Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill

Edward Leigh Excerpts

Wednesday 11th September 2013 Commons Chamber

[Several hon. Members]

rose—

[The Temporary Chair (Sir Edward Leigh)]

Order. Before I call the next speaker, I should say that the amendments are narrowly drafted. I know that hon. Members, when they take part, will not just have a general debate on part 3. That is quite important.

[Mr Djanogly]

I declare any interests I have in the debate arising from my entry in the Register of Members’ Financial Interests.

Essentially, the question on amendment 103 is whether we tweak the existing system for an automatic annual union membership auditing and inspection regime, or, as Labour wants, we tweak the system in much the same way as the Government propose but so that it comes into play only if a complaint is made under the existing rules. I support the part 3 and clause 36 proposals to aid the verification of union membership. The question is how far the measures should go. On listening to Opposition Members on Second Reading, one might have thought that part 3 constituted a massive attack on union rights, or at least a vehicle for what the hon. Member for Wallasey (Ms Eagle), the shadow Leader of the House, has called “cheap” and “partisan” attacks.

The Bill is nothing of the kind, as is immediately apparent when one looks through the Opposition amendments. Their proposals are mainly low-key and technical, and not political. Admittedly, taken in the round, the Labour amendments could be seen as obstructive amendments that seek either to stymie the role of the certification officer or at least to keep him in his existing box, which is why they should be opposed.

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[Ian Lavery]

The hon. Gentleman mentions union intimidation. Does he want to provide some examples of his experience of union intimidation?

[The Temporary Chair (Sir Edward Leigh)]

Order. I do not think we need to get into these wider areas. I repeat that this is a narrow amendment and that the clause itself is very narrow.

[Mr Djanogly]

Unison and Unite now account for approximately 40% of total union membership. As such, it follows that the larger unions are becoming increasingly powerful politically and economically, and with power comes responsibility and the duty to be accountable. We can make a comparison with companies and the difference between how private and public companies are regulated. It is therefore right that union obligations to administrate themselves correctly, such as membership records, are subject to a suitable level of oversight and scrutiny, and the clause provides for that. I note that the Labour party seems to accept the number of 10,000 as appropriate for the higher level of regulation to apply.

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[Mr Djanogly]

Let me give the hon. Gentleman an example. If we are to have the provision to audit members, we should know what “member” means. This is a fundamental omission, as was shown with the miners compensation scheme.

In that situation, certain unions created a new class of “associate membership”, with no rights other than the right for the claimants to be referred to the union-picked no win, no fee lawyers, from whom the unions then took a kickback commission. The scam was uncovered and the lawyers were heavily penalised by their regulators. However, not—

[The Temporary Chair (Sir Edward Leigh)]

Order. I have given the hon. Gentleman some leeway, but if he looks—as I know he has: he is a very skilful Member—he will see that this is a narrowly drafted clause. Will he please now restrict himself to the amendments and the duty to provide membership audit certificates, and not give a long history of the trade union movement?

[Mr Djanogly]

Thank you for that clarification, Sir Edward.

The point of amendment 103 is to ask the purpose of the clause, and that is right. If the purpose is to deal with auditing members, perhaps we should be talking about what constitutes a member and what is to be audited. Would it include the associated membership that we saw in the miners compensation scheme, for instance? Should the audit include a description of their rights as members? Alternatively, do we want to know accurately the number of members, so that this can be tied to union political contributions? If so, the Bill might not be as effective as some people think. That is because trade unions have not necessarily been affiliating the same number of members as have been contributing to the political fund. They may affiliate phantom members in order to get more union votes on Labour party matters. I am unsure what effect auditing membership numbers would have in that situation, other than to verify how bizarre Labour’s relationship with the unions can be. Again, however, a sense of direction for future reform from the Government would be helpful.

I support this Bill, because I can see nothing to object to in principle—it basically just repeats and fortifies what has been around since the 1980s. I hope that hon. Members do not take what I have said as anti-union, because I am not anti-union. However, I strongly believe that union law is way behind the times and desperately in need of reform. Can anyone really argue that legislation and procedural regulations passed in the mid 1980s are still adequate now? Although I disagree with Labour’s amendment 103, I appreciate its wider implication of showing up the lack of Government purpose and direction behind these provisions. Given the time the coalition Government have had to formulate policy on these key issues, which have a significant impact on the people of this country, we could and should be doing much better. This is a missed opportunity to reform industrial relations law.

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[The Temporary Chair (Sir Edward Leigh)]

Order. The hon. Lady is introducing her speech. I give a certain latitude, but I know that, as a skilful Member, she will soon get on to audit certification.

[Yasmin Qureshi]

I will move on swiftly, Sir Edward.

Let me return to the trade union aspect. The provisions in this Bill have been designed just to cause more bureaucratic headaches for trade unions. All they mean is that trade unions will have to spend more of their members’ money—let us remember that these are the 7.2 million ordinary working people, as my hon. Friend the Member for Edinburgh South (Ian Murray) pointed out, who are members of trade unions and pay their subs. The Bill would mean that trade unions had to spend more money on trying to comply with the system. Surely that cannot be right. Trying to put that provision in legislation dealing with lobbying as a whole is completely wrong. It is unfair. What is the mischief that the Government are trying to deal with? The mischief is big money and corporate enterprises, yet this Bill does nothing to address such lobbying. All it does is impose a financial burden on unions that rely solely on subs from their members.

The Government are often accused of being out of touch and only looking after the rich and powerful. Surely it is about time they sent out the message that actually they do care about the ordinary person and are perturbed that their living standards and wages are going down. The Prime Minister was not willing to acknowledge those issues at Prime Minister’s questions. The issue of living conditions was put to him time and again, and he was asked about the living wage, yet he refused to answer or to acknowledge the fact that people’s living standards have gone down. We are talking about the same people who have to pay their trade union subs out of their own pay packets. And before anyone says, “Why are they giving the trade unions their hard-earned money?”, I will tell them the reason. In the workplace, the only person a worker can rely on if things get hard is their trade union representative.

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[John Cryer]

Of course I agree, but there has always been a legal framework for taking industrial action. The idea that anyone ever takes industrial action—not only strike action, but action short of strikes—lightly is a myth. That just does not happen in the real world.

[The Temporary Chair (Sir Edward Leigh)]

Order. The hon. Gentleman has been very well behaved so far and has stayed entirely in order, but he has been led astray by the hon. Member for Dover (Charlie Elphicke). He should now return to the clause.

[John Cryer]

I am told that the hon. Member for Dover (Charlie Elphicke) regularly leads people astray—[Interruption.] I do not mean that; I am joking.

As has been said repeatedly, we were first led to believe that this measure would be a lobbying Bill, but since then parts 2 and 3 have been added. We had been promised a lobbying Bill for three and a half years, but all sorts of things have been bolted on to that. Why was there no consultation paper on not only part 2, which we dealt with yesterday, but part 3 and provisions such as clause 36? Why could not the Government have issued a consultation paper so that people could have contributed to the process, rather than ramming the Bill through in a few days, despite introducing it just before the recess? These measures should have been thought through carefully and a consultation process to which people could contribute should have been held, but that simply did not happen.

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[Mr Doran]

I always support my leader.

[The Temporary Chair (Sir Edward Leigh)]

Order. Members cannot just make something up and say that it should be in the clause; they must relate the debate to what is in the clause already. The hon. Member for Dover (Charlie Elphicke), who has been here quite long enough, should learn how to behave properly.

[Mr Doran]

I hope that I took it in good part, Sir Edward.

The decision on the legislation that was to proceed was taken under the process I have mentioned, and everything agreed between the CBI and the TUC was implemented. At its heart was the need to take the heat out of industrial action. We looked at a whole range of areas. One key area was the problem of recognition disputes, when unions had built up a membership in a company and wanted recognition. Many such disputes ended up in the courts and in difficult strikes. We wanted to take the heat out of all areas of conflict. All of that was implemented in the Employment Relations Act 1999. The evidence was a dramatic reduction in the number of strikes—my hon. Friend the Member for Edinburgh South mentioned the number, but I cannot remember—and that has been maintained. I do not think that there is any question about that.

During the Conservative years, and the previous Labour years, to be honest, the level of strikes was far too high. That legislation and that process brought that to an end, and at the time both sides were happy. Even before that legislation was implemented to set in place a process for dealing with recognition disputes, and the effort was to take them out of the courts and minimise conflict, over 1,000 new recognition agreements were signed by both sides.

One of the major problems with this Government is that they have a one-sided approach that demonises trade unions and in every way possible places barriers in the way of the trade union movement. There is no realisation of what happens on the ground. Most trade unions are there not to strike or disrupt the employer, but to protect their members. As part of the process I mentioned, we did a lot of balloting and held focus groups to find out why members signed up to unions. The important thing for most of them was the insurance policy that they got—the fact that the union would support them if there was an argument with their employer, and in particular would pay for the lawyers in an unfair dismissal case, for example. That is what members bought into.

One of my concerns about the Government’s approach is that the harder it becomes for trade unions to operate properly, as trade unions should be allowed to operate in a democratic system, the more members will become tired of the system and have no proper recourse for their grievances. I do not often agree with my hon. Friend the Member for Hayes and Harlington (John McDonnell) on these issues—

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[The Temporary Chairman (Sir Edward Leigh)]

Order. The hon. Gentleman should leave the subject of Sellafield and come back to clause 36, please. The discussion is getting very wide.

[Mr Doran]

Two hundred trade unionists turned up to lobby us at the meeting we attended. The point I was trying to make, Mr Leigh, was about the relationship between a good union and a good employer.

My hon. Friend the Member for Leyton and Wanstead (John Cryer) raised union problems. There are two ways of looking at the matter. Either the Government do not know what the problems are, in which case they are negligent, or they know the problems and want them to be exploited. There are major difficulties in the path of any trade union that wants to keep proper records.

The first difficulty is the churn rate. My hon. Friend said that it was 10% or 15%, but the churn rate for the Union of Shop, Distributive and Allied Workers, for example, is 25% or sometimes 30%. Every year it has to replace 25% of its membership. A lot of members go on to other jobs. They pay their union dues by direct debit and think they do not need to bother to tell the union that they have changed workplace, because they are still working in the same business and paying their union dues. That is difficult for unions. There are lots of practical issues such as that.

The biggest employer in my area is the North sea oil and gas industry, which employs about 30,000 workers offshore and 150,000 onshore. All have different status in the workplace. Many union members are self-employed and many work from company to company. At the moment, there is a massive skill shortage in the North sea. Wages are being ramped up—not a problem in the rest of the country, I know—because people are being enticed to other companies, but still working in the same business, travelling on the same unsafe helicopters and paying their union dues as usual through their bank accounts. Those are all massive problems.

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[Ian Lavery]

It would be helpful if the Minister explained who has been consulted in this process—a lot of people would be interested to hear that. My view is that it would not take long to explain how many people have been consulted, because it is only one or two. The trade unions individually and the TUC collectively have not been consulted.

Getting back to the Bill—

[The Temporary Chair (Sir Edward Leigh)]

Order. The hon. Gentleman should already be on the Bill.