Employment Rights Bill

Debate between Baroness Coffey and Lord Hunt of Wirral
Baroness Coffey Portrait Baroness Coffey (Con)
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My Lords, I am conscious of the sentiments expressed here, but it would put the Government and the Secretary of State in a very difficult legal situation if they were to hold information that they were not allowed to pass on to relevant authorities within the rest of government. I hear what the noble Baronesses have said, but I do not know, with all the other rights that are starting to come through this Bill, why anyone should be afeared, especially when they are here on a legitimate visa as in the example to which the noble Baroness, Lady O’Grady of Upper Holloway, has just referred. I am conscious of some of the exploitation, but I believe that same sponsor was suspended from sponsoring any more visas. I was not aware of what the Home Office did or did not do, but restricting the Secretary of State from formally upholding the law is quite a worrying trend.

Lord Hunt of Wirral Portrait Lord Hunt of Wirral (Con)
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My Lords, I thank the noble Baroness, Lady Hamwee, whom I had the honour to serve when she chaired the Home Affairs Select Committee. She has raised a number of key points, as has the noble Lord, Lord Paddick, and I thank the noble Baroness, Lady O’Grady of Upper Holloway, and my noble friend Lady Coffey for their speeches as well.

Let me make it absolutely clear: modern slavery remains one of the gravest human rights abuses of our time, and tackling it requires vigilance, clarity and effective enforcement. It is crucial that the agencies tasked with identifying and assisting survivors and with co-operating closely with the Independent Anti-Slavery Commissioner have clear mandates and necessary powers to act decisively. While the specific amendments before us seek to clarify the transfer of roles from the Gangmasters and Labour Abuse Authority to the fair work agency, the wider point is this.

Enforcement bodies must be both effective and well co-ordinated to respond to the complexities of modern slavery. Without this, vulnerable individuals risk slipping through the cracks, and the machinery of justice and protection loses its impact. Ensuring transparency about which bodies are responsible for what and guaranteeing that they are properly equipped underpins our broader commitment to eradicating modern slavery. It is not just about legal technicalities but about safeguarding human dignity and upholding fundamental rights.

Lord Hunt of Wirral Portrait Lord Hunt of Wirral (Con)
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My Lords, Amendments 263 and 330 standing in my name require the Secretary of State to conduct a consultation on the effects of the provisions in Part 4 on the operation of the Trade Union and Labour Relations (Consolidation) Act 1992 and to report on the outcome and any proposed changes. It is a modest proposal, even a restrained one, but, make no mistake, it is a necessary amendment and a crucial one.

What we have before us in Part 4 is not the result of careful planning, measured engagement or evidence-based policy. No, what we have instead is a so far unconsulted set of sweeping reforms to trade union law inserted on Report in the other place with little scrutiny and even less transparency. I believe it is extraordinary that provisions of such weight, which could dramatically alter the balance of industrial relations right across the country, should arrive in this House having not been through a proper public consultation. The provisions would allow the Secretary of State to rewrite fundamental aspects of how trade unions operate, how they are recognised, how they interact with businesses and how ballots are conducted. This is not a footnote to the Bill. This is, I believe, a redrawing of the boundaries of employment law and industrial relations. It has been done without engaging employers, without informing the HR community and without giving those who will be most directly affected any chance to prepare.

We must ask ourselves who, precisely, was consulted. It certainly was not business. It was not those employers, large and small, who will be forced to navigate the implications of this legislation. We are left to presume that only the trade unions were consulted, or at least advised, because the changes serve their interests almost exclusively. They have access to workplaces in ever-broadening circumstances. There is the weakening of independent oversight by stripping powers from the certification officer; the dilution, or in some cases outright removal, of long-standing ballot thresholds that were introduced to protect the legitimacy of industrial action; and the potential for significant changes to trade union recognition processes that could alter the employer-union relationship fundamentally—all to be done by secondary legislation.

That point cannot be emphasised enough. These changes are not in the Bill. They are hidden in the detail that is to be brought forward later through regulations, through statutory instruments, through mechanisms that allow for no amendment and only limited debate. That is no way to legislate on matters as fundamental as the recognition of trade unions or the conditions for lawful industrial action. These are not administrative details. These are foundational questions of how workers and employers interact under the law. They deserve full, open, transparent scrutiny. They deserve proper consultation.

Perhaps most galling of all is that even when the Government speak of consultation, they do so with inconsistency and confusion. I draw your Lordships’ attention to two statements by the Minister for Employment Rights in the other place, Mr Justin Madders. On 7 May he stated unequivocally:

“No decision has yet been made by the Government as to whether or when to exercise this power. Therefore, there is no planned timetable for consulting on it at present”.


No decision, no timetable, no consultation—yet less than a month later, on 3 June, the same Minister declared:

“The Government will consider what criteria to assess whether to lower the recognition threshold in due course, including through the public consultation process”.


We go from no consultation to a planned consultation in the space of four weeks.

This is not just a contradiction. It is, sadly, becoming a symptom of a Government who are making policy on the hoof and who are unable or unwilling to provide clarity on matters of legal and constitutional significance. Let us talk plainly about what that power is. It is the power to reduce the threshold for trade union recognition to just 2%. No justification is offered for that number. There is no White Paper, no consultation document, no cost-benefit analysis, no report from ACAS, no statement from employer organisations or trade bodies, not a single name that the Government can point to that supports the reduction of that recognition threshold to just 2%.

Yet here we are, with Ministers potentially claiming this power to change that threshold by statutory instrument, out of reach of substantive parliamentary control. Why is it 2% and not 20% or 50%? If the Government believe that a change is needed, surely a change should be in the Bill and the rationale should be available to all stakeholders, including this House. If the Government are not prepared to provide that rationale, surely we are entitled to suspect that it has not been thought through.

How will employers respond to these changes? What of the small businesses, the charities, the start-ups, the growing firms that have never had to deal with trade union recognition processes before? They are not anti-trade union. They are simply unprepared, yet under these proposals they may soon be required to accommodate access, to facilitate recognition and to engage in statutory processes for which they have no guidance, no support and no warning. These employers are being thrown into an environment of legal uncertainty, an environment shaped not by consultation or consensus but by expediency. It is also abundantly clear that the Government have shown little interest in listening when they have, in the past, consulted.

On those parts of the Bill where consultation has occurred, however limited, the views of employers and professionals have largely been ignored. We are hearing consistently that business voices are being drowned out and that legitimate concerns about workability, proportionality and unintended consequences are being brushed aside. What then is the purpose of consultation, if it is treated as a procedural formality rather than a genuine dialogue?

Let me repeat again for emphasis: on trade union recognition itself, there has been no consultation. It was confirmed in the other place. To move forward with such a major change in industrial relations law without even the courtesy of asking stakeholders their views is frankly an abdication of responsible governance.

I do not stand here as someone hostile to trade unions: far from it. I recognise their historic role and their ongoing contributions to workplace fairness and safety. But fairness has to go both ways. Changes of this scale must be fair, transparent and built on consensus, not stealthily inserted into a Bill and then pushed forward by ministerial decree. That is why the amendment matters. It seeks only to do what the Government should have done in the first place. It seeks to restore process and balance where neither is currently present. I urge your Lordships to support it, not out of ideology or political interest but out of principle, out of a shared commitment to deliberative democracy and out of basic respect for all those who will live and work under the laws we make in the House. I beg to move.

Baroness Coffey Portrait Baroness Coffey (Con)
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My Lords, the reason I support the amendment is that it links making sure we get the consultations done and then not proceeding with the legislation until that has been printed. This goes to the heart of trying to understand, in effect, the detail of the Bill and how it really will impact jobs, because that is what this is about; how we will not only help workers but make sure they have jobs to still be in. That continues to be the underlying concern, which is why this perfectly formed group of amendments makes sure that at least this House knows full well what the expectation is that employers have, and the risks and opportunities that are highlighted, before it makes the final decision on when this becomes legislation.

Baroness Coffey Portrait Baroness Coffey (Con)
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My Lords, this whole group of stand part notices is basically about the removal of powers from the certification officer. We have already debated Clause 77. In thinking through what is going on here, I wondered whether there would be anything of a certification officer left, because it feels like a lot of this stripping out of certain aspects—for example, in Clauses 79 to 83—is very limiting in terms of what could be left to be done.

Since the Trade Union Act 2016 came into effect, the world has somewhat moved on in terms of transparency and wanting to know what is going on in an organisation. I appreciate they are not state bodies, but trade unions play an important role in our country. It is important that, while recognising there is a declining membership, not in the public sector but in the private sector, for those people who are contributing money every week, every month, every year—whatever it is—having a good amount of information in a consistent way is a good thing in terms of thinking about how we promote aspects of transparency.

We have had considerable debate, as I say, about Clause 77. But I am struggling to understand what the issue really is—why it is so difficult for these things to be produced. In thinking about investigatory powers, let us put a bit of reality or real life into this. There has been a situation within the last six months where an election for the general secretary of the Fire Brigades Union happened. On a 29% turnout, a person was elected. That turnout of votes equated to something like fewer than 10,000 people casting their votes in favour of that candidate. However, it was subsequently discovered that 3,000 ballot papers were not issued. I am happy to be corrected if I am wrong, but the difference between winning and losing was less than 3,000. Understandably, the person who lost, who had been in post for nearly 20 years, was somewhat aggrieved. However, when it was decided there had obviously been a breach and something had gone wrong, the certification officer went through a proper process. The Government may well argue that it would have been safer to email out ballots, or do an online ballot, rather than relying on the post. I am sure the union staff were not the only people struggling with things not being delivered by Royal Mail at that time. However, after that process, the losing candidate chose not to require the election to be rerun, which would have been within the gift of the certification officer. In terms of general justice, without having to go to the expense of going to the High Court, a certification officer was a simple way to try to remediate something that was clearly unfair.

However, the person who lost—I am not going to name them—was then very quickly appointed general secretary of another trade union. This time, that was challenged directly by the union’s members. In that instance, I think they went not to the certification but immediately to the High Court. So, one person having lost an election, another trade union—that is the teaching union—used its procedures incorrectly to put them in place as its new general secretary. Then, thanks to the legal challenge, the executive committee of that union recognised that it had not acted properly. This same person, by the way, is still acting general secretary of that trade union. The election commences on Thursday; it is up to the members who they decide to vote for, of course.

I looked at the fairness of a variety of the decisions that the certification officer made over time, and the same teaching union was in breach a few years ago because its general secretary outstayed their elected term. They were then made an acting general secretary and, about a year later, there was another election. It is very expensive if trade union members have to go to the courts over these sorts of things. As I researched these clauses and found out what has happened in real life, it reminded me somewhat of Animal Farm, and how—what was it?—“Two legs bad, four legs good” evolved over time to suit the needs of those who decided that they would be in charge.

I appreciate that trade unions might feel that we should not need to have a certification officer, but these are good examples of where people have had recourse to an independent person who, by law, is not subject to ministerial direction. Those people can have complete confidence in the integrity of the certification officer, and that going to them will lead to somebody having a look, without the cost of going to the High Court—as we know, that is expensive. I understand that Labour has this mantra that it is going to repeal anything to do with the 2016 Act, but I really want the Government to consider why, seeing some of the changes that have happened. By the way, at the same time, they are bringing in different rules for employers in dealing with their employees. It is perfectly valid for them to do so, but just imagine the impact these sorts of stories have. It so happens that both the trade unions in my examples are public sector unions, and we have seen their overall membership increase, but we should not be surprised if lack of confidence has started to drift people’s concerns away on why they need to pay to be a member of a trade union.

I wish the Government would consider carefully what the removal of any of these clauses would do to help the average worker and the average trade unionist, who may not be highly connected and may not have chosen to join a political party or to dedicate their lives, from quite an early age, to being part of that trade union leadership. They should also think about, and this is one of the reasons why I got triggered, what happens when somebody completely left-field—or right-field, whatever—comes in and their union’s ruling body decides, “Yeah, we like the look of that person” and they are not sure why; it may have felt sorry that he had just lost an election elsewhere. Let us think carefully about whether it is the right approach to remove all these powers from the certification officer, which I think people from every level can see are used, rarely and not extensively, to apply some common sense.

Lord Hunt of Wirral Portrait Lord Hunt of Wirral (Con)
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My Lords, I will speak in support of my noble friend Lady Coffey. I thank her for bringing forward these crucial amendments to oppose Clauses 76 and 78 to 83 standing part of the Bill. In doing so, she not only upholds the integrity of trade union regulation but calls out a deeply troubling double standard in the Government’s approach to industrial relations.

Employment Rights Bill

Debate between Baroness Coffey and Lord Hunt of Wirral
Baroness Coffey Portrait Baroness Coffey (Con)
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My Lords, I am quite concerned about this amendment, although I rarely disagree with my noble friend Lord Holmes of Richmond. I am just concerned about the number of agencies or government bodies that keep being created. We already have considerable regulation in this country; I am not convinced that this will add value. Although I recognise the reasons why my noble friend put this forward, I hope he might reconsider tabling it again on Report, if he was so minded.

Lord Hunt of Wirral Portrait Lord Hunt of Wirral (Con)
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My Lords, I start by saying how pleased we are to see my noble friend Lord Holmes of Richmond in his place. I had the privilege of moving his previous amendments in his absence, but we are delighted to see him back with us and I thank him for proposing this important amendment.

The way my noble friend did it was very welcome because, at the heart of his speech, was a recognition that the labour market—especially the supply of temporary and agency workers—has to be fair and transparent. He used those particular words and stressed their importance. I agree with him that it is essential that all companies involved in these arrangements operate under the same clear set of rules. Too often, we see instances where umbrella companies or certain intermediaries do not meet the standards expected of traditional employment agencies, whether on pay, workers’ rights or transparency. This inconsistency undermines the integrity of the labour market and can put vulnerable workers at risk. Licensing could, in theory, help address this by ensuring that any business participating in employment arrangements meets minimum standards and is subject to proper oversight.

However, as my noble friend Lady Coffey stressed, the amendment raises some other important questions. Clause 34 broadens the definition of “employment business” to encompass a range of activities connected to supplying workers who are employed by one party but work under the control of another. This means that the regulatory net will be set much wider than before, potentially to cover businesses beyond traditional recruitment agencies.

Moreover, it is worth considering whether the same objectives could be achieved through improved enforcement of existing regulations rather than by introducing a new licensing framework. In this Chamber, we have to weigh carefully the costs and benefits, particularly to smaller businesses that may struggle with additional compliance burdens. We must also consider the impact on businesses and the wider economy. Many employment businesses operate with tight margins; for them, licensing means added costs, added paperwork and longer lead times to launch new services or respond to labour demand.

This is not an argument against regulation per se; it is simply a recognition that badly designed or poorly phased licensing can create barriers to entry, reduce competition and even push some providers underground, where abuses are harder to detect. In sectors that are already experiencing labour shortages, such as social care, hospitality and logistics, the cumulative impact could be significant.

As my noble friend Lady Coffey pointed out, there is also the risk of regulatory duplication or conflict. Some sectors already have licensing or registration schemes; others are subject to sector-specific standards set by Ofsted, the Care Quality Commission or the Financial Conduct Authority. Without co-ordination, we risk creating overlapping regimes, with businesses subject to multiple audits, rival codes of conduct and inconsistent enforcement. Workers too may be confused about their rights and the mechanisms available for redress.

I also note that the amendment does not contain any provisions for parliamentary oversight or consultation. The power it seeks to create is broad and, while it is subject to the discretion of the Secretary of State, it is not constrained by any statutory duty to consult stakeholders. In a sector as economically important and socially sensitive as this, there must be consultation. Against that background, I look forward to hearing the Minister’s response.