Trade Union Bill

Natascha Engel Excerpts

Ping Pong: House of Commons
Wednesday 27th April 2016 Commons Chamber

[Nick Boles]

I beg to move, That this House agrees with Lords amendment 1.

[Madam Deputy Speaker (Natascha Engel)]

With this it will be convenient to consider the following:

Lords amendments 3 to 6.

Lords amendments 7 and 8, Government motions to disagree, and Government amendments (k) to (p) in lieu.

Lords amendments 9 to 16 and 18 to 29.

[Nick Boles]

The amendments improve the Bill and take account of a number of points of concern raised by Members of both this House and the other place. This is a raft of amendments, and I hope hon. Members will understand if I focus on the highlights in the order in which they appear in the Bill.

The 40% ballot threshold relates to strike action in important public services. The broad reference to “ancillary workers” has been removed and a “reasonable belief” defence for unions has been added. Those changes provide more clarity and certainty for unions and employers.

On the timing and duration of industrial action, the ballot mandate has been extended from four to six months, and to up to nine months where the union and the employer agree to that. That responds to concerns that four months was simply too short a time to enable both sides to resolve a dispute.

On the provision to provide two weeks’ notice of industrial action to an employer, the Bill now continues to allow for the current period of only seven days’ notice, where the employer and the trade union agree to that.

On picketing, there was great concern in this House, but less so in the House of Lords, about the Bill’s reference to “armbands”. That reference was taken from the original picketing code, which has been in force for a great deal of time. We do not want picket supervisors mistakenly believing that they must wear an armband. I hope that that will be welcome, particularly to my right hon. Friend the Member for Haltemprice and Howden (Mr Davis), who is not in his seat, but who eloquently raised concerns about the issue.

The House debated at length the principle that union members should make an active choice to contribute to a trade union’s political fund. The other place established a Select Committee on Trade Union Political Funds and Political Party Funding under the chairmanship of Lord Burns, and I would like to place on record my gratitude to him and all the members of the Committee for their deliberations on this question.

The Bill has been amended to reflect the Select Committee’s recommendations on opting in. Our manifesto commitment suggested that we wanted to extend the opt-in principle for trade union members, and the revised provision meets that commitment. In future, all new trade union members will have to make an active choice to contribute to the political fund through an opt-in.

Our amendment corrects some legally defective drafting in the amendment tabled by Lord Burns and agreed to by the Lords. In particular, instead of the certification officer being given responsibility for issuing a code of practice, our amendment places a statutory obligation directly on unions to provide an annual reminder to existing members of their rights to opt out. That complements the position for new members, who will be required to be offered the right to opt in.

We have also improved requirements on unions to report details of political expenditure in their annual returns. That reflects the debates that we had about the importance of that issue in assisting union members to make informed decisions about whether to contribute to a union’s political fund. At the heart of the provision is transparency and proportionality.

The Bill has been amended to require reporting on all expenditure from a union’s political fund, including to causes and campaigns, but it also fixes what became characterised as the onerous obligation for the union to report on “every bus fare”. Instead, unions will be required to report on the total expenditure going to each political party or organisation in each of the categories.

Finally, the other place rightly agreed to increase parliamentary oversight of regulations that could seek to lower the reporting threshold once it has been raised and therefore increase the regulatory burden on trade unions.

On check-off, we had robust debates in this House, and there were equally robust debates in the other place. Those debates related to union subscriptions being deducted automatically from wages in the public sector. The Bill we welcome back to the House allows check off to continue where the costs are met by the trade unions and on the basis that union members have the option of paying subscriptions by other means. My hon. Friend the Member for Stafford (Jeremy Lefroy), who is not in his place, made an eloquent argument for an amendment on this very issue, and I indicated on Report that we would look at it closely as the Bill went through the House of Lords. I therefore hope that he is satisfied with the decision by the Government to accept this amendment. I pay tribute to him for his work, both privately and publicly, in making the case for this important change.

Our manifesto committed us to reforming the role of the certification officer. The Bill removes the requirement for the certification officer to be able to act in some areas only where a complaint has been received from a member of a trade union. Instead, the certification officer will be able to look into issues that come to his attention from third parties, or in the course of his duties. However, the provisions have been amended to increase the independence of the certification officer by ensuring that he is not subject to ministerial direction. As I have said previously, the certification officer is under no obligation to act on complaints or representations from third parties.

Nevertheless, concerns were raised that spurious or vexatious complaints could tie up the certification officer’s resources and, indeed, place an unfair burden on trade unions. The Bill has therefore been amended to require that the certification officer must have reasonable grounds to suspect a breach before appointing an inspector to conduct an investigation. I am confident that this will protect unions from vexatious complaints and over-zealous regulation. However, I am happy to assure hon. Members that we will keep this under review to see how it works out in practice. In response to human rights concerns, the judicial oversight of the certification officer has been strengthened. The Bill has been amended to allow appeals to the employment appeals tribunal on the certification officer’s decisions on the grounds of fact as well as law.

I hope that hon. Members will welcome the amendments. I believe that they improve the Bill, and I hope the House will see fit to accept them.

[Madam Deputy Speaker (Natascha Engel)]

I call Kevan Jones.

[Mr Kevan Jones]

Kevin Brennan.

[Madam Deputy Speaker]

I am sorry—Kevin Brennan.

[Kevin Brennan]

Thank you very much, Madam Deputy Speaker. There is a great physical similarity between me and my hon. Friend, and it was entirely understandable on your part to mistake one for the other.

First, as I should have done when speaking on the previous group of amendments, I declare my membership of Unite the union and my very proud membership of the Musicians Union.

As the Minister said, the Government are accepting most of the amendments in this group. Due to the time constraints, I will not deal with all of them. He highlighted the significant changes, including on check-off, which we very much welcome. He will recall that during our debate on Report the hon. Member for Stafford (Jeremy Lefroy) tabled an amendment on these provisions. I pointed that out that it was extraordinary that a Conservative Government were seeking to make illegal a voluntary arrangement between parties, even where one party is paying for the service, when that arrangement is neither immoral nor illegal. That would have been an extraordinarily illiberal measure. I am glad that in their lordships’ House the Government gave way on this matter and it is no longer in the Bill. That is very welcome.

I welcome what the Minister said on the record about the certification officer. It is extremely important that the Government recognise the concerns that have been expressed about the potential for vexatious complaints by third parties and the tremendous waste of time that that could be for all concerned. I also welcome his comments on a review of how the provision works out in practice. Although, as I have made clear, we do not agree with what the Government are doing in relation to the certification officer, that is a welcome assurance, and I am glad that he has put it on the record here at this stage before the Bill goes back to the Lords.

Perhaps the most controversial and contentious element of the Bill has been the Government’s desire to create an opt-in process for trade union political funds. Lords amendments 7 and 8 relate to that. The original Government proposal meant that existing trade union members who pay into their union’s political fund would have to opt back into the fund, in writing, within three months of the Bill’s passage, and do so again after five years.

--- Later in debate ---

[Mr Jones]

I agree. This shows my age, but the process used to have to be done manually, which meant that there was a cost. My hon. Friend is quite right that, with modern-day computer payroll systems, for example, the cost is very difficult to determine.

I, like my hon. Friend the Member for Cardiff West, oppose the Bill as a whole, but given the compromise that we have got because of the EU referendum, we are in a good place. However, I would just issue a final warning. I hope Conservative Members will not, once the EU referendum is over, bring in legislation to fill in what has been left out of the Bill. That would not only be another attack on trade unions, which are among the most highly regulated sectors in our country, but would show the vindictiveness that still exists in a section of the Conservative party. I look forward to the introduction, not long after June, of a Bill exploring total transparency in party funding in this country. If trade unions can have openness in terms of their money, we should decide it is time for other donations to political parties to have the same type of scrutiny and transparency, so that people can make up their own minds when they go to the ballot box.

[Madam Deputy Speaker (Natascha Engel)]

I apologise to Chris Stephens. I should have called him before the last speaker.

[Chris Stephens]

Thank you, Madam Deputy Speaker. It is a pleasure to follow the hon. Member for North Durham (Mr Jones). I agree with many of the points he made.

SNP Members have always opposed the Government’s proposals on trade union political funds for the simple reason that it should be up to trade union members to decide where their money goes. It is up to them to decide whether they should support one political party or another, or whether they should sponsor individual candidates, as has happened in some cases, rather than work for a particular political party.

I emphasise the point that this is an attack not just on the Labour party but on the ability of a trade union to organise effectively across a community. Political funds have done great community work, health and safety campaigning, and anti-racism campaigning, sponsoring organisations such as Hope not Hate and Show Racism the Red Card. There is also charity work and international work—trade unions do fantastic work across the world.

It will come as no great surprise to any trade unionist that the change on check-off is not a major one. Unison has said that it has 11,000 different agreements where it contributes to the cost of check-off. We welcome the Government’s U-turn on that.

I have participated in proceedings at every stage of the Bill’s progress. I will say a few words about that. If the voices of those with experience of a trade unionised workplace and those with a trade union background had been listened to and heeded, we would not be where we are now. There perhaps would not even have been a Trade Union Bill. Many Opposition Members have pointed out on a regular basis how unnecessary and unwanted this legislation is.