Public Sector Pay: Proposed Strike Action Debate

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Department: HM Treasury

Public Sector Pay: Proposed Strike Action

Edward Leigh Excerpts
Tuesday 1st November 2022

(1 year, 5 months ago)

Westminster Hall
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None Portrait Several hon. Members rose—
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Edward Leigh Portrait Sir Edward Leigh (in the Chair)
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If everybody is to get in, you need to limit your comments to five minutes, please. I call John McDonnell.

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Chris Bryant Portrait Chris Bryant (Rhondda) (Lab)
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It is always a delight to see you in the Chair, Sir Edward.

I should declare that I am a member of the GMB. When I was a priest in the Church of England, no union would take us, because if we did go on strike, it would not be very obvious what had not happened. MSF took us on for a while, and then we became members of Unite, but when Burberry was trying to close its factory in Treorchy, Rhondda, a few years ago, I worked so closely with the GMB that I thought it was right to join. I am a very proud member.

I start with the principle that it is a fundamental human right for people to be able to withdraw their labour, and any attempt to undermine that right is a contradiction of all our human rights. There may be many different reasons why someone needs to withdraw their labour, but it is worth reminding people that no trade unionist, trade union leader or member of a trade union ever takes the decision to go on strike lightly, for the very simple reason that, apart from anything else, it costs them and their family money—goodness gracious, the miners of the Rhondda knew that in spades back in the 1980s. Individual members of trade unions are proud of the work they do, so they do not want to not be in work—they want to be in work.

Many of the people we are talking about have been described as “key workers”. That phrase came into existence during the covid pandemic, when people suddenly discovered that bus drivers, train drivers, bus conductors and people who work in supermarkets or for a local council—many of whom suffered more than anybody during covid, because they were at daily risk—are all key workers because the whole of the rest of the economy simply cannot function without them. Those people know that they are essential to society, and they do not want to let down their customers, clients, passengers and patients or the people with whom they work. They are proud of their work, and they want to be in work, so it takes a lot to get a trade union or an individual member to vote for strike action.

My constituency neighbour, my hon. Friend the Member for Cynon Valley (Beth Winter)—not “Sinon Valley”, as Tony Blair always used to call it—is absolutely right about the cost of living crisis. Energy costs in our constituencies are often even higher because many homes are difficult to insulate and to keep warm and dry, as they are basically made out of stone and rubble. If someone is on very low wages, seeing their energy costs double in a year makes a dramatic difference, whatever the Government may have done this year, and people are anxious about what will happen after April. Inflation for the poorest is even higher than the 10.1% that has been mentioned, not least because poorer people spend more of their money on the essentials in life—food, energy and housing costs—and the cost of cheaper brands has risen the most. The cost of things that fill kids’ bellies more readily, such as pasta, have risen by 45%, 47% or 48%, while bread has gone up by 34%, so inflation is even worse for the poorest.

My constituency may be different from other poorer constituencies, because more than 70% of people in the Rhondda own their homes. Many have small mortgages, but some have substantial ones. They may not have taken a long fixed-rate mortgage, because they were not sure how things would work out and did not want to be in a difficult situation in five years’ time. If someone sees their monthly rate going from £300 to £500, they will be thinking about losing their home. The problems that many pensioners are having are intensified by the fact that, if they had a small pension pot of, say, £35,000 in July, it may now be worth only £25,000 after the mini-Budget, so the annuity they might get if they retire now will be lower.

Then, on top of all that, there is wage suppression, which we have seen for 12 years for nearly every key worker. Apart from anything else, that has been counterproductive. One reason we are not getting people back into work is that there is an enormous backlog in the NHS. I am not making a partisan point here, because we have the same problem in Wales—there is an NHS backlog across the whole UK. If wages are suppressed in the NHS, fewer and fewer people will choose to work in it, more and more people will retire, and more and more people will leave it entirely, which will exacerbate the problem.

I completely support the CWU’s strike at the Royal Mail. It seems utterly preposterous to make such a small offer to the workers when significant amounts have been awarded to senior managers and shareholders. That is completely wrong. In my patch, people are worried about Royal Mail deliveries, but I am not blaming the staff; I am blaming the managers, because quite often they simply have not employed enough people to get the work done. I should add that I also support the CWU in its dispute with Openreach, which suffers from exactly the same problems as the Royal Mail.

My final points are about the Government’s role. First, it is to ensure that the laws in this land are fair to the employer and the employee. I do not think we have laws that are fair to the employee at the moment—I think the law is unbalanced. The former Prime Minister—the one we have just lost—would not have been able to become Prime Minister if the rules that presently exist for a strike ballot had been exercised for her. That is an utter hypocrisy in the Government’s line.

Secondly, where the Government have a direct, indirect or even just tangential interest or role in a dispute, they should do everything in their power to keep both sides at the table. In my experience, trade union members and trade union officials are the best deal makers in the land. The Government should learn from them and not the other way round.

Edward Leigh Portrait Sir Edward Leigh (in the Chair)
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Let us be fair to all our colleagues—five minutes, brothers, please.

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Tony Lloyd Portrait Tony Lloyd (Rochdale) (Lab)
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Let me add to the point made by my hon. Friend the Member for Leeds East (Richard Burgon). Why not make people like me pay national insurance contributions once we have passed the statutory age for retirement? Why not lift the cap on national insurance contributions, which would raise real money for our national health service? That would be a credible way forward. I hope that the Minister has listened intently. It is perhaps unfair that she is nearly on her own, apart from the hon. Member for Broadland (Jerome Mayhew).

It is true that the internationally recognised right to strike is circumscribed quite badly in this country. However, the real question that Conservative Ministers should address is this: why are so many people, across so many occupations, so angry that they are prepared to take industrial action? We have seen it with Royal Mail, Openreach, the Fire Brigades Union and PCS, and I could go on.

I want to concentrate on a couple of issues. In the end, when people take the opportunity to go on strike, it points to a fundamental malaise in the workplace. They have very few alternatives. One is to look for work elsewhere. That is a real issue when there are around 132,000 vacancies in our national health service, and when a third of teachers are leaving teaching after five years, when they have seen their salaries go down by around 20% since austerity began in 2010. The issue of retention should worry the Government just as much as the summer of solidarity and the woeful winter that we are heading into.

The Government have to get real about this situation. Looking at the national health service, it has been said so many times that it is almost tedious to repeat that we applauded health workers during the pandemic, but now we are saying to health workers across the piece that we do not value their work. It is astonishing that the Royal College of Nursing and the Royal College of Midwives are balloting for industrial action. It is almost beyond belief, and certainly beyond any kind of precedent. The Government should worry about that, because they have broken something that was precious: the commitment of people to their workplace and to those whom they serve, because they now have to look at defending their own families.

It is not that midwives and nurses do not want to be there for the people whom they serve. I have had great experiences with the national health service; I know the dedication that people are prepared to give on a daily basis. We have to ask: what has gone so badly wrong that the Government have forced people into this situation? It is similar with teaching. Healthcare and teaching are two professions that are so fundamental to the quality of our way of life. We can talk about the private sector generating resources, but when someone is ill, they want a nurse, and a child wants a teacher. Those things are so important.

Now that we are in this crisis, the Government have got to look in the mirror and ask themselves what has gone wrong. Of course we can find alternative sources of funding, and we must, because that is the political choice. My challenge to the Minister is not to condemn strikers; I will support those who feel they have to take industrial action. I want them not to strike, but that depends on the Government coming forward and agreeing to make the political choice to not go back into austerity for those people in the public sector. They need to make the political choice to reward them in a way that is adequate. The Minister on her own today may not be able to give us an answer, but I urge her to go back and tell the Prime Minister and the Chancellor that this is what we demand.

Edward Leigh Portrait Sir Edward Leigh (in the Chair)
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I remind hon. Members that if you wish to speak, it is courteous to be here right from the beginning. I call Claudia Webbe, but just for a couple of minutes—it is not fair on the Opposition spokesman otherwise.

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Edward Leigh Portrait Sir Edward Leigh (in the Chair)
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Order. Could the hon. Lady bring her contribution to an end?

Claudia Webbe Portrait Claudia Webbe
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I will wind up now. That is despite the Government wanting a return to feudal Britain. Austerity, which has been debunked by many progressive scholars as economically illiterate, needlessly pushed working people into another level of destitution, and contributed to more than 140,000 deaths in the UK. Put simply, whether it is austerity or the cost of living crisis, crisis after crisis has made the UK worker pay with their lives while inequality widens and the wealth trickles up.

Edward Leigh Portrait Sir Edward Leigh (in the Chair)
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Order. I am afraid I must end you there.

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Beth Winter Portrait Beth Winter
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I thank all Members for their contributions. As others have said, it is woefully inadequate that nobody from the Government Back Benches is present.

In summing up, there are three key points for me. First, it is time for the Government to listen. Given the Minister’s comments just now, I really despair, because it seems she is not listening to the reality for so many people in this country—

Edward Leigh Portrait Sir Edward Leigh (in the Chair)
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Order. Sorry, but I have to end the debate at 4 o’clock sharp. I have no choice; I apologise.

Motion lapsed (Standing Order No. 10(6)).