Trade Union Officials (Public Funding)

Nick Hurd Excerpts

Wednesday 26th October 2011 Commons Chamber

[The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)]

There was I thinking that this was going to be a quiet conversation with my hon. Friend the Member for Cannock Chase (Mr Burley) in the traditional calm of the Adjournment debate slot, but I was wrong. I congratulate him on securing the debate and the robust way in which he presented his argument.

In the short time I have, I shall try to clarify the Government’s position. First, we need to recognise that employment legislation requires employers to make available a reasonable amount of time off for trade union representatives to carry out their trade union-related duties. There are nine areas of statute where union representatives have rights to paid time off to perform their duties. These cover areas such as representation, informing and consulting, collective redundancy, learning and health and safety. There is a reason for this. There is a clearly defined framework for consultation and negotiation between managers and employees to support good employee relations.

There is a cost to that, however. The Department for Business, Innovation and Skills has estimated that paid time off for union duties costs employers £400 million annually—0.07% of the total annual pay bill—over half of which, £225 million, fell to public sector employers, with £175 million falling to private sector employers. The Minister for the Cabinet Office and I agree that it is important that the right balance is found between effective representation of trade union members and value for money for the taxpayer.

[Robert Halfon]

Of course we understand that there is abuse, but does my hon. Friend accept that there are neutral unions that use facility time constructively? For example, the First Division Association uses facility time to resolve workplace disputes and to help families of Foreign Office staff relocate overseas. That is valuable work and we should be grateful that the FDA does it. I say that only to make the point that not all unions are made up of the Bob Crows described today.

[Mr Hurd]

I accept my hon. Friend’s valuable point, but there is clearly a case for reviewing whether we have the right balance.

My hon. Friend the Member for Cannock Chase asked a number of questions that I would like to try to address in the time available, so I am afraid that I will have no time for interventions. He asked about the distinction between paid time off for union duties and unpaid time off for union activities, and asked what the Government were doing about union officials who, in his words, “play the system” and use their paid time off for political activities. The ACAS code of practice on time off for trade union duties and activities provides a detailed framework for those matters. It sets out examples of trade union duties that should attract reasonable paid time off and examples of trade union activities that can attract reasonable unpaid time off. A review of current practice is under way in the civil service, but, anecdotally, we believe that many Departments, if not most, currently give paid time off for such trade union activities where reasonable unpaid time off may be more appropriate.

My hon. Friend then asked whether the Government were planning to mandate public bodies to record more accurately which time is taken off for political activities that should not funded by the taxpayer. He will be aware that the Minister for the Cabinet Office announced at the Conservative party conference that the Government intend to consult on ensuring transparency about union facility time for which Departments—and ultimately the taxpayers—are paying. We will publish information on civil service trade union representatives and the amount of paid time that is spent on union work, as well as the overall percentage of the pay bill for which this accounts.

[Tom Blenkinsop]

Will the Minister give way?

[Mr Hurd]

I said that I would take no more interventions because of the time.

The central point that my hon. Friend the Member for Cannock Chase made, about the 1992 Act, is a matter for Ministers from the Department for Business, Innovation and Skills to answer. However, I assure him that I will make them aware of the points that he made and ask them to write to him directly.

In answer to the list of questions that my hon. Friend asked at the end of his speech—about Government plans to end taxpayer-funded full-time trade union work in the public sector, end full-time representatives and require transparency about the costs of trade union representatives—the Minister for the Cabinet Office also announced at the Conservative party conference that the Government intend to consult the civil service trade unions on the following propositions. We will consult on introducing a cap on the amount of facilities time that Departments can offer, to bring it into line with the statutory requirements. We will consult trade unions on the practice of allowing trade union representatives to spend 100% of their time on trade union work paid for by the civil service.

[Grahame M. Morris (Easington) (Lab)]

Will the Minister give way?

[Mr Hurd]

I will not, out of courtesy to my hon. Friend who secured the debate, as I want to try to answer his questions.

We do not think it reasonable for the civil service to pay people purely to do union work. It is arguably impossible for them to represent the views of the staff in their Department adequately if they are not embedded in its work. In some circumstances, Departments go beyond the requirements of the law by giving paid time off for trade union representatives to take part in internal trade union activities, such as executive group meetings, annual conferences and recruitment meetings. To address that we will consult trade unions about any practice of paying for such trade union activities, with a view instead to enabling employees to take reasonable unpaid leave, as required in statute. In order to ensure transparency about the union facility time for which Departments are paying, we will publish information relating to civil service trade union representatives and the amount of paid time spent on union work, as well as the overall percentage of the pay bill for which this accounts.

As for whether we would go further with employment legislation, I have said that BIS Ministers would respond more fully to that point. However, there are no plans for the law on trade union facility time to be changed specifically for the public sector or otherwise. A reasonable amount of paid time off can offer value for money for the taxpayer. For example, it can minimise working time lost owing to disputes and accidents at work. However, it is important that the Government ensure that public sector employers manage the paid time off that they grant their union representatives effectively to deliver those potential benefits, which are the justification for spending taxpayers’ money.

In answer to the last point that my hon. Friend made, about the grant for the union modernisation fund, there are currently no plans to review the Government’s existing commitment to the union learning fund, as set in “Skills for Sustainable Growth”.

In conclusion, as I have said previously, it is important that employees are represented fairly by union officials. However, in the current financial climate, it is right that the vital balance is found between effective representation of trade union members and value for money for the taxpayer. The measures proposed by the Minister for the Cabinet Office will address the current burden on the taxpayer, while wider transparency measures will ensure that other public sector organisations offer value to the taxpayer. It is essential that we achieve a fair balance on behalf of the taxpayer, and I am happy to keep my hon. Friend updated—