude to how legislation is made in this country than ours. We do things because we believe in them. If he looks carefully at what the OBR is saying, £1,400 into people’s pockets as a result of the national living wage increase is a fantastic achievement that we should all be proud of.

[Tony Vaughan (Folkestone and Hythe) (Lab)]

7. What steps he is taking to help support small businesses to scale up.

--- Later in debate ---

[Steve Witherden (Montgomeryshire and Glyndŵr) (Lab)]

T3. A study published by the Disability Policy Centre this week suggests that improving support to get disabled people, those with long-term health conditions and unpaid carers into work, and keeping them in employment, could save the Treasury £38 billion. Paying a higher rate of sick pay has been shown to increase employee retention and is key to reducing economic inactivity. What assessment has the Minister made of the impact of the current rate of statutory sick pay on employee retention?

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

My hon. Friend is absolutely right that we need to get more people back into work, and need to support them to return. In the Employment Rights Bill, we are looking to increase the scope of sick pay to include people below the lower earnings limit, and to introduce payments from day one. We have no plans to increase the rate of statutory sick pay, but when we get the reforms through, we will no doubt look at how we can reform it for the better. My Department for Work and Pensions colleagues will consider that in due course.

[Dr Luke Evans (Hinckley and Bosworth) (Con)]

T2. After yesterday’s Budget, those running small and medium-sized businesses will see their national insurance rise and their wage bill increase. Those in hospitality, running a pub or restaurant, for example, will have a 35% reduction in their business rate relief. To top it off, the Employment Rights Bill will bring more red tape for businesses. Those massive changes are happening very quickly. Does the Minister agree with the Institute of Directors that it is a “perfect storm” of higher taxes, higher wages and more red tape?

--- Later in debate ---

[Marsha De Cordova (Battersea) (Lab)]

T8.   The all-party parliamentary group on eye health and visual impairment, which I chair, recently published its report, “Changing Attitudes, Changing Lives”, looking at employer attitudes towards blind and partially sighted people. We found that nearly half of employers do not have accessible recruitment processes, which means that they miss out on a wealth of talent. Will the Minister meet me to discuss how we can create a step change in employer attitudes towards blind and partially sighted people?

[Justin Madders]

I would be delighted to meet my hon. Friend. Under the “Get Britain Working” plan, more disabled people and people with health conditions will be supported to enter and stay in work, and I am happy to discuss with her how we can achieve that aim.

[Alison Griffiths (Bognor Regis and Littlehampton) (Con)]

The Government’s own impact assessment suggests that measures in the Employment Rights Bill could cost businesses up to £4.5 billion annually and increase the number of strikes by 54%. Does the Minister expect that legislation to enhance or undermine investor confidence?

[Justin Madders]

I gently point out to the hon. Lady that that represents a 0.4% increase on businesses’ total costs—a small price to pay for what the impact assessment says

“will strengthen working conditions for the lowest-paid and most vulnerable in the labour market, increasing fairness and equality across Britain. It will have significant positive impacts on workers who are trapped in insecure work, face discrimination, or suffer from unscrupulous employer behaviour like ‘fire and refire’ practices”.

If the hon. Lady does not support that, I am sure that she can talk to her constituents about why.

[Mr Speaker]

I call the Chair of the Business and Trade Committee.