Strikes (Minimum Service Levels) Bill

Lord Thomas of Cwmgiedd Excerpts

Report stage
Wednesday 26th April 2023 Lords Chamber

Moved by

[Lord Thomas of Cwmgiedd]

3: The Schedule, page 4, line 40, at end insert—
“234CA Work notices: further provision(1) In the event that the Secretary of State makes minimum service regulations under section 234B—(a) no obligation is imposed on any employer to give a work notice under section 234C;(b) no person may direct any employer to give a work notice under section 234C.(2) If an employer determines that they will not give a work notice under section 234C—(a) no liability whatsoever shall attach to the employer or to any other person in respect of that decision;(b) no proceedings may be brought in any court in respect of that decision.”Member’s explanatory statement
This new clause is intended to make clear that the decision to issue a work notice is entirely within the employer’s discretion. The employer is therefore under no obligation to give a work notice and, if the employer determines that they will not give a work notice, the employer is under no liability to anyone and the decision cannot be challenged in court.

[Lord Thomas of Cwmgiedd (CB)]

My Lords, I will move an amendment on a very short point and I am grateful for the support of the noble Lord, Lord Allan of Hallam. The schedule to the Bill sets out the procedure for giving a work notice and the Explanatory Notes say that it is intended to show

“how work notices are to operate”.

Subsection (7), for example, requires consultation with the unions. However, the critical point which emerged in Committee was the nature of the obligation on an employer to give a notice. Did the employer have to issue a notice? Was it entirely voluntary or was there something subtle in the middle? It all turns on the meaning of “may”—a good point for a lawyer possibly to take.

It is accepted that “may” does not mean “must”, although sometimes courts interpret “may” as meaning “must”. The question arose as to whether it meant that an employer was free to decide voluntarily what to do, given the impact it might have on his relations with the staff, or whether the position was more complex. I drafted Amendment 3 to make it clear that it was to be entirely voluntarily and sent it to His Majesty’s Government. Their response on “may” was clear. The Government’s letter said:

“The Bill does not place any direct obligation on an employer to issue a work notice. Rather, it gives employers a statutory discretion whether … to do so. This is right given that they are closer to the day-to-day operation of their services”.


It went on to explain the complexity, saying that

“where an employer is a public authority, they will need to consider their overarching public law duties. Employers will also need to consider if they have any contractual or other legal obligations that they need to comply with”.

There is no point in debating whether His Majesty’s Government are right in the interpretation of “may”; that must be for the courts to decide. But let us assume they are. There are a number of consequences. First, there is a process to be gone through by the employer—although it is not in the Bill, despite what the Explanatory Notes say. Secondly, if an employer has contractual obligations, it will have to examine what those are. If an employer is a public body, it would have to consider its public law duties, spelled out in legislation and government directions. As regards public law, it would no doubt be prudent to consult the relevant Government.

The employer would then have to weigh up the damage the notice might cause to staff relations and the provision of services in the future. There might be other considerations. It will be a difficult decision for employers in England and they might be pressurised, either by an injunction or a judicial review. We must emphasise that the courts are now likely to come into this.

In Wales and Scotland—assuming the Bill applies to them—there would be a further layer of uncertainty because they would be subject to Welsh and Scottish primary legislation and the views of their Governments. How could it be expected that public bodies in those two nations and devolved areas should be responsible for working out what their duties were?

I had hoped for one of two things: either the Government would accept my amendment—but it is plain they will not—or they would set out the considerations and put them into the statute. But they have not done that either.

I will therefore move this amendment, but I do not intend to seek the opinion of the House for two reasons. First, if His Majesty’s Government are right on the meaning of “may”, there really are contentious points of law for the courts in defining the employer’s obligations in the different contexts of hospitals, teachers and railways. This is most unfortunate. Secondly, the Bill should be clear and spell out the decision in the way the Explanatory Notes said it should be done but, as I said in Committee, this Bill is the epitome of legislation first, policy second—a total reversal of the proper policy. I beg to move.

[Lord Allan of Hallam (LD)]

My Lords, I support the amendment in the name of the noble and learned Lord, Lord Thomas, to which I have added my name. A benefit of the Committee stage in this House is that it allows us to identify concerns that may not have been apparent when a Bill was first introduced. It is through that process of analysing how legislation will work in practice, informed by the experiences that noble Lords bring to this place, that we can flush out those unintended consequences. On a good day, the House having flagged something that is a reasonable area of concern, the Government will provide us with clarifications that show that our fears are misplaced and that all will be well. On a really good day, a Minister will acknowledge that we have identified a genuine problem and set out a path to fix it. We have just had an example of that on the previous amendment.

I believe we have done our job and identified a real gap here between the Government’s rhetoric that employers will not be mandated to issue work notices and what may happen in practice, yet the Government have so far failed to provide either a clarification that our concerns are unfounded or an acknowledgement that we have identified a real issue that they intend to fix before the Bill becomes law. In this amendment we are presenting a way to demonstrate the kind of fix that we think is needed, not to undermine the Government’s intentions in respect of the legislation writ large, but rather to ensure that it works as they themselves have said they wish to happen.

My concern is quite specific. It is that employers will be advised that they expose themselves to significant legal risk if they do not issue work notices, even where they feel that they would be counterproductive to their efforts to negotiate with their employees. The circumstances under which they may feel this compulsion are not fantastical but all too apparent if we look at broader trends in litigation. We do not have to stretch our imagination too far to see somebody suing an NHS body that chose not to issue work orders, alleging that their treatment could have been delivered if it had; a student taking action against an educational institution on the basis that it did not order teaching staff to turn up during strike days; or businesses suffering disruption as a result of transport strikes going after train operators, claiming that more service could have been provided.

Some noble Lords may have sympathy with this approach and think, “Good; if employers feel compelled to issue work orders, the Bill is working”, but the Government have said repeatedly that the work order should be voluntary and that this is not what they intend. If they wish to make work orders compulsory, they should have the honesty to say that in the Bill. They would be de facto mandated because of the threat of litigation, and if the Government do not wish that to happen, they should agree to our amendment to make that clear to employers.

It seems far from ideal to leave this confused, with the extent of compulsion in practice decided on the basis of an assessment of the threat of legal action. I fear that the Government will argue, as the noble and learned Lord, Lord Thomas, has already indicated, that this is an acceptable state of affairs and that they do not intend to change the legislation, but I hope that noble Lords will see the force of our arguments and will support Amendment 3.

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[Lord Callanan (Con)]

My Lords, I thank the noble and learned Lord, Lord Thomas, for his constructive engagement on this matter. He wrote to us about it and has had a reply, so he knows the Government’s position. We believe that the current drafting of the legislation strikes the right balance so that, while employers have the statutory discretion to issue a work notice, they also have to consider any other existing legal duties that they may have—for instance, contractual, tort or public law duties. My concern is that the amendment would enable employers to act without due consideration to such duties, as it effectively seeks to remove any legal consequences for not issuing a work notice.

The decision to issue a work notice should be objective but, despite what the noble Lord, Lord Allan, and the noble and learned Lord, Lord Thomas, have said, the amendment would then enable subjective, and potentially political, factors to influence that decision.

It would be likely—and I suspect this is the intention of the movers—to lead to many fewer work notices being given where they were needed, leading to minimum service levels not being met in more cases, but the reason for this legislation is that the Government do not believe that is in the best interests of service users or the public. I therefore maintain the position that I took in Committee and resist the amendment on that basis. I hope the noble and learned Lord will withdraw it.

[Lord Thomas of Cwmgiedd (CB)]

It is disappointing that the Government will not put in the Bill what the position is. The word “may” is too ambiguous. I am afraid we may be back to the kind of thing that happened 50 years ago, as we are seeing a large number of disputes go to a successor—the ordinary courts, this time—to the National Industrial Relations Court, and that was not a happy outcome for anyone. But the Government have taken their stand. I do not wish to press this to a Division and I therefore beg leave to withdraw the amendment.

Amendment 3 withdrawn.

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Moved by

[Lord Thomas of Cwmgiedd]

6: Clause 3, page 2, line 9, leave out from “Act” to end of line 11 and insert “of Parliament.
(6) This section does not apply to—(a) an Act or Measure of Senedd Cymru, or(b) an Act of the Scottish Parliament.”Member’s explanatory statement
This amendment would mean that the power of United Kingdom Ministers to amend primary legislation does not apply to Acts of the Scottish Parliament or Senedd Cymru.

[Lord Thomas of Cwmgiedd (CB)]

My Lords, I shall speak to both Amendment 6 and Amendment 7— Amendment 7 being the more important. I am grateful to the noble Baronesses, Lady Randerson and Lady Finlay of Llandaff, and the noble Lord, Lord Collins of Highbury, for supporting these amendments. I have tabled these amendments because this Bill, in its application to Scotland and Wales, is impractical, undemocratic and will make the services there worse. Let me briefly explain each of those points.

First, on impracticality, the main services—that is health, education and ambulance services—are all devolved. It simply is not practical for the Secretary of State for Health or the Secretary of State for Education, as advised by their departments in England, to deal with the position in Wales and Scotland. They do not deal at all with health and education in Wales or Scotland. They are run differently, on a basis of very different legislation to that in England. Let me explain why by reference to Wales.

As to health, under Welsh legislation it is the Welsh Ministers who give direction to the employers—the local health boards and trusts—about their functions. It is Welsh Ministers who have a role in setting pay and conditions in accordance with Welsh regulations and directions and the priorities of the Welsh Ministers.

As to ambulance services, these are run in Wales under the direction of a joint committee of health board chief executives, which has commissioned the Welsh Ambulance Services NHS Trust to run the services for the whole of Wales. Those same health board chief executives are appointed by Welsh Ministers, who are of course accountable to the Senedd. How can an English Minister set minimum service levels for Wales and interfere in this structure when the Minister and the department have no basis whatsoever for doing so, no interest in the policy, no interest in the priorities and do not really understand either the demographics or geography of Wales.

As to education, in Wales it is the local authorities that, with the governors, employ the staff. There are substantial differences in structure: there are no academies in Wales; funding, unlike in England, is not hypothecated; and minimum qualifications for teachers are different. Pay and conditions are set by the Welsh Government for the needs of the curriculum in Wales which, quite apart from bilingualism, is different to that in England. How can a Minister who knows all about education in England, yet has not been able to work out a policy for minimum service levels, set minimum service levels for education in Wales, about which the Minister knows absolutely nothing?

Overall, the position of the employers who have to decide whether to give a work notice in Wales and Scotland will be different to that in England. I have already set out the difficulties in dealing with Amendment 3. They will have to take into account different public law duties under different legislation, and the views of the Governments of Wales and Scotland, who have the power to give directions. Again, one can see a wonderful field day for lawyers.

Secondly, in my view, it is wholly wrong and contrary to basic democratic and constitutional principles for this to apply in Wales and Scotland. The responsibility for dealing with these services is not that of the UK Government but the Welsh and Scottish Governments under the legislation applicable in those nations. The Governments there were elected to run these services and are wholly responsible and accountable to the electorate for them. The English Government—the UK Government—are not accountable. It is therefore wrong in principle to undermine that accountability and democratic choice.

This is underlined by the refusal yesterday of the Senedd to give legislative consent. His Majesty’s Government will argue that the refusal is irrelevant, as it is not a matter for the Senedd or the Scottish Parliament because the Bill concerns a reserved matter, industrial relations. With the utmost respect to government lawyers, that is nonsense: the Bill is not about industrial relations but about devolved services. As has been explained, there is a fundamental failure to understand what the Bill is about. Secondly, the Senedd is the body democratically accountable for services, not the UK Government. Therefore, unless amended, this will be another piece of legislation where the Sewel convention is ignored. I have spoken of this before, but it is now being ignored at the heart of devolution, in services that have been run in Wales and Scotland for a very long time.

Thirdly, it will make matters worse for the people of Wales and Scotland by undermining the ability of the Welsh and Scottish Governments to manage their own relations with their staff and employees. The management of those relationships is different from, and has generally been more successful than, that of the Government responsible for England. Applying the Bill to Wales and Scotland is effectively taking away power from those who have responsibility for the management of the relationship, for the negotiations and for the setting of pay and conditions. It will undermine their ability to do this successfully. It is simply an arrogation of powers in matters over which the Government in England have no responsibility. Power without responsibility is a recipe for disaster for the people of Wales and Scotland, for which the Government, in respect of these services, have no responsibility at all.

In summary, the UK Government, which are under the law responsible only for health, ambulances and education in England, should not be interfering in areas for which they have no responsibility in Scotland and Wales. It is impractical, wrong in principle and makes no sense. The real problem is that this is yet another attempt to undermine devolution and give strength to those who wish to see the union weakened.

[Baroness Randerson (LD)]

My Lords, the noble and learned Lord has spoken very powerfully and comprehensively on this, and I am delighted to offer my support on both these amendments, which reflect how badly written this Bill is. It reflects a Government in a temper tantrum in the face of a period of determined and effective trade union action. I can hear government Ministers stamping their feet in a fit of rage and the result is this badly drafted Bill.

The report of the Select Committee on the Constitution condemns the Bill for being “skeletal” and declares that the concept of minimum services levels is insufficiently specified. This problem is particularly acute in relation to the devolved Administrations, because it is surely up to them to decide what minimum service levels should apply in their own countries in their own circumstances.

I will give two very concrete examples. First, in relation to health services, ambulance response times might quite reasonably be very differently specified in Wales and Scotland because in the Highlands of Scotland and rural mid-Wales the distances travelled are massive. Secondly, if you look at Welsh-medium education, dare I say it, it is unlikely that a UK Minister would even understand the minimum service levels they would have to specify. It is totally inappropriate that it should be in their hands.

At the heart of these amendments is the fact that most of the services specified are, of course, devolved and have a close impact on devolved services at the very least. Education, health, fire and rescue and most transport services are in the hands of the devolved Administrations, which are democratically accountable for the running of those services, yet the UK Government want to intervene in that relationship. That intervention will inevitably sour employer-employee relationships and inevitably mean worse services for the people of the countries concerned.

It will create a seriously muddy situation. Minimum service levels should be down to the democratically responsible Governments concerned, and in these services that is the devolved Governments. The muddy waters will be even more troubled by the information referred to earlier in Amendment 3 from the noble and learned Lord, Lord Thomas, that in practice employers will have to issue work notices in order to avoid being sued.

So, we have employers in devolved Administrations working to the devolved Governments which are going to have to act in response to UK Government actions. This is not practical, so for all these reasons I believe the Government need to draw a halt to their many steady and determined attempts to undermine devolution, and this Bill needs to apply only to England.

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[Lord Callanan (Con)]

My Lords, Amendments 6 and 7 relate, as has been said, to the devolved Governments. Amendment 6 seeks to remove the power for the Secretary of State to make consequential amendments to primary legislation made by the Scottish Parliament or the Senedd Cymru. This amendment was previously tabled in Committee, and no one will be surprised to know that the Government’s position remains unchanged.

As I have previously stated, the powers in Clause 3 can be exercised only to make amendments that are necessary to give effect to the Bill; they are therefore truly consequential. Employment rights and duties and industrial relations are reserved in respect of Scotland and Wales. It is therefore right that the Secretary of State has the power to make consequential amendments to primary legislation made by the Scottish Parliament or Senedd Cymru, if required, to ensure that the new legal framework operates in a coherent way across the whole of Great Britain. As always, the Government will engage with the devolved Governments as appropriate should consequential amendments be required to Acts of the Scottish Parliament or the Senedd Cymru.

Amendment 7, meanwhile, seeks to limit the territorial application of this Act to England. The noble Baroness, Lady Randerson, tabled a similar amendment in Committee, and the Government continue to resist this change for the same reasons that I set out then.

As has been said numerous times in this debate, once regulations for minimum service levels are in force for a specified service, if a trade union gives notice of strike action, it is then the employer’s decision whether to issue a work notice ahead of the strike, specifying the workforce required to achieve the minimum service level for that strike period. If the employer is the Scottish Government or the Welsh Senedd, it is their decision whether or not they use this legislation. Of course, we hope that all employers will want to do so where needed —as was said in relation to the amendments of the noble and learned Lord, Lord Thomas, employers must consider any contractual, public law or other legal duties that they have—but the Bill does not contain a statutory requirement to do so. No one is forcing them to use this legislation.

We will, as we have done throughout this legislation, continue to engage with the devolved Governments as part of the development of minimum service levels in those areas and the consultations that would be required that are informing these decisions. The Government have a duty to protect the lives and livelihoods of citizens across Great Britain. The disproportionate impacts that strikes can have on the public are no less severe in Scotland or Wales, and the people there have every right to expect the Government to act to ensure that they can continue to access vital public services, which they pay for, during strike action.

I hope—again, perhaps without too much optimism—that noble Lords will therefore feel able not to press their amendments.

[Lord Thomas of Cwmgiedd (CB)]

My Lords, I considered whether to press both amendments to a Division, but it seems to me that the critical one is Amendment 7. If the Act is not applicable to England, Amendment 6 is, in effect, consequential and falls away. I therefore intend to withdraw Amendment 6 but will ask to test the opinion of the House on Amendment 7.

There are two fundamental reasons for that. First, it is essential that we do not undermine devolution. The devolution Acts give the responsibility for services to the devolved Governments. If the devolved Governments fail to deliver those services, they can be booted out at the next election. That is democracy, which I had hoped this Government believed in.

Secondly, the argument that the Minister has put forward—that the Governments in Wales and Scotland are the employers and can themselves determine whether the notices should or should not be given—is misconceived. As I sought to say, they are not the employers. The employers are the trusts and the local authorities. Probably wrongly, I did not press Amendment 5, but the Government now have to bear the consequence.

If they had agreed to my amendment, the point the Minister made might be a good one—but they did not. The consequence is that it is not up to the Governments of Scotland and Wales. They will have interests and points to make, just as no doubt the UK Government will have to the English authorities. But, ultimately, it will be for the employers. Therefore, this is an outright interference in the running of services in Wales and Scotland. They are at the heart of devolution. This, if anything, proves that what this Government want to do is undermine devolution and thus weaken the union. I will therefore press Amendment 7 in due course, and in the meantime I beg leave to withdraw Amendment 6.

Amendment 6 withdrawn.

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Moved by

[Lord Thomas of Cwmgiedd]

7: Clause 4, page 2, line 13, at end insert “but applies only to England”
Member’s explanatory statement
This amendment would limit the application of this Act to England.

[Lord Thomas of Cwmgiedd (CB)]

I wish to test the opinion of the House on Amendment 7.