Employment Rights Bill

Baroness Coffey Excerpts

Committee stage
Tuesday 10th June 2025 Lords Chamber

[Baroness Jones of Moulsecoomb (GP)]

My Lords, it is getting late—it is more than an hour and a half past my preferred bedtime—so I am going to show incredible restraint: although I have signed five amendments, I will speak to only three. I see that the Chief Whip is scowling at me even before I have started, so obviously I am going to milk it for all it is worth.

As a Green, I see that, with every decade of globalisation, this country has had less industry and more of our public services sold off to foreign owners. I do not understand why that has happened; it does not seem to be good business. The next step, of course, will be freeports, where basic rules and protections just disappear. That is where this country is heading. We need the return of strong trade unions to help turn the tide. Each of these amendments aims to give back the power that organised labour once had.

Amendment 239 would enable workers to act collectively if the employer has dismissed someone for downing tools. That person might have refused to work for all sorts of reasons: they might have been asked to do something dangerous, been asked in an abusive way or been asked to do something beyond their job description.

The Chief Whip is making me laugh now.

There are a lot of good reasons why somebody might walk out, and their colleagues can judge whether they are sensible.

The noble Lord, Lord Hendy, said he only really wanted to talk about Amendment 240. I agree that it is quite important because modern industry and services are broken up into small, interconnected companies and subcontractors, and it is essential that workers are able to bring their grievances to the attention of other workers in closely related workplaces. Employers do not like it because it is working people acting in solidarity with each other. It is one set of workers asking another set of employees to make their own decisions about which side they are on.

The idea of democracy does not stop at the ballot box, not that we would know much about that; it should be in the workplace as well. Last week, I met a trade unionist from Italy. He and his coworkers took over the GKN factory in Florence. They are trying to move as a co-operative working force from making parts for very expensive cars to making eco-bikes and solar panels. It is a fantastic opportunity, and I really hope they are successful.

Amendment 241 is the most crucial of these amendments as it restores the right of workers to take industrial action to be recognised as trade unionists. This is the most basic of rights, and it is shameful that a Labour Government have not put this into the Bill. What is Labour for if it is not about working people? Everything else, apparently.

The decline in trade unions has led to the growth of the gig economy and spurious self-employment. The age of secure employment and regular hours has become a fading dream for far too many. This amendment is another small step towards giving people some power in their workplace. Collective bargaining should be automatic in workplaces if a large enough group of employees want it. With so many employers unwilling to take that step, it is crucial that those employees have the right to strike and demand that recognition from an employer.

I would like a just and fair society. The richest 50 families in the UK hold more wealth than the bottom 33.5 million people. How is that okay? I argue that it is not. Nothing in this country works properly any more because the gap between the richest and the poorest is increasing every single day. Those on a low income are being left behind and those on middle incomes are being fleeced by privatised services. Strong trade unions are one way of helping people find a bit of power and control in their lives—these amendments enable that.

[Baroness Coffey (Con)]

My Lords, I thank the noble Lord, Lord Hendy, for bringing this into our debate but, candidly, his Amendment 240 is truly extraordinary. The only success Flying Pickets had was a number one in 1983 with the single “Only You”—and, by the way, that was a copy from the great band Yazoo. The idea that we would go back to flying pickets is just extraordinary.

Some 45 years on, no sensible Labour Peer has put this forward until tonight. I genuinely find it astonishing that we are here still debating the idea that it is democracy for a strike to be called somewhere else all of a sudden and for you to go off somewhere else for a dispute you are not part of.

While I appreciate the erudite speech we have heard tonight, going back to the real substance and principle of this, this is an important Bill. I do not agree with a lot of it, but I find it extraordinary that we are going back in time when this country actually needs to move forward in modern industrial relations. I regret the amendments that have been tabled today.

[Lord Jackson of Peterborough (Con)]

My Lords, I rise to speak against this amendment very briefly. I agree wholly with my noble friend Lady Coffey. I also agree that the speech by the noble Lord, Lord Hendy, was very persuasive, compelling, detailed and comprehensive, but completely wrong. It would be a disaster for our country if we were to go back to the era of Saltley coke works, Grunwick, the disaster inflicted on the automotive industry, flying pickets and the closed shop.

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[Lord Moynihan of Chelsea (Con)]

My Lords, I am embarrassed to keep your Lordships even a few minutes more, but I stand to support the amendment tabled by the noble Lord, Lord Goddard, and my noble friend Lord Jackson in his opposition to Clause 69 standing part, and to introduce my own opposition to Clause 66 standing part. Thus, I go further than the noble Lord Goddard, even though I very much support his words.

Why is Clause 65, in combination with Clause 66, so damaging? The noble Lord, Lord Goddard, was quite right to focus on the democratic legitimacy of the provisions of Clause 65, but there is a further, even more key, set of problems with these clauses. With noble Lords’ permission at this very late hour, for which I apologise, I will give a very brief review of the history.

Let us first look at days lost to strikes in the 1970s. In 1970, 10 million days were lost; in 1972, 24 million days were lost; and in 1979, 30 million days were lost during the winter of discontent. We consequently had the Thatcher reforms, which outlawed secondary action, banned strikes conducted for political reasons, regulated picketing, required secret ballots for strike action, and made trade unions legally accountable for actions taken in their name. This enabled unions to restore control and reduce the number of unofficial strikes, which had been a major source of the growth in strike activity in the 1960s and 1970s. The result, post-Thatcher through to the 2020s, was that, on average, less than half a million days a year were lost to strikes. Industrial peace was a direct consequence of those reforms. There were no more winters of discontent. This was enormously valuable, for example, for the Blair and Brown Governments of the noughties.

Let us note that the Government’s Bill seeks to eliminate very few of those specific Thatcher reforms. The amendments from the noble Lord, Lord Hendy, which we have just discussed, made an attempt at that; I am glad to hear the Government sensibly decline his invitation. However, even though the Government apparently see the sense of leaving most of the Thatcher reforms in place, they seem, in Clauses 65 and 66 in particular, to be looking to find other ways to unionise the private sector landscape.

If the Government succeed in that, there will be inevitable consequences for the UK’s economy. Last week, it was observed that unions are currently mostly confined to the public sector in the UK, but nobody asked why that was so. It is obviously because public sector workers have a monopoly of employment, so can enforce their will, and timid Governments seek to placate them so as to be able to appear, at least, to be in charge. What is the impact of this? They are multiple public sector strikes and excessive wage settlements in the public sector, the costs of which are now directly leading the Chancellor to her current dilemma of a runaway deficit, plus underserved public services such as social care and child welfare, and an impending debt crisis.

What will Clauses 65 and 66 collectively do to the union landscape in the UK? Clause 65 removes Section 226(2)(a)(iia) of the Trade Union and Labour Relations (Consolidation) Act 1992, meaning that for the ballot to be valid, you no longer have any floor for the percentage of employees voting. Clause 66 alters subsection (2)(a)(iii) so that only a majority of those voting would be required for a strike to go forward. One businessman whom I spoke to just today was utterly startled by this news. He runs an SME employing 36 workers. If, say, one-third of them—12 people—vote, and only six of those 36 employees vote to strike, then you have a strike. It is not hard to find six out of 36 employees to vote for a strike.

However, is that, as the noble Lord, Lord Goddard, pointed out, democratic? Will the electorate’s heart warm to this quantitative gerrymandering? As I described just now, we all see the impact of unionisation in the public sector. What will happen in the private sector if this Bill, in the undemocratic manner that the noble Lord, Lord Goddard, has so rightly decried, passes?

I described last week in this Chamber some of the past, when unionisation destroyed industries such as the London docks, and the present, when the public is tormented by public sector strikes ranging from dustbins to doctors and from teachers to train drivers. This present-day public sector malaise, if it spreads to the private sector, will, as my noble friend Lord Hunt made clear, take us straight back to the 1970s and the winter of discontent.

If the Government are, sensibly, really not proposing to change much of the Margaret Thatcher reforms, which have brought industrial peace to the private sector at least, why is there any need to bring in these new anti-democratic changes? Do the Government really think that allowing strikes to go forward, with feasibly only 10% or even less of employees voting for the strike, will be seen by the public and indeed by the other 90% of the employees of that company as anything but outrageous and leading to even more strikes, even more outrageous wage settlements, even more yawning deficits, even, dare I say, a very large and this time real economic black hole?

If the Government proceed with these changes, the inevitable consequent industrial strife will be laid at their door. The Labour Party saw what happened to it in the 1979 election as a result of the winter of discontent. Why is it now seeking a similar fate in 2029? I urge the Government to withdraw Clause 66 and indeed Clause 65.

[Baroness Coffey (Con)]

My Lords, I will speak briefly to the amendments that I have signed. I do not actually wish to add anything on Amendments 244 and 246 as what the noble Lord, Lord Goddard of Stockport, said was straight to the point. I agree with him absolutely on those matters.

I just want to briefly turn to the Clause 71 stand part notice and Amendment 251A from the noble Lord, Lord Hutton of Furness. I think that the noble Lord, Lord Hutton of Furness, explained it very eloquently. Why, when we are getting into this level of legislation, does it really matter about going from 14 days to 10 days? Actually, it does. There are wider consequences of some of these legal changes which need to be recognised in terms of the practicality of some of this legislation. It would be very helpful to hear from the Minister why that particular move is being made.

The other reason I oppose entirely Clause 71 standing part—to be more accurate, it is probably about subsection (1)(b)—is the categories and the NHS and trying to prepare for strikes. You never know exactly how many people will go on strike when you are running a hospital or other parts of the NHS. Having a clear sense of what capability you are still going to be able to run is critical for patient safety and for patients getting better.

I hope that the Government consider the amendment from the noble Lord, Lord Hutton, when it comes to the airline industry. I hope Ministers will also carefully consider the NHS in their deliberations, because that genuinely can mean the difference between life and death or, to be less dramatic, whether a whole series of operations will need to be cancelled for many patients across the country. I genuinely believe, recognising that health unions are currently issuing ballot papers, that Ministers should be carefully considering what impact this new clause would have.

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[Lord Katz (Lab)]

The point remains that there was not a threshold mandate for the few referendums that we have had. I maintain my point that ballots and elections are not really analogous, and there is danger for everyone in trying to compare the two.

The removal of the initial requirements imposed by the 2016 Act will reduce the red tape on trade union activity that works against their core role of negotiation and dispute resolution.

On the opposition to Clause 69, the purpose of the clause is to amend Section 234 of the Trade Union and Labour Relations (Consolidation) Act 1992 to change the mandate period for industrial action following a successful ballot from six months to 12 months without the possibility of extension, which we have already discussed in Amendment 246. Among other things, the clause brings the appeals process back in line with the position before the Trade Union Act 2016 and many other enforcement bodies of employment law. For example, appeals against the decision of employment tribunals are considered only on points of law, not points of fact.

Amendment 249, tabled by my noble friend Lord Hendy, would require unions to publish results of industrial action ballots on a publicly accessible website, removing the current obligation to notify individual members and employers directly. The Government recognise that the current arrangements can impose a communications burden on trade unions, especially where first-class post is used to provide the notification to members and employers. However, removing the requirement to send direct notification risks reducing the accessibility and certainty of this information to those entitled to receive it. In our view, it undermines transparency and thus confidence in trade unions and the balloting process. Relying solely on a website assumes that members and employers will proactively seek out information, which could lead to disputes over whether that proper notification has occurred. Direct notification ensures clarity and transparency.

To address concerns about the administrative burden associated with these communication standards, the Government intend to update the Code of Practice: Industrial Action Ballots and Notice to Employers to encourage the use of email in place of posts where practicable. This approach preserves the principle of direct communication while reflecting modern methods of engagement and reducing administrative costs. For these reasons, I am afraid the Government do not support this amendment.

Amendment 251, again tabled by my noble friend Lord Hendy, seeks to simplify requirements on trade unions when issuing notices. While the Government understand the desire to streamline procedures, these notice provisions serve a vital purpose in ensuring that employers have the necessary information to plan for and respond to industrial action. The Government are already reducing the minimum notice period for industrial action from 14 days to 10 days, and removing the specific requirements that unions must provide in notice for industrial action, such as to disclose the number of employees in each category. This amendment risks removing too much detail, potentially leaving employers unclear on the nature, scale and timing of the action being proposed. Again, I am afraid, this is why the Government do not support my noble friend’s amendment.

The last amendments in this group are Amendments 251A, tabled by my noble friend Lord Hutton of Furness, and Amendment 251B, tabled by the noble Lord, Lord Sharpe of Epsom. The Government do not support either of these amendments because our general position is not to make sectoral carve-outs from the limitations and conditions which apply to industrial action. This is consistent with our repeal of the 40% support threshold for industrial action and ballots in the repeal of the Strikes (Minimum Service Levels) Act that set further conditions on industrial action in some public services. The same statutory notice period for industrial action across all sectors ensures a simple rule that is clear for all parties involved and that applies in all circumstances. It is then for employers in each sector to manage their industrial relations and their businesses accordingly. However, my noble friend Lord Hutton has some specific concerns around the airline industry and we are happy to meet to understand these concerns further.

The issue of the Clause 71 standing part of the Bill was raised by the noble Baroness, Lady Coffey. Alongside our manifesto commitment to repeal the 2016 Act, the Government are committed to bringing in a new era of partnership that fosters meaningful engagement between government, employers and unions, and this is grounded in co-operation and negotiation. We recognise the importance of striking a balance between allowing for effective strike action while also ensuring that employers are able to reasonably prepare for industrial action when, sadly, it has to occur—I should say when workers have voted for it to occur.

Clause 71 makes targeted changes to Section 234A of the 1992 Act to simplify the process by which trade unions provide that notification. Specifically, we are removing one element from the current requirements: the need to specify the number of affected employees in each job category. Employers will continue to receive essential information, including the overall number of employees affected, the categories they belong to, and the workplaces concerned. This strikes a sensible balance between reducing bureaucracy and enabling employers to plan to mitigate the impacts of industrial action.

Clause 71 also reduces the notice period for industrial action from 14 days to 10 and, consequently, Section 8 of the 2016 Act will be repealed. Moving from a 14-day notice period to a 10-day notice period provides a more flexible, workable approach that reflects modern industrial relations practice.

We acknowledge that some groups argued for a return to the previous seven-day notice period, and that others have called for the current 14-day period to be retained. In our view, 10 days represents a balanced compromise. It is the appropriate balance in allowing employers the ability to plan to mitigate the impact of and reduce the disruption and knock-on impacts of strikes, while respecting the right to strike. It reflects consultation feedback, and allows employers time to prepare, while reducing the burden and uncertainty faced by trade unions. Taken together, these reforms simplify the industrial action framework and reduce unnecessary burdens and legal risk for trade unions.

Finally, Clause 72—

[Baroness Coffey (Con)]

Before the Minister sits down, I particularly focused on the NHS. I was not trying to see it as a sector—I was thinking of the categories and the number by category. I appreciate it is late, so if the Minister wants to write to me, I would be happy to receive that.

[Lord Katz (Lab)]

For the sake of brevity and time and all of us staying awake, I will undertake to write to the noble Baroness.

Finally, Clause 72 seeks to reverse the effect of Section 10 of the 2016 Act, removing the requirement under Section 220A of the Trade Union and Labour Relations (Consolidation) Act 1992 for trade unions to appoint a picket supervisor and to meet other administrative burdens in relation to this supervisor, such as taking reasonable steps to provide their name to the police.

As the period of disruption that I have already referred to between 2022 and 2024 has shown, administrative requirements and bureaucratic hurdles only make it more difficult for trade unions to engage in good-faith negotiations with employers. These changes will bring trade union law into the 21st century and fix the foundations for industrial relations that have not delivered for workers, employers or unions.

However, the Government recognise that regulations regarding picket lines are important. To be clear, the Bill is repealing only those measures introduced by the 2016 Act in relation to the role of a picket supervisor. Other legislation and an amended code of practice on picketing will remain in place. Picketing must take place at a lawful location and must be peaceful, and those on picket lines must not intimidate or harass workers who choose to attend work. We are returning the law on picketing to what it was prior to 2016, when it was working well and was understood by all parties.

In summing up, I hope my justification for these clauses and how they meet the Government’s intentions has been clear to noble Lords, and I ask the noble Lord, Lord Goddard of Stockport, to withdraw Amendment 244.