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

Seema Malhotra Excerpts

2nd reading
Friday 22nd October 2021 Commons Chamber

[Laura Farris]

I am grateful to my hon. Friend for the question, because that will inform some of what I have to say about clause 1 and the consultation obligations that the hon. Member for Brent North seeks to set.

I can see that we are going to stop shortly, but I will say that I found it striking, when engaging with constituents, that fire and rehire had been mentioned in their first consultation meeting. From the get-go, they did not feel that they had any reasonable opportunity to renegotiate their employment terms and conditions. They always felt that they had the sword of Damocles hanging over their head and that the alternative was the possibility that they would be dismissed.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

The hon. Member will know the context in which we are having this debate. It is a time of great economic uncertainty. Thousands of aviation workers in my constituency have been affected by this issue, whether at Heathrow airport, British Airways, Dnata catering or others. Thousands of them are living on incomes reduced by up to £8,000 a year, which is having a massive impact. Other employers behave differently. Has she made an assessment of her proposals to come to a view about whether that practice, which has had an impact on my and her constituents, and those of others, will be prevented by her proposals?

[Laura Farris]

I considered the aviation sector specifically when coming up with my proposals. In fact, it was probably the leading sector that I had in mind, although not the only one, when considering an alternative route. I will develop that point.

The question is, why should we not simply pursue the course of action in proposed new section 27C of the Employment Rights Act 1996? I separate from the hon. Member for Brent North here because despite what he said, my concern is that it will have the practical effect of banning fire and rehire. I will say why.

It came through strongly in the call for evidence that ACAS published that an inherent tension exists between the trade unions and the employer, because trade unions wish to see evidence that the business is visibly failing before they are willing to accept any reduction in terms, but the business wishes to remedy the defect before it is on the brink of collapse. My concern stems from proposed new section 187B of the Trade Union and Labour Relations (Consolidation) Act 1992, which says that the information to be disclosed by the employer is

“all information relating to the employer’s undertaking…which is in the employer’s possession…without which the appropriate representatives would be to a material extent impeded in carrying on consultation with the employer, and…which it would be in accordance with good industrial relations practice that the employer should disclose”.

Members can hear how wide that is.