Employment Rights Bill

Baroness Noakes Excerpts

3rd reading
Wednesday 3rd September 2025 Lords Chamber

[Lord Balfe (Con)]

My Lords, I will probably not find a lot of favour on this side with what I am about to say. I remind the House that I am the honorary president of BALPA, the pilots’ union, a union that does not go on strike and does not regard militant industrial action as an achievement. A dispute that leads to a loss of work for our employees is a failure, not a success. I also remind the House that 30% of trade union members vote for the Conservative Party. People might say, “Well, there’s something wrong with them”, but I do not think that there is. The truth of the matter is that there is very little politics in trade unionism. Through several years, I have sat on the executive of BALPA, and we just do not discuss politics. Occasionally, things come up where we have to comply with some regulation or other and there may be a discussion, but the discussion is probably about the cost of complying. One of the things that I have noticed is the huge growth in legal fees that the union is dishing out. We are the nearest that the legal profession has got to a recruiting agency. We always seem to be paying KCs a lot of money to get us round the law. I am not aware that our union has ever broken the law.

I hope that we will move forward and regard this Bill as the starting point of a consensual approach to industrial relations. We are all basically on the same side. I mentioned that 30% of trade unionists vote Conservative. In the pilots’ union, it is over 50%. They are not impressed with this “Punch and Judy” approach to trade union legislation in recent years.

I appeal to all the House, the Government and the Opposition to work to get a consensual basis for trade unionism. I look across and I see my friend Brendan, the noble Lord, Lord Barber, who did enormously good work at ACAS, and that is the sort of organisation that we need. It attempts to smooth out the problems that we have in industry. At the end of the day—yes, I am going to wind up—our employees want a wage and our employers want a successful business. We recognise that. This should help to build that up, and I certainly hope that it will. I wish the Bill well.

[Baroness Noakes (Con)]

My Lords, we have certainly improved the Bill during its passage, but it remains a very bad Bill. It is bad for business, which means it is bad for the economy, and it is just terrible for people who want jobs.

It is also a dreadful time to be making such significant changes. The economy is stressed. The Bank of England has failed to tame inflation, and we now have the highest rate in the G7. Speculation abounds about how big the black hole is in the Chancellor’s Budget preparations. Bond markets can see that our economy is in trouble and they have hiked gilt yields to levels not seen since 1998. Sterling is on the slide. It feels like the 1970s all over again.

Businesses are still reeling from the impact of the national insurance increases on top of the significant increases in minimum wage rates. This is already taking its toll. The Resolution Foundation said last month that it reckons the unemployment rate will have increased to 5% this month.

Almost all the employment data are negative. Payroll numbers are down, job vacancies are down, the PMI employment index is down and economic inactivity is up. Against that background, creating new employment rights and going back to 1960s trade union legislation is not far short of suicidal for the economy.

The Government say the Bill will cost £5 billion, adding to employment costs. Most of that will fall on the SME sector. That is bad enough, but the bigger problem is that the Bill will work against economic growth. Instead of job creation, we will have more job destruction.

In the other place, the Government have an opportunity to accept the modest changes that your Lordships’ House has made to the Bill. Those changes are moderate and will not remove all the Bill’s harmful effects, but I hope that the Government will at least take this opportunity to modify the impact of the Bill.