EU: Prime Minister’s Speech

Lord Monks Excerpts

Thursday 31st January 2013 Lords Chamber

[Lord Monks]

My Lords, it is pretty clear that European Union social and employment laws are being lined up in the Prime Minister’s gun sight. He has made no secret of his wish to push the single market much more into a free trade zone, probably on NAFTA lines. If that line is pursued, trade unions in Europe and many Governments, of whatever political persuasion, will take the contrary view and will be determined to preserve a single market that has some employment and social standards within it.

Mrs Thatcher recognised the need for some social standards when she agreed that health and safety would be included in the Single Market Act—from which, by the way, comes the much derided working time directive. I wish that people would look at this in a bit more detail. Britain has an opt-out from the 48-hour rule. Fourteen other countries have opt-outs from specific parts of that directive. The one bit that really matters is the entitlement to four weeks’ paid holiday, from which 6 million British workers benefit. Is the Prime Minister perhaps proposing to take that back? I do not think that he will. You could go on into Social Chapter territory on equality and equal pay. Should the single market not have equal pay provisions for the new countries, and so on? Should it not have a voice in European works councils and through the information and consultation arrangements? Are we saying that, if we can do what we want, others can too, so undercutting our interests?

The Government can take away the rights of British workers that come from British law. They have done so recently. Three million British workers have been removed from the scope of unfair dismissal legislation. However, these European-based rights are a bulwark for workers in this single market. I warn noble Lords: if the Government are successful in an adventure of this kind, the response will be protectionism, just as it is in NAFTA, with American unions influencing the Democratic Party—the major obstacle to an EU/US free trade agreement. So be careful what you wish for. In the mean time, Europe’s unions are already on notice that they will have to fight with their Governments against any renationalisation of employment and social policy.