Insecure Work and the Gig Economy

Debate between Wes Streeting and Laura Pidcock

Wednesday 20th June 2018 Westminster Hall

[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.