Employment Rights Bill (Fifteenth sitting)

Justin Madders Excerpts

Committee stage
Tuesday 7th January 2025 Public Bill Committees

[The Chair]

May I begin by wishing everyone a happy new year? Will everyone please ensure that all electronic devices are turned off or switched to silent mode? We will now continue line-by-line consideration of the Bill. The grouping and selection list for today’s sittings is available in the room and on the parliamentary website. I remind Members about the rules on declaration of interests, as set out in the code of conduct.

Clause 45

Right to statement of trade union rights

Question proposed, That the clause stand part of the Bill.

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

Good morning, Mr Mundell. It is a pleasure to see you in the Chair. Happy new year to you and to all members of the Committee. I start by making my customary reference to my declarations in the Register of Members’ Financial Interests.

This, I hope, is a fairly straightforward and uncontroversial clause; it does exactly what it says on the tin. Currently, there is no general requirement for employers to let their staff know of their right to join a trade union. The clause introduces a legal duty for employers to inform all new employees of their right to join a union and to remind all staff of that right at prescribed intervals. Employers must provide this information alongside the written statement of particulars that they are already required to produce under section 1 of the Employment Rights Act 1996. Specific details, including the frequency and manner of notification, will be set out in secondary legislation following consultation.

A lack of awareness of the right to join a trade union may be contributing to declining union membership and reduced worker engagement in collective bargaining. The clause will help empower workers to become active in protecting their rights. This is a step forward in strengthening worker representation and the collective voice in the workplace, ultimately supporting more effective collective bargaining. I therefore commend the clause to the Committee.

[Greg Smith (Mid Buckinghamshire) (Con)]

It is a pleasure to serve under your chairmanship, Mr Mundell, and I too wish you and all members of the Committee a very happy, prosperous and healthy new year. If only the optimism of that statement were matched by business confidence around the country as we start this new year.

I understand why the Government want to take this measure, and it is pretty clear that it will happen as part of the Bill. As the Minister prepares for the consultation that he spoke about, I ask him to reflect on how quickly we can give businesses certainty on the frequency with which they will have to remind their employees of their right to join a trade union. Of course everyone has a right to join a trade union—there is no issue with that—but this is yet another thing that HR departments of bigger businesses, and individual owners of smaller businesses, who have to do everything from the HR function down to replacing the loo roll in the toilets, will have to remember to do on a regular basis, and presumably they will face consequences if they do not. It might not seem onerous as we talk about it at half-past 9 on a Tuesday morning in Westminster, but once we start ratcheting up all these different things for businesses—particularly those very small businesses—to do, it will become a burden.

The other thing that I gently ask the Minister to consider as part of his consultation is this. Would it not be a fairer, more balanced and better way of doing things to have in the proposed statement, as well as a reminder to employees of their right to join a trade union, a reminder that they do not have to do so—that there is equally a right not to join a trade union if they do not wish to? It would be much more fair and balanced if the consultation focused on ensuring that both sides are equally reflected—yes, a reminder that there is a right to join a trade union, but equally, a reminder that there is no compulsion and no absolute, set-in-stone requirement to do so. If we could have that, the clause would be much more balanced.

[Sir Ashley Fox (Bridgwater) (Con)]

It is a pleasure to serve under your chairmanship, Mr Mundell, and I wish you and other colleagues a happy new year.

I want to follow on from the comments made by the shadow Minister, my hon. Friend the Member for Mid Buckinghamshire, and emphasise that the clause is completely pointless. Of course all workers have the right to join a trade union and the right not to join a trade union. Will the Minister outline the consequences for a small employer of not complying with the clause? Will there be a penalty? Will the employer be taken to a tribunal that can make a protective award? If there will not be a penalty, surely the clause is only performative, and just more evidence that the Government are doing what their trade union masters are telling them to.

Time and again in the Bill, we see measures that are small and inconsequential individually, but in total mount up to £5 billion of additional costs, most of them on small and medium-sized businesses. We see from surveys of business confidence that businesses are reeling under the imposition of additional taxes and of these rights, and the Government’s business-unfriendly stance. While the Minister talks about growth, the actions of his Government point to the very opposite. They believe that somehow they can regulate their way to growth. We start this new year with more regulation from the Government, none of which will contribute to the wealth and prosperity of our citizens.

[Justin Madders]

There was a mix of responses there. We heard from the hon. Member for Torbay that the Liberal Democrats welcome the clause, I think the shadow Minister was generally supportive, albeit not explicitly, and then the hon. Member for Bridgwater was fairly critical. I will address the points made by all three individuals.

The shadow Minister made a fair point that the frequency with which employees will have to be notified is important. That will be determined by the responses that we get to the consultation. Clearly, we do not want to make this measure too onerous, but we believe that it is important as a matter of principle that employees are aware of their right to join a trade union, for all the reasons that have been amply set out over many months and years.

On making it clear within a notification that the employee is not obliged to join a trade union, I am sure the shadow Minister is aware that the closed shop principle was abolished quite some time ago—possibly not even in his lifetime. [Interruption.] Well, possibly not; perhaps his rest over the Christmas period has made him look more youthful than he is. The precise wording of the notification will be set out in secondary legislation. I am sure it will not be worded in a way that indicates that there is a compulsion on individuals to join a trade union, but it is important that people know of the right.

In reference to the comments from the Liberal Democrat spokesperson, the hon. Member for Torbay, I too have had many conversations with constituents who have notified me of issues with their workplace. I hope most Members respond with the question, “What has your trade union said about this?” When I ask that, quite often I get the response, “My employer doesn’t allow us to join a trade union.” That response is far too common for my liking. Evidence has been submitted to the Committee, particularly by the Union of Shop, Distributive and Allied Workers, about the lack of awareness of employees’ right to join a trade union. In a free society, we should be ensuring that people are aware of their rights.

On the points made by the hon. Member for Bridgwater, the consequences for not notifying an individual of this right will be the same as they currently are for failure to provide a statement of terms and conditions under section 38 of the Employment Act 2002. It is not a free- standing claim on its own; it can be put on top of another employment tribunal claim, and the penalty can be between two and four weeks’ pay.

On the administrative burden, there is already prescribed in legislation a long list of matters about which the employer must notify the employee when they join in a statement of terms and conditions. Really, we are just adding this to that list. We think this is an important measure.

[Sir Ashley Fox]

I think this comes together with day one employment rights. Take the example of a very small businessman or woman who takes someone on with no written contract, and within a week or two the employment does not work out and the employee is fired. They might be within a—what is the word for the period of time in the first few weeks of employment?

[Justin Madders]

Probation.

[Sir Ashley Fox]

Probation period—thank you. It is early in the new year, Mr Mundell. That member of staff might be within their probation period, but if that is not specified in a written contract, that dismissal would be procedurally unfair, according to the Bill. If that same small businessman or woman has not notified the employee of their right to join a trade union, the Minister seems to be saying that the employee will get a protective award of another two to four weeks’ salary on top of that. Can he not see that for microbusinesses, the array of sanctions becomes threatening—many weeks’ wages, for a very short contract that did not work out—and that he threatens to make it very difficult and onerous for them to take on new employees?

[Justin Madders]

I understand the point the hon. Member makes. I do not think it is helpful to get into hypotheticals about what might or might not happen under the statutory probation system, given that we have not really fleshed out the details. That will happen in due course, but it is already the law that statements of terms and conditions are required to be presented to employees, I think within the first month. There is not an additional burden of extra paperwork that has to be delivered; this is already built into the system, in terms of ensuring that employees receive their statement of terms and conditions when they start employment.

On that note, I commend the clause to the Committee.

Question put and agreed to.

Clause 45 accordingly ordered to stand part of the Bill.

Clause 46

Right of trade unions to access workplaces

[Justin Madders]

I beg to move amendment 72, in clause 46, page 50, line 30, leave out “listed” and insert “qualifying”.

This amendment and other amendments to this clause would require a trade union to have a certificate of independence in order to have the rights provided for in the clause.

[The Chair]

With this it will be convenient to consider Government amendments 73 and 75 to 79.

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[Justin Madders]

The clause makes provision for trade unions and employers to negotiate access agreements, under which employers will be required to permit trade union officials to enter workplaces for various purposes, such as recruitment, organising, and meeting and providing support to existing members. This is particularly significant for unrecognised unions. Access to a workplace can provide an opportunity to recruit and organise with the aim of gaining formal recognition.

The Bill currently provides that any listed trade unions can apply for access to a workplace. Under the current definition, it is possible that employers could use staff associations and non-independent bodies to frustrate independent trade unions’ access to the workplace. Therefore, proposed amendments 72, 73 and 75 to 79 require trade unions to have a certificate of independence issued by the Certification Officer to qualify for access.

The amendments will ensure that clause 46 is used as intended. The clause will ensure that independent unions can initiate and agree access agreements with an employer, while not affecting the existing ability of non-independent bodies to negotiate voluntary access agreements. Amendment 73 inserts the defined term “qualifying trade union” and defines it as a union that has a certificate of independence issued by the Certification Officer. That will apply to proposed new chapter 5ZA of the Trade Union and Labour Relations (Consolidation) Act 1992 only, and amendments 72 and 75 to 79 update other provisions that refer to “listed” trade unions accordingly.

[Greg Smith]

As the Minister clearly outlined, the requirement for a trade union to have a certificate of independence to have the rights provided for in clause 46 is a tidying up of the Bill. The Opposition are not entirely on board with the spirit of the Bill in this regard, but we welcome its being tidied up and the clarity that the amendments bring to what the Government are trying to do to prevent even more of a free-for-all in terms of access to workplaces.

I have said many times that it is a shame and regrettable that so many of these tidying-up amendments have had to be tabled. Welcome though they are in bringing certainty to businesses about the Bill’s core provisions, if we had not had that arbitrary 100-day deadline, we probably would not be spending our time going through these sorts of amendments, and could instead be debating much more of the substance of the Bill. As I say, the Opposition are not convinced about some of the core provisions of the Bill, but these particular amendments do at least tidy it up to some extent.

[The Chair]

Minister, do you wish to say anything further?

[Justin Madders]

Just that I welcome the support from the shadow Minister, albeit for the wording rather than the spirit of the amendment.

Amendment 72 agreed to.

Amendment made: 73, in clause 46, page 51, leave out lines 1 and 2 and insert—

“(3) A ‘qualifying trade union’ is a trade union that has a certificate of independence.”—(Justin Madders.)

See the explanatory statement to amendment 72.

[Justin Madders]

I beg to move amendment 74, in clause 46, page 51, line 4, at end insert—

“(4A) ‘Workplace’ does not include any part of a workplace used as a dwelling.”.

This amendment would ensure that the right of access does not include access to dwellings.

This important amendment adds some clarity about the right of access to a workplace, providing an exemption so that the right of physical access does not apply to private dwellings such as the private homes of workers who are working either fully from their home or in a hybrid manner between their workplace and their home. Most exemptions will be provided for and set out in detail in secondary legislation, but we think it is important to set out this principle in the Bill.

We will provide in secondary legislation and guidance more detail on how complex physical access cases, such as care homes, where premises are a mix of residential and a workplace, will be negotiated. To protect the privacy of people living in the premises, that could, for example, set out the terms that it is reasonable for the trade union to comply with when exercising access, for example limiting access to parts of the premises that are used by workers only, and specifying that unions should take a specific route to the particular room where access activities are due to take place. That sort of detail will be set out in secondary legislation following consultation.

[Greg Smith]

As the Minister says, the amendment ensures that the right of unions to access workplaces does not extend to dwellings. Of course the Opposition welcome that the Government have acknowledged that trade unions should not be able to access private dwellings. The fact that the Bill was introduced in such a manner that would have permitted trade unions to do so begs a number of worrying questions about the speed with which the Bill was drafted. The fact that we are debating whether a trade union should have access to someone’s private dwelling is deeply regrettable. I would have hoped that the Government, from first principles, would acknowledge that it was never an acceptable outcome for anyone to have their own home invaded by a trade union or otherwise.

The way people set up their homeworking arrangements within their own dwelling is very much a matter for them. Balancing what they do in their own home with their family life and perhaps their children’s needs or the needs of someone they are caring for, and the way they structure that should, of course, remain entirely private. This is just another example of the damage that can inadvertently be done when legislation that is not ready is introduced to this House. It makes us question what other mistakes, if I may call them that, are lurking in the Bill that are still yet to be spotted by the Bill Committee.

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[Greg Smith]

I am grateful to the hon. Gentleman for his intervention. I understand his fundamental point, but before the Government tabled the amendment a feasible interpretation of the rules would have allowed access to a private dwelling. We can all stand or sit here in Committee Room 10 of the House of Commons and think how preposterous that would be and how that it never actually happen, but there are plenty of examples in history where the preposterous has come to be—where someone’s interpretation of legislation or rules or regulations or whatever it may be has brought about perverse outcomes.

We would have been in a much more satisfactory position had the Government, from first principles and at the very start, laid out in the Bill that someone’s private dwelling is just that: private. Although there has been an explosion in working from home and a fundamental shift, particularly in the post-pandemic world, of people actively choosing to work from home, either all the time where they can, or in a hybrid arrangement where they work from home for a couple of days a week and in the office, factory, warehouse or wherever it might be for the other days, it should be an enshrined principle in this country—the free society the Minister spoke of—that a private dwelling should from absolute, unquestionable first principle remain private, and not be an area to which a trade union or otherwise can freely demand access. It is important that private dwellings remain accessible only by warrant, which has to be granted by a magistrate, for clear purposes, such as where criminality or some such activity is suspected.

The Opposition welcome the core text of the amendment, but we want it firmly on the record that such an amendment should never have been required in the first place.

[Justin Madders]

I feel that we are going to have a few of these conversations again this year. Heaven forbid the previous Government ever amended anything in Committee! We knew the Bill was issued at a challenging pace and that it was large, so there were always going to be elements that needed clarification at this stage. It is right to do that now before it becomes law and well in advance of any practical application. Like amendment 72, this amendment is an example of us responding to concerns raised when the Bill was published. It is probably fair to say that no one actually envisaged trade unions marching into people’s homes, so it was not something we thought it necessary to spell out in the Bill, but that concern has been raised in feedback, and we are able to provide clarification and reassurance. I therefore commend the amendment to the Committee.

Amendment 74 agreed to.

Amendments made: 75, in clause 46, page 51, line 18, leave out “listed” and insert “qualifying”.

See the explanatory statement to amendment 72.

Amendment 76, in clause 46, page 52, line 13, leave out “listed” and insert “qualifying”.

See the explanatory statement to amendment 72.

Amendment 77, in clause 46, page 52, line 26, leave out “listed” and insert “qualifying”.

See the explanatory statement to amendment 72.

Amendment 78, in clause 46, page 53, line 36, leave out “listed” and insert “qualifying”.

See the explanatory statement to amendment 72.

Amendment 79, in clause 46, page 53, line 40, leave out “listed” and insert “qualifying”.—(Justin Madders.)

See the explanatory statement to amendment 72.

[Justin Madders]

I beg to move amendment 80, in clause 46, page 54, line 11, leave out from “circumstances” to “a determination” in line 13 and insert—

“in which it is to be regarded as reasonable for the Central Arbitration Committee to make”.

This amendment would clarify that, if circumstances are specified under subsection (4)(a), the effect of specifying those circumstances is that it is to be regarded as reasonable for the CAC to make a determination that officials of a union are not to have access (but without requiring the CAC to make such a determination).

[The Chair]

With this it will be convenient to discuss Government amendment 81.

[Justin Madders]

Proposed new section 70ZF(4)(a) of the Trade Union and Labour Relations (Consolidation) Act 1992 allows the Secretary of State to prescribe circumstances in which it would be reasonable for the Central Arbitration Committee to determine that a trade union is not to have access to a workplace. Amendment 80 is a minor technical amendment to clarify that, if circumstances are specified under proposed new section 70ZF(4)(a) of the Act, the effect of specifying those circumstances is that it is reasonable to make a determination that officials of a union are not to have access, but it does not require the CAC to make such a determination.

Amendment 81 allows the Secretary of State to prescribe in secondary legislation the matters to which the CAC must have regard when determining whether access is to be granted to a trade union. As an example, that would usefully allow the Secretary of State to prescribe that the CAC must, when making determinations about access, have regard to the presence of a trade union with existing access to the workplace to which another union is seeking access. In that scenario, the amendment provides reassurances that an access request will not be rejected by default if there is an existing arrangement with another trade union. The Government have consulted on the exact details of what the CAC is required to consider when making determinations about access, and secondary legislation will follow Royal Assent to the Bill. With that in mind, I commend the amendments to the Committee.

[Greg Smith]

As the Minister said, Government amendment 80 clarifies that if circumstances are specified under new section 70ZF(4)(a), the effect of specifying those circumstances is that it is to be regarded as reasonable of the CAC to make a determination that officials of a union are not to have access, but does not require the CAC to make such a determination. Government amendment 81 would allow the Secretary of State to prescribe matters to which the CAC must have regard when considering an application for a determination about access. Therefore, these amendments set out that if the Secretary of State has specified circumstances in which it would be reasonable to decline union access to a workplace, the CAC must accept those circumstances.

That is all well and good, but the access principles, as they are set out, are incredibly broad and make it very difficult for an employer to refuse access. For example, subsection (2)(a) of new section 70ZF specifies that

“officials of a listed trade union should be able to access a workplace for any of the access purposes in any manner that does not unreasonably interfere with the employer’s business”.

That accepts that access can and should be allowed to cause interference, but what would count as unreasonable interference? Can the Minister give any concrete examples? How will businesses know what they are or are not expected to put up with in terms of inconvenience and disruption to their operations? This all seems to be still particularly woolly and ill-defined. It will cause a lot of headaches and a lot of businesses to scratch their heads to work out what they have to put up with, bear the burden of, or lose profit to in order to enable some of the access that the Bill determines will take place.

The circumstances in which it would be reasonable for officials of a union not to have access will be specified in future regulations, but this is an area where it is incumbent on the Government to be very clear—indeed, crystal clear—about where the Minister or the Department feels these regulations should sit, or the operating window in which they should sit, moving away from woolly language and into real practical detail to allow businesses to begin to prepare. Can the Minister give any examples of matters that might be specified by the Secretary of State to set some constraints on the access principles envisaged by the amendments? I know he will say that he wishes to consult, which is all very well and good, but as I said a moment ago, this is an area where I do not think businesses will simply accept the offer of future consultation; they will instead want an operating window with practical examples and very clear language about what the amendments envisage will happen in the future. It is just not good enough for us to be left in this position of trying to second-guess and wonder what things will be like when the consultation finally happens.

[Steve Darling]

I will be concise and echo the shadow Minister’s call for clarity.

[Justin Madders]

I acknowledge the points made by the shadow Minister, but of course, as he has already anticipated, my response is that all of that will be determined in secondary legislation following a consultation. That is the right approach. The sort of detailed questions he is rightly posing are best dealt with in secondary legislation and probably in codes of practice as well. That is the kind of detail that would not normally find its way into a Bill. Of course, for me to prejudge any consultation on the circumstances in which it may or may not be appropriate for unions to gain access would of course, be to predetermine the outcome of the consultation.

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[Justin Madders]

The shadow Minister tempts me to set out the kind of detail that I really cannot supply at this stage. Clearly, a consultation document will ask a series of fairly broad questions. Given that we will deal with pretty much every workplace in the country, the consultation will cover a range of different set-ups, businesses, places of work and working arrangements. The question at the start will necessarily be fairly broad, so we can understand the kinds of effects on their ability to carry on their business that firms are concerned about.

Equally, we want to hear from trade unions about their experiences of where they feel that they have unreasonably been refused access or perceived that that might be a risk. The shadow Minister is trying to get me to draw up a consultation document in the Bill Committee, but I am afraid I will have to decline to do so. Clearly, we will come back to this and talk about it in further detail at a later date.

Amendment 80 agreed to.

Amendment made: 81, in clause 46, page 54, line 27, at end insert—

“(6) The Secretary of State may prescribe matters to which the Central Arbitration Committee must have regard in considering an application for a determination under section 70ZE.”—(Justin Madders.)

This amendment would allow the Secretary of State to prescribe matters to which the CAC must have regard in considering an application for a determination about access.

[Justin Madders]

I beg to move amendment 82, in clause 46, page 57, line 37, at end insert—

“(c) dismiss the appeal.”

This amendment would clarify that the Employment Appeal Tribunal may dismiss an appeal under new section 70ZK(2) of the Trade Union and Labour Relations (Consolidation) Act 1992.

The amendment is straightforward, providing clarity that an Employment Appeal Tribunal can dismiss an appeal under the new section 70ZK(2) of the Trade Union and Labour Relations (Consolidation) Act 1992. It is a fairly straightforward and self-explanatory amendment.

[Greg Smith]

As the Minister said, the amendment clarifies that the Employment Appeal Tribunal may dismiss an appeal under new section 70ZK(2) of the Trade Union and Labour Relations (Consolidation) Act 1992. Of course the Opposition agree that this amendment should be accepted and put into the Bill, but it beggars belief that the amendment was necessary in the first place. Of course the Employment Appeal Tribunal should be allowed to dismiss an appeal if it finds that to be necessary, but how on earth was a Bill put before this House of Commons—this Parliament—that only envisaged that the tribunal might quash the order or make an order requiring the person to pay a reduced amount to the CAC? How was this Bill introduced in a form in which the dismissal of an appeal was not even an option?

It is extraordinary that a Bill could have been allowed through the write-around process—the various processes that Government have—without this anomaly being spotted and rectified before the Bill was presented and had its Second Reading debate. I gently ask the Minister to reflect on that and go back through the Bill’s provisions to double-check for any other glaring omissions, which I am sure he never wished to see in the first place and is now correcting by the amendment in his name. Could he ensure that the Bill contains no more of these, frankly, howling errors that could cause so much damage?

[Steve Darling]

Bill Committees are here to check for snags in the final construction of legislation. I am pleased that this snag has been picked up and will be sorted out by this amendment.

[Justin Madders]

I am not sure that the shadow Minister wants me to check everything again, because it might lead to further amendments and we may have this debate repeatedly. I would gently push back on the suggestion that this is a “howling error”, as he described it. Of course, the Employment Appeal Tribunal already has the jurisdiction of the CAC to hear appeals. It is probably more a case of making sure it is clear that that applies to this particular provision rather than its being an oversight in the first place.

Amendment 82 agreed to.

Question proposed, That the clause, as amended, stand part of the Bill.

[Justin Madders]

Clause 46 formally provides trade unions with the right of access to workplaces where an access agreement is reached between a trade union and an employer following negotiation. This will make it easier for union representatives to recruit and organise and potentially secure a collective bargaining agreement with an employer. It will not impact existing voluntary access agreements between a union and an employer. For unrecognised unions, access to a workplace is an opportunity to recruit and organise with the aim of gaining formal recognition.

In this framework a union can provide an employer with a request for access, to which the employer can either agree or object within a set timeframe. If both parties agree on the access terms, the Central Arbitration Committee is notified to record the agreement and proceed. In the instance that a union and employer cannot agree on access terms, the CAC can impose an agreement. The decision will be guided by prescribed terms which will be set out in secondary legislation. The CAC will have some discretion when making a determination on whether access should occur, and the decision will be subject to principles set out in the Bill that consider both union and employer interests.

The clause also establishes an enforcement mechanism whereby complaints of breaches of an access agreement can be raised with the CAC. The CAC can then vary the agreement, make a declaration that the complaint is well-founded or not, and issue an order requiring specified steps to be taken to ensure that the agreement is complied with. We recently consulted on some specifics of the enforcement mechanism, which various unions and employers contributed to and which we are now carefully considering. Regulations relating to a union’s right of access, such as notice periods for employers and the terms of reasonable access, will be prescribed in secondary legislation after consultation.

Amendments 72, 73 and 75 to 79 require trade unions applying for access to be certified as independent instead of being only listed as a trade union. This will help independent unions initiate and agree access agreements with an employer. Non-independent bodies’ existing ability to negotiate voluntary access agreements will remain unaffected. Amendment 81 will amend this clause to allow for the Secretary of State to set specific matters that the CAC must consider and have regard to. Amendment 74 will ensure that private dwellings are exempt, as we have discussed. Through the provision of a formal right of access, the Government are delivering on our commitment to modernise outdated and ad hoc access arrangements and align them with the 21st century. I commend clause 46 to the Committee.

[Greg Smith]

We have covered the bulk of the commentary that the Opposition want to make in the debate that we have had on the amendments. All I will say on clause 46 is that there is still so much left for secondary legislation, and I do not think businesses can have any certainty as to what is truly coming down the line until there have been the consultations we have spoken about and the secondary legislation has been laid, debated and, let’s face it, probably passed given the parliamentary arithmetic we have at the moment. While clause 46 as amended is better than what was first presented to the House, there are still many open-ended questions that businesses and trade unions alike will want to know the answers to. I urge the Minister to ensure that his Department moves at pace to get those consultations out there, so that he and the Department can hear from real businesses, trade unions and workers when it comes to the provisions that they are proposing. Then the questions of uncertainty can be ironed out as quickly as possible and nobody is left in the position of not knowing where this is going.

[Justin Madders]

The shadow Minister is of course right—we do need to get this right and engage with businesses and trade unions about the detail. That is what we intend to do.

Question put and agreed to.

Clause 46, as amended, accordingly ordered to stand part of the Bill.

Clause 47

Conditions for trade union recognition

Question proposed, That the clause stand part of the Bill.

[Justin Madders]

The clause makes amendments to the statutory trade unions recognition process, which is administered by the Central Arbitration Committee. Hon. Members will possibly not all be aware of the current statutory recognition process, so I will just take a moment to detail that. Where an employer refuses to recognise a trade union voluntarily, that union can apply to the CAC to obtain statutory union recognition. On application, unions have to show the CAC that, first, they have 10% membership of the proposed bargaining unit and secondly, that they are likely to have a majority in the subsequent trade union ballot. Where the majority of workers in the bargaining unit are members of the unions, the CAC can decide to automatically recognise the union without holding a recognition ballot. However, the CAC must still hold a ballot if it receives credible evidence from a significant number of union members that they do not want the union to conduct collective bargaining on their behalf, or membership evidence is produced that leads the CAC to doubt whether a significant number of union members want recognition, or if the CAC believes that holding a ballot would help further industrial relations. For the union to win, it must then obtain a majority in a recognition ballot and also in that ballot, at least 40% of the workforce in the proposed bargaining unit must support union recognition.

We are committed to strengthening collective bargaining rights and trade union recognition. We believe that strong trade unions are essential for tackling insecurity, inequality, discrimination, enforcement and low pay. Our view is that the existing legal framework needs to be simplified so that workers have a more meaningful right to organise through their trade unions. To achieve that, the clause therefore removes the current requirement for a union to have at least 40% of the workforce in the proposed bargaining unit supporting union recognition. In future, unions will only need a simple majority in a recognition ballot to win.

The current requirement for a union to demonstrate, at the application stage, that it is likely that there will be a majority for the recognition process is a significant hurdle in modern workplaces, which are increasingly fragmented. That is why the clause deletes the requirement for a union to demonstrate on application to the CAC that they are likely to win a future recognition ballot. Now unions will only need to show that they have 10% membership of the proposed bargaining unit for their application form recognition to be accepted by the CAC. We are also considering whether the current 10% membership requirement upon application should be lowered in future. The clause therefore provides a power to enable the Secretary of State to make affirmative regulations, which we will of course consult on, to amend the 10% membership requirement in future within parameters of 2% to 10% as set out in subsection (10) of the clause.

[Greg Smith]

I am grateful to the Minister for his detailed explanation. I will focus my remarks predominantly around the proposed new range of 2% to 10%. I would think, to most reasonable people, 10% is already a relatively low number: 10% is, generally speaking and in most walks of life, not a difficult proportion for anybody to reach if they truly believe that right is on their side, and they have wider support, with wider mandates to get on and negotiate within those bargaining units, to deliver a better outcome. I would argue that any union that cannot be kept to 10% really is not clearing the first hurdle and is certainly not passing “Go” or collecting the metaphorical £200. I question why it is in any way, shape or form necessary to lower that.

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[Alison Hume (Scarborough and Whitby) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Mundell. I refer to my entry in the Register of Members’ Financial Interests and to my membership of Unison and the Writers’ Guild of Great Britain.

I am pleased that the Bill will take significant steps to simplify the union recognition process by removing unnecessary barriers that unions currently face. As my hon. Friend the Member for Birmingham Northfield mentioned, recent events at Amazon’s Coventry distribution site, where the unionisation effort was defeated by 28 votes, serve as a reminder of the challenges that workers encounter.

I particularly welcome the flexibility in the Bill to lower the membership threshold required to begin the recognition process from the current 10% to potentially as low as 2%. That will give workers the opportunity to organise effectively from the outset. Ensuring that unions need only a simple majority in favour of recognition will mean that the will of the workers is fairly and clearly reflected without being stifled by unnecessary procedural hurdles.

[Justin Madders]

We have had a good debate. The main focus of the shadow Minister’s questioning was the 2% issue. The first thing to say is that, as it stands, the 10% figure will remain. We are simply giving ourselves the power to reduce it to 2% following consultation, although as various Committee members have powerfully set out, including my hon. Friends the Members for Worsley and Eccles and for Birmingham Northfield, there is a strong case for it to be reduced from the current 10%. As my hon. Friend the Member for Birmingham Northfield pointed out, the previous Government set a precedent in this area with the reduction to 2% in the Employment Rights (Miscellaneous Amendments) Regulations 2019, which were introduced not long ago.

The shadow Minister must understand that these measures are about the very worst employers that are actively hostile to trade unions. Most employers recognise the value of a trade union and, as my hon. Friend the Member for Worsley and Eccles pointed out, enter into voluntary arrangements, but there are examples, such as the GMB-Amazon dispute, of unwillingness to engage. I remember the example of an employer not far from where I live who sacked all the people who joined the trade union. It will not surprise the shadow Minister that no one wanted to join a trade union after that. That is a clear example of why, in the most extreme situations with hostile employers, it is difficult to increase trade union membership. Of course, we also now have workplaces that are much more fragmented, because there is more homeworking and hybrid working, and people are often out in the field.

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[Michael Wheeler]

It could be dangerous for me to admit that sometimes I might have wished to instruct a member, but I can reassure everyone here that the instructions flow the other way when someone is a trade union official acting at the behest of members at all times.

I was one sentence from the end before the interventions. I have been thoroughly derailed by people in this room, so I will wrap up and say that I do not agree with the amendment. I disagree with a lot of what was raised in the debate and the false analogy around subscription models versus membership of a democratic organisation. I will obviously not support the amendment.

[Justin Madders]

We have had a good debate on the amendment. It is fair to say there is a deep divide in our positions. I will address the amendment and the clause stand part debate.

Amendment 126 would make two changes to clause 48. First, it seeks to retain the requirement on trade unions to provide their members with an annual notice of their right to opt out of contributions to the political fund. Secondly, it seeks to require trade union members to opt in to contributions to the political fund annually. As we have heard, that would place substantial and unnecessary bureaucratic requirements both on trade unions and on their members. As my hon. Friend the Member for Worsley and Eccles said, this is one of those rare occasions when the Conservative party seems to be in favour of more red tape, which is clearly something that we want to see reduced.

I will start with the change that would retain the requirement for trade unions to send an annual notice to members reminding them that they can opt out of contributing to a political fund. The amendment targets the wrong section. It would amend section 86 of the Trade Union and Labour Relations (Consolidation) Act 1992, which relates to ensuring that employers do not deduct contributions through check-off from the member where the union member has opted out of the political fund or where the opt-out notice has been given but is not yet in force.

However, I will respond in terms of the spirit of the amendment tabled by the shadow Minister. The Government have been clear in our intention to repeal the Trade Union Act 2016, which was a clear manifesto commitment. We have a mandate to deliver on that. The amendment seeks to frustrate that clear intention by retaining the substantive effect of section 84A of the Trade Union and Labour Relations (Consolidation) Act 1992, as amended by the Trade Union Act 2016.

We should be clear that members are, of course, free to opt out of contributing to a political fund whenever they wish. Clause 48, which I will come to, sets out how that is possible. Currently, alongside the requirement to ballot members on the maintenance of a political fund every 10 years, trade unions must also remind their members of their right to opt out of a political fund. The Government are proposing to remove the ballot requirements. We have consulted on whether to retain a requirement for trade union members to be reminded on a 10-year basis that they can opt out of the political fund.

[Greg Smith]

I understand the point the Minister is making. On the one hand, he wants everyone to be reminded annually of their right to join a trade union, but he wants them to be reminded of their ability to opt out of the political fund only every 10 years. Surely he can see the inconsistency in that approach. Even though I am sure that he wants the political funds to be as bulging as possible, certainly for those unions that donate to the Labour party, surely he must see that there is an inconsistency between reminding people of their right to join a trade union annually but reminding them of their right to withdraw their support for the political fund on a less frequent basis.

[Justin Madders]

I thank the shadow Minister for his question. I have not actually said that we will require members to be informed of their right to join a trade union annually—we are simply consulting about the frequency of a reminder. That is the point the hon. Member for Bridgwater raised earlier. We are consulting on that point, and we are consulting on the 10-year reminder about being able to opt out of the political fund. What is sauce for the goose is sauce for the gander. If the shadow Minister thinks we should not inform people annually of their right to join a trade union, presumably he would also agree that they should not be reminded annually of their right to opt out. The arguments work both ways.

[Greg Smith]

In the spirit of following that debate through to its natural conclusion, no matter where we stand on the politics, surely the happy medium would be to marry up whatever the consultation ends up concluding for the reminder of the right to join a trade union in the first place with the reminder of the right to opt out of the political fund. Surely that would be the fair and equitable way through this—to simply say that the answer is to marry up the reminder of the right to join a trade union with the reminder to opt out of the political fund, with whatever frequency the consultation says.

[Justin Madders]

Those are of course two entirely separate requirements. At the moment, trade union members can choose to opt out of contributing to the political fund at any time. Clause 48 sets out clearly how they can do that by post, email or other electronic means. As my hon. Friend the Member for Worsley and Eccles so eloquently said, most trade union members will be aware of their rights in this area should they wish to exercise them. The comparisons between trade union membership and political funds and Netflix subscriptions and insurance contracts are bogus, because they are not the same thing at all. Membership of a trade union and a political fund is membership of a democratically organised society and independent trade union. The members have control of the organisation because it is democratically organised, so it is not the same thing at all.

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[Greg Smith]

I do not think I need to correct the record, in that I made a statement of the obvious, which is that Conservatives wish to beat Labour in elections, but equally I went on to say that, with the right consent, it is perfectly fair, democratic and legitimate for the Labour party to receive funding from those trade unions that wish it to do so. I went even further by saying that that is perfectly fine; so long as it is done transparently and stated on the record—as Labour Members have assiduously done every time they have stood up to speak during this Bill Committee and, indeed, in other debates—there is nothing wrong with it.

This is about the process for members, whether they are contributing to political funds where the unions do donate to Labour, or to any other cause, be it party political or a campaign on this side or the other— the hon. Member for Birmingham Northfield himself recognised and spoke earlier about the very good campaign in relation to attacks on emergency workers. That is a perfectly good, legitimate and worthwhile use of that money, to which I would anticipate—although presumption is a dangerous thing—that most, if not all, contributors to the political fund that supported the campaign would happily continue to contribute. However, there are circumstances and times when trade union members contributing to political funds may not see that money being spent as they would like it to be. It is the ease of being able to opt out, not just having the right to opt out, that the amendment gets to the heart of.

Before the Committee divides on amendment 126, I urge Committee members to reflect on whether they really want to say to the outside world that, while consumers have the right to be reminded on a monthly or annual basis of how to opt out of their mobile phone contract, magazine subscription or whatever else, such a reminder of how to opt out of political funds—not the right to opt out but how—should be denied to trade union members.

[Justin Madders]

The shadow Minister talks about this being a rule that applies to every other section of society. Is he saying that the principle should apply to every membership organisation, be it the Chartered Institute of Personnel and Development, the Royal Society for the Protection of Birds, the Royal National Lifeboat Institution or any of the many other membership organisations that exist in the country? There will be millions of members of those organisations, so should the principle apply equally to them all? Is he aware that it applies at the moment?

[Greg Smith]

For the most part, I would say that it does exist. I am thinking of membership organisations outside the world of politics that I have subscriptions to: at the annual point of renewal—most of the ones I have are annual—I do get either an email or a letter saying, “Your direct debit for the next year is going to be £2 higher a month. It will automatically renew unless you do x, y and z.” The x, y and z to opt out, stop or unsubscribe is always very clear.

[Justin Madders]

rose—

[Greg Smith]

The Minister is going to tempt me to say which memberships, isn’t he?

[Justin Madders]

I am not sure that we need to know about the shadow Minister’s memberships. I have two points: there is not legislation requiring this, and when trade unions raise subscriptions they will send a similarly worded letter out. The analogy the shadow Minister has drawn already takes place.

[Greg Smith]

I am grateful for that, but there is not an increase every year.

[Justin Madders]

There is.

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Question proposed, That the clause stand part of the Bill.

[Justin Madders]

The clause is relatively simple in that it seeks to repeal section 15 of the Trade Union Act 2016 by amending the Trade Union and Labour Relations (Consolidation) Act 1992 to remove section 116B. Section 15 of the 2016 Act required trade unions to pay public sector employers where they administered payroll deductions for trade union subscriptions—known as check-off. Section 15 further mandated that the service be made available only where workers had the option to pay their union subscriptions by other means.

The check-off regulations were apparently introduced as a cost-saving measure, with estimated annual savings of £1.6 million, totalling £12 million over the next 10 years. However, as last year’s check-off impact assessment acknowledged, the Trade Union (Deduction of Union Subscriptions from Wages in the Public Sector) Regulations 2024 brought a cumulative cost of £17 million to public sector employers and trade unions over that period, which is far higher than the estimated cost savings.

In the spirit of wanting to save businesses and the public sector from burdens, we think that this is an entirely sensible move. I urge members of the Committee to support the clause.

[Greg Smith]

Of course we wish to save taxpayers money, particularly when it comes to the public sector, but likewise we do not see why businesses should bear the cost of trade union subscription collections. That should be a cost entirely for the trade unions to bear, just as we would never tolerate—on the Opposition Benches for sure—the public purse or the taxpayer’s pound having to subsidise any other body that should be funding itself.

I understand where the Minister is coming from. As he looks across other parts of the Bill, I urge him to have a similar approach to saving businesses and taxpayers money across the piece.

Question put and agreed to.

Clause 49 accordingly ordered to stand part of the Bill.

Ordered, That further consideration be now adjourned. —(Anna McMorrin.)