The Future of Work

Philip Hollobone Excerpts

Thursday 19th November 2020 Westminster Hall

[Rachael Maskell (York Central) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I thank the hon. Member for East Renfrewshire (Kirsten Oswald) for introducing the debate.

It is always a pleasure to follow my hon. Friend the Member for Easington (Grahame Morris). He is absolutely right to speak up for the Rolls-Royce workers. We are seeing that the opportunities for employers come on the back of working people when they offshore jobs. That is one of the biggest threats to our economy, and I support Unite in its battles against employers who have done such things.

The reason why the people of Barnoldswick have come to our attention is very much at the heart of my speech. Work defines us; it gives us dignity. It is where we spend most of our waking hours, build our security and friendships, display our skills, and contribute to society. Without work, we lose our identity, purpose and self-worth.

Tragically, for many, work has been hardly an edifying experience in recent times. Slavery conditions, poverty wages, insecurity and uncertainty have framed the working experience for too many. Recently, we have seen a sharp increase in zero-hours contracts, on which many people languish at the behest of their employers. Many jobs, good and bad, hang in the balance as we face a catastrophic tsunami of job losses. We have to build back better.

We have to decide what kind of economy we want to build. There have obviously been advances in technology and automation, but the word “growth” was mentioned again in this debate, and we have to understand what it means. Does it mean depth, or does it mean forever chasing profits for those at the top of organisations at the expense of workers?

I want the Minister to comment on how her Government view economic thinking such as that of Kate Raworth, who is looking at things such as doughnut economics and the value being put in, and Julian Richer, whose work on the good business charter looks at how work can have a more ethical base, including a real living wage, environmental responsibility, fairer hours, paying fair tax, employee wellbeing, a commitment to customers, employee representation through a trade union, diversity, inclusion, timely payments to suppliers and ethical sourcing. That would reshape the economy for the future in a far better, qualitative way.

Before I talk about my constituency, which is due to be the worst-hit area in the country from the current economic crisis—we could see unemployment rise from 2.8% last year to 27% next year, because the recovery from the last economic crisis was built on insecure jobs—I want to highlight three areas where we could see real movement in reshaping the economy. First, we should build sectoral councils. The fragmentation of the economy is not helping our response, so we need the economy to come together. Establishing sectoral councils will provide a framework for employers, workers, trade unions, academics and industrial leaders to come together, build back better, institute a skills analysis and look at the economic opportunities of those sectors. The fragmentation is preventing that from happening, but linking with local and devolved authorities and local enterprise partnerships would be a real opportunity to focus on the future and ensure that the big issues such as climate mitigation are at the heart of the discussions. It is also about building a base for sectoral negotiations to determine things such as pay, pensions terms and workers’ conditions in those sectors.

Secondly, I want to look at the university and further education sector. I have to say that I was disappointed by the debate earlier this week on the union learning fund and the opportunity it brings. Education is at the heart of growth: if we enable people to reach their potential and the extent of their skills, we can do so much more in local economies.

We see real under-employment in the city of York in my constituency. The two universities have now come together with the two further education colleges to form Higher York in order to shape the economy, but we need the education sector to have a more central role in establishing the future of the economy, looking at things such as the skills gap and inequality, and at the wider community interest—not just from the perspective of education alone, and not just looking at higher-end skills. In my city, 30,000 people work in areas such as retail, tourism and hospitality. Those jobs will not be there next week, next month and possibly next year, and we therefore need the university and further education sector to intervene and to address the many challenges that we face.

Perhaps the most difficult conversation that any of us have had over the past eight months has been with small employers and the self-employed, who have poured everything into their businesses—their money, their time, their resources and their lives—only to see them melt away without Government support. In building back for the future, we need to build more resilience into business by building collective support and looking at more social models of business support, to ensure that businesses are more sustainable in the future as they move forward—looking at the co-operative models and social enterprises that have good reach into their communities and real roots, which can address some of the real challenges around employment, too.

I turn briefly to my constituency of York Central. Already the high street is the worst impacted in the country—we have lost around 60 businesses to date, and I daresay there will be many more to come. As those businesses have been struggling, Government grants have been slipping through their fingers into the hands of leaseholders who live offshore and do not pay their taxes in our country. The taxpayer is subsidising that lifestyle, and hard-working people in our local businesses and shops do not see any of the benefits. There has to be responsibility when the Government hand out resources. Although they are saying they are supporting these times, we have to look where that money is ending up—it is certainly not ending up supporting business. I call on the Minister to look at how we can have proper investment and a responsibility put on property tycoons to ensure that the money is not just invested in their tax havens.

On a green new deal, the BioYorkshire project is incredible. It will create 4,000 jobs and retrain 25,000 people to have the skills to bring about a real revolution in the bio-economy, putting York at the heart of that—not just in the UK, but globally. The Government are tying this to a devolution deal that could be two and a half years away, but we need investment in those jobs and skills in York now. Before next Wednesday, can the Minister have words in order to bring that forward, so that we can start the work in creating the jobs that we are losing hand over fist at the moment?

Finally, and most importantly, if we are to have a strong future of work, we need to protect workers’ rights and to think about the real challenges that workers face in the workplace today. After 50 years of looking at health and safety, it is timely that we now have a health, safety and wellbeing commission to look at the wellbeing of workers. We know that issues such as mental health, bullying in the workplace and even the fallout of occupational health services were not discussed 50 years ago. We do not have a legislative framework to protect workers, particularly those who experience issues such as stress, poor mental health and bullying. We need to ensure that such a framework is introduced. Finally, we need to introduce a right to learn and to ensure that the union learning fund is invested in, because this is the opportunity to rebuild our economy.

[Mr Philip Hollobone (in the Chair)]

A Westminster Hall debate would not be complete without Jim Shannon.

[Jim Shannon (Strangford) (DUP)]

You are very kind, Mr Hollobone. I thank the hon. Member for East Renfrewshire (Kirsten Oswald) for setting the scene, and everyone who has contributed. This is the second time that I have followed the hon. Member for York Central (Rachael Maskell) in Westminster Hall. I do not know whether we are a pair—one speaks and then the other speaks—but I have always followed her. That may be how life is, but there we are.

It is a pleasure to speak in this debate. These are incredibly worrying times for the nation—for those with vulnerable family and loved ones, for those with small businesses, and for those with jobs in various industries. The minimum wage is really a minimum for those who have had their hours reduced; they cannot even pay their bills. We do not have all the answers in this place, and we do not know what tomorrow will bring, but we know that we need to work to give opportunities no matter what comes with the new days. We look with expectation to the Minister in relation to that.

Unison has given me a briefing, and I want to use some of those facts in my speech. We are facing the worst jobs crisis in a generation. Up to 1 million people on furlough are in jobs that will not return after covid-19. Those people are significantly less likely to have qualifications than the general population, which will have an impact on the jobs that will be available to them. Some 130,000 of those people do not have an equivalent to a level-2 qualification, and a further 250,000 do not have a level-3, so the ability to support people who lose jobs in such sectors depends on the support available to them.

We always look to the Government and the Minister for help because that is their job. They have been voted in by the people and tasked with providing support, and I believe that they have a responsibility to do so, so how can we help people in those sectors? The number of young people experiencing long-term unemployment has tripled over the last quarter—some 33,000 of 18 to 24-year-olds. A further 65,000 have been out of work between one and two years, with the risk of long-term unemployment should the job climate persist.

That is all very concerning given that we know the scarring related to long-term unemployment for young people. It may impact their future job opportunities, earning potential, and physical and mental health. Take the effect of coronavirus in my own area. The Library’s provision of constituency claimants shows, using what they refer to as the alternative account, that there were 3,035 unemployed claimants in Strangford in August 2020, which is some 1,400 higher than in August 2019. That trend is worrying—even more so when we realise that those who are on furlough will potentially be added to it. It is 5.4% of the population aged 16 to 64. That was what it was when I came to this House in 2010, and we are back there today, unfortunately. It is deeply disturbing.

The furlough scheme extension is welcome. We thank the Government for all that they have done. We will not be churlish about it because many people are in jobs today because of the commitment that the Government made, but we must do more to ensure that people have jobs to come back to. Small and medium-sized businesses in particular have vulnerable staff who are so stressed about going back to work that they are unable to return. Again, I believe that the Minister and the Government must take steps to invest in job protection and in future jobs.

I am thinking of the plethora of small, independent shops and businesses. I will give one example, because it comes to mind: a small kelp shop. Kelp is basically seaweed. This person has found a market for it, made a business out of it, and then came a cropper due to covid-19. There were many one-person starters that were full of hope for the future. I believe that those workers are on universal credit while applying for a new job.

We need more support for the backbone of our workforce: the small and medium-sized enterprises that cannot allow people to work flexibly from home, and depend on the office block buying their sandwiches and coffee. I understand that we cannot tell the future. Oh boy, what if we could? We would all pick the six numbers for Saturday night. We would do many other things, of course, but we would do that if we had the opportunity. However, that does not mean that we do not have to future-proof. That must begin with support for owners of SMEs, to give them confidence that their business will survive, that they will come out the other end, and that we will be here to support them.

[Mr Philip Hollobone (in the Chair)]

We now come to the Front-Bench speeches. The guideline limits are 10 minutes for the Scottish National party, 10 minutes for Her Majesty’s Opposition and 10 minutes for the Minister. Then Kirsten Oswald will have three minutes at the end to sum up the debate.