Trade Union Bill (First sitting) Debate

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Department: Department for Education
Tuesday 13th October 2015

(8 years, 6 months ago)

Public Bill Committees
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Jo Stevens Portrait Jo Stevens (Cardiff Central) (Lab)
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Prior to the election in May, I was a director and partner of Thompsons Solicitors LLP, which is giving evidence to the Committee. I am also the partner of the chief executive of Thompsons, who is giving evidence to the Committee. Clients of my former firm included the Royal College of Midwives, GMB, Unison and Unite, which are giving evidence to the Committee. Finally, I am a member of GMB and of Unison.

Ian Mearns Portrait Ian Mearns (Gateshead) (Lab)
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I am a member of Unison and Unite the union.

Jessica Morden Portrait Jessica Morden (Newport East) (Lab)
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I am a member of the GMB union.

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None Portrait The Chair
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If you want to ask a question, try to give us plenty of warning, so that we can fit you all in. It is going well at the moment; I hope that we will get everyone in.

Ian Mearns Portrait Ian Mearns
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Q 11 It is a pleasure to serve under your chairmanship, Sir Edward.

From the perspective of the three witnesses, what are the main drivers of supporting this Bill? We have heard that industrial action involving strike action is at a 30-year low, but the witness from the British Chambers of Commerce has said that industrial action has an impact, for instance, on productivity. Does strike action have a detrimental impact on productivity that is as bad as other factors in the economy, for instance, bearing in mind that, overall, British workers are about 25% behind French workers in terms of productivity? Is it factors such as industrial action that are causing that 25% gap? I doubt it, given the 30-year low in strike action. I also wonder whether you are really supporting this Bill just because it is an opportunist-type thing—the opportunity presents itself, and therefore we might as well go gung-ho and support it.

None Portrait The Chair
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You can answer any way you want.

David Martin: I will happily respond to that one. In my sector, which is the delivery of a public service, passengers rely on buses or trains to get to work, school, leisure activities and retail outlets, where they spend money. I think it is fundamentally wrong if there is not a clear mandate from the workforce when taking up a dispute with the employer. Assuming that the legislation goes through, the modernisation of the process to provide clarity and a practical, working situation can only be beneficial.

Ian Mearns Portrait Ian Mearns
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Q 12 But in your evidence you gave two London examples. Are we using a national sledgehammer to crack a London nut?

David Martin: From my perspective, it is a failsafe. If things go wrong and disputes arise, having a strong trade union relationship, and a strong trade union leadership with a strong mandate, leverages the employee’s position to negotiate with the employer. I think it is a win-win, frankly.

John Cridland: The concern in the business community has always been about disruption. I have the privilege of speaking for an organisation that represents 190,000 companies, and clearly the overwhelming majority of those companies are small. As small businesses, they are consumers, too. When getting their products to market and their employees to work, disruption is the factor that impacts on their business. That has been CBI policy for more than five years, so it is not opportunistic. We have advocated this sensible modernisation for more than five years.

Ian Mearns Portrait Ian Mearns
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Q 13 Do you agree that the CBI has a major concern about the impact on productivity and that there are clearly other factors in the economy that are impacting more on productivity at the moment than industrial action?

John Cridland: I would not underestimate the impact of significant disruption in the running of an economy on the overall performance of the economy, but the argument I have made is one primarily related to disruption. I agree that productivity relates to a range of factors. It is a cocktail of factors, of which this is only one.

Dr Adam Marshall: I would simply add that the vast majority of my members are in 52 accredited chambers of commerce the length and breadth of the United Kingdom outside the M25, so business support for some of the measures in the Bill is not a London phenomenon.

On productivity, I raised the statistics very early because arguments are made about this Bill using only statistics that count direct days lost to industrial action. Had National Statistics been collecting information on the indirect effects of industrial action for many years, we could have a much more informed argument. I know that when millions of people are out of the workplace because they cannot get to work, and when millions of people are at home because their children are out of school, for example, there will be a productivity impact. I completely agree with you that that does not mean that the productivity per hour gap between the average British worker and the average French worker is entirely down to this, but there is certainly an impact.

Ian Mearns Portrait Ian Mearns
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Q 14 In the aftermath of this session, will you write to us to present us with the evidence you have to back up those statements?

Dr Adam Marshall: I would be very happy to look at what evidence is available. As I say, the statistics collected by National Statistics are not acceptable.

Rishi Sunak Portrait Rishi Sunak (Richmond (Yorks)) (Con)
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Q 15 Thank you all very much for being here. I am sure that everyone here agrees that the intimidation of non-striking workers and illegal activity on picket lines is wrong and that it is concerning to read reports of that. What are your experiences of picketing from an employer perspective? What are your thoughts on the current status of the code of practice and the provisions in the Bill to put that on a statutory footing? Do you think it does enough to reduce the concerns that some of us might have about behaviour in this area?

John Cridland: The principal concern of business is where picketing action does not fit in with the code. Generally, I think the code works well. The Bill contains a sensible provision to bring legal recognition to the part of the code that it covers, and I think the major provision in the Bill that would impact on picketing is the requirement to have an official who is clearly responsible, and who the employer knows to be responsible, for the actions of the picket line, which is something that employers welcome. I think that is a relatively moderate change to the existing legislation. It builds on a code that has served us well.

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None Portrait The Chair
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No, do not hog it. I call Ian Mearns.

Ian Mearns Portrait Ian Mearns
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Q 79 I am grateful, Sir Edward. I understand from social media links that I read yesterday that many of the suggestions in the consultation on the Trade Union Bill are likely to be withdrawn, although we have not had that confirmed yet. I find that disappointing, because I was personally looking forward to a sustained bout of wildcat or secondary tweeting. The Government’s proposals treat abstentions as no votes. How would it impact, for instance, on the likelihood of a trade union ballot reaching a threshold if everyone who wants to vote no just abstains? Would that raise any prospect of legal challenge, given that the ILO has confirmed that only votes cast should be taken into account in industrial action ballots?

Stephen Cavalier: On the point about thresholds, as the Regulatory Policy Committee has said, the likelihood is that the existence of the thresholds will have an impact on turnout and behaviour. In terms of modernisation and coming back to the previous question, if we are genuinely looking to modernise trade unions, electronic and workplace balloting are essential for that and for increasing turnout. You are absolutely right that the provisions under the ILO convention specifically say that an abstention should not be treated as a no vote, and that is a clear area of potential illegality. There are not similar thresholds in any other European Union member states or Council of Europe convention states. The Bill introduces a new requirement that is likely to be found to be unlawful. In particular, the treating of an abstention as a no vote is likely to be subject to legal challenge.

Ian Mearns Portrait Ian Mearns
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Q 80 In terms of an international comparator, who would this provision put us in line with?

Stephen Cavalier: I think the only threshold is in Bulgaria, where there is a 50% threshold, which is likely to be under challenge.

Ian Mearns Portrait Ian Mearns
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Q 81 So, for UK, read Bulgaria.

Stephen Cavalier: Quite possibly.

None Portrait The Chair
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We do not want any anti-Bulgaria comments.