Employment Rights Bill

Debate between Liam Byrne and Gregory Stafford

Report stage
Wednesday 12th March 2025 Commons Chamber

[Liam Byrne]

Thank you, Madam Deputy Speaker. I will start with my declaration of interests, as a former member of the Confederation of British Industry and a current member of the trade union Unison.

I will try to introduce a few points of consensus to the debate. I am old enough to remember when Conservative Members such as the former Member for Harlow were writing pamphlets for think-tanks such as Demos with titles like “Stop the union-bashing; why conservatives should embrace the trade union movement”. Of course, that was an echo of something that Harold Macmillan famously used to say in the 1950s: “We used to think that we could not have a modern industrial society without trade unions. I still think that.”

I think we would all benefit from a little acknowledgment that industrial relations in this country have not been in a good place. In 2023 more days were lost to strikes than at any point in the past 30 years, and the Office for National Statistics calculated at the back end of 2022 that 2.5 million days had been lost to strike action. That is not a record that any one of us in this House should be proud of. It is incumbent on all of us to modernise industrial relations in this country, so that we are not divided in the workplace in this way.

As such, I welcome the measures in this Bill. I hope that the Minister will seize the moment—not only the fact that we have the Bill, but the advent of an industrial strategy that will introduce governance arrangements that get businesses and unions around the table to talk about economic growth in our country. That is a big opportunity; it is a big moment in which we can bring our country together around a modern industrial strategy. I hope that once the Minister has got this Bill done and has had a little bit of a rest—maybe gone on holiday for a bit—he will think about how the Government will then publish a modern industrial strategy for the future, backed by the restoration of some of the data that we used to have in this country, such as the workplace employee survey. We had that until about 2012, when it was stopped. We need to be more thoughtful about harmony in the workplace, because that is in the interests of the constituents we serve.

[Gregory Stafford (Farnham and Bordon) (Con)]

The right hon. Member used the term “modernising industrial relations”, which sounds a little like a euphemism. Taking him at his word, however, is he not therefore surprised that the pay rises that have been given to doctors, train drivers and a number of other unions since this Government came in have not been accompanied by any requirement for increased productivity? If we are to have modernised industrial relations, surely the increased pay that unions want should be combined with the productivity gains that this country needs.

[Liam Byrne]

The hon. Member will no doubt have heard the remarks made by the Chancellor of the Duchy of Lancaster at the weekend. I suspect that the hon. Member, like every Member of this House, will see some pretty radical steps taken in the comprehensive spending review to improve the efficiency of the civil service. Of course, the civil service grew very significantly in the years after covid, and now it has to be reinvented for new times. I am confident that those productivity gains will come.

My second point was to draw the House’s attention to some of the evidence taken by our Select Committee. That evidence is contained in our report, which I commend to all hon. Members. What struck me about the evidence we heard from the most productive firms in the country, such as Jaguar Land Rover, Rolls-Royce and BAE Systems, was that those are world-beating companies—some of the most productive companies in our country—and what characterises the workplace arrangements of all of those companies is that they have very long-standing, robust and deep partnerships with good trade unions. Those trade unions help make decisions, help de-conflict things and help businesses thrive and succeed. That is why stronger collective rights are important.

We also took evidence from companies where, I am afraid to say, there was not that harmony, such as Amazon. It has had to call ambulances to its warehouses 1,400 times in just five years. We on the Committee received whistleblower evidence from workers who were literally having to urinate into bottles because they did not dare take time out from their tasks to go to the bathroom and back. We heard all kinds of whistleblower complaints about injuries being sustained, and pay is rising much more slowly than sales.

When we had executives from that company in front of us, they could not—or would not—tell the Committee why strike action had been taken by workers in their firm. If a company executive cannot explain to a Select Committee of this House why so many of their workers are on strike, that is not a story of harmony or a recipe for success. That is why the measures that the Minister has brought forward in this Bill to improve the opportunities for trade unions to organise—in a way that was recommended by the former Member for Harlow, actually—are a good thing.

The Minister has gone some way in recognising recommendations made by our Committee, such as improving the window in which complaints can be heard beyond 24 hours, bringing in template access agreements and strengthening the role of the Central Arbitration Committee in dispute resolution. There is just one further step that I suggest, which is the subject of amendment 282. We suggest that access rights for trade unions should include digital access rights, because in the modern workplace, of which Amazon is a case in point, there simply is not an opportunity for workers to get information about the opportunities to join a trade union and make a fair choice one way or the other in the way that there could be in the modern economy.

My final point is about enforcement. The first factory Act passed by this House was the Health and Morals of Apprentices Act 1802. It was celebrated in parliamentary history as an Act that failed because there was no enforcement attached to it. Enforcement of this Bill is essential if it is to succeed, but labour market enforcement today is much too weak. Just 21 employers have been prosecuted for minimum wage enforcement since 2007, despite the fact that we all know that abuses of this sort are taking place in our constituencies.

Spending on labour market enforcement has been flat since 2014, and we are well off the International Labour Organisation target of one labour market inspector for every 10,000 workers. New clause 82 in my name would require the Secretary of State to set out a road map for reaching that ILO target, for ensuring there is greater use of penalties where appropriate, and for much stronger partnerships between the Home Office, the police and the Fair Work Agency. We cannot have a situation in this country where the best of British firms are being undercut by the worst labour market practice.

In conclusion, I welcome this Bill. Some of the amendments that have been tabled would improve it, but ultimately we have to remember that if we want to create a genuinely pro-business, pro-worker economy, the measures in this Bill are long overdue.