Superannuation Bill

Lord Morris of Handsworth Excerpts

Tuesday 26th October 2010 Lords Chamber

[Lord Morris of Handsworth]

My Lords, I have listened carefully to this debate and have also read some of the documents associated with the Bill. My first impression is that the Bill arises from a good old-fashioned dispute between an employer—the Government—and one of their trade unions. There is nothing strange about that. The employer wants to reduce its costs and the trade union wants to protect its members. However, it is on the process of dealing with the dispute that I want to comment. I say that because I see process rather than politics as the real issue here.

In a normal world, an employer would seek to negotiate a settlement and, if necessary, to have the issues properly dealt with through the medium of arbitration, conciliation or whatever mechanism is open for dispute resolution. That, of course, is the action that the Government always advise to others in disputes. “Go back to work, seek negotiations, go to ACAS”. There is nothing wrong with that advice. However, what we see today is a Government employing what I call the political sledgehammer of legislation to crack what is in reality a minute nut compared with all the other issues that they are currently engaged with. I worry about this because it sets a very dangerous precedent. It seems to me that the Government are saying, “You must abide by one set of principles while we abide by a different set”. Are we drifting into a situation where on every occasion that a trade union says no to an employer, a Bill will be introduced in another place and then come to your Lordships’ House?

The noble Lord, Lord Wallace, and the noble Baroness, Lady Noakes, blame the PCS for retarding the deal. I do not cast any blame. I say only that it was not the PCS that brought the issue to a shuddering halt but the High Court of our land. However, that is not new. The trade unions cannot win. If they take industrial action, they are wrong; if they go to the High Court and get a judgment to stop unreasonable behaviour, as the law interprets it and provides for, they are wrong. I recognise the need to amend the existing regulations but I say that this should happen through negotiation. We should negotiate first, find an agreement and then enshrine it in legislation, because that is the way that the Civil Service works. You do not legislate and then negotiate; you negotiate and then legislate.

The people who will be adversely affected by the Government’s proposals for a reduction are not benefit scroungers or people who stay in bed as a lifestyle choice, as it has been termed, waiting for the sun to set; they are hard-working civil servants—public servants. Many of them have made the choice of long-term security over a quick pay packet, and they serve all of us. Of course, in the current situation we recognise that job security is at the top of everyone’s agenda. Indeed, there is no secret about the number of public servants who stand to lose their jobs—at the last count, it was more than 500,000. That is the impending problem facing many civil servants.

I see this short Bill as having the propensity to do immense harm. It strikes at the very heart of what we are so proud of in this country—free, democratic trade unions—because it undermines the right of a trade union to say no to an employer. The trade unions should, and must, have the freedom to disagree without legislation being introduced to retard that course of action. Of course, I impugn concerns over the Government’s expediency in trying to get their legislation through, but the fact that they have sought to pursue this matter in another place with a money Bill indicates, to me at any rate, that all is not well in terms of the overall intention. The attempt to avoid scrutiny of the Bill, short though it is, only raises suspicions rather than engenders confidence. With this Bill, it seems as though the sledgehammer of legislation is being brought out to crack the proverbial nut.

Like everyone in your Lordships’ House, I wish to see a speedy resolution to this issue, as it breeds uncertainty, not merely for the legislators, but more importantly for the individuals involved and for those who depend on the public servants who provide public services. I wish to seek assurance from the Government. I should like to know whether the Government now intend to resort to legislation as a first step every time a trade union disagrees. Will the Government take their own advice and use the instruments which are available, such as ACAS, to resolve industrial disputes? Do the Government recognise the ruling of the High Court, as set out in the briefing to which the noble Lord, Lord Newby, referred?

Trade unions want not only free collective bargaining, which is one of the tenets of our democratic society, but they also want fair collective bargaining. The people affected and the people at the negotiating table see the proposals as neither fair nor indeed free. A commitment has been made from this side of your Lordships’ House to work with the Government to ensure the speedy passage of a Bill giving proper consideration to the need for some adjustments but equally recognising that the trade unions, by their contribution, can also bring about a speedy resolution for the benefit of all concerned.