Retail Sector

Justin Tomlinson Excerpts

Wednesday 6th June 2018 Commons Chamber

[Rebecca Long Bailey]

I thank my hon. Friend and support what she says.

Going back to Sainsbury’s, staff will no longer get paid breaks or higher rates of pay for working on a Sunday under the new terms. Premium rates for night-shift work will be restricted to between midnight and 5 am, and shop floor staff will no longer be able to earn bonuses. It is interesting, however, that the freeze on bonuses is allegedly not likely to impact senior managers or the CEO, who will still receive their bumper bonus packages. There are also worrying reports that staff may be forced to resign if they refuse to sign these new contracts.

Sainsbury’s is not alone in this trend towards fluctuating terms and conditions and insecurity. As USDAW recently reported, a number of clear trends within the sector have led to the workforce feeling increased pressure. Many retailers, seeking to maximise flexibility to deal with fluctuations in customer demand, have introduced flexible, short-hours contracts. As a result, two thirds of USDAW members are regularly working additional hours above those that they are contracted to work, yet they have no guarantee that those hours and the associated income will be available to them in the future. The Bakers, Food and Allied Workers Union reports similar trends, with McDonald’s workers recently striking in a dispute over zero-hours contracts and working conditions.

The Government’s recent response to the Taylor review included a right to request more stable hours, which I referred to when the Secretary of State made his statement on the review, but how does that actually differ from the current position? Without an obligation on the employer to accept, it is meaningless and I urge him to reconsider.

[Justin Tomlinson (North Swindon) (Con)]

Coming from a family of shopkeepers and as a former co-chair of the all-party parliamentary group on retail, I have been listened very carefully, but the shadow Business Secretary has made hardly any mention of Amazon and the onslaught of online trading that has decimated footfall on the high street. The vast majority of her speech has been gibberish to people in retail, with no practical suggestions. I hope that there will be something in her conclusion.

[Rebecca Long Bailey]

With the hon. Gentleman’s knowledge of the sector, I am surprised that he says that, given that business rates are one of the critical issues affecting the high street. Retailers often tell me about the unfairness of businesses such as Amazon receiving skewed business rates valuations due to the size of their operations, so I have dealt with that point.

--- Later in debate ---

[Greg Clark]

I agree with the hon. Gentleman on the positive effect of BIDs. When I was a local councillor in London, I saw the benefits of the business improvement districts in the capital. The Local Government Finance Bill was a victim of the wash-up and I will raise the point with my colleagues to see where we are on further plans.

We have experienced constant change in the retail sector and, of course, at the moment we are experiencing an online revolution. We previously experienced the supermarket revolution and, again, I remember well my father’s milk rounds shrinking as supermarkets routinely began to sell fresh milk at a fraction of what the roundsmen charged.

There was never a time when the high street did not change and did not see the disappearance of brands that were regarded as anchors at the time. The hon. Member for Salford and Eccles is remiss in not stating the context of constant change. We all remember many examples of presences on the high street, going back many years, that are no longer there.

The evidence shows that British retail is transforming but is still vigorous. Following the hon. Lady’s speech, Members would be forgiven for imagining that retail employment is in a state of meltdown.

[Justin Tomlinson]

I echo my right hon. Friend because the hostility shown by the shadow Minister towards retail does not reflect the reality. Productivity grew by 4% in 2017, as reported by the British Retail Consortium. That is the reality.

[Greg Clark]

My hon. Friend is right. We all want to celebrate the success of retail in Britain and we all want to do what we can to further advantage it. In fact, the number of people employed in retail in the UK has grown substantially over the past 20 years, from around 2.8 million in 1996 to 3.1 million in the last full year for which figures are available, an increase of nearly 300,000 jobs.