Employment Rights Bill

Baroness Lawlor Excerpts

Consideration of Commons amendments and / or reasons
Tuesday 28th October 2025 Lords Chamber

[Lord Collins of Highbury (Lab)]

My Lords, context is of course all-important in this debate. An arrangement was made that lasted from 1945 to 2016, and the important thing to keep stressing is that this is about the ability of unions to express their policies and concerns in a particular way, which, as the noble Lord, Lord Burns, highlighted, is highly regulated. But the decisions of a union involve all the members. The policy of a union is decided by the democratic structures that determine the outcome or objectives of those political funds.

There is no doubt that we were all very surprised and concerned about the sudden introduction in 2016 of something that changed a practice that had existed from 1945, and in 1945 the opt-out was introduced to replace what a Conservative Government had done in 1921. As the noble Lord, Lord Burns, said to me when we met, there had been a swing between two positions that could create uncertainty. But in 2016, everyone in this Chamber knew exactly what the impact of the original proposals in the 2016 Bill would result in, and that it would have a severe impact on the political activity of trade unions.

[Baroness Lawlor (Con)]

Does the Minister accept, in talking about the impact on trade unions, that the position is now very different in terms of the historical context, given that union membership has shrunk to such a degree in the workplace that it is now more dominant in the public sector than in the productive private sector? Does he accept that, under the noble Lord’s proposed amendment, we are pivoting one section of the workforce to a position of dominance over all sections, and it is rather undemocratic?

[Lord Collins of Highbury (Lab)]

I do not accept the noble Baroness’s position at all. In fact, historically, a lot of public sector unions did not have political funds, and if they did, they certainly did not affiliate to any political party. I mentioned in my introduction that when NUPE merged with NALGO, they had two separate arrangements to ensure that the culture and traditions of those two unions could be maintained.

I come back to the point that no one was expecting the arrangement that had existed since 1945—a highly regulated arrangement, let us not forget, around political funds—to suddenly change. I know that noble Lords on the Opposition Benches expressed concern about that. In fact, such concern was expressed across all parties that it resulted in the noble Lord, Lord Burns, organising a Select Committee that actually mitigated against that sudden change of opting into a political fund. The noble Lord proposed a sort of soft landing, so that the measure would not impact on unions immediately, and it was introduced for new members. He has given us the figures about the new members, and certain unions have a churn.

I repeat: political funds are the funds of the whole union policy decision-making process. Individual members, whether or not they contract out of the political fund, still have an absolute right to determine the policy through the democratic structures of that union and can determine whether the union expresses support for one political party or another.

I come back to a fundamental principle, which I urge noble Lords to consider: that a vital ingredient of a healthy democracy is a vibrant civil society, and that is where unions can have an important voice. On many occasions I do not agree with union policies, and on many occasions we may feel uncomfortable about those policies, but they are a vital part of our democracy. What was decided in 2016 was to stop or hinder that voice, and we are trying now to recognise trade unions as a collective voice. I agree with the noble Lord, Lord Burns, that they are not like the National Trust or other such organisations. They are democratic organisations that are highly regulated through a whole host of legislation, and, of course, the political fund rules have to be submitted and approved by the certification officer.

I urge noble Lords to think back to the 2016 debate —to why all sides of this House were concerned about the impact of those proposals, and to focus on why trade unions need to have a political voice. I come back to the point made by the noble Lord, Lord Burns, about new members applying online. The old idea was that the contracting-out provisions were in a rulebook, a magazine published once every so often. Now, the Bill will make it clear to members when they join what they can do. That is an important element of choice. I urge noble Lords to consider the position and to support the Government’s Motion.