Insecure Work and the Gig Economy

Debate between Lloyd Russell-Moyle and Stephanie Peacock

Wednesday 20th June 2018 Westminster Hall

[Stephanie Peacock]

My hon. Friend makes a very important point. I believe she is referring to research from the GMB trade union, which shows that, across the country, 61% of insecure workers have gone to work while feeling unwell for fear of losing pay, hours or even their job. The same percentage have suffered mental health issues. For their troubles, they are often first out of the door when times are hard, and are cast into a welfare state that is not fit to help them.

It is not just workers who suffer. Companies’ widespread avoidance of the minimum wage, holiday pay and sick leave is estimated to cost the public purse £300 million a year in lost national insurance contributions. Such practices undermine the many employers who play by the rules, the companies that invest in their workers’ skills and training, the family-run businesses that pay their staff a decent wage, and the employers who pay their taxes and make pension contributions. In one way or another, we are all footing the bill for the businesses that take advantage of precarious work. Action is long overdue.

It is a little over a year to the day since the Prime Minister stood on the steps of Downing Street after the election and noted that people who have a job do not always have job security. Sadly, the Government have kicked the Taylor review’s recommendations into the long grass, and have failed to take action on areas such as the Swedish derogation, which I sought to address with my private Member’s Bill. Will the Minister commit to take action to ensure more and better workplace inspections to ensure that the scant, bare-minimum protections that workers are currently afforded are actually enforced, and that swift action is taken against abusive employers?

On companies that make profits off the backs of agency workers, will the Minister ensure that, from day one, agency workers are afforded the same rights and pay as permanent staff doing the same roles in the same company? That is another issue that I sought to address in my private Member’s Bill. Cases brought against Uber and Pimlico Plumbers show that such workers are employees; they are not self-employed or independent contractors, as claimed. In view of such cases, will the Government act now, rather than wait for every single worker to undertake judicial proceedings against their employer? Those are not just legal judgments against individual employers, but damning indictments of employers in the gig economy as a whole.

I have heard from an Amazon worker who has seen women colleagues tragically miscarry in a warehouse, and fights break out on the packing floor because the competition for work is so high. I have heard the heartbreaking story of a careworker whose employers forced her to provide a urine sample to prove she was too sick to work. Another careworker’s agency refused to give her work as soon as it found out she was pregnant. I have heard from a Hermes worker who gets only one day off a year to spend with his family, which has a damaging effect not just on him but on his wife and children.

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

Will my hon. Friend join me in condemning organisations that engage in such practices? One of my constituents ended up with hypothermia after waiting for Deliveroo work. When he was admitted to hospital, he was not offered the sick pay and protection that other employees get. The Government must take action now because although GMB and other unions are doing fantastic work we cannot rely just on unions. We need to ensure that the Government support our unions.

[Stephanie Peacock]

I join my hon. Friend in condemning that. I am sure the Minister is listening carefully.

Those workers are the real face of the gig economy. It is simply not good enough. We urgently need an economy that works for everyone. We need well-paid jobs that offer long-term security and give people the chance not just to get by but to succeed and prosper. We need genuine action that addresses the employment loopholes that unscrupulous employers use to exploit vulnerable workers. Many people in Barnsley and across the UK need action now.