Strikes (Minimum Service Levels) Bill

Debate between Sam Tarry and Laura Farris

2nd reading
Monday 16th January 2023 Commons Chamber

[Laura Farris]

I thank the hon. Gentleman for his point. I am coming to all these things, so if he will give me a moment, I will continue.

In the United States, 38 out of 50 states have an outright ban on public sector strikes, including New York. Other states, such as Canada, Australia, Italy and Spain, all have embedded in statute minimum service levels that apply to important public services, and those services are often drawn much more widely than the Government are proposing. They include waste collection, postal services, broadcast services, the administration of justice, water distribution and energy supply.

I pick out those states not as random examples, but because every single one is a member of the International Labour Organisation. They are bound by exactly the same rules as us, and they are among our closest comparators around the world. Even more importantly, the International Labour Organisation has adjudicated all their statutory minimum service levels, and a 2019 publication from the ILO in Geneva commented:

“These examples illustrate the wide diversity of approach that ILO member states have adopted to address the challenges posed by industrial disputes in essential services”.

Minimum service levels

“supported by the ILO’s supervisory organs, exist to manage the balancing act between these necessary restrictions and the individual worker’s fundamental labour rights”.

I have not heard a single Member of Parliament tonight explain to me why the ILO is wrong or why the Government are striking the wrong balance when they have a mandate for what they are doing.

[Sam Tarry (Ilford South) (Lab)]

The disingenuousness comes from making comparisons with other nations under ILO regulations, which clearly have a completely different context. For example, the ILO imposes restraints on the circumstances in which such powers can be used, which is the antithesis of the Government’s blank cheque approach.

[Laura Farris]

With respect to the hon. Gentleman, I take the opposite position. The United States has an outright ban on public service strikes in 38 states. In December, President Biden made his most recent intervention in union rights when he signed legislation that imposed an outright ban on a national railroad strike. The United States is a founder member, as we are, of the International Labour Organisation. It goes much further, but the ILO has found its ban to be lawful. The Opposition will have to say why all those comparable states, which go much further than us, are somehow acting lawfully, yet we are not.

Employment and Trade Union Rights (Dismissal and Re-engagement) Bill

Debate between Sam Tarry and Laura Farris

Friday 22nd October 2021 Commons Chamber

[Laura Farris]

I will return to that point when I address British Airways in a bit more detail.

As I have said to the Minister, we need more than ACAS guidance. I want to see the rules on dismissal and re-engagement set out in an ACAS code of practice, with financial sanctions to back them up. Parliament specifically envisaged the possibility of doing this when it passed the Trade Union and Labour Relations (Consolidation) Act 1992. Section 207 gives the Secretary of State the power to introduce a code of practice in respect of anything in that Act. Parliament also considered and welcomed the possibility that the Secretary of State would have the power to impose legal teeth. Section 207A addresses the possibility that any compensation can be increased by up to 25% if the employer does not comply with an ACAS code of practice.

We know that ACAS codes of practice can be effective. The hon. Member for Middlesbrough (Andy McDonald) is an employment lawyer and will know that when we think about, for example, the ACAS codes of practice on disciplinaries or grievance procedures, it is vanishingly rare to get into an employment tribunal nowadays and find that the employer was oblivious to those codes of practice. Why do employers know about them? Because there is risk—financial risk. If they go down in the employment tribunal, there could be an uplift on compensation, and they want to avoid that, so we know that it is has the right effect.

What should the code of practice say? We have some of the answers already. The BEIS call for evidence, which was published through ACAS, gives us some clues. I think practitioners made such suggestions very well, including, in relation to paragraph 56 of that report, that employers should provide an analysis of whether changes are anticipated to last for more or less than five years with evidence to substantiate that answer, and, in relation to paragraph 76, that they should provide evidence of reasonable alternatives they have explored and evidence of their financial position.

Another point comes out of the excellent work of the Transport Committee, and I want to pay tribute to the very impressive session it had with Willie Walsh on 11 May 2020. Anyone who has read the transcript will recall that he was asked repeatedly by the Chair, my hon. Friend the Member for Bexhill and Battle (Huw Merriman), whether, if British Airways returned to full profitability, he would restore workers’ wages to their previous levels, and he declined to confirm that he would do so. That created huge exposure for British Airways, and I do not think it is any surprise that, when Alex Cruz appeared before the Select Committee six months later, he gave a rather different explanation.

BEIS would then have the opportunity to require employers to set the criteria that they would exercise in deciding when to restore workers’ pay. I think it would enable the Government to give guidance on this distinct category of dismissals, how they should be treated and what the employment tribunal should be looking for. My final point on this is that it would give the Government real teeth, and it would incentivise employers to do the right thing and give employees more power to enforce their existing rights.

The point has been made, but most of the employers we have cited in this House are considering fire and rehire in relation to large proportions of their workforce. With British Airways, 12,000 people were at risk. If every single one of those people could get an uplift in a compensatory award of 10% to 25%, then—let us be realistic—that might be £10,000 or £20,000 times 12,000. That creates a huge incentive for the employer to do the right thing, because there will be a very significant financial penalty if they fail. That will mean that consultations are entered into with legal advice, which is a good thing, as well as with an open mind and an open spirit.

By the way, consultation is not a meaningless word, as all hon. Members will know. When it is approached in the right spirit, it can often lead to alternatives to the thing that is most feared by the employee. That is the suggestion that I have made to Ministers.

[Sam Tarry (Ilford South) (Lab)]

I was one of the members of that Select Committee, and I remember there was very much cross-party agreement that it was such a disgrace for that to happen that the company should not carry the British flag. The point is that the parent company, IAG, had profits in the region of £3.5 billion-plus, there in stages, that it could have used. IAG’s agenda—and this is why I am concerned that what the hon. Member is suggesting may not go very far in discouraging companies—was about driving profits, not about saving the jobs and livelihoods of people, particularly women in their 50s and those towards the end of their careers. It was a restructuring brought in under the guise of fire and rehire.

[Laura Farris]

The hon. Member makes an excellent point, and I just want to pick up on what he said. He points to the fact that the parent company had substantive profits, and that point was made by the Unite representatives who contacted me. I do not think that that case would have survived the employment tribunal in its early stages, as I do not think that it would have crossed the threshold of a sound, genuine business reason. I think the reason why Alex Cruz appeared before your Committee five or six months later and spoke very differently about his plans for pilots, cabin crew and everybody else was because the company was on thin ice, and I think some damaging concessions were made in that session. I think you are right, but I do not think that my solution fails to capture it.