Insecure Work and the Gig Economy

Wes Streeting Excerpts

Wednesday 20th June 2018 Westminster Hall

[Wes Streeting (Ilford North) (Lab)]

I congratulate my hon. Friend the Member for Barnsley East (Stephanie Peacock) on securing this important debate. The casual- isation of the jobs market is nothing new. For decades now this country has been moving from an industrial, export-led economy to a services-led economy. Over that period we have begun to see—at an increasing pace—a race to the bottom in jobs, pay and terms and conditions for working people. That is why the debate is so important.

In my capacity as chair of the all-party parliamentary group on taxis, I have raised concerns about the taxi and private hire industry, which other hon. Members have referred to. For anyone in any doubt about the agenda of those companies and the way they treat their workers, look at the way that companies such as Uber have had to be dragged kicking and screaming through the courts by trade unions, on behalf of their members—Uber workers—to be made to provide the basic terms and conditions and decent wages that everyone should enjoy.

I am proud of the role that GMB has played, of my party’s relationship with the trade unions and of the support I have enjoyed as a trade union member and supporter, which is reflected in my entry in the Register of Members’ Financial Interests. However, people should not have to rely on trade unions or High Court judges to protect their basic rights and terms and conditions; they should have a Government and a legal framework that is on their side, which they clearly do not.

We have heard nonsense about flexibility—about how flexible the gig economy is and how people really enjoy the choice. How many people would choose that flexibility for themselves?

[Gillian Keegan]

Me and many others.

[Wes Streeting]

I am happy to give way, but how many Members would choose to earn less than a real living wage or not to receive holiday pay and maternity or paternity pay? The truth is that, when we are looking at the way our economy will change—the next phase of globalisation, and the next phase of the industrial revolution that will change our country—how we protect the value of labour will be one of the single biggest questions that defines our political generation. It is about skills, but fundamentally it is about shaping the economy in the interests of ordinary working people and not allowing tech companies, top-heavy business models or digital platforms to shape it in their interests.

The Taylor review was a wonderful opportunity to answer and to meet some of these big challenges. Matthew Taylor is a great guy with a big brain, but clearly, because of his working for this Government and within the political framework in which he knew the report would be received, that report was not nearly ambitious enough. If that was not disappointing in and of itself, the fact that we have seen so little action off the back of it tells workers that they cannot rely on this Government to protect their interests. We desperately need a Labour Government that will put their interests and their rights at work front and centre.

--- Later in debate ---

[Laura Pidcock (North West Durham) (Lab)]

I congratulate my hon. Friend the Member for Barnsley East (Stephanie Peacock) on securing this important debate, and on the thoughtful, passionate contributions made by colleagues today—all but one of them from the Opposition. It seems that the Government’s ruthless whipping ended with the last vote to happen in the Chamber.

My hon. Friend eloquently captured the fear and precariousness associated with modern workforce practices in the gig economy. She made the crucial point at the heart of the issue: there is a fundamental power inequality between the employee and the employer, and we cannot reply to that inherent difficulty in the gig economy with consultations. To remedy it, there must be recognition in law that the power imbalance exists. A pattern that has emerged as a feature of the gig economy is the process of outsourcing and of apps as managers. Those who reap inordinate profits from workers’ labour are distant from accountability for them and from their welfare. They have relinquished that responsibility.

Hon. Members have told us about people who have had long, loyal relationships with a company but have been refused employment contracts and have been left languishing with few or no workplace rights. Members are, rightly, deeply disappointed with the Government’s response to the Taylor review. It was a consultation, and for the Government to conduct a consultation on a consultation seems a weak response.

I really need the toilet right now, probably because I am eight and a half months pregnant, and my lasting memory from the contribution made by my hon. Friend the Member for Mitcham and Morden (Siobhain McDonagh) is of people being too scared to go to the toilet because they are worried about what will happen to their jobs, which is an absolute disgrace. That people are too scared to go to the toilet in this century, never mind any other century, is absolutely terrible.

The Conservatives and the Government boast about the recovery of employment and lower employment figures, but, sadly, for millions of people work means rising insecurity and low pay. Average real pay has still not returned to the level it was before the financial crisis, and the Resolution Foundation predicts that this is likely to be the weakest decade of real pay growth in almost two centuries. We might have high employment, but we also have record poverty among those in work, so a celebration of employment figures alone is completely disingenuous. What are the Government actually celebrating? More than 8 million working people live in poverty. In 2018, that is an absolute disgrace. The Minister celebrates low unemployment but fails to recognise the poor quality of those jobs.

[Wes Streeting]

My hon. Friend is making an excellent speech. Does she agree that it is utterly perverse that many of the people in low-paid insecure work are forced to rely on tax credits? In other words, all of us as taxpayers are funding the exploitative business models of their employers who do not pay their staff proper wages.

[Laura Pidcock]

It is absolutely nonsensical that the state should subsidise inordinate profits on the one hand and very poor pay on the other. The reality of modern work for millions of people, particularly in the north and in places such as North West Durham, is short-termism, insecurity, low pay and fear. Fixed-term contracts, enforced self-employment and agency work signal a move towards a more casualised and fragmented world of work. The use of zero-hours contracts increased rapidly in the wake of the financial crisis, increasing two and a half times between 2012 and 2016. The latest figures available show that that is not abating. We have had an increase from 1.4 million to 1.8 million in just six months.

When Conservative Members celebrate the flexibility—this has been mentioned many times—of zero-hours contracts, they have a romanticised vision of a student who perhaps wants summer work, but the reality is very different. One in three people on a zero-hours contract wants more hours.