Employment Rights Bill

Lord Katz Excerpts

Report stage
Monday 21st July 2025 Lords Chamber

[Lord Hendy (Lab)]

I do not really recognise the workplace that the noble Baroness describes. The fact of the matter is that only some—

[Lord in Waiting/Government Whip (Lord Katz) (Lab)]

I think I am right in saying the Companion says that the noble Lord is not allowed to speak twice in the debate as he has not moved the amendment.

[Lord Balfe (Con)]

Maybe I could say what I think the noble Lord, Lord Hendy, was going to say. The workplace is not necessarily quite as put. Both my grandmothers were businesspeople in their own right, with small businesses. The one we always call my English grandmother—because she was not the Irish one—was asked towards the end of her life whom she thought were the best politicians. She, rather like her grandson, had managed to vote for all the parties before she died. She said that the greatest politician in Britain was Stanley Baldwin, because he cooled down Britain after the general strike and, as she used to put it, he got rid of our Nazi King. So I have a lot of time for Stanley Baldwin. He is also one of my heroes, and the fact of the matter is that this is a thoroughly good amendment. Collective bargaining is a thoroughly good thing, and I hope I have not misrepresented too much what I think my friend was about to say.

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[Baroness Lawlor (Con)]

Will noble Lords allow me to say a word in support? I was a little late coming in because I misread the screen; I thought we were on Amendment 122. I support my noble friend’s Amendment 125 because it would reinforce the individual freedom of the workplace and the freedom of contract, and it would protect access to statutory rights. I say this in response to some of the points made about what other arrangements could be in place. I will refer to one law firm commenting on the importance of freedom of contract in our laws. It reflected—

[Lord Katz (Lab)]

I apologise for interrupting the noble Baroness in full flow. She said she was not here for the start of the debate on the group, so it would be a courtesy to the House to leave it at that.

[Lord in Waiting/Government Whip (Lord Leong) (Lab)]

My Lords, I thank all noble Lords who spoke—my noble friends Lord Hendy, Lady O’Grady, Lord Monks and Lord Berkeley, and the noble Baroness, Lady Verma.

The noble Lord, Lord Sharpe of Epsom, tabled Amendment 125, which seeks to give workers the right to opt out of collective agreements. Workers are free to join or not to join a trade union. It is their choice. They are not compelled to pay any union subscriptions, or any part thereof, where a union is recognised by the employer for collective bargaining purposes—so they do not need to pay any union subscription or join a union.

Many employers choose to recognise a union voluntarily. One advantage of trade union recognition is that this enables the employer to negotiate collective agreements, the terms of which may apply to all workers in a workplace. My noble friend Lord Hendy explained so clearly the principles of collective agreements—he said all that I needed to say.

The application of the terms of collective agreements to workers generally depends, in any event, on incorporation of those terms into the workers’ contracts, either expressly or by implication. That is the normal position. But providing some individual workers with a new statutory right to withdraw from the provisions agreed under a collective agreement, even where they can rely on statutory entitlements, would create an unnecessary risk of a multi-tier system, with workers on different terms and conditions of employment. We believe that this would not be beneficial to employers as it would likely create more red tape and confusion. We cannot, therefore, support this amendment.

Amendment 127 was tabled by my noble friend Lord Hendy. We welcome any support for sectoral collective bargaining and we appreciate the informed and wide-ranging debate we had in Committee on these points. We are demonstrating our commitment to sectoral collective bargaining with the social care and school support staff sectors, as was debated on the earlier group.

We believe that bespoke primary legislation will be required to allow such bodies to operate as effectively as possible. This will allow Parliament to fully consider any such sectors and scrutinise the frameworks for the new bargaining processes. We welcome all representation regarding next steps on sectoral collective bargaining, and we are working hard to consider the groundwork required for future models. However, before this work is done, we do not seek the sweeping powers that my noble friend’s amendment aims to give the Secretary of State without a sufficiently clear purpose or plan.

I say to my noble friend Lord Hendy that we are committed to supporting sectoral collective bargaining where appropriate, and we recognise the positive contribution it can make to Britain’s economy. However, different sectors will have different needs, so we need to ensure that any legislation on collective bargaining is fit for purpose for each of the specific sectors. Developing the legislation in collaboration with the sector and workers will be key to success. I hope this offers my noble friend some comfort and that he will not go further with this amendment.

I referred to my noble friend Lady O’Grady, and I will ensure that I mention this to my noble friend Lady Anderson of Stoke-on-Trent, the Cabinet Office Minister, so that she can organise meetings for her with officials in the department. I totally agree with the point of the noble Baroness, Lady Verma, about ethnic minority business. Most businesses are good businesses. What this Bill does is go after those minority unscrupulous businesses that exploit workers. I therefore respectfully ask the noble Lord, Lord Sharpe of Epsom, to withdraw Amendment 125.

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[Lord Hunt of Wirral (Con)]

My Lords, I rise briefly to support my noble friend Lord Parkinson of Whitley Bay’s amendment, supported as it has been by very effective speeches from the noble Lords, Lord Faulkner of Worcester, Lord Berkeley and Lord Palmer of Childs Hill, the noble Earl, Lord Clancarty, and the noble and learned Baroness, Lady Butler-Sloss.

It is a sensible measure that recognises the value of voluntary work on heritage railways and tramways, especially for young people. The current statutory framework treats such activity as though it were employment in a heavy industrial setting, when in reality it is community-based, educational and often intergenerational. These are voluntary efforts undertaken not for profit but for preservation, learning and public enjoyment. To continue to classify this as if it were unsafe or exploitive is to misunderstand both the activity and its value. This amendment corrects that without undermining the original protections of the 1920 Act. My noble friends deserve support, and I hope the Government are about to respond positively.

[Lord Katz (Lab)]

My Lords, it was going so well, then it hit the buffers. I am trying to make that not the last of the rail-related jokes—noble Lords will note the groans from behind me. I thank noble Lords for a stimulating debate—as we had in Committee—and, as several speakers have pointed out, it was a debate on a subject that inspires support from across the House, which is fairly unique in this piece of legislation. It is good to see and is obviously because so many in your Lordships’ House—like those in the rest of the country—enjoy and revel in our industrial heritage, as seen through heritage railways.

I thank the noble Lord, Lord Parkinson of Whitley Bay, for bringing the amendment back for further discussion. I think it was the noble Lord himself who outed me as a bit of a rail nerd in Committee, so noble Lords will know that heritage railways is an issue I am familiar with and fully support. It is an issue close to many hearts here in your Lordships’ house and it is great to see the interest we saw in the impassioned debate—it says here, and I agree—repeated here on Report.

In addition to the noble Lord, Lord Parkinson of Whitley Bay, I thank my noble friends Lord Faulkner of Worcester and Lord Berkeley, the noble Lord, Lord Palmer of Childs Hill, and the noble Earl, Lord Clancarty. I particularly thank the noble and learned Baroness, Lady Butler-Sloss, for making a little detour from her usual route to call by our station here tonight.

The UK heritage rail sector encompasses more than 170 operational railways, running trains over nearly 600 miles of track and operating between some 460 stations. It creates jobs and greatly supports local economies. I pay tribute to all those who run and maintain those railways; they not only preserve our heritage but contribute greatly to their local tourist economies. I mention this because it is notwithstanding the issues identified by this amendment.

The heritage railways are incredibly successful; they go from strength to strength, notwithstanding the issue the amendment raises about the Heritage Railway Association’s concerns. The benefits to all volunteers cannot be overestimated. However, as many speakers have said, it is particularly good for young people, and I wholeheartedly support efforts to encourage young people to take advantage of the volunteering opportunities that heritage railways offer, with their emphasis on teamwork, communication and helping to bring science and engineering topics to life.

It is vital that any work or volunteering is carried out safely and should be appropriate to the age and experience of the volunteer. It is also important to recognise that additional measures, such as effective supervision, need to be in place for young people, particularly those aged 14 to 16. Health and safety law requires heritage railway operators to protect a young person’s health and safety, taking account of their age, lack of experience and levels of maturity. Of course, not all work is suitable for young people; dangerous or high-risk work activities should not be carried out. Health and safety risk assessments help heritage railway operators to determine what work activity should be carried out and how to make sure it is done safely. After all, we want to preserve and revive heritage railways, not heritage employment practices. While the Health and Safety Executive and the Office of Rail and Road provide general guidance, it is for the Heritage Railway Association to support its operators with detailed guidance about suitable activities for young people.