Aviation Sector

Patricia Gibson Excerpts

Thursday 10th September 2020 Commons Chamber

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

The star award for using covid as an opportunity to demoralise and destroy its workforce has to go to British Airways. One of my constituents—a long-standing employee of 25 years—told me that after months of toxic bullying and mental anguish, she has been offered a new contract that is so deliberately ambiguous that she feels she has to take it or face redundancy. The worrying proposals in the new contract include, for example, that she may be forced to relocate temporarily or permanently to anywhere in the world. An associated company may also take over her holiday entitlement; that company will also have access to her health records and, bizarrely, the right to search her and her property. All that for a 40% reduction in her pay, while the outgoing chief executive is £3 million better off.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

The hon. Lady has made an important point. Does she agree that because this appalling behaviour towards the workforce has gone unchecked, it has been replicated by other companies such as Centrica? Does she also agree that the Government should support the Employment (Dismissal and Re-employment) Bill, sponsored by my hon. Friend the Member for Paisley and Renfrewshire North (Gavin Newlands), which would stop this appalling practice?

[Mrs Lewell-Buck]

The hon. Member’s intervention leads me nicely on to my next point. My constituent tells me that some of her colleagues have actually taken their own lives and some have suffered heart attacks. The Government are not powerless. They can put a stop to these awful fire and rehire practices before they spread through other industries.

Our easyJet base in Newcastle has also closed. Our neighbours in Europe, recognising the value of regional connectivity, jobs, skills and a supply chain that benefits the wider local economy, have given substantial bailouts—not loans—to their operators. They have also substantially extended furlough, which the Government here rejected outright yesterday. I spoke to an easyJet pilot who asked me to put to the Minister why the Government are not considering travel corridors on a region-by-region basis in the same way they have applied measures in the UK. It does not make sense to shut down access to an entire country when just one part of it has an outbreak of coronavirus.

I am sure that the Minister will tell us that the Government have set up the aviation engagement unit, but can he tell us exactly what it has achieved? From what I can see, it has achieved very little so far. My constituents’ futures and jobs are on the line. It is in the Government’s gift to do something. Why don’t they?

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[Seema Malhotra]

The hon. Member makes a very important point. Indeed, may I put on record my thanks to Unite, GMB and the other unions that I have been working with for all that they have done, day in, day out, to support workers and their businesses? He also makes a very important point about the retention of skills. Airport businesses have said to me that it takes six to nine months to train somebody to work in such a complex environment. Even cleaning an aircraft is as much about understanding security and counter-terrorism as it is about being able to serve all those passengers and the company. I thank him for making that point, because it links to the issue that this is about not just individual employees, but our readiness to recover when the time comes and keeping our businesses in place.

It is important to act now. Tens of thousands of jobs could be saved by a flexible extension to furlough, allowing employers to have employees on reduced hours perhaps, which will mean that families are supported to pay their bills and to stay in work. If the Chancellor and the Transport Secretary do not do this, they are simply passing a preventable problem over to an already stretched Department for Work and Pensions. In Feltham and Heston alone, there has been a 74% increase—to more than 19,000 people— in the number of people on universal credit. The local citizens advice bureau has talked about the level of inquiries it has had on debt. People are now being forced to borrow from loan sharks to pay one bill as another red letter looms.

[Patricia Gibson]

No doubt the hon. Lady will share my disappointment that the Chancellor’s promise of tailored support has not yet materialised. Does she agree that ending furlough in October, just at the point when payment holidays are ending, will cause real difficulties for families? There is no respite for them. It really is time for the Government to step up and provide tailored support for furlough.

[Seema Malhotra]

The hon. Lady is absolutely right. She shows that families will look forward to Christmas with dread, rather than with aspiration and hope for the new year. In six months’ time, we could be seeing children who are preparing for exams after two years of disrupted education being evicted from their homes—that is the scale of what will happen. I request that the Government act quickly to ensure that we get support in place early and that we do not see a wait until November, when it could be too late.

A recent report by Oxford Economics has shown the scale of local jobs around Heathrow: 133,000 jobs are being directly and indirectly supported, including in the Prime Minister’s constituency. Following his response to a parliamentary question about membership of the expert steering group, however, I am concerned that the Minister is not hearing all the voices in aviation. Perhaps he will not mind if I write to him with additional suggestions for under-represented voices and academic voices that could be useful in thinking about the future of aviation.

In summary, I make five recommendations: working with employers, a flexible and targeted continuation of furlough to keep people in work until aviation recovers—other countries are doing it, and so should we. Business rates deferral has been called for by Heathrow—I have written to the Prime Minister about it; Heathrow has not said “waiver”, it has said “deferral”—to help with cashflow, which in turn will help other businesses. Reduced quarantine through increased testing will bring greater confidence to fly. I also recommend a slot waiver review, so that airlines are not penalised next year for being unable to use slots this year. Finally, I recommend investment for growth, including through a new communities fund.

That extension of furlough, however, should also be conditional. For example, Heathrow has issued its own section 188 notice and, on Dnata Catering, many employees have written to me to say that they are being forced to sign a new contract on reduced terms. Instead, those companies should be negotiating with their unions for a solution—

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[Joy Morrissey]

My hon. Friend makes an excellent point, which she raised in the first debate. BA employees said it was an excellent point and that they would like to see that. They have had no representation and no way to appeal against the practice that BA has used against them.

I hope we can move toward a better approach to the aviation sector. I will fully support that. I fully support further tax cuts to aviation and further furloughing—anything to keep the sector going. However, we should not reward bad behaviour by giving in to companies that exploit British employees at the cost of transnational profits.

[Patricia Gibson]

rose—

[Mr Deputy Speaker (Mr Nigel Evans)]

Is the hon. Lady taking the intervention?

[Joy Morrissey]

indicated assent.

[Patricia Gibson]

The hon. Lady rightly said that BA has behaved very badly towards its employees and everybody agrees on that. Will she then explain why she is not willing, and her party is not willing, to back the fire and rehire Bill?

[Mr Deputy Speaker]

Order. I call Ian Byrne.