Insecure Work and the Gig Economy

Stephanie Peacock Excerpts

Wednesday 20th June 2018 Westminster Hall

[Stephanie Peacock (Barnsley East) (Lab)]

I beg to move,

That this House has considered insecure work and the gig economy.

It is a pleasure to serve under your chairmanship, Mr McCabe. I declare an interest as a proud member and former officer of the trade union GMB. I thank GMB for its support, and I refer hon. Members to the Register of Members’ Financial Interests.

Today’s debate is predicated on one simple issue: work in the UK is becoming increasingly insecure. A changing economy over the past decade has led to a boom in new jobs, which have combined to create a worrying picture of employment rights across our economy. Often under the pretence of offering flexibility, employers have exploited working practices to maximise profit at the expense of workers. The experience of being trapped in a low-paid job with no guaranteed hours, wages or security of employment, and of being unable to plan past this week’s rota or pay cheque, with fewer rights and lower pay than colleagues, is all too familiar for people across the country.

It is notoriously difficult to measure insecure work, which is in itself part of the problem, but some estimates put the number of people trapped in insecure employment well into the millions. The number of people in zero-hours or agency contracts alone is near the 1 million mark, while nearly 3 million people are underemployed and left seeking more hours than they secure week after week.

[Mr Jim Cunningham (Coventry South) (Lab)]

I congratulate my hon. Friend on securing the debate. We had an instance in Coventry a few years ago with a company called City Link. At Christmas, about 1,000 van drivers were laid off; those drivers rented their vans, and were left high and dry and could not get any redundancy money—so this is a timely debate. I hope that she will touch on the Taylor review, which I think did not go far enough. It could be called a whitewash, quite frankly.

[Stephanie Peacock]

I thank my hon. Friend for his intervention; I will indeed talk about that. He is right that the problem is not confined to small sections of our economy, but spread throughout. From tourism to retail, hospitality and our public services, the economy is dependent on these jobs. It goes far beyond genuine short-term work, such as meeting seasonal demand over the Christmas rush in retail, or the busy summer period at a caravan park. The balance of power is woefully skewed in favour of employers who use short-term contracts to minimise their responsibilities and maximise their profits at the expense of job security for their employees.

Areas such as my own in Barnsley are disproportionately affected. Former industrial towns and coalfield areas are disadvantaged communities that have been left behind by the economy and are taken advantage of. Where average wages lag far behind national levels, unemployment is higher and social mobility is appallingly low. Unscrupulous companies can offer insecure, low-paid work where the alternative is often nothing. In Barnsley, the switch to gig employment and short-term work in areas such as distribution in warehouses and our public sector means that too many people in my constituency simply cannot be certain that their job will last longer than the next rota. No matter how hard they work, their precarious employment leaves them with no chance to save up or plan for the future.

[Jack Dromey (Birmingham, Erdington) (Lab)]

My hon. Friend is making a very powerful case. Does she agree that a characteristic of the gig economy is that on the one hand companies make enormous profits, while on the other workforces live in permanent insecurity, with all that means for their living standards and their family life? Will she join me in congratulating the GMB for the landmark challenges it has mounted—in particular, to the grotesque abuses characterised by Uber?

[Stephanie Peacock]

I totally agree, and I join my hon. Friend in congratulating GMB. He is right: many employees are forced into debt and are unable to pay their bills or buy food, and others are forced to work through physical or mental illness out of fear of losing what employment they have.

[Paula Sherriff (Dewsbury) (Lab)]

My hon. Friend and I have heard from members of our trade union, GMB, who work in warehouses in Yorkshire on relentless shift patterns, which means that they never actually get a weekend. Inevitably, that has an impact on their mental health. Does she agree that we cannot improve people’s mental health without improving their working standards?

[Stephanie Peacock]

My hon. Friend makes a very important point. I believe she is referring to research from the GMB trade union, which shows that, across the country, 61% of insecure workers have gone to work while feeling unwell for fear of losing pay, hours or even their job. The same percentage have suffered mental health issues. For their troubles, they are often first out of the door when times are hard, and are cast into a welfare state that is not fit to help them.

It is not just workers who suffer. Companies’ widespread avoidance of the minimum wage, holiday pay and sick leave is estimated to cost the public purse £300 million a year in lost national insurance contributions. Such practices undermine the many employers who play by the rules, the companies that invest in their workers’ skills and training, the family-run businesses that pay their staff a decent wage, and the employers who pay their taxes and make pension contributions. In one way or another, we are all footing the bill for the businesses that take advantage of precarious work. Action is long overdue.

It is a little over a year to the day since the Prime Minister stood on the steps of Downing Street after the election and noted that people who have a job do not always have job security. Sadly, the Government have kicked the Taylor review’s recommendations into the long grass, and have failed to take action on areas such as the Swedish derogation, which I sought to address with my private Member’s Bill. Will the Minister commit to take action to ensure more and better workplace inspections to ensure that the scant, bare-minimum protections that workers are currently afforded are actually enforced, and that swift action is taken against abusive employers?

On companies that make profits off the backs of agency workers, will the Minister ensure that, from day one, agency workers are afforded the same rights and pay as permanent staff doing the same roles in the same company? That is another issue that I sought to address in my private Member’s Bill. Cases brought against Uber and Pimlico Plumbers show that such workers are employees; they are not self-employed or independent contractors, as claimed. In view of such cases, will the Government act now, rather than wait for every single worker to undertake judicial proceedings against their employer? Those are not just legal judgments against individual employers, but damning indictments of employers in the gig economy as a whole.

I have heard from an Amazon worker who has seen women colleagues tragically miscarry in a warehouse, and fights break out on the packing floor because the competition for work is so high. I have heard the heartbreaking story of a careworker whose employers forced her to provide a urine sample to prove she was too sick to work. Another careworker’s agency refused to give her work as soon as it found out she was pregnant. I have heard from a Hermes worker who gets only one day off a year to spend with his family, which has a damaging effect not just on him but on his wife and children.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

Will my hon. Friend join me in condemning organisations that engage in such practices? One of my constituents ended up with hypothermia after waiting for Deliveroo work. When he was admitted to hospital, he was not offered the sick pay and protection that other employees get. The Government must take action now because although GMB and other unions are doing fantastic work we cannot rely just on unions. We need to ensure that the Government support our unions.

[Stephanie Peacock]

I join my hon. Friend in condemning that. I am sure the Minister is listening carefully.

Those workers are the real face of the gig economy. It is simply not good enough. We urgently need an economy that works for everyone. We need well-paid jobs that offer long-term security and give people the chance not just to get by but to succeed and prosper. We need genuine action that addresses the employment loopholes that unscrupulous employers use to exploit vulnerable workers. Many people in Barnsley and across the UK need action now.

[Steve McCabe (in the Chair)]

We have 12 Members who want to speak, so I have to impose a time limit of three minutes. You have to stick to that.

--- Later in debate ---

[Stephanie Peacock]

I begin by thanking you, Mr McCabe, as well as the Minister, the SNP spokesperson and especially the shadow Minister, my hon. Friend the Member for North West Durham (Laura Pidcock)—I believe this is her final debate, so I wish her well in her maternity leave—for their contributions. Most importantly, I thank all hon. Members from across the House. We have seen in all the contributions just how insecure and precarious work is affecting our constituents.

As was rightly pointed out, the Opposition make no apology for trade unions being the voice of working people. I pay tribute to my union, the GMB, and all trade unions campaigning on this issue. A number of examples were given of the work they do, and in particular the simple steps put forward by the TUC that could tackle the problem.

We heard many appalling examples of the treatment of workers by a number of companies and the devastating impact of that on workers’ health. There were examples of exploitation of working practices, the impact of automation and the truly shocking level of in-work poverty, which is an absolute scandal. All that testimony combined to form a truly damning portrait of the lives of workers with insecure employment. It is a picture of people trapped in low-paid work who are treated without dignity or respect by their employers, who exploit short-term working practices to maximise their profit at the expense of their workers’ security. Some are driven into debt, struggling to buy food or pay bills; others into ill health. It is not good enough.

For all the Minister’s statistics, we need action, and we need it now. The Government must act now to end exploitative working practices, provide an economy that works for everyone and ensure that hard-working people in Barnsley and across the UK are provided with the long-term secure employment they desperately need.

Question put and agreed to.

Resolved,

That this House has considered insecure work and the gig economy.