Leaving the EU: State Aid, Public Ownership and Workers’ Rights

Stephanie Peacock Excerpts

Tuesday 11th December 2018 Westminster Hall

[Stephanie Peacock (Barnsley East) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I congratulate my hon. Friend the Member for Crewe and Nantwich (Laura Smith) on securing this important debate. I declare my interest as a proud lifelong trade unionist.

This debate is especially important because when the Prime Minister addressed the House yesterday, she gave the impression that the only concerns about her deal came from her own Benches and related entirely to the backstop. Let me say clearly and loudly to the Minister that is not the case for my constituents and working people across the country who want an agreement that protects both their jobs and their rights in those jobs. I will focus my speech on that.

Equality for part-time workers, maternity and paternity leave, health and safety standards, protections from discrimination and harassment, equal pay terms and regulation of working hours are among the basic labour standards won by the labour movement—not just in the UK, but across Europe—that are under threat from a Tory Brexit. The Minister may deny that but his colleagues have given the game away. The International Trade Secretary—the last man standing of the Prime Minister’s original three Brexiteers—was clear about his vision when he said:

“we must begin by deregulating the labour market”,

and that it is

“intellectually unsustainable to believe that workplace rights should remain untouchable”.

The former Brexit Secretary, the right hon. Member for Esher and Walton (Dominic Raab), put it more bluntly when his book described British workers as

“among the worst idlers in the world.”

The track record of this Government speaks even louder than those words: a damaging and draconian Trade Union Act that attacks representatives of millions of working people across the UK, for instance. Tribunal fees caused a staggering drop in the number of workers able to bring claims against exploitative bosses. It is the same story even on an issue as basic as ensuring waiters can keep their own tips. If the Minister’s answer is to trust the Government, the people of Barnsley will regard that as little more than a joke. The withdrawal agreement gives us almost nothing in the way of legal safeguards; instead, it gives Ministers power to repeal, dilute and cut employment rights after we leave.

I will take the liberty of anticipating the Minister’s reply and deal with the so-called “non-regression” clause that my hon. Friend the Member for Crewe and Nantwich mentioned. Even during the transition, it leaves us exempt from any measure whose deadline falls beyond the end of the phase, leaving British workers falling behind our European counterparts even before we have fully left. Even worse, non-regression clauses of this sort have been found deeply flawed in a series of court judgments. I will not recite the legal precedents in full, but they have been described as a “fallen fig leaf” by leading legal commentators. The article in the agreement is for the stated purpose of

“ensuring the proper functioning of the single customs territory”

rather than protecting workers’ rights in itself, limiting it even further.

The Government could have given us a standstill clause, which would have given them a legally binding duty that workers and trade unions could enforce in the courts, but they decided not to. The Attorney General confirmed to the House last week that the

“non-regression clauses…are not enforceable either by the EU institutions or by the arbitration arrangements under the withdrawal agreement.”—[Official Report, 3 December 2018; Vol. 650, c. 559.]

He made clear that he thought that was a good thing. That is a stark and telling contrast to the far tougher and enforceable requirements on state aid that my hon. Friend referred to. No wonder the Institute for Public Policy Research, among others, concluded that the non-regression clause was

“not sufficient to maintain current protections”.

Then, there is the political declaration. We have often heard on Brexit that the devil is in the detail, but the problem with the political declaration is that there is no detail. It does not even have legal effects. Any new Tory Prime Minister—hardly an unlikely prospect, from what we see of the party opposite me—could just rip it up. Its only reference to workers’ rights is in the section on “open and fair competition”, which tells us exactly how they are seen—simply a way to maintain fair competition.

We have always said that we want a future relationship where rights and protections are defended, preventing a race to the bottom. This agreement threatens to do the very opposite. It opens the door to a future where labour standards come second to the interests of big business, rights at work are watered down and a Conservative Government can dismantle yet more protections for workers and unions. The people I represent in Barnsley voted very clearly to leave. I respect that decision, but I do not believe they voted for a reduction in workers’ rights, jobs and prosperity. The question is not whether we leave but how we leave.

[John Howell (Henley) (Con)]

It is a great pleasure to serve under your chairmanship, Mr Hollobone. I will not hold up the hon. Member for Stroud (Dr Drew) for very long, but I have just a couple of points that are too long to make as interventions; therefore, I felt the best thing to do would be to speak.

To pick up on the question of rights, a number of hon. Members spoke about a bonfire of rights that will come about as a result of our leaving the European Union. However, there is another organisation responsible for protecting those rights: the Council of Europe. We ignore that at our peril. I know that it is seen as a great thing in this country that we send no journalists along to Council of Europe meetings—we send along our delegation, if they can be spared by the Whips Office, but it is always a secondary thing—and yet the hon. Member for Crewe and Nantwich (Laura Smith) mentioned a case that was heard by the European Court of Human Rights. That does not belong to the European Union; it belongs to the Council of Europe, an independent organisation set up in 1948 with the aim of protecting human rights in Europe. The ECHR, which the Council of Europe looks after, is a unique body. It is one where we, as council members, elect the judges to serve for individual countries, so it has a democratic legitimacy.

I think back to the various meetings that we have held over the past few years, and I can assure the hon. Lady that employee rights, whether in specific circumstances or more generally, have been on the agenda for discussion on many occasions. For example, on at least one occasion we have looked at the rights of employees to access information about themselves and their cases, in order to take forward what they want to do. This conversation seems to be a bit one sided. So far it has not looked at the bigger picture or taken into account what the Council of Europe does.

[Stephanie Peacock]

I think I am right in saying that the hon. Gentleman is arguing that the Council of Europe can help to protect workers’ rights, but the people I represent, and a lot of those who voted to leave, voted so that this place could protect workers’ rights. Surely, it is the democratically elected Government’s responsibility to ensure that workers’ rights are protected.

[John Howell]

That is an interesting question. We give up our rights to decide things for ourselves in a number of situations. We give up the right to our own sovereignty by belonging to the United Nations and to NATO. To a certain extent, we give it up by belonging to the Organisation for Security and Co-operation in Europe. Most importantly, we give up our rights to some aspects of our sovereignty by being members of the Council of Europe. It is not right for the hon. Lady to look at this issue solely in terms of one or two organisations; she needs to look at a third organisation—the Council of Europe—which is there to provide just that sort of reassurance to people about their human rights, which I think she and her colleagues are, and have been, looking for.

I want to touch on Birmingham prison, which the hon. Member for Crewe and Nantwich opportunely mentioned in passing. This morning I participated in a Justice Select Committee sitting in which we questioned senior members of the Prison Service about what happened at Birmingham Prison. A key point relates to provisions in the contract with G4S not to hold it to account in many ways that we would normally expect. All of us, on both sides of the political fence, questioned those witnesses about the legitimacy of excluding those areas from the contract and how they could manage them.

Birmingham Prison is a good example of the mixture of public and private collaboration, in that we have public collaboration through the Ministry and the Department, which hold those running the prisons to account rather than having to run them themselves. We asked about the extent to which windows had been broken and not fixed, and why no one had been held to account and what had happened. At the end of the sitting we specifically asked the Minister of State, Ministry of Justice what would happen at the end of that examination. We got a firm statement that the contract would possibly at some stage go back to G4S when we could all be assured that it would be able to keep prisoners in the state in which we would expect them to be kept and look after them properly. That is a good combination of private and public sector partnerships in action.

--- Later in debate ---

[Chris Skidmore]

In terms of the Government’s commitment and the commitments I am giving today, I reflect that the Prime Minister said recently in the House that

“we already go further than EU minimum standards, including on annual leave, paid maternity leave, flexible leave, paternity leave and pay, and parental leave, because we know that the first responsibility for protecting those rights sits with…Parliament. As we take back control of our laws, we will not only honour that responsibility, but go further still…by implementing the recommendations of the Taylor review. So we will not just protect workers’ rights: we will enhance them.”—[Official Report, 4 December 2018; Vol. 650, c. 760.]

The Government have been clear that they will take the recommendations of the Taylor review forward.

[Stephanie Peacock]

Further to the intervention by the hon. Member for Glasgow South West (Chris Stephens), the Minister has not given the House a date. If he is that committed to the response, can he tell us when it will be?

[Chris Skidmore]

I appreciate the hon. Members’ request for a specific date. I will have to fall back on a position of ensuring that my hon. Friend the Member for Rochester and Strood, the responsible Minister in this policy area, will write to both the hon. Lady and the hon. Member for Glasgow South West setting out clearly the next stages and the time frame for them.

Given our record in comparison to the EU standards in many areas, it is not surprising that Eurofound, the EU agency for work-related policy, ranks the UK as the second best country in the EU for workplace wellbeing, behind only Sweden, and the best country for workplace performance.

There has been some discussion about the EU withdrawal agreement. That will ensure that workers’ rights enjoyed under EU law will continue to be available in UK law after we have left the EU. That includes rights derived from EU law, such as the working time directive and the agency workers’ directive. Specifically within the withdrawal agreement, the UK is seeking a stringent and legally binding agreement with the EU not to roll back on employment standards. A joint committee would ensure that the UK was keeping to the agreement at a political level. There will be no roll-back of rights, including collective bargaining rights, when we leave the EU.

[Chris Skidmore]

I thank my hon. Friend for putting that on the record. I listened to his speech on the Council of Europe and know he is a dedicated member of it. I pay tribute to his work, which often goes unheralded in this place. We know that there are many colleagues from across all parties who do a great deal of work on behalf of the United Kingdom at the Council of Europe, and it is right that that is recognised in this debate.

I hope the Government’s commitment, in both the withdrawal agreement and statements that we have made, will give certainty and continuity to employees and employers alike, creating stability in which the UK can grow and thrive. The political declaration on our future relationship makes it clear that we will build on this for the future deal with the EU. We want to ensure that the future economic partnership of the EU is underpinned by measures that ensure fair and open competition. Obviously, a rigorous approach to state aid is a critical component of that and provides a foundation for ensuring smooth trade and a partnership based on high market access. That is reflected in the political declaration, which establishes state aid as a crucial part of the level playing field commitments. The text makes clear that the precise nature of these commitments will depend on the scope and depth of the future relationship and the negotiations to take place.

There is no choice between taking the state aid rules or protecting workers’ rights; the Government recognise the fundamental importance of both.

[Stephanie Peacock]

The Minister talked about state aid and workers’ rights. Can he explain why the rules on state aid are both tougher and clearly more enforceable, in contrast to those on workers’ rights?

[Chris Skidmore]

I am not going to pre-judge what is taking place as we move towards a clear, definable free trade agreement with the European Union and the discussions that will happen after the political declaration. We have made that commitment, but actually we want to make sure that the United Kingdom has the ability to ensure that UK rights are clear, definable and stronger. They are already stronger than those in many European countries. We will continue to ensure that we have the reputation I mentioned: being the second best country in the EU for workplace wellbeing, behind only Sweden. It is important for our global reputation that we maintain that.

On the point about the EU workers council, if the EU withdrawal agreement is not approved we will still unilaterally protect workers’ rights in relation to European workers councils, as far as we can. However, to protect them fully, we require a deal with the EU, which sets the rules governing the establishment of a new European workers council. That is why I believe that the withdrawal agreement is so important to ensuring that we have no reduction in workers’ rights.

We will go further than the minimum labour market standards guaranteed in a withdrawal agreement. The Government will protect workers’ rights to ensure that they keep pace with changing labour markets. I hope the hon. Member for Crewe and Nantwich agrees that our approach on these vital issues will help secure the best possible deal for the UK as we leave the European Union.