Carillion: TUPE

Nick Thomas-Symonds Excerpts

Wednesday 21st February 2018 Westminster Hall

[Eleanor Smith (Wolverhampton South West) (Lab)]

I beg to move,

That this House has considered the application of TUPE to Carillion workers.

It is a pleasure to serve under your chairmanship, Ms McDonagh. I thank the House for finding the time for this important debate, which I am pleased to have secured. I am grateful for the opportunity to speak about the application of TUPE to Carillion workers, which is a necessity due to Carillion’s collapse. I do not intend to speak for long, because I want to allow all Members to express their views about this important issue and to leave the Minister sufficient time to respond to the many questions and concerns that I know Members on both sides of the House have about how the Government claim they are dealing with this important and complex issue.

We are all aware of the history of Carillion plc’s £1.3 billion deficit and the irresponsibility of its directors. I remind Members of the redundancy of tens of thousands of workers who were employed directly by Carillion or indirectly by contractors.

[Nick Thomas-Symonds (Torfaen) (Lab)]

I congratulate my hon. Friend on securing the debate. Does she agree that it is important that we ensure that Carillion apprentices are appropriately looked after? Although about 400 of the 1,400 have been found alternative placements, we must find alternatives for them all.

[Eleanor Smith]

My hon. Friend is correct: this is about apprentices as well as all the other Carillion workers.

Vital contracts for delivering urgent public services are under threat. Their maintenance is an essential part of the way this country is managed under privatisation. Many long-awaited building projects, such as the Midland Metropolitan Hospital in Smethwick, are under threat and may never restart. Above all, however, I want to focus on the crucial issue of what specific assistance the Government will give to the tens of thousands of workers who have been made redundant and to the contractors whose contracts are now in doubt.

In January, my right hon. Friend the Member for Wolverhampton South East (Mr McFadden), my hon. Friend the Member for Wolverhampton North East (Emma Reynolds) and I met the Minister. At that meeting, I put to him four questions, which I ask him again today. First, will he bring Carillion public sector contracts back in house? If so, when and how? Secondly, what protections will he put in place for employees’ pensions, and will the Government meet union pension officers to address the many issues arising from liquidation? Thirdly, what guarantees can he give employees who were directly affected by the collapse of Carillion, and what programmes will the Government put in place to assist all those who have lost their jobs in this crisis? Fourthly, in view of the national significance of Carillion plc, will the Government set up a taskforce to deal with its collapse and all the associated fallout, and will that body include union involvement?

In response, the Minister told me that a lot of work had been done to prepare for Carillion’s liquidation. I have to say that it does not look like it. He told me that all public sector contracts would receive a smooth transition. What assurances can he give me that that will happen? He told me that the plan was to transfer the contract for the Midland Metropolitan Hospital to another company. What is the latest on that urgent matter? The Government have promised to set up a taskforce comprising the unions, business organisations and construction companies. What steps are being taken to protect transferred workers?

I refer the Minister to the letter from Frances O’Grady of the TUC on 30 January requesting protection of transferred workers’ terms and conditions. As the letter states, the transfer of workers employed on Carillion contracts in both the public sector and the private sector creates a significant risk of detrimental impacts on the pay, pensions and terms and conditions of all those staff. The letter calls on the Government to protect the livelihoods of Carillion workers and to ensure that they suffer no detriment from finding themselves employed by alternative providers of services.

The Government should, as a priority, look at ways of compelling public bodies to protect the terms and conditions of workers transferring to alternative providers. For example, the Cabinet Office should adopt a statement of practice on staff transfers that applies to all public bodies, including central Government and local government, the NHS, Transport for London and Network Rail. In that spirit, staff involved should be treated no less favourably than if the TUPE regulations had applied, and appropriate arrangements should be made to protect the occupational pensions and the redundancy and severance terms of staff in all types of transfer.

I call for voluntary TUPE agreements with new employers and for workers to be treated contractually as if they have continuous service. Will that be done? Will the Minister confirm that the Government’s objective is to ensure that Carillion workers’ rights remain the same, without any detriment?