Employment Rights Bill (Second sitting)

Debate between Uma Kumaran and Steve Darling

Committee stage
Tuesday 26th November 2024 Public Bill Committees

[Steve Darling]

Q Thank you, Chair. This has been touched on before, but there is something I really want to understand, if anybody can address it: productivity is a big issue for the British economy, so are there any opportunities that you see in this Bill for driving a bit harder towards that goal?

Paul Nowak: Absolutely, Mr Darling. I think the evidence is clear from research undertaken by, for example, the Joseph Rowntree Foundation that employers tend to invest less in staff who are insecure and low paid. What we want to do is create a situation where employers are investing in staff. We have a problem in the UK: if you look at employer investment in skills, it is about half the EU average, so I think we want to move away from a low-skill, high-turnover situation.

Somebody talked before about the impact of staff churn. I was at an employer at the end of last week where they had 46% staff turnover each and every year. As the trade union representatives pointed out to me, every new person being recruited by that business works out at around £4,500 per person. I think that the Bill actually incentivises employers to invest in their staff, and to invest in the way that they use staff, and that certainly will have a positive impact on productivity.

There is also the fact that, when you give workers a collective voice, they are more likely to work with employers on things such as the introduction of new technology. How are we going to get to net zero in a way that secures good-quality employment? What does that mean for training? It really does open up the potential for much more productive working relationships.

[Uma Kumaran]

Q Thank you, panel, for your thoughts and representations today. My constituency of Stratford and Bow has a rich history—I am sad that the hon. Member for Mid Buckinghamshire is not here at the moment to listen to this part—and we are rooted in the fight for working people’s rights. It is the site of the 1888 London Bryant and May strike, better known as the matchgirls’ strike.

Paul, 136 years ago, Sarah Chapman was first elected as the TUC rep from the then-formed Matchmakers’ Union. She fought ardently for women’s rights, and she made great representations at the TUC for women’s rights, but it has been 136 years and there is still much more to do for women in the workplace. I am really pleased to see that the TUC has said that

“Labour’s Employment Rights Bill is so vital for women’s pay and equality.”

I am keen to hear your thoughts on why you think that is, and other reflections from the panel.

Paul Nowak: It would be good to hear from colleagues from Unison and Unite, who directly represent hundreds of thousands of women at work. We know, for example, that women are more likely to be employed on zero-hours contracts, and are more likely to be in low-paid occupations. I think things like the fair pay agreement in social care could have a transformative impact on the lives of hundreds of thousands of women who go out to work.

That is alongside all the other provisions in the Bill—for example, the presumption around flexible working, which will allow people to balance work and family life but also, crucially, allow us to bring people back into the labour market who are struggling at the moment to find work that suits their caring and other responsibilities. There is a whole range of provisions in the Bill that will have a direct, positive impact on women at work, and a direct impact on those sectors in which we know that low-paid, insecure employment is most concentrated—retail, social care and hospitality.

Maggi Ferncombe: I represent Unison. We are 80% women. I talked at the very beginning about the significant difference this Bill will make, but I will give you some examples. Paul touched on flexible working. You could sum up this Bill in lots of different ways, but it is going to make such a difference to carers who care as a profession but also to carers who have caring responsibilities outside work, most of whom are women.

I will not touch on the fair pay agreement, because Paul already has, but the other area is the reinstatement of the school support staff negotiating body. These workers are again majority women and majority working part time. It will be transformative for those workers to have a set of standard terms and conditions, opportunities for training and salary, and not to have to take part-time jobs outside of their school work to be able to make ends meet. That will be the transformation for women.

Dave Moxham: We have been fortunate in Scotland—not completely fortunate—to get a bit of a head start on some of this discussion, particularly about low-paid care workers. We have a strong developing consensus that care workers’ voices are women’s voices in the collective bargaining arena, and that is something that we want to develop in Scotland. It is something that I think the Bill may just have to address for Scotland, because this is one of those situations where, because of the devolved nature of the delivery of care, we may need to invest powers in the Scottish Government rather than the Secretary of State. That is something we would intend to submit to the Committee on.

But I think we have really good early indications that a living wage for care workers, and the full involvement of unionised care workers in the delivery and shaping of their services, can pay enormous dividends. We are a long way from getting it right in Scotland, but I think we have got a good start there, which I hope some of the legislation here will reflect.

Hannah Reed: Very briefly, I fully endorse what colleagues have said. I am not going to repeat it, so as not to take the Committee’s time. Many women are part of trade unions because they want their voices heard and they want to be able to address issues such as inequality, bullying and pay discrimination in the workplace. The introduction of equality reps’ rights will provide an important focus to say that equality must be at the heart of the negotiating agenda within workplaces.

Alongside that, I recognise that there are improvements to parental rights that will help to ensure that there is a fairer share of parental responsibilities in the home. We have already talked about a lot of zero-hours contract workers being women. One of the things we are very aware of in hospitality is that, too often, employers bring in too many workers for shifts and say: “Sorry, we do not need you any more. Go home.” They then cancel a shift without any compensation for the workers for their travel time, costs or childcare. We hope the Bill will help to address some of those concerns.