Employment Bill

Lord Balfe Excerpts

Wednesday 6th April 2022 Lords Chamber

[Lord Callanan (Con)]

I cannot commit to any particular measures, as I said in response to an earlier question. However, we have a very good employment law framework in this country, as evidenced by our unemployment rate, which is less than half that of France—which has a much more rigid employment framework. Therefore, flexible working is a good thing in this country because we have lower unemployment. The best right anyone can have is to have a job. It is right that we do not change the employment law framework until we are sure that any changes will address the needs of businesses and workers in the post-Covid economy.

[Lord Balfe (Con)]

My Lords, the response from the Government on P&O has been excellent. It has also shown the need for an employment Bill. At the end of this Session, the pledge in the last Queen’s Speech will disappear. However, we need it in the new Queen’s Speech because, at this moment, many workers are applauding what the Government have done with P&O and are looking to them to honour the promise of the employment Bill made two years—it is more urgent now, not less. I ask the Minister to go back to his department and lobby hard for it to be in the Queen’s Speech.

[Lord Callanan (Con)]

I have heard what my noble friend has said, and I know the close interest which he takes in these matters and his close relationship with the trade unions. I will certainly take his message back to the department but, as he will be aware, I cannot predict what may or may not be in the Queen’s Speech.

Trade Union (Levy Payable to the Certification Officer) Regulations 2022

Lord Balfe Excerpts

Monday 7th March 2022 Lords Chamber

[Lord Monks (Lab)]

My Lords, to follow on from those last points, it almost seemed to be the case from the Minister’s presentation that unions had somehow agreed with quite a lot of the proposals being put, which is very far from the case.

I do not want to go over the 2016 Act, but, at the time, many of us thought it was the product of a certain mindset in parts of Conservative Central Office, which was still bent on fighting the battles of the 1970s and 1980s. If you were that kind of Tory, why not ladle extra dollops of red tape, as the noble Baroness, Lady Neville-Rolfe, just said, on the old enemy? After all, it polishes your credentials in the eyes of some of the Conservative associations, it does not cost very much and it kicks your opponents hard, which with a workable majority you can do.

Unions are now to face a Certification Officer with new and extended powers to impose these fines—very steep fines in terms of union finances—and to make unions pay the bills of the Certification Officer. These are the motives of a suspicious, hostile Government, who regard unions as conspiracies, plotting mayhem and confusion—much as some of us regard the present regime in Downing Street. Yet unlike our views on Downing Street, the Government’s view is certainly not borne out by the facts. British unions are already heavily regulated by any standard applying in western democracies, yet the Certification Officer is rarely troubled by complaints of maladministration and injustice, as has been pointed out already in this debate. There is a handful of complaints each year, and the vast majority are dismissed or withdrawn, and there were no enforcement orders last year.

So what is the problem? There is not really one at all. The motive for this legislation is ignoring the fact that unions are a hallmark of a free and democratic society, and a force for greater equality in an increasingly unequal society.

The new Certification Officer could well be like a police officer looking for work to justify his or her existence, no doubt having actively to encourage people to come forward with complaints. The Certification Officer can take them themselves, as we heard the Minister spell out. Perhaps there will be advertising for complainants, to boost the workload if it is meagre. The aim is to tie up unions in expensive litigation and force them to pay the costs of that litigation, as well as for the administration of the Certification Officer’s office.

Can the Minister tell us precisely whether there are any other regulators of voluntary, not-for-profit, democratic organisations which have to pay for their regulator? Political parties do not, as we have heard, and charities do not, so who else does? It is not the same as the City or the banks, which are profit-making, private sector bodies, yet unions collectively are likely to face a seven-figure bill for the privilege of being complained against. After all, this is fertile territory for opponents of the national executives of unions. Unions are lively, democratic organisations, with all the cut and thrust that goes with that, and sometimes it is fair to say that the losers do not always lose gracefully.

These regulations and the Act which spawns them are unworthy of a great democracy. I take this opportunity before the regulations pass into law to register my disgust and contempt for them and their promoters.

[Lord Balfe (Con)]

My Lords, first, I should declare an interest as the president of BALPA, the TUC-affiliated union for pilots.

This is just unnecessary, is it not? The Act was passed in 2016. I remember that my noble friend who just spoke was the Minister then and we had one or two set-tos, but in the end, to my mind, her knowledge of the trade union movement helped ameliorate that Bill and get it on to the statute book. I had liked to think that the non-activity over the past two or three years meant that the Government had had another thought and decided that these regulations did not need to be brought into being—and of course they do not. They are not going to add anything. We have heard about the 34 complaints with no enforcement orders and about the fact that no other voluntary organisation pays for its regulator, and we know that the whole of this office is really not needed for the purpose for which it is being put forward.

What I would say though, particularly to the noble Lord, Lord Razzall, is that we should not make this a battle between the Labour Party and the Conservative Party over funding. It is not. It is about unnecessary control of the trade union movement. The majority of my union members voted for this Government. I am absolutely convinced of that, having talked to them. Some 30% of paying trade unionists vote Conservative. We have got to get over this idea that somehow the trade union movement is comprised of hard-working, left-wing socialists.

My wife was a district councillor for some years; she dealt with unions in rural England, and said that most of them were well to the right of her in their political beliefs. Most of them were voting for the Conservative Members of Parliament to be found in the depths of East Anglia. So let us get over this idea that union members are all Labour and not Conservative. It is important to get over it because I think the Minister needs to get over it and the Government need to get over it.

I have said over many years that we will have reached an achievement in this country when, just as the leader of the Opposition goes to the CBI on a regular basis, so the leader of the Conservative Party appears at the TUC and makes a speech and answers questions. Breaking down this divide is really quite essential if we are going to have industrial relations peace in this country.

We have not got a lot of time, so I am going to leave the Minister with just two questions, one of which has already been asked in one form. First, what, if anything, are the Government prepared to do about vexatious litigants? There will be people who will go to the regulator purely to cause trouble—every union has them; even BALPA has the odd member who gets great pleasure out of trying to run rings around its national executive. To what protection are the Government prepared to look to protect vexatious claims against unions? Secondly, the Government have pussyfooted around on electronic balloting the entire time I have been in this House. There are no questions about having a secure electronic ballot. Is it not time that the Government made a generalist gesture to the trade union movement and let it have what is a totally secure system, at its own choice, for running internal elections?

Those are two things the Government can give us. It will cost them nothing but it will show the Conservative-voting trade unionists of this country that the Government are a Government of the country and not just one part of it.

[Lord Hendy (Lab)]

My Lords, the Minister’s justification for the levy is that it is entirely normal for a regulator to be paid for by those whose businesses are subjected to regulation. That argument is untenable for at least five reasons.

First, the CO is not a regulator in the same way that others are. She has an administrative role to list trade unions and employers’ associations but her principal function is judicial, regulated exclusively by the Trade Union and Labour Relations (Consolidation) Act 1992. It is confined to the following matters: elections; disciplinary proceedings; balloting, other than for industrial action; the constitution and proceedings of the executive; elections for president, general-secretary and executive committee; political funds; amalgamations; transfers and engagements; accounting records; and annual returns. All these are purely matters of internal trade union affairs. The Secretary of State has the power to specify other matters by order but has not done so.

In relation to these issues, the CO acts judicially. If she receives an application from a member against the union which manifests a prima facie case, the CO conducts a formal hearing. Both parties take their turns—often through counsel—to present their evidence, cross-examine witnesses and make legal submissions. The CO then hands down a decision and may make a declaration if she finds a breach.

Appeals lie from the CO to the Employment Appeal Tribunal, which is of course a division of the High Court presided over by a High Court judge. There are few regulators with such judicial functions and where the governing legislation has specified a direct route of appeal to the High Court. However, one such is the employment tribunal, from which there is the identical route of appeal to the EAT. Noble Lords will recall that the Government legislated to impose fees on employment tribunal claimants but the Supreme Court, in the Unison case, held that that was unlawful; the Government consequently withdrew the fees regime. However, what is significant in this debate is that the Government have never suggested a levy on employers to pay for employment tribunals. It is not surprising therefore that trade unions point to the fundamental injustice of them paying a levy to meet judicial costs under the legislation which applies to them when the costs of adjudication under the legislation which applies to employers is met by taxpayers.

The second point is that the justification for the imposition of virtually every regulator is the need to protect the public. That does not apply to the CO. The primary purpose of bodies such as the CO and the employment tribunal is not to protect the public but to adjudicate in disputes between specified classes of claimants and respondents. In the case of tribunals, this is between workers and employers, and in the case of the CO between unions and members. The jurisdiction of each is limited to the statutorily specified subject matters. That is why members of the public cannot complain to the employment tribunal or to the CO that a friend of theirs has been unfairly dismissed by an employer or unfairly disciplined by a union.

Therefore, the CO is not there to protect the public from breaches of the relevant rules but to give trade union members, and only trade union members, an avenue of judicial complaint. It is true that the Government have now extended the remit of the CO to investigate matters on her own initiative, even where no member has complained, but the scope of her jurisdiction is still confined to the specific items I have listed. An infraction by a trade union in any of those matters will not impinge on members of the public and neither will any member of the public have the right to bring proceedings before the CO about it. So the public interest argument is simply without merit.

This is important, for although unions are complaining that newspapers and political parties hostile to them will rush to make complaints to the CO, such complainants cannot make a formal application and, if she thinks there is any merit in an informal complaint, the CO will be called upon herself to act as investigator, prosecutor and judge. That is not a position she is likely to enjoy, I imagine. Indeed, I doubt that she will welcome the extra workload of investigating allegations from unaffected outsiders about the internal workings of a union where no member feels sufficiently aggrieved to make a formal application to her.

My third point, which has already been dealt with by my noble friends Lord Bassam and Lord Monks, is that where regulators are funded by a levy, they are invariably conducting a business for profit, or at least earning a living from the regulated activity. That does not apply to trade unions, which make no money from the regulated activities.

That leads to the fourth point, which is that where a regulator is funded by a levy, those who must pay it are able to deduct the cost of their levy from the tax they pay on their profits. Trade unions cannot do that. Their income is derived, as has been said, almost exclusively from members’ subscriptions and goes to offset their running costs. They have no profits to tax. They do not have a tax bill against which to claim their levy.

Status of Workers Bill [HL]

Lord Balfe Excerpts

3rd reading
Friday 28th January 2022 Lords Chamber

[Baroness Merron (Lab)]

My Lords, I speak in place of my noble friend Lord Bassam, who cannot be here today.

We on these Benches support my noble friend Lord Hendy and his Bill, which will create a single status of worker. I express my thanks to my noble friend for introducing the Bill and for his amendment, along with his great honesty about the need for it.

The Bill elegantly replaces existing employment categories, thereby removing qualifying periods for basic rights and protections. It gives workers rights in the job from day one, so all workers would receive rights and protections, such as statutory sick pay, national minimum wage entitlement, holiday pay, paid parental leave and protection against unfair dismissal, while the genuinely self-employed would retain their status. It is of course a shame that parliamentary time limits mean that the Bill may be going no further. I therefore hope to see it as a government Bill before too long.

[Lord Balfe (Con)]

My Lords, I have made this speech on a number of occasions. There are roughly 6 million trade unionists in Britain, and a third of them—2 million—vote for the party on these Benches. I am pleased, on their behalf, to welcome the Bill. It is a good step forward, because we always need to keep in mind the balance between the rights of the workers and those of the employers. This is a good Bill that rights an anomaly, and I hope that it will go further. I know that is difficult, but it is certainly in the right place and it has my personal full support.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, I thank the noble Lord, Lord Hendy, for moving his technical amendment in order to comply, as he said, with the recommendation of the Delegated Powers and Regulatory Reform Committee. While the Government are not convinced that the Bill is the right course of action, we agree with the importance of legislative scrutiny and consistency. The Government therefore welcome the amendment, which would ensure consistency under the Trade Union and Labour Relations (Consolidation) Act 1992 and the Employment Rights Act 1996—although, as I said, we cannot support the Bill.

I congratulate the noble Lord on bringing the Bill to the House and on enabling this debate on an important subject. I thank all noble Lords for their contributions during Second Reading, which allowed for what I thought was an insightful and important debate on this topic. I also thank the Delegated Powers and Regulatory Reform Committee for its expert contribution and the noble Lord, Lord Hendy, for tabling his amendment.

As I said at the start, the Government are not convinced that the Bill is the right solution to give greater protection to those in insecure work. We will continue to take steps to protect vulnerable workers, delivering on our ambition to make the UK the best place in the world to work and grow a business.

Non-UK Residents: Property Ownership Register

Lord Balfe Excerpts

Tuesday 2nd November 2021 Lords Chamber

[Lord Callanan (Con)]

The noble Lord puts his finger on the button as always. We are very keen to introduce it, and any influence he can bring to bear on the Public Bill Committee, or indeed the Prime Minister, would be greatly appreciated.

[Lord Balfe (Con)]

My Lords, many hard-working UK voters are fed up with the way in which the property market—particularly in London—is used to apparently hide ill-gotten gains, and with the seeming complicity of the UK Government. Do the Government accept that one way of ending this is to add some weight to getting this legislation into this House as soon as possible?

[Lord Callanan (Con)]

As my noble friend will know, I agree with him. We want to legislate on this as quickly as possible. The UK is one of the world’s largest and most open economies, and the UK and London are among the world’s most attractive destinations for legitimate businesses and overseas investors. That is a good thing, but it exposes the UK to the risk of money laundering. That is why we are being about tackling illicit financial flows through the Economic Crime Plan and why we will proceed with this legislation.

Status of Workers Bill [HL]

Lord Balfe Excerpts

2nd reading
Friday 10th September 2021 Lords Chamber

[Lord Balfe (Con)]

My Lords, I think that as the last Back-Bench speaker, I am the last of the people to congratulate the noble Lord, Lord Hendy, which I warmly do on this excellent Bill. It is significant that, with just one exception, it has received support from all parts of the House. I add to that support.

In particular, I draw attention to the fact that the way the Bill is determined and done will stop employees being able to enter into bad situations where their employers do not pay national insurance and, as the noble Lord, Lord Davies, just mentioned, pension contributions. In so doing, they are of course putting a charge straight back on to the state. National insurance and pension contributions, if not paid, will end up being the state’s liability, so it is in the interests of the Government, of whichever party, to close these loopholes. This very well-thought-out Bill does exactly that.

I have a couple of questions. One is for the Labour Front Bench. Does the Labour Party support this Bill? Will it carry on supporting it? I have lived through a lot of opposition and I am well aware of parties taking the easy opposition position of saying, “Oh yes, we support it”, but I would like to have it on the record from the Labour Front Bench that they support the Bill.

Even more so, I hope that the Government will look at ways they can support the Bill and its aims and help to get it through this House. As we all know, getting a Bill from Second Reading to the end of its passage is an enormously difficult procedure. It does not work very often in this House. We will need a lot of good will and help. I am sure that the noble Lord, Lord Hendy, will be willing, in so far as compromises or amendments are needed that strengthen the Bill and maybe change it slightly, to give them his full support. They will certainly have mine.

My final point—I have said this many times—is that we have to stop regarding the rights of workers as the sole province of one political party. Workers in trade unions and outside them support all the political parties of this country—the major ones, but also the Greens, Plaid and the like. We have to start looking at labour legislation much more directly, rather than saying, “Oh, it’s from the noble Lord, Lord Hendy; he’s Labour, therefore we oppose it.” We have to start saying, “What does this legislation actually do?” From reading the Bill, it benefits workers of all political persuasions, all nations and all parts of this country. We owe it to all those workers to pull together and do the best for all of them.

Free Trade Agreement Negotiations: Australia

Lord Balfe Excerpts

Thursday 24th June 2021 Lords Chamber

[Lord Grimstone of Boscobel (Con)]

The noble Baroness always speaks with authority on these matters and I always listen to her carefully. I am happy to reassure her that trade does not have to come at the expense of the environment. Those two matters are not incompatible. I am pleased to report to noble Lords that we have worked with Australia to secure provisions on a wide range of environmental areas in this agreement, including preventing pollution from shipping and co-operating on addressing marine litter, including plastics and microplastics. We have committed to an environment chapter that will go above precedent, and both parties have confirmed commitments under multilateral environmental agreements, including the Paris Agreement. Noble Lords will see that in detail when the full agreement is available and the impact assessment will, of course, cover these matters. I hope that the noble Baroness will feel able to welcome that environmental chapter when she is able to see it in full.

[Lord Balfe (Con)]

My Lords, the Statement refers to what the world will be like in 2030, 2040 and 2050. One reality is that China will play a much more significant part and that the Pacific area needs defenders of democracy. This agreement must be welcomed and we should seek agreements with democratic countries in the region and on joining the Trans-Pacific Partnership. Can the Minister assure us that the Government will redouble their efforts to get those agreements?

[Lord Grimstone of Boscobel (Con)]

I am very happy to give my noble friend a full assurance on those matters. As noble Lords will be aware, we applied to the Trans-Pacific Partnership as to whether we could commence negotiations. It was pleasing that, as a multilateral group, it came back very quickly. Those negotiations are now commencing and I look forward to bringing their results before the House in due course, and when I do so it will absolutely meet the point that my noble friend is asking about. We will see that it is yet another agreement reinforcing British interests and benefiting British businesses and consumers.

Employment Rights

Lord Balfe Excerpts

Thursday 10th June 2021 Lords Chamber

[Lord Callanan (Con)]

The noble Baroness makes some good points. I agree with her that some of the appalling treatment in places such as Leicester that was highlighted in press articles is unacceptable. Our response to the consultation sets out the high-level proposals for the single enforcement body. We will be developing more detailed plans for the body’s operation and structure in partnership with the existing enforcement bodies. The noble Baroness will be aware that creating the new body will require primary legislation, and timing will depend on the legislative timescale. However, we are committed to ensuring that it has adequate funding for enforcement; we will do that through the spending review, as I mentioned.

The Government have a good record on protecting employment rights enforcement. We have more than doubled the budget for minimum wage enforcement and compliance, which is now over £27 million per year.

[Lord Balfe (Con)]

My Lords, a number of noble Lords have mentioned the warm words in this Statement. The one-third of active trade unionists who vote Conservative will welcome those warm words from this Government.

I have two specific questions. First, when will the proposed changes in the power of the Certification Officer be made public and put in the public domain for us to discuss? Secondly, does the Minister agree that it is important to balance flexibility with effective protection for workers?

[Lord Callanan (Con)]

I thank my noble friend for his comments. The legislation will be introduced shortly, and it is important that we balance flexibility with protections. My noble friend feels very strongly about this issue. It is a dynamic, flexible economy that makes the UK such a fantastic place to work and gives us such relatively low levels of unemployment compared to many other European countries. We are the envy of the world in terms of not only our protection for workers’ rights but our flexible economy. The steps that we are taking on enforcement will help the country to build back better by taking a smarter approach to the enforcement of employment law, and will make it easier for the vast majority of responsible businesses to comply with the rules.

National Minimum Wage (Amendment) Regulations 2021

Lord Balfe Excerpts

Monday 1st March 2021 Lords Chamber

[Lord Balfe (Con)]

My Lords, the Opposition are struggling to find something to say. The Government have accepted all the recommendations of the Low Pay Commission and are putting them into force, at a difficult time for the economy and when MPs’ and senior civil servants’ pay is frozen. To my mind, they are doing quite well. I look forward to the Minister’s reflections on enforcement because that has proved to be a problem, and certainly the points made by the noble Lord, Lord Empey, are well worth addressing.

I am proud that, when the London living wage came in, at the time I was the chair of the finance committee of the Reform Club and we were the first London club to implement the London living wage. That was in 2012 and we have stuck to it ever since, as have many others. The London living wage is now far more of an institution in London. The underpinning of the Low Pay Commission, which I should point out, has a number of TUC representatives who have played a significant part. At the end of last week, I asked the TUC whether it had any observations that it wished me to make in this debate. It had none. The Trades Union Congress has no observations to make, presumably because it is happy that its representatives on the Low Pay Commission have done a good job and that the Government have done a good job in accepting that.

When we come to sectoral collective bargaining, it sounds fine, apart from the fact that over 75% of workers do not have a trade union to do any bargaining for them. Who is going to be the sectoral bit that does the collective bargaining? All I would say here is: get real. I was interested in the contribution of the noble Lord, Lord Davies, which will be very welcome in two weeks’ time when the TUC holds its annual pensions conference. I envisage that both he and I will be present and we will contribute to the section about desirable developments in state pension provision. Everything he has said should come up in that discussion because there are things that need to be addressed with reference to the state pension and how auto-enrolment hits the very low paid.

Finally, some of the points that have been made are undoubtedly fair. It is extraordinarily difficult to live on the national minimum wage, but we do now have a national minimum wage. I take no credit for it, but I was present at some of the discussions that the Conservative Party had. We should remember that the Conservative Party originally opposed it, but it is now a strong supporter because it has seen that it works. One of the good things about the Conservative Party, in the words of the late Lord Butler, is that we do not necessarily embrace change speedily, but we watch it, and when it is relevant, we take it on board. The Conservative Party is fully behind the minimum wage and will continue to make it prosper.

Workers’ Rights

Lord Balfe Excerpts

Tuesday 26th January 2021 Lords Chamber

[Lord Callanan (Con)]

Indeed, the noble Lord makes an important point, but these are all now matters that we can decide for ourselves. Immigration laws are, of course, kept under review, and the new immigration Act will be in force shortly, but we are now allowed to decide these things for ourselves. The EU will no longer be dictating to us how we conduct our own affairs.

[Lord Balfe (Con)]

My Lords, does the Minister agree that responsible trade unionism is valuable in protecting workers’ rights? However, clearly from time to time the law needs updating, possibly in the way referred to by the noble Lord, Lord Mann. The Minister will know that in 13 years of Labour Governments none of the basic reforms of the Conservative Government who preceded them was repealed. Will the Minister argue for reforms that will be similarly widely accepted?

[Lord Callanan (Con)]

My noble friend makes an important point. We remember that when we served in the European Parliament we were lobbied many times by UK Labour Governments to try to maintain existing flexibilities in the working time directive and others. Hopefully the Labour Party will return to that path of common sense soon. It is also important to bear in mind that most workers are not members of trade unions. We need to consult with trade unions where they represent workers but to bear in mind the rights of workers who are not represented by trade unions.

Travel Agents

Lord Balfe Excerpts

Monday 23rd November 2020 Lords Chamber

[Lord Callanan (Con)]

I thank the noble Lord for his support. The developments on the vaccine are encouraging. It is not my area of responsibility, but we all have our fingers crossed that the vaccine will prove successful, and that we will be able to help the industry through its current short-term difficulties and that it has a bright future ahead.

[Lord Balfe (Con) [V]]

My Lords, I draw attention to my interest in the register. I ask the Minister to urge on his friend convening the cross-departmental tourism task force the need to take on board the genuine concerns of the trade unions, and in particular pilots, who, because they have a need for a certain amount of flying hours, are being quite challenged on keeping their flying credentials up to date. I hope the Minister will be able to encourage his friend to look across the whole spectrum of problems in the travel industry.

[Lord Callanan (Con)]

I will indeed pass on my noble friend’s concerns. As I have said, I cannot predict what will be in the announcement tomorrow, but we have been looking very closely at all the problems that exist for the tourism sector, in particular for those who want to travel abroad. I will certainly pass on my noble friend’s remarks.