Strikes (Minimum Service Levels) Bill

Lord Callanan Excerpts

Consideration of Commons amendments
Thursday 8th June 2023 Lords Chamber

Moved by

[Lord Callanan]

That this House do not insist on its Amendment 1 to which the Commons have disagreed for their Reason 1A.

1A: Because it is not appropriate to restrict application of the Bill to England only.

[The Parliamentary Under-Secretary of State, Department for Energy Security and Net Zero (Lord Callanan) (Con)]

My Lords, with the leave of the House I will also speak to Motion B. I will speak to both the Motions to not insist on these amendments and to resist Motions A1 and B1, which are amendments in lieu tabled by the noble and learned Lord, Lord Thomas, and the noble Lord, Lord Fox.

I am delighted to be in the Chamber again following the consideration of this House’s amendments to the Bill in the other place. Although there was a thorough debate of these amendments and those we will look at next, they have been thoroughly rejected by the other place, which has resolved against amendments that would either delay implementation of the Bill or prevent it from achieving any of its policy objectives.

I recognise that this is a topic that Members of both Houses are passionate about and I agree with my colleague, the Minister for Enterprise, Markets and Small Business, that we have had a robust debate on it. However, I point out to the House that the other place resolved against these amendments by significant majorities of 61 and 55 respectively, which are significantly larger than the majorities of 24 and 31 that amended the Bill in the first place. That is also the case for the amendments that we will discuss in the next group. The elected Chamber has therefore given the Bill and the amendments made here its due consideration and Members there have made the position of their House very clear.

The House will be delighted to know that I do not intend to repeat the debate and the arguments that we have heard on the detail of the Bill here; the Government have already clearly set out their intentions and perspective here, which are reflected in the reasons for disagreement that have come back to us. The Government’s position, and that of the elected Chamber, is clear and I can confirm that the Government have no plans to concede on these issues given the ongoing industrial disputes that show the need for this Bill now more than ever. I therefore ask that noble Lords respect the clear wishes of the other place and, while of course I am always grateful for noble Lords’ insight, passion and expertise on this matter, I hope that this House does not insist on these amendments.

I will now address the amendments in lieu that have been tabled. I thank the noble and learned Lord, Lord Thomas, for his Motion A1, which seeks to limit the application of this Bill to England only, unless the Scottish Parliament and Senedd Cymru agree by resolution for it to apply in those nations. The noble and learned Lord submitted a similar amendment on Report and the Government continue to resist this change for the reasons that I set out then.

First, it is a statutory discretion for the employer as to whether to issue a work notice, taking into account any other legal requirements that the employer may have. However, more fundamentally, the purpose and substance of the Bill is to regulate employment rights and duties and industrial relations. This is a reserved matter, so the consent of devolved Parliaments for this legislation is rightly not required. To add in a requirement for this, as the amendment seeks to do, would create significant inconsistency with wider employment law and I suggest that it would also disturb the careful balance of the UK’s devolution settlement. We will of course, as we have throughout the passage of the Bill, continue to seek to engage with the devolved Governments as part of the development of minimum service levels in those areas.

Finally, Motion B1, tabled by the noble Lord, Lord Fox, relates to additional consultation requirements, assessment of impacts of the legislation and parliamentary scrutiny. As has been made clear to this House many times, sufficient checks and balances are already built into the legislation before regulations can be made. Motion B1 would delay implementation of minimum service levels for an indefinite period and thus extend the disproportionate impact that strikes can have on the public. I am afraid that the Government simply cannot accept that.

This Government recognise the significant role that the UK Parliament has played in scrutinising instruments. New Section 234F already ensures that the regulations will receive the appropriate level of scrutiny by both Houses and are subject to usual processes for consultation. I therefore urge this House not to amend the Bill in such a way that would cause significant delay to implementing minimum service levels, use up precious parliamentary time to duplicate parliamentary procedures and set some unhelpful precedents for future legislation. For all those reasons, the Government resist Motions A1 and B1 and I hope that noble Lords will agree not to press them. I beg to move.

Motion A1 (as an amendment to Motion A)

[Lord Thomas of Cwmgiedd]

Moved by

At end insert “and do propose Amendment 1B in lieu—

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[Lord Fox (LD)]

My Lords, I was so enjoying the debate on Motion A1 that I failed to stand up and speak to Motion B1 in my name. I apologise to the noble Lord, Lord Collins, for not providing him with sufficient up-to-date quotations, but he seemed to manage. We have spent so much time on the Bill together that we probably know how each other thinks.

We are in familiar territory, and indeed were too with Motion A1, because this is a long-repeated trope of this Government. They seek to override not only the devolved authorities but our own Parliament here. Bill after Bill has measures that take powers that should rightfully be vested in Parliament and lodge them firmly with the Executive, with very little or negligible recourse. This amendment seeks to regain that balance.

We have had similar discussions many times. I will not go over all these, but I will remind the House very briefly why, in this case, it is very important. The centrepiece of this legislation is a system of predetermined minimum service levels which may be used by employers to determine the minimum manning levels in the event of a strike. If a strike is called, specific work orders have to be or may be issued, requiring named individuals to ignore the strike and go to work. If they do not, as the Bill stands, they can be sacked.

The scale of the minimum service level is key. The nearer it is to 100% of normal service, the smaller the number of people who can legitimately and legally strike becomes—to the point that it becomes almost zero, or zero, and strikes are banned. This is not an abstract argument: if you look at certain areas of emergency care or issues such as rail track signalling, it is clear that a very high level of presenteeism will be required to run those services. In effect, those people on that work order will therefore have their right to strike banned. Speaking as a Liberal, I say that this is a libertarian issue that we find very important.

The setting of these minimum services levels is a vital part of how this Bill will operate. As the Minister has said, some non-binding consultation is under way but as things stand, to all intents and purposes the scale of the minimum service levels is the Secretary of State’s decision and theirs alone. We find that unacceptable.

The Commons declined our last amendment on the grounds that there is “adequate consultation”. We think that there is not and would like to ask the Commons to revisit that process. This amendment would require that consultation takes place and is reviewed by a committee of each House of Parliament prior to regulations being made. That consultation would be more formal and set out in some detail compared to the informal and ad hoc nature of the consultation that is going on. As we heard from the noble Lord, Lord Collins, when he was quoting me, those consulted will include the relevant unions, employers and other interested parties and would include an assessment of the impact on the rights of those workers.

The Minister talked about time and how this would wrap up the process into indefinite time. I remind your Lordships that the original Bill from which this Bill is generated started about a year ago. That Bill of course referred to what was in the Conservative Party manifesto, unlike this one, which has been broadened way beyond the scope of what was in the manifesto. The Government have shown themselves very adept at setting up time for such things to be debated, yesterday being an example. I am sure that time is not the issue—“won’t” rather than “can’t” is what we are dealing with here.

In short, we seek through this Motion to regularise the consultation process and give a mandatory role for Parliament that is far more than we see. With most Governments, this might not be controversial but with this one there has been a pattern and it is systematic, so here we seek to reassert the role of parliamentary democracy. My noble friend talked about there being the potential for a constitutional crisis around the treatment of government and the devolved authorities, I think we are already heading in the same direction with the treatment by this Government of our Parliament.

[Lord Callanan (Con)]

My Lords, I thank all those who have contributed. The House will be pleased to know that I do not intend to detain noble Lords for very long. We have debated these matters extensively on a number of occasions in a very rigorous manner, so I do not intend to repeat all the arguments. But, let me just say very briefly, particularly in response to the noble and learned Lord, Lord Thomas, that we are certain that the minimum service levels are a reserved matter. They are reserved because they obviously apply only when there are strikes, which fall within employment rights and industrial relations. This is clearly a reserved matter under each of the devolution settlements for Scotland and Wales. Put another way, the Bill amends the Trade Union and Labour Relations (Consolidation) Act 1992, the subject of which is specifically reserved under each of these settlements. I always hesitate to disagree with distinguished lawyers on matters of law but I am afraid that we just have a different opinion on this.

I addressed the points from the noble Lord, Lord Fox, in my opening remarks and will not repeat that. I acknowledge all those who have spoken. I understand the strength of opinion in the House on this but once again I point the House towards the other place—the elected place—and the clear will it has expressed on these matters. I urge the House not to prolong this matter unnecessarily and, while it looks as though we are going to vote on the Motion from the noble Lord, Lord Fox, I am grateful that the noble and learned Lord, Lord Thomas, indicated that he would not be dividing the House.

[Lord Thomas of Cwmgiedd (CB)]

I beg the House’s leave to withdraw my Motion.

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Moved by

[Lord Callanan]

That this House do not insist on its Amendment 2 to which the Commons have disagreed for their Reason 2A.

2A: Because the Bill already contains adequate consultation requirements.

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Moved by

[Lord Callanan]

That this House do not insist on its Amendment 4 to which the Commons have disagreed for their Reason 4A.

4A: Because in order for the legislation to be effective, it is necessary for there to be consequences for an employee who fails to comply with a work notice.

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[Lord Callanan (Con)]

My Lords, in moving Motion C, with the leave of the House, I will also speak to Motion D.

Motions C and D in my name cover this House’s Amendments 4, 5, 6 and 7, which removed key parts of the legislation that are necessary to make it effective and to ensure that minimum service levels can in fact be achieved. It is therefore unsurprising that the other place resolved against these amendments with, I remind the House once again, larger majorities than those that amended the Bill in this House. The Government continue to maintain that the approach taken by this legislation is fair and proportionate. To achieve a minimum service level, employers, workers and trade unions all have their part to play.

Motion C and the amendment in the name of the noble Baroness, Lady O’Grady, proposed in lieu of Lords Amendment 4, deal with the consequences of non-compliance with a work notice. As I have said previously, the approach taken by this legislation is fair and proportionate. It enables employers to manage instances of non-compliance in exactly the same way that they would with any other unauthorised absence.

As I have made clear on a number of occasions, an employee losing their automatic protection from unfair dismissal for industrial action, if they participated in a strike contrary to a work notice, does not automatically mean that they will be dismissed—just as failing to attend work without a valid reason normally does not mean that they will be dismissed. It simply enables employers to pursue disciplinary action if they believe it is appropriate, but it is ultimately at the discretion of the employer. I believe that this is the right approach to ensure that minimum service levels will be achieved, while protecting workers in a way that aligns with existing legislation. On that basis, I resist the amendment proposed in lieu.

On Motion D, which covers the role of trade unions, it appears in the amendment proposed in lieu of Lords Amendment 5 that the noble Lord, Lord Collins, accepts that there may be a role for unions to play in ensuring that minimum service levels can be met. However, I strongly believe that it cannot be at the discretion of a trade union as to whether and how it advises and encourages its members to comply with work notices. There must be some consequences if they do not take reasonable steps. On that basis, the Government therefore resist this amendment.

I have noted the feedback from the House, including in the Joint Committee on Human Rights. The Government are willing to consider whether there may be a case for providing further details on what “reasonable steps” are and what it means for trade unions. What we cannot do, however, is accept an amendment such as the one proposed. Without a responsibility for unions to ensure that their members comply, and without any incentives for employees to attend work on a strike day when they have been identified in a work notice, the effectiveness of this legislation is, I am afraid, severely undermined—and I suspect that is the purpose of the amendments.

I cannot therefore accept a continuation of the risk to lives and livelihoods as a result of the disproportionate impact of these strikes. I therefore ask that the House supports Motions C and D to address this, and I hope that the noble Baroness, Lady O’Grady, and the noble Lord, Lord Collins, will not move their respective Motions C1 and D1. I beg to move.

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[Lord Callanan (Con)]

My Lords, we have once again had a reasonably full debate on these matters, so the House will be relieved that I will keep my response brief. We have largely covered many of these points before, so we do not need to repeat them.

Briefly, in response to the noble Baroness, Lady O’Grady, I restate the view of the Government that this Bill is not about sacking workers, and nor is it about forced labour, which is a frankly ridiculous exaggeration. It simply equips employers to manage instances of non-compliance with a work notice. That is exactly the same situation as any other strike action that is not protected under existing legislation.

To be clear, under the original drafting of the Bill an employee who went on strike contrary to being named on a work notice would lose their automatic protection from unfair dismissal only provided that they were notified in advance of the requirement for them to work and that they must comply with the work notice. We expect employees to be told if they are required to work and, in that case, what work they are required to do. In such circumstances, it is reasonable for an employer to consider, if it wishes, disciplinary action if an individual none the less chooses to continue to strike, thereby putting the public at risk. It is at the discretion of the employer as to what, if any, disciplinary action is taken in these circumstances. In response to the noble Baroness, Lady Fox, the Government expect employers to be fair and reasonable and to take this action only where it is necessary.

Unions must have a role to play in minimum service levels, otherwise they would be able to induce people to strike as normal and take steps to undermine minimum service levels being achieved. That directly counters the objectives of this policy. The consequences of a union failing to play that role are consistent with any other failures by a union to comply with any other existing law.

In response to the noble Lord, Lord Collins, as I said in my opening speech the Government are willing to consider whether there is a case to provide further detail on what reasonable steps are, what this means for trade unions and how they might fulfil those obligations.

I stress to this House that Motions C1 and D1 would continue the prolonged and disproportionate impact of strike action on the public. With this legislation, the Government are taking a fair and proportionate approach to balance the fundamental ability of unions and their members to strike, on the one hand, with the need for the wider public to access some of the key services that they expect and pay for, on the other. I therefore hope that the noble Lord, Lord Collins, and the noble Baroness, Lady O’Grady, do not push their amendments. I commend the government Motions to the House.

[Baroness O'Grady of Upper Holloway (Lab)]

I wish to test the opinion of the House.

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Moved by

[Lord Callanan]

That this House do not insist on its Amendments 5, 6 and 7, to which the Commons have disagreed for their Reasons 5A, 6A and 7A.

5A: Because the amendment would remove the requirement for a union to take reasonable steps to ensure that members comply with a work notice in order for strike action to be protected, and this would reduce the impact of the legislation.