Budget Resolutions and Economic Situation
Debate between Robert Flello and Chuka Umunna(8 years, 9 months ago)
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Robert Flello (Stoke-on-Trent South) (Lab)
I came into this House in 2005, and right up until the crash, week in, week out Conservative Members were saying in the Chamber and in Committee meetings that we were killing the banks—that we were stifling them with overregulation and we needed to weaken it. I also remember them coming to the House week in, week out saying they wanted more schools and hospitals in their constituencies; they wanted more spending.
Small Business, Enterprise and Employment Bill
Debate between Robert Flello and Chuka Umunna
Mr Umunna
I thank my hon. Friend for that contribution, which is a reminder of the huge difference our Government made during our time in office and of why we should be very proud of what we achieved.
The Bill will increase the fines for employers who fail to pay the minimum wage and amend the maximum penalty, as I think the Secretary of State mentioned, so that it can be calculated on a per worker basis. We have been calling for that for some time, so of course we support it. The fact is, however, that the Government should be going much, much further as it is estimated that more than 250,000 people who should be in receipt of it, still do not receive the minimum wage. It is disappointing that the Government have refused to match our plans for more robust enforcement, including by giving local authorities new enforcement powers and increasing maximum fines—not to £20,000 but to £50,000.
Robert Flello
We should also bear in mind those people on zero-hours contracts, who do not get paid for travelling between care jobs, for example, which means that their wages are effectively below the minimum wage.
Mr Umunna
I thank my hon. Friend for that intervention; I shall quickly be coming on to zero-hours contracts.
In the context of the national minimum wage having become disconnected from levels of growth and productivity, there is a wider problem, because it has led to a squeeze on wages and a fall in the real value of the minimum wage. That is why we would set a long-term ambitious target for the Low Pay Commission to increase the minimum wage to a more stretching proportion of median earnings over the next Parliament. It is a shame that the Secretary of State has set his face against that. We also want to promote—I think the hon. Member for Bedford (Richard Fuller) mentioned it—the payment of a living wage through “Make Work Pay” contracts, but there are no provisions at all that touch on the living wage, which is disappointing once again.
Let me turn to zero-hours contracts, which my hon. Friend the Member for Stoke-on-Trent South (Robert Flello) mentioned. There are 1.4 million such contracts in use in the UK at present.
Sunday Trading (London Olympic Games and Paralympic Games) Bill [Lords]
Debate between Robert Flello and Chuka Umunna
Mr Chuka Umunna (Streatham) (Lab)
I am a London boy and very, very proud of it. I believe that the richness, the dynamism and the energy and drive of this city are unrivalled. We were all immensely proud when, on 6 July 2005, we watched the president of the International Olympic Committee announce that our country’s bid to host the 2012 Olympic and Paralympic games here in London had been successful. I remember seeing, on television, the shadow Olympics Minister, my right hon. Friend the Member for Dulwich and West Norwood (Tessa Jowell), the former—and future—Mayor of London, Ken Livingstone, and assorted athletes such as Denise Lewis leap about and jump for joy when they heard that the bid had been successful. That was a wonderful moment. Now we find ourselves just 87 days away from the start of the opening ceremony—from seeing the Olympic flame flicker above a state-of-the-art stadium in Stratford, east London.
Robert Flello (Stoke-on-Trent South) (Lab)
Does my hon. Friend recall hearing, at the same time as the announcement of the fantastic news of the bid’s success, the announcement of a synchronised shopping trolley event? If it happened, I missed it, but the Secretary of State seems to be suggesting that it is the new Olympic sport.
Let me now make a serious point. What would my hon. Friend say to workers up and down the country who have tickets for a Sunday Olympic event, and who now know that they will not be able to attend other than through the back door or through devious means because their employers will not let them go?
Mr Umunna
My hon. Friend is quite right, and of course that is the great concern.
I was about to deal with the notice of objection required from employees. Under the existing regime, they can object and opt out of working on Sundays by giving three months’ notice to their employer, as the Secretary of State mentioned. The effect is that they can be forced to work during the three-month period but not after its expiry. The late introduction of this Bill means that it would not be possible, under the current arrangements, for employees to give notice to object within the three-month time frame, so the Government have agreed to reduce the notice period to two months during the period of the suspension of the usual arrangements.
That is good, but it is not sufficient. Ideally, we would like the notice required from employees in this instance to be reduced to one month. The late passing of this Bill and the close proximity in time to the Sundays in question mean that the two months that the Government have agreed to will allow very little time for employees to consider their position—a notice period of one month will afford them a little longer.
A further issue has been brought to our attention during the passage of the Bill. It has been mentioned today and it was raised during the Committee stage in the other place. We make no apologies for not raising it earlier; had the Bill been brought forward at a much earlier stage, we would have been able to flush out and deal with these issues in a timely fashion, in the usual way, in advance. The temporary relaxation of trading restrictions on the Sundays concerned is rather open-ended; the affected stores can open for as long as, and until as late as, they like. That is clearly unsatisfactory and some kind of limit should be imposed so that workers are not exploited. Our amendments propose that the opening runs until an 11 pm limit, allowing workers such as those in London, for example, to make their way home before the tubes and the trains stop. As my right hon. Friend the Member for Tottenham (Mr Lammy) has said, many of these workers are women.
Robert Flello
My hon. Friend will be aware that although London has been blessed with a good public transport system, other areas of the country do not have anything more than a basic Sunday service. Getting to work is already a struggle for a lot of workers on Sundays, but getting to work on a bus service that is very haphazard is almost an impossible ask.
Mr Umunna
I completely agree with what my hon. Friend says, which is why we have tabled our amendments. Again, I do not believe that they make an unreasonable request. If the Government were to agree to our amendments, that would reinforce the message that this is not a Trojan horse for permanent change and it would, in part, help to keep Sunday special. The Government have already indicated that they will oppose our amendments, which is a great shame.
In conclusion, I appreciate what the Government are seeking to do with this Bill. I do not think the proposed measures are as straightforward as they sound in the first instance, and the relative merits and adverse effects of the Bill are finely balanced. One would have thought that the Bill would command the support of the large stores that it purports to seek to help, but the House may wish to reflect on the comments of the chief executive of Sainsbury’s, Justin King, who also sits on the board of the London Organising Committee of the Olympic Games and Paralympic Games. When asked whether he supported the temporary relaxation of Sunday trading restrictions in The Sunday Telegraph at the beginning of this month, he responded:
“We don’t believe in, have not campaigned for and will not campaign for a general relaxation of the Sunday trading laws
Our customers aren’t asking for it. I’ve never had a letter from a customer saying, ‘Please campaign for longer opening hours on Sundays’. The compromise that’s been reached is essentially to keep Sunday special. If you want to do your shopping on Sunday, you can.
You can do it unhindered in small shops but only for six hours in big shops. That seems to us to be the happy British compromise. We’re content that Sunday is special and we don’t see customer demand for a change in the current law.”
So this is not a straightforward issue and, again, I am not clear where the support for the Bill is.
As I said, Labour is treating this matter as a free vote, but in the absence of ground being given on the issues I have mentioned, and taking account of all the thoughtful and considered views that have been put to us by business, employee and other groups, we do not feel able, on balance, to recommend to Opposition Members that, in exercising their free vote today, they support this Bill. Notwithstanding whether it passes, the House should be in no doubt that Labour Members are incredibly excited about London 2012 and have no doubt it will be a huge success for our country.