Exiting the EU and Workers’ Rights

Margaret Ferrier Excerpts

Monday 7th November 2016 Commons Chamber

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

Last year, the people of Scotland made their voices heard loudly and clearly by filling these Benches with Scottish National party Members. The public discontent was palpable during the election campaign. Many people were sickened by the broken promises of the better together campaign. One may find no better example of that than being told that the only way to secure EU membership was to vote no. Indeed, people clearly remember Ruth Davidson MSP promising just that during a live televised debate on 2 September 2014, when she said:

“I think it is disingenuous...to say that no means out and yes means in, when actually the opposite is true. No means we stay in; we are members of the European Union.”

Let me be clear from the outset. I am here to represent my constituency, but as a member of the SNP, I was put here to ensure that the interests of Scotland are heard in this place. I was elected on a manifesto commitment to oppose withdrawal from the European Union.

The SNP Scottish Government were returned for an unprecedented third term in May on a pro-EU manifesto. It was the express will of the Scottish people a few weeks later in June to remain within the European Union. Scotland as a whole voted overwhelmingly to remain, as did every single one of Scotland’s 32 local authority areas.

While the Prime Minister fumbles around with what Brexit means—something that the people of Scotland rejected which is now being forced upon them—I can categorically tell her what it means to us. It represents economic uncertainty, a devalued currency, rising inflation, higher bills and mortgage payments, and a loss of up to 80,000 jobs. This is the plague of locusts that was supposed to follow a yes vote, according to the no campaign during the independence referendum. It really is not good enough for Scotland to be treated as secondary partner during Brexit negotiations. Scottish citizens are EU citizens, and their interests should not be sidelined by a Tory Government for whom they did not vote.

People in Scotland voted to remain for a whole host of reasons, but when I was out campaigning in the run-up to the referendum, workers’ rights were a common refrain from voters. They recognise the impact that the EU has had on the health and safety duties of employers to evaluate, avoid and reduce workplace risks. According to the TUC, the number of worker fatalities in the UK has declined significantly since EU directives were implemented. Pregnant women and new mothers have been protected from day one by unfair dismissal rights. There is a real understanding of the enhancements that the EU has delivered to the UK’s discrimination laws to include rights on grounds of sexual orientation, religion or belief, and age. The Prime Minister has been unable to give a cast-iron guarantee to Scottish citizens on the future of these and other workers’ rights after we leave the EU.

The European Union has ensured that workers are not subjected to exploitation or discrimination. Through its promotion of beneficial working practices, it has ensured that workers are treated fairly. As we have seen already with the introduction of tribunal fees, the draconian Trade Union Act 2016 and the increase in the qualifying period for unfair dismissal claims, the Tories seem intent on eroding the rights of people in the workplace. The bottom line is that the Conservative party cannot be trusted with workers’ rights. I worry about what the Government will attempt to do post-Brexit, unfettered by the EU.

Although EU-derived employment rights which feature in primary legislation would be relatively cushioned from the effects of Brexit, the greatest risk is the massive uncertainty that surrounds the protections afforded in secondary legislation, in which much employment law is contained. These laws are susceptible to revocation by secondary legislation. As my hon. Friend the Member for Ochil and South Perthshire (Ms Ahmed-Sheikh) said, the Prime Minister made a commitment at the recent Tory party conference to guarantee existing workers legal rights as long as she is Prime Minister. This gives me and many others little comfort. We have heard nothing of plans to move EU employment rights contained in secondary legislation into primary legislation as part of the great repeal Bill. If the Prime Minister wants to give guarantees, that would represent a good starting point.

A report recently published by Professor Alan Page of the University of Dundee entitled “The implications of EU withdrawal for the devolution settlement” suggests that many laws affecting devolved issues could be unilaterally scrapped by Westminster following a withdrawal from the EU. The repeal of EU regulations brought about by secondary legislation would not require the consent of Members of the Scottish Parliament. Professor Page has described this as “a significant potential gap” in law-making in devolved areas, and he points out that

“there is no requirement of the Scottish Parliament’s consent to UK subordinate legislation transposing EU obligations in the devolved areas”.

I agree with Professor Page’s conclusion that there are very considerable implications for devolution.

I say this today as a warning to the Prime Minister. What she does now—the action that she takes which affects Scotland—must be carefully considered. Her party holds no mandate north of the border, and people there will not stand idly by while she disrespects their wishes. Whatever Brexit means to her, she can rest assured that it will mean something completely different in Scotland. Those of us on the SNP Benches will not vote for anything that will damage the interests of the people of Scotland, and if the Prime Minister is serious about keeping Scotland in the United Kingdom, she will not ask us to.

BHS

Margaret Ferrier Excerpts

Thursday 20th October 2016 Commons Chamber

[Richard Fuller (Bedford) (Con)]

I beg to move an amendment, at the end of the Question to add,

‘; and, noting that Philip Green received his knighthood for his services for the retail industry, believes his actions raise the question of whether he should be allowed to continue to be a holder of the honour and calls on the Honours Forfeiture Committee to recommend his knighthood be cancelled and annulled.’

I am fortunate to follow such a gracious speech by the right hon. Member for Birkenhead (Frank Field), and to move the amendment standing in my name and the names of 113 other Members of this House.

I took part in the inquiry into British Home Stores not only as a member of the Business, Innovation and Skills Committee but as someone who believes passionately in the good that business can do. I have seen in my own life, and in countries around the world, that the force of market economies helps everyone. It helps people who want to earn a living and build a future for themselves and their families, and it creates a stable basis for broader freedoms in society to take hold.

However, in the course of our weeks of inquiry it became apparent to me that when we look at British Home Stores in particular, and at corporate governance in this country more generally, we see that all the rules that help set the stage for our market economy presume that with the freedoms given to people who have enormous power over thousands of their fellow citizens, when times are tough, or when push comes to shove, those people will do not just the legal thing but the right thing—the honourable thing. To some people, “honour” may seem an unusual word to use with regard to business, but in an effective business, ultimately, honour is all that one has. A person can amass a great fortune, but in such turbulent times for the market, they can lose it in a day, and all they are left with is their honour. Underpinning the amendment is the need to gauge, from the specifics of our parliamentary inquiry into British Home Stores, not whether Sir Philip Green’s actions were legal but whether they were honourable. That is pertinent because he received his honour for services to retail.

In the course of our inquiry, a core issue was pensions. The right hon. Member for Birkenhead spoke in detail, as will other Members, about the shortcomings that have led to British Home Stores pensioners facing the prospect of lower pensions and the taxpayer facing the prospect of having to pick up the tab for the difference.

Another issue was the role of advisers. It was bizarre that among a fleet of well-paid advisers on a transaction, apparently the only voice that mattered was that of the adviser who said they were not an adviser. That may be okay if a person is dealing with just themselves and their family, but when they are dealing with people who are going to get up on Monday to try to earn a living in a shop, advice is important. We saw many times that the role of advisers was not just in giving advice; it was also in conveying an impression that this person was a person of substance. In an enterprise with £600 million of revenue, 11,000 employees, and responsibility for putting money into the pensions of 20,000 people, surely those running it should be people of substance—people with experience. What goes through the mind of a knight of the realm in saying that those livelihoods and those futures should be consigned to a three-time bankrupt? What goes through the mind of the owner of such a substantial business in thinking that the problems that he has faced, and found quite challenging, can more easily be solved by someone with zero experience of the industry that they are about to take on?

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

I was contacted by email by a constituent, Irene, who shared the following:

“I have two friends that worked in BHS in Glasgow and they are devastated at what has happened to them and their pensions. They worked there for years and don’t have much chance of getting another job or being able to build up works pension...This has happened to my friends and their colleagues all because he risked his worker’s pensions while he made huge profits. I feel that we most certainly should not be honouring people like that.”

Does the hon. Gentleman agree with Irene, and me, that this man does not deserve his honour after what thousands of hard-working people across the UK have endured?

[Richard Fuller]

I am very grateful for the hon. Lady’s intervention, and I absolutely agree. I would say to people who worked for British Home Stores and want to be sure that we are dealing with issues that are tangible for them, and who are perhaps worried that the knighthood is a separate question, that we are debating those tangible issues. We are talking about what happened to their pensions and the fact that many people lost their jobs. Nevertheless, a symbolic, but still quite tangible, step that we can take in this House is to conclude that, as the hon. Lady says, such behaviours do not merit the continuation of an honour.

In their response this week, Lord Pannick and his colleague talked about governance issues. We were shocked to see that the response said that it was technically not the responsibility of the board of a holding company to attend even a meeting that disposed of a subsidiary, with all those livelihoods attached to it. Not doing so may not have been illegal, but for Lord Grabiner not even to have attended the meeting where the business was disposed of to a three-time bankrupt strikes me as calling into question the character of the members of the board. What went through their minds so that they did not think that was the right thing to do? They were not supposed to sign people into the wilderness with the brush of a pen, and for a Lord to do that points again to the fact that honour has to mean something in the behaviour of our businesses.

I want the Government to consider some further points. I do not have an answer on the question of the payment of dividends when there are pension deficits, but we need to look at it. Another issue to consider is transparency in large private companies, compared with that in public companies. Should the role of chairman continue to be precisely the same as that of other directors, or should the chairman have a greater role and responsibilities? What are the responsibilities of advisers?

Colleagues in the House have spoken to me privately and said that they may well agree that Sir Philip Green is no longer deserving of the knighthood, but they are not sure that the House has a role to play in that. Respectfully, I disagree. We are here to assert a view on the opinion of the people, and I think it is perfectly valid that we should consider the issue in the context of our report. It is on our work that we are expressing a view. We do not make the final decision, but it is worthy and honourable for this House to have a view about Sir Philip Green. Over the summer, Sir Philip has had the opportunity to find his moral compass and do the right thing. In the absence of that, the House has no option but to support the amendment and the motion.

--- Later in debate ---

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

I thank the right hon. Member for Birkenhead (Frank Field) for introducing this important debate and pay tribute to the cross-party Members involved in the Committee reports, including my hon. Friend the Member for Edinburgh West (Michelle Thomson).

In July of this year, the British Home Stores shop in my constituency closed. The long-standing store was the third largest retail unit in our East Kilbride Plaza mall. The store did avoid the first round of closures, but staff were left with huge uncertainty about what would happen in the interim, and it was eventually closed. That was a very sad day for staff and constituents. I have frequented the store since childhood and walking by the empty unit is still strange and a stark reminder to our community of the injustice that unfolded and the loss of jobs and pensions.

While our local staff oversaw the closure of our BHS, former owner Sir Philip Green reportedly continued his Mediterranean holiday aboard his £100 million superyacht. I understand that he owned BHS for 15 years before selling it to Dominic Chappell for £1 in 2015. Sir Philip Green has rightly come under fire for taking a massive more-than-£400 million in dividends from the department store chain and selling it in such a manner to a man without retail experience. A damning report from the Business, Innovation and Skills and the Work and Pensions Committees found that BHS was subject to systematic plunder by Green and Chappell and labelled Green the “unacceptable face of capitalism”.

These constituents of mine lost their jobs and pensions. The ordinary people are the losers. They gave their service and good faith both locally and to the company. So real questions must be answered by this House on multinational corporate governance structures and pension regulation. The UK Government must take action and not allow such situations to be repeated in the future.

We in this House must tackle asset stripping. The current situation does not protect working people—those who have families to look after, those who have people to care for and those who have done the right thing and have contributed to pensions and to society only to be taken advantage of and be failed. SNP MPs will work to strengthen the powers of the regulator, to ensure that the Philip Greens of the world are dealt with effectively when they seek to avoid pensions responsibilities.

There is a real need to address inequality and to work with businesses and industry to provide appropriate regulation. Many of my affected constituents have contacted me to ask that Sir Philip Green be stripped of his knighthood; his keeping the title adds salt to their wounds and the injustice of this situation.

[Margaret Ferrier]

Does my hon. Friend agree that, although Sir Philip deserves to be stripped of his knighthood, we also need to address the very real issue that exists: that of all the Philip Greens of the world being able to treat workers in this manner? They need to be made an example of by the Government.

[Dr Cameron]

I agree. Workplace regulations should be addressed.

A further matter to be addressed in terms of Sir Philip Green’s knighthood is whether his actions were honourable. Both I and my constituents say no.

I conclude by requesting that the House support the amendment and take appropriate action. We should demonstrate to the constituents of East Kilbride, Strathaven and Lesmahagow who have been so badly affected that we hear and heed their voices and fully support them at this devastating time.

Sellafield

Margaret Ferrier Excerpts

Tuesday 6th September 2016 Commons Chamber

[Mr Hurd]

I take this opportunity to congratulate the hon. Lady on the extremely effective way she has chaired that Committee. The point she makes about the role of the PAC in this is really important in terms of reinforcing the framework of transparency and accountability around this incredibly complex process. This process carries a huge bill for the taxpayer, so it is absolutely imperative for a Government of any colour to drive it forward in as responsible and cost-effective a way as possible, with value for money being a prime consideration, but I take on board her suggestion very seriously.

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

The UK Government’s entire nuclear policy, from Trident to Hinkley, is nothing short of appalling. If any of these allegations by the BBC are found to be true, it will surely be another in a long list of reasons to move away from this nuclear obsession. Does the Minister not concede that he should consider taking a leaf out of the Scottish Government’s book and ban the creation of new nuclear power stations to minimise the amount of waste going to Sellafield?

[Mr Hurd]

No.