Draft Trade Union (Levy Payable to the Certification Officer) Regulations 2022 Draft Trade Union (Power of the Certification Officer to impose Financial Penalties) Regulations 2022

Paula Barker Excerpts

Tuesday 25th January 2022 General Committees

[Imran Hussain]

Absolutely. My hon. Friend makes the point perfectly about the great work of our unions at this most difficult time. Over the past two years, we have seen the real values of our trade unions.

[Paula Barker (Liverpool, Wavertree) (Lab)]

I declare an interest as a member of Unison and Unite the union. Does my hon. Friend agree that those on the Government Benches are treating trade union members as if they are not taxpayers in our society? They are taxpayers—

[Kevin Hollinrake]

Not all taxpayers.

[The Chair]

Order. Carry on.

[Paula Barker]

Nothing has been said about the money that the trade unions save the economy every year.

[Imran Hussain]

Again, a point well made that needs no further explanation by me. The value of our trade unions is a good point—again, Government Members are nodding. They accept the value of the trade unions. I do not think that there is a debate about that.

To go back to my point, in imposing the levy, the Government have deliberately misunderstood the role of trade unions, treating them not as a voice of working people but as profit-making companies. Let me be clear: this Government know full well that trade unions do not exist to make profits for themselves; they exist for the betterment of their members and the workforce as a whole in this country. I have already made this point, but given that we would not think to force charities to pay such a high levy to the Charity Commission, it is frankly outrageous to ask the trade unions to do so.

The Government have also failed to set out a real case for why they need to impose the levy. As democratically accountable organisations in their own right, trade unions have high compliance rates with their legal duties. As my hon. Friend the Member for Newport East pointed out, the certification officer dealt with just 34 complaints against trade unions, not one of which ended up with an enforcement order being pursued.

The reality is that if this draft statutory instrument passes, trade unions will have to meet the costs—my hon. Friend made this point—of politically motivated, malicious, vexatious and unsubstantiated investigations into them. Those investigations will almost certainly be initiated by those who have long-standing opposition to our trade unions. That is why we must vote the instrument down today.

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[John Spellar]

I think that applies to all sorts of activities. Of course, the hon. Gentleman is assuming that those 10 million retired people were not trade unionists when they were at work—a great majority were. They may actually believe in trade unions and think that there were very good in their time, and may regret that the role of trade unions has been diminished by persistent attack from Conservative Governments and employers.

[Paula Barker]

Does my right hon. Gentleman agree that some retired people are still members of trade unions, participate fully in their structures, and benefit from them?

[John Spellar]

My hon. Friend makes a very good point.

In addition, even those who are not union members benefit from union activity. If they work in an establishment, they will benefit from a pay rise. If they move from employer to employer in an industry that is mobile in and of its nature, such as the construction industry, union agreements underpin their terms and conditions. Interestingly, in Western Australia, when the Conservative Government was trying to bring in very rigid regulation of unions, many well-paid non-union members in the mines recognised that their terms and conditions and balance of power with the employer were underpinned by trade union activity and organisation. Basically, when unions are working well, everybody benefits—not just workers, but the economy and good employers.

What we have seen with the international attack led by the Republican right in the United States, as indeed with their so-called voting regulations—again, to address non-existent problems—is the labour share of gross domestic product around the world steadily declining in the face of those attacks, and that directly reflects the decline in union influence in the workforce.

Of course, that plays into the economy as well, because what we see then is a demand deficit in the economy. As money has been put into the economy, particularly during the era of covid, the amount of money that has been skewed towards the ultra-rich and super-rich has been going up while living standards have been kept down. Again, we saw that with Thatcher-Reagan and—

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[Paula Barker]

Listening to the debate, it is literally like going back to the future. Such is the obsession of this Conservative Government, like every one before them, with taking a sledgehammer to trade union power—what little there is left in 2022—that anyone would think that it is 1979.

Let us be clear: this measure represents a further attack on our civil liberties, for which the governing party has little regard anyhow. In this instance, the very organisations that defend workers’ rights and advance the call for better conditions are now in line for a further degradation of their powers. Trade unions have always sought to resolve conflict as a first resort. They balance the scales of the unequal distribution of power in our labour market, and are a force for overwhelming good in eradicating the inequalities that are deeply embedded in our society.

This statutory instrument represents a tax on trade union activity. It will give rise to the perverse situation that a trade union will have to pay its own regulator to regulate its activities.

[Mark Garnier]

I would like to correct an earlier intervention. The tax actually works out at 1.5p per member per year. I apologise for getting my maths wrong earlier, Mr Davies. I was an investment banker for 17 years.

[Paula Barker]

I did not make any comment about how much the tax is; I simply said that it was a tax.

[Jessica Morden]

The proposals treat trade unions like profit-making companies. Political parties do not pay for the Electoral Commission, and charities do not pay for the Charity Commission, so why should trade unions pay for their regulator?

[Paula Barker]

My hon. Friend makes a really good point. No other organisation with social activities pays a levy of this sort, and it is wholly inappropriate for trade unions to do so.

This tax is unjustifiable, and is set to be grossly exaggerated by the certification officer’s own distorted valuations. The trade union levy will become the double levy, going far and beyond covering the base operational costs—the TUC estimates £415,000 in the year 2022-23. Some £1.15 million to cover £700,000 worth of costs simply does not add up. I do not know how the Government can justify that.

The levy is a double tax, with little safeguard, scrutiny or accountability. Trade unions will have to pay for potentially vexatious investigations, initiated by friends like the “TaxAvoiders Alliance”, as my right hon. Friend the Member for Warley called it, or the Institute of Economic Affairs. I know at first hand that our trade unions have a long-established reputation of complying with their legal regulations. I have been a member of the trade union movement for over 30 years. I was also an activist for over a decade before taking my place in this House—[Interruption.] Mr Davies, I think it would benefit Conservative Members to actually listen to what is being said.

[The Chair]

Order. I think the hon. Lady is absolutely right, to be perfectly honest. There are some very loud conversations taking place opposite the hon. Lady. It is distracting to me and completely disrespectful to her. Please can we listen to what she has to say? It is the least she can expect.

[Paula Barker]

Thank you, Mr Davies. We have to ask what could possibly be the motivation for such continued, sustained attacks from the Tory Government. The certification officer’s annual report for 2020-21 shows that she dealt with 34 complaints last year. That is one for every 200,000 union members, and not a single enforcement was imposed. It does not take a genius to work out that political ideology rather than good governance is the driving force behind the trade union levy.

Not satisfied with stringent balloting laws, interference with trade union democracy and outlawing acts of solidarity, the Government are now trying to bring in a new tax with criminal-like fines to boot. It is worth reiterating what has been stated several times today by hon. Members: other issues stemming from the Trade Union Act 2016—most significantly electronic balloting—remain outstanding. Why is that? Up and down the country, working people are feeling the pinch. Inflation is at 5.4%. There are rising energy prices. This is a real cost of living crisis. What are the Government doing? They are here, saying that valuable parliamentary time is better spent in this Committee Room today than actually dealing with the cost-of-living crisis that is affecting so many working people in this country.

As the hon. Member for Glasgow South West said, we are waiting on the Government to bring an employment Bill. I want to place on record that I had a private Member’s Bill, and the Minister was extremely generous with his time. We had very cordial and constructive conversations. We talked about the employment Bill coming to the Floor of the House. We talked about the fact that low-paid care workers, predominantly women, were not being paid what they are legally entitled to.

It is not about what these care workers could be paid or what the trade unions could negotiate, it is written in law that they should be paid travel time between visits. Are the Government addressing those sorts of issues? No, they are not. They are looking to bring back anti-trade union laws to this House. Quite frankly, I think that is morally reprehensible. My final question to the Government is: where does this all stop? Will the Government not stop until they finally outlaw the trade unions?