Employment Rights Bill

Baroness Meacher Excerpts

Committee stage
Thursday 5th June 2025 Lords Chamber

[Lord Palmer of Childs Hill (LD)]

My Lords, this group of amendments relates to the role of collective bargaining and particular proposals concerning a social care negotiating body. At this late hour, I do not intend to repeat the detailed points already made in the earlier group, but I take this opportunity—and I hope the Minister listens to this—to recognise the Government’s ongoing work to address the significant challenges facing the social care sector. These are complex issues, and the sector continues to face real pressures on workforce stability, recruitment and pay.

Amendment 322, which touches on fair pay agreement arrangements in social care and the possibility of their broader application, reflects one approach to addressing those concerns. While views will differ on the precise mechanisms and scope of reform, it is important that the Government continue to explore options to improve outcomes for both workers and those who rely on care services.

Having listened to the previous speakers, I wondered, “Gosh, am I the only one who is not in a trade union?” It seems that collective bargaining is about the views not just of the trade union but of people the gathered together who are not necessarily trade unionists. I feel uncomfortable that the views of the trade unions will affect the Government’s view of this. Collective bargaining is good; I am all for it. The general reduction in trade union membership has affected the ability of collective bargaining, but very often collective bargaining produces some benefit for those who have been part of it. Those working in any sector in the country know that one person’s benefit is very often less of a benefit for another person, and there is possibly less employment because wages have gone up. The current collective bargaining in the medical world will have a knock-on effect, and we have to think about that. I am all for collective bargaining and people getting better conditions and pay for the job, but thought has to be given to the knock-on effect.

We on these Benches note the intention behind these amendments and the reference to international frameworks and obligations. At this stage, we remain neutral on their detail, but we support continued dialogue on how to strengthen the resilience and sustainability of the social care workforce. I look forward to hearing, when the Minister replies and on Report, how the Government intend to do that. Collective bargaining will probably be part of it, but it is a much wider issue than purely that.

[Baroness Meacher (CB)]

My Lords, I support the noble Baroness, Lady O’Grady. I am not a trade unionist, but I am very aware that there are sectors of the economy that are not unionised. Can the Minister inform the House whether there are sectors that are disadvantaged in terms of wage levels, and whether there are plans to unionise them?

[Lord Sharpe of Epsom (Con)]

My Lords, I thank all noble Lords for their contributions to this debate, which has been very interesting. The noble Lord, Lord Hendy, talked at some length about delivering a new deal for working people. He ranged fairly freely, so I might, too.

Did noble Lords opposite notice that a report published yesterday showed that there are now 150,000 fewer jobs since the Government took power? It is all very well delivering a new deal for working people, but there will be fewer of them, and this Bill will contribute to that. Noble Lords may not have seen it because it has only just come out, but a British Retail Consortium survey has just been published which shows—I am sure we will return to this theme next week—that half of retail directors now think they will reduce hiring, and 70% say the ERB will have a negative impact on their business.

Frankly, I am slightly staggered at the noble Lord’s Amendment 260, which seeks to return us to various EU standards, given that EU unemployment is, of course, generally significantly higher than it is in this country. Is that what the noble Lord aspires to? I am sure he does not, but that is how it looks.

The proposal to create statutory joint industrial councils raises significant concerns, not least the proliferation of new public bodies at a time when government and regulators are already stretched. Each of these councils would require administrative infrastructure, governance mechanisms, sector-specific expertise and ongoing support from both ACAS and the Secretary of State. This approach risks duplicating existing frameworks. We already have voluntary collective bargaining structures, recognised trade unions and sectoral engagement mechanisms in many industries. Superimposing a statutory model could complicate rather than enhance industrial relations, particularly in sectors where informal or local agreements are working effectively.

There is also the issue of flexibility. The statutory model risks creating rigid sectoral definitions that may not reflect the realities of modern hybrid or cross-sector employment. The labour market today does not always fit neatly into traditional categories, and it is unclear how the Secretary of State, even with ACAS guidance, would determine sectors without inadvertently excluding or misclassifying employers and workers. We must not overlook the potential for conflict or delay. Setting up these councils, negotiating procedures and achieving consensus across large and diverse sectors could slow down progress on pay and conditions, rather than speeding it up.

That is not an argument against collective bargaining. It is an argument for targeted, effective solutions that reflect the complexity of today’s economy, not a revival of structures drawn from legislation that is nearly half a century old. The world has changed. Where stronger bargaining is needed, let us work through existing mechanisms and invest in enforcement, rather than defaulting to the creation of statutory councils that may struggle to function as intended. I look forward to hearing from the Minister.