Trade Union Bill

Lord Leigh of Hurley Excerpts

Thursday 25th February 2016 Lords Chamber

[Lord Sawyer (Lab)]

I thank the noble Lords, Lord Balfe and Lord Kerslake, for their contributions and particularly what they said about part-time, low-paid workers in the public services—the National Health Service and local government. Throughout my lifetime I represented those workers and I know what it is like for people on those kinds of wages and in that kind of situation to handle bank accounts, standing orders and direct debits. It is very difficult, and it was heartening for me to hear noble Lords’ understanding and kind words in relation to those often forgotten and underappreciated workers.

The climate of employer relations in the public services in the 1970s was very immature and undeveloped. I was a trade union official and I would ask a local authority whether I could take a road worker to a meeting to talk about pay and conditions, but it was very difficult to get the authority to release a person to go to a meeting. When it did, the road worker would turn up with dirty hands. When I asked him why he had not washed them, he would say, “The management will give me time to come to the meeting but they will not give me time to wash my hands”. I used to take school meals women or school cleaners to meetings, and the management would be dressed appropriately, as we expect managers to dress, but the women were always required to go to meetings without time to take their overalls off and put a dress on. They would have to take part in the meetings wearing the overalls that they went to work in.

I give noble Lords those examples only to show how backward employer relations were in the 1970s. I agree with the noble Lord, Lord Forsyth, that some of the Conservative legislation helped with that, but other things happened as well in public services. The two big things that made the change were having facility time and deduction at source; they changed the landscape dramatically, because people did not have to worry about getting time off to go to a meeting or about scurrying around all the time collecting subscriptions. They started to concentrate on what the taxpayer and consumer wanted them to do—that is, improving the quality of the service through good employer relations. Today we have a fantastic employer relations situation in the public services. There is partnership and we deal with thousands of problems every day. Management and unions work together; they do not have to look over their shoulder about facility time or think about check-off—they can get on with the job of solving the many problems that have to be resolved, building good employer relations and doing the things that the taxpayers and consumers want them to do. I hope the Minister will take that point on board, listen to the excellent speeches that have been made this morning and think again about this clause.

[Lord Leigh of Hurley (Con)]

My Lords, I approach this from a slightly different angle. I looked at the Bill for the first time with a particular interest in Clauses 10 and 11 and learned about check-off only from reading Clause 14 later. Frankly, I was surprised to see check-off still taking place, as it does not sit comfortably with many people. My noble friend Lord Balfe’s story of its history is very illuminating and extremely interesting; it explains to us why it came about, as opposed to the cash collection that predated it. Clearly, no one starting today would use a check-off system; the way everyone is moving is towards direct debit.

I have spent time trying to understand why check-off is not appropriate. One reason I discovered is that apparently in 1998 legislation came out that did not require changes in the amount paid under check-off to receive notice—whereas, of course, direct debit under the direct debit guarantee requires 10 days’ notice. So people are assured that any change to the amount paid by direct debit gets 10 days’ notice. It seems to me that unions are moving in the direction of direct debit. The Public and Commercial Services Union briefed its members on that subject, stating in its own material:

“Trade unions in general are no stranger to Direct Debit. POA members currently pay via this method after the previous Tory Government attacked their trade union rights and forced them to halt ‘check off’. The following Labour Government offered to reinstate it for them, but the POA chose to stick with Direct Debit. Many other large trade unions collect subscriptions in this way … such as Unite and GMB”.

Indeed, Unite offers incentives to people to move to direct debit; currently, it offers an incentive of £25.

[Lord Forsyth of Drumlean]

Does my noble friend appreciate that some people on some very low incomes may not have bank accounts at all? If they do have bank accounts and set up direct debits, if there is not enough money in their account, they get an enormous bill from the bank because the direct debit has been disallowed. Therefore, they are very reluctant to sign up to direct debit.

[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 Forsyth of Drumlean]

I am most grateful to my noble friend. I have no idea what the numbers are, but it will be more than a few hundred—and it will be the people who will lose most if they do not have the backing of their union. I appreciate that they may not move in his social circle, but there are a lot of people like that.

[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.

[Lord Judd (Lab)]

My Lords, this has been a fascinating debate, and I have begun to feel a bit sorry for the Minister, because she totally lacks any kind of support whatever. If I am allowed to say so without being out of order, I also feel very sorry for her officials in the Box and elsewhere, who have to witness the slaughter of their Minister on a completely unacceptable Bill.

I want to make just one simple point: this Bill has a significance way beyond the issue itself. This country desperately needs a strong economy. It desperately needs the most effective, harmonious, productive economic system that we can ensure. There is simply no room whatever for a culture of confrontation. We need co-operation between self-confident people who feel that they really matter and have a stake in the process. This Bill does nothing whatever to promote such a positive approach in the interests of the British economy and British society. There is no place for it. This debate has left no doubt whatever about that.