Trade Union Bill

Lord Cormack Excerpts

Thursday 25th February 2016 Lords Chamber

[Lord Cormack (Con)]

Does the noble Lord realise that he has now spoken for 18 minutes and we are still waiting for him to come to the point?

[Lord Lea of Crondall]

With great respect to the noble Lord, Lord Cormack, I think that many of my colleagues will think that I have made some very pertinent points. I am now on my final two or three sentences.

In the case of the nuclear decommissioning industry, because of the extra difficulty of trying to get to the members—perhaps the noble Lord, Lord Cormack, could pay some attention to this point—they are inhibited further than normal by the fact that nuclear sites are licensed with restricted access. When the noble Lord, Lord Tebbit, finishes his private conversation, he might be interested in this, but he does not tend to listen to what people are saying, and that is not new. Has that extra difficulty been thought out of adding access to people on nuclear sites, which are licensed with restricted access?

There may be agreement that my final sentence is a good point to finish this on. I hope that the Minister will comment separately on this whole exercise of defining parts of the private sector as being in the public sector, as otherwise I can describe it only as the most outlandish idea, which seems to have won first prize—as the daftest one of all—at some well-lubricated jamboree organised by the Young Conservatives equivalent of the Militant Tendency.

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[Lord Beecham (Lab)]

My Lords, it is quite an exceptional pleasure to follow the speeches of two distinguished Members of this House on the Conservative Benches and the intervention by the noble Lord, Lord Deben, which was pithy but very striking, if I may say so. I declare my local government interest and my interest as an unpaid consultant at a firm which, for many years, has acted for trade unions. In that capacity, I am very well aware of the help and support they give to individual members across a huge range of concerns, from employment tribunals to accident cases, and of their support for members in the workplace.

I start by referring to the other check-off—Anton Chekhov—who wrote in one of his stories:

“To advise is not to compel … You must trust and believe in people or life becomes impossible”.

That seems to me a good description of the world of industrial relations. When it comes to check-off, many councils, including Newcastle, of which I remain a member of course, charge for the service. Newcastle actually makes a profit of around £20,000, which goes into the council’s budget. To put it another way, it could be said that it reduces the cost of facility time, which we touched on in an earlier debate. Many other councils do the same. It would be quite reasonable for the Government to require unions to pay the cost of check-off—Unison has made it very clear that is has absolutely no problem with that—but it should be a matter for individual councils and public bodies, as it is for private sector companies, to decide whether or not to operate a check-off scheme.

Unison reports that it is involved with 9,334 agreements about check-off, 7,242 of them in the public sector, with the rest in the private sector and, I suppose, the voluntary sector. Interestingly, some major companies, such as E.ON and United Utilities to name but two, are perfectly happy to operate such a scheme. The proposals were not in the Tory manifesto, and appeared at the last minute as the Bill was going through in the House of Commons. It would appear that there was no consultation with employers, let alone, of course, the unions themselves. Indeed, the director of human resources at Leeds Teaching Hospitals NHS Trust—a very major trust—has written:

“Ending trade union deductions through payroll in the public sector came out of the blue”—

I do not think he is making a political reference there. He went on:

“From what I can tell there has been no consultation with employers, no engagement with trade unions, no assessment of what it may mean for employee relations or, more importantly, recent progress in partnership with trade unions … My anxiety—which I know is shared by others—is about the unintended (but in this case entirely foreseeable) consequences. Check-off… is a light touch management activity, but it does give employers a sense of their union density, particularly when dealing with multiple trade unions”—

a point made effectively by the noble Lord, Lord Balfe. He continued:

“When balloting does take place, check-off allows employers to undertake the SBET (standard British eyeball test)”,

which I had never heard of before. Quite what it means, I confess I do not know, but I assume that it means that the employer can check on the validity of a ballot in relation to union membership. Mr Royles goes on:

“Should we challenge it? All this will be more difficult if payments are made by direct debit”.

That is a big employer, of a major service, making a very telling point.

The Government suggest that payments be made by direct debit from the employee’s bank, as we have heard. Other noble Lords have said there is really no difficulty in this, and, just as much to the point, most Unison members have expressed a preference for check-off. As long as there is no cost to the employer, why should their wishes not be respected? Many employers in local government have voiced their views, including the north-eastern councils, which have collectively backed check-off. I think the Dorset police and crime commissioner—who I suspect is probably not a Labour member—has done likewise. As we have heard, the Government are reserving the position in relation to the functions of police and crime commissioners.

On Second Reading, I quoted Margaret Thatcher, who famously said that,

“for over 100 years … it has been the belief of the Conservative Party that the law should not only permit, but that it should assist, the trades unions to carry out their legitimate function of protecting their members”.

It could be argued that she rather departed from that view, although the noble Lord, Lord Forsyth, disagrees, during her period in office as Prime Minister, when she spoke of “the enemy within”. The latter view, sadly, appears to have shaped the provisions of the Bill. It is time for the Government to treat the unions as partners in the provision of public service, not as enemies, and to treat public sector and council employers as reasonable decision-makers, not subordinates requiring constant interference with, and control of, their role as managers of public services.

There is also the issue of potential legal challenge. The noble Lord, Lord Pannick, who is not in his place, wrote in the Times recently that the second area where the Bill is vulnerable to legal challenge—he had identified another issue—is Clause 14. He wrote, “It is very difficult to see the justification for such a restriction which has a very damaging effect on the efficacy of trade unions”. There must be the possibility of a legal challenge.

I suspect that there will be a broad consensus in this Committee about many of these provisions, particularly this one. I hope that the Minister will take these views back to the Government and that they will think again. An amendment was moved in the Commons by a Conservative Back-Bencher which would effectively remove the element of compulsion and leave it to employers, providing that the cost was met.

I began my speech by referring to a quotation from Chekhov. I offer three titles of his short stories which might well be applied to this Bill: “Gone Astray”, “Overdoing It” and “A Blunder”.

[Lord Cormack]

It is certainly no cherry orchard, is it, my Lords? I am delighted to support my noble friend Lord Balfe in particular. He made a very telling, powerful and compelling speech, and I agreed with every word. Although I have concentrated my contributions to the debates on this Bill on Clauses 10 and 11, about which I remain acutely concerned—my noble friends on the Front Bench know my intentions if the debate does not move in the right way—I share the views and intentions of my noble friend Lord Balfe when it comes to this clause.

If the Conservative Party stands for anything, it stands for choice. This clause is an unnecessary, meddlesome, bureaucratic abolition of choice, and it is not worthy of the Conservative Party. Although she is engaged in conversation, I hope that my noble friend the Minister can hear what I am saying. She has a very good track record in the field of industrial relations. She cannot, surely, believe that the deprivation of choice is something that she can champion, and I hope that she will not.

It is only about a week since an eminent world leader rebuked an aspiring world leader by telling him, effectively, that those who wish to demonstrate their credentials should build bridges rather than walls. In this clause, we are building an unnecessary wall. It is inimical to the true one-nation Conservative tradition and it is not something that any Conservative can wholeheartedly support. The speech of my noble friend Lord Forsyth of Drumlean was intervened on in a very pithy and apposite way by my noble friend Lord Deben, who said that they spanned the whole range of the Conservative Party. I stand somewhere between them on a range of issues, so I think that we pretty well span the range of opinion in the Conservative Party. If my noble friend the Minister thinks that by giving way on this clause she will be conceding to the Opposition, she will not be—she will be marching in the spirit of true one-nation, pro-choice conservatism.

I hope that when we come to Report, we will have from my noble friend a suitable amendment that will encapsulate the essence of the amendments proposed today, in particular the amendment so splendidly spoken to by my noble friend Lord Balfe, and that we will therefore be able to take away from this Bill an aspect of petty vindictiveness and spite that does nobody any favours and is wholly unnecessary. What is the point of this? The answer is that there is no point.

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[Lord Leigh of Hurley]

I would be very interested to know the number of those people. Clearly, the numbers have changed dramatically since check-off was brought in, as the noble Lord, Lord Balfe, explained.

[Lord Cormack]

Yes, but we are concerned about every individual. Even if it is only a few hundred people, surely that in itself is justification for what is being argued by almost everybody in this debate.

[Lord Leigh of Hurley]

Of course, exceptions can be made for a few hundred, if it is a few hundred, as with others. But it seems that direct debit is the direction of travel. I have nearly finished.

[Lord Leigh of Hurley]

I am not sure the noble Lord knows my particular social circle, but I took the figure of a few hundred from my noble friend Lord Cormack. As I said, I do not know the numbers and I do not think the noble Lord knows the numbers, but it would be interesting to have them presented to us.

[Lord Cormack]

The point I was making was that even if it is only a tiny number, why are we doing this?

[Lord Leigh of Hurley]

Yes, I thank the noble Lord—I have taken the point. The point that I was making was that the direction of travel, in the market and clearly by the unions, is towards direct debit, which is a direction of travel that we should encourage.

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[Baroness Neville-Rolfe]

The answer is that I think the impact assessment says there is a cost of £7.2 million. I was seeking to answer the question that had been raised.

Amendment 92 would allow check-off to remain and replace the prohibition with a statutory obligation for ACAS to create a code of practice. As part of that, payment for a check-off service would be recommended as best practice. I return to the points made on earlier amendments: this would not deliver the commitment that we have made to prohibit check-off across the public sector. As it would not be a mandatory requirement, some organisations, as I think we have heard today, might choose not to do it while others might do so, and then one would have an inconsistency of application.

I am, however, grateful to my noble friend Lord Balfe for Amendment 93, which seeks to help us by allowing check-off to be retained wherever the employer is reimbursed. However, even where the service is paid for, I cannot accept that it is appropriate for a public sector employer to be the intermediary of the subscriptions relationship between a union and its members.

[Lord Cormack]

My Lords, I am very sorry to interrupt, as we have had a long debate. I make an appeal to the Minister: from virtually every speaker in all parts of the Committee we have heard a plea that I myself tried to put into one word, which was echoed by the noble Lord, Lord Monks: “choice”. Can she not go away and come back on Report, having reflected on the virtually unanimous opinion of those who have taken part in this debate? We are not asking her to trash a manifesto commitment—far from it. We are merely asking her to be a little bit flexible where she is insisting upon inflexibility.

[Baroness Neville-Rolfe]

I thank my noble friend for his intervention. I have said from the very beginning that we are listening during this Committee stage. Having said that, it is only right that I set out clearly the reasons why we believe that this clause is the right one and is needed, which is what I have been seeking to do. I think that I am nearly through. I am sorry that I have not been quite as succinct as the noble Baroness opposite.