Employment Agencies and Trade Unions

Lloyd Russell-Moyle Excerpts

Monday 11th July 2022 Commons Chamber

[Jane Hunt]

I understand that the hon. Gentleman will be speaking later.

Employment businesses will still need to be satisfied that the workers they supply are suitably qualified and trained.

Alongside that change, we will increase the levels of damages that a court can award in the case of unlawful strike action. It has long been the case that employers can bring a claim for damages against a trade union that has organised unlawful strike action. The upper limits to the damages that can be awarded are set out in the Trade Union and Labour Relations (Consolidation) Act 1992, and are based on the size of the union that organises the unlawful strike action, but the damages regime has not been reviewed since 1982, so the limits are significantly out of date. As a result, the deterrent effect that Parliament intended has been significantly reduced. The Secretary of State is using powers granted to him under section 22 of the 1992 Act to increase the existing caps in line with inflation. In practical terms, that means that the maximum award of damages that could be made against a union will increase from £10,000 to £40,000 for the smallest unions and from £250,000 to £1 million for the largest.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

Does the Minister think it is right that the cap on any fines issued by the Electoral Commission for fraud if it was found in the Conservative party is lower than what she is proposing for trade unions? Does she think it is right that fines are higher for trade unions than for preserving the democratic functioning of our country?

[Jane Hunt]

I thank the hon. Member for his question. I will, in fact, move on.

This is a proportionate change, because we are simply increasing the amounts to the level they would be at had they been regularly updated since 1982. We are increasing the limits in line with the retail prices index, which is a well understood measure of inflation and is the same measure for other employment legislation. By increasing the limits on damages in line with inflation, we are sending a clear message to trade unions that they must comply with the law when taking industrial action.

Strikes should only be as a last resort and should only ever be called as the result of a clear, positive and democratic decision of union members. The key point is that unions that continue to comply with our trade union law will be completely unaffected by this change. The changes we are making will ensure that our trade union and agency laws remain fit for purpose. We are giving businesses the freedom to manage their workforce and empowering workers by giving them more choices about the kind of assignments they can accept. We will continue to protect an individual’s right to strike where proper procedures are followed, while ensuring that trade unions are deterred from taking unlawful industrial action.

I beg to move that both instruments are considered by this House.

--- Later in debate ---

[Angela Rayner (Ashton-under-Lyne) (Lab)]

Thank you, Madam Deputy Speaker. I want to say from the outset that I was an agency worker and I continue to be a very proud trade unionist.

I also want to start by welcoming the Minister to her new position. And what a fitting debate for her to start with. Over the last week, dozens of Government Members found themselves forced to work in intolerable conditions, answering to a boss who only cared for himself and not their interests, so they withdrew their labour—and they achieved some change as a result. So, they do understand the right to strike; they just seek to deny that right to others. The Minister now finds herself, much like agency workers under the regulations she proposes, filling in at short notice as a desperate last resort, with no time to prepare, in an organisation reduced to chaos.

It just does not work. The shambles of this Government disproves their own theory. The regulations are not just utterly wrong in principle, but totally impractical. They promised no new policy while the Prime Minister clings to his desk by his fingernails, but it appears that they have made an exception in this case, ripping up decades of national consensus. The proposals are anti-business and anti-worker. They will risk public safety, rip up workers’ rights, and encourage the very worst practices. Above all, they will not prevent strikes; they will provoke them. It is hard not to believe that this is what the Government were after and their whole intention all along.

The proposals are simply “unworkable”—not my conclusion, but the conclusion of the body that represents agency worker businesses, the Recruitment and Employment Confederation. It is not hard to see why. We already face severe labour shortages, in part caused by the decisions of this Conservative Government. There simply are not the agency staff to cover industrial action. The right hon. Member for Elmet and Rothwell (Alec Shelbrooke) asked the Minister about the impact. The Government have their own impact assessment, which they rushed out this afternoon. It estimates that only 2% of working hours lost to strikes would be covered. I met the REC last week, and it was very concerned that the Minister’s predecessor was simply not listening. I believe that to be the case. This proposal is anti-business. It threatens good agency worker businesses’ reputations, their relations with their staff, and, as the Government’s own impact assessment found, will cost employers thousands of pounds in familiarisation costs.

But there is also a far more insidious side to the proposals. There is a risk to safety, both to workers themselves and the public. The proposals could see agency workers recruited on the hoof and squeezed in to cover highly skilled roles. Take the recent rail strikes, which the Minister mentioned in her opening speech. They saw skilled workers such as signallers, guards and maintenance staff walk out. In case the Minister did not know, it takes a year to train a signaller. Where are the temps who can operate 25,000 volts at control centres or signal 140 mph high-speed trains? How could the travelling public have any confidence in their safety? The public should absolutely not be put in a position where that could happen.

No one in this House can pretend that they are ignorant on this issue. We saw the consequences when P&O Ferries replaced its experienced workforce with agency crew earlier this year. That decision led to 31 separate safety failings. Vessels were suspended and a ship literally lost power in the middle of the Irish sea due to an inexperienced crew. At the time, the Secretary of State for Transport told the House:

“No British worker should be treated in this way… we will not allow this to happen again”.—[Official Report, 30 March 2022; Vol. 711, c. 840.]

The Prime Minister told us that

“we are taking legal action…against the company concerned”.—[Official Report, 23 March 2022; Vol. 711, c. 326.]

[Lloyd Russell-Moyle]

Is this not an exploiters’ charter that is deeply anti-British? This is from an anti-British party that has abandoned British workers, reducing their rights in work and allowing either agency workers from abroad to be brought in to undercut staff, as happened with P&O, or agency workers to be exploited when they are forced to cross picket lines. This is anti-British worker, is it not?

[Angela Rayner]

On the P&O workers, it seems to me like the company broke the law and the Government implied that they were going to do something about it. Perhaps the Minister can tell us how that legal action is getting on. Will the Prime Minister keep the promise that he made before he loses office? Can we assume not, judged by today, because the very practice they condemned, they now want to legalise and encourage? This is an absolute disgrace.