Stephen Lloyd
Main Page: Stephen Lloyd (Liberal Democrat - Eastbourne)(10 years, 8 months ago)
Commons ChamberRead Full debate Read Hansard Text
Stephen Lloyd (Eastbourne) (LD)
I congratulate the right hon. Member for Oldham West and Royton (Mr Meacher) on securing the debate.
It is a pleasure to follow the hon. Member for Hayes and Harlington (John McDonnell). I know that employment rights are an issue for which he has fought for a long time and I appreciate some of the information that he discussed, especially in relation to Network Rail and the maritime industry. I want to explore those topics further because I support his comments.
I compliment my hon. Friend the Member for Watford (Richard Harrington). It is not the first time I have tended to agree with him when he has spoken in the House. Although employment rights are very important—crucial in many ways—and I will discuss them as my speech progresses, to me the most important thing that the coalition Government have achieved in the past three years is a remarkable success on the jobs front. I have only to look across the sea to see what has been happening in Europe, where France, Spain and Italy have been devastated by the numbers of people who have become unemployed, and compare that with what we have achieved in the UK through considerable effort by employers in the private sector, by Government in the public sector and by our fellow citizens.
We have employed almost 1.5 million people in the toughest recession I have ever been through. I am 56 years old. I was in business for many years before I went into politics. This is my fourth downturn and it is far and away the toughest one that the country has been through in my experience. Despite that, by working together to give so many people jobs in comparison with the rest of Europe is testimony to the enormous effort and work that so many people have done in this country. It is brilliant.
In Eastbourne, following close working between the chamber of commerce, the Federation of Small Businesses, the council and the training colleges, the latest figures for August show that unemployment is down to 3.9%, the lowest rate since 2009. We have seen more than 2,500 apprenticeships since I launched the 100 apprentices in 100 days campaign two and a half years ago.
My point is that this has been an appalling recession. I know so many business owners and staff who have worked so hard over the past few years to keep jobs and get through the recession. I know employers who have said to their staff that no one would get a pay rise for the next 12 months, or 24 months, including directors, so that they can get through. Other employers have said that they will take a 20% pay cut to get through. I have never known anything like it.
I compare that with previous recessions, when unemployment shot up and there was tremendous animosity between employers and employees. This time, despite what some Opposition Members say, that has not been the case. There has been an understanding, particularly in the private sector, that, “My God, if we are going to get through this we have to roll up our sleeves.” It has really worked, because we have 1.4 million new employees after such a shocking recession, and we are not out of the woods yet. I think that should be lauded to the skies. It is absolutely magnificent. I think that it has worked only because both parties have worked together.
Mr Stuart
My hon. Friend is absolutely right to highlight the 1.4 million new private sector jobs. The credit for that should go to the people who displayed solidarity, because they put their immediate, personal interests behind the group interest. That is one of the reasons that so many people have stayed out of the dole queues, contrary to what all the experts and economists predicted. It is a success, and it is enormously to the credit of those people. What we need to do now is improve our skills and earn more money so that everybody can have a decent wage.
Stephen Lloyd
I thank my hon. Friend for that intervention. That is precisely my point. It has been an exceptional example of community work between employees and employers. I should also explain that unfortunately I have hearing only in my right ear, which is why I was not sure where the intervention was coming from.
From the Liberal Democrat perspective in the coalition, the issue of employment rights is important issue because it is about fairness. Although it is incredibly important to me, as a Lib Dem, that employees have as many sensible rights as possible, I want flexibility. I recognise that the vast majority of employers are good employers, and that the vast majority of employees are hard working and dedicated. The challenge with regulation is how to make it flexible while at the same time preventing grotesque employers.
I have a good example that I have addressed to the Minister. As she knows, one of the campaigns I have been working hard on, both personally and as chair of the all-party group on Citizens Advice, relates to something I discovered in my constituency and later discovered was true nationally. Many employees, some of them very vulnerable people, go to an employment tribunal for unfair dismissal or non-payment of wages. The employer might lose, but the vulnerable employee never gets any money because the employer either does not pay or deliberately forces themselves into bankruptcy so that they can start again under a different guise. I know that the Minister is looking into that, and I would be keen to have an update today on how we can strengthen the law so that the small proportion of disreputable employers are not allowed just to ignore civil cases.
Zero-hours contracts are an important issue that I have been studying. I regret to say this in a Back-Bench business debate, but I sometimes get frustrated by the element of humbug from the Labour party. The Labour Government had 13 years to address zero-hours contracts but did nothing, so I find it tiresome when vitriol is poured on us and the coalition is accused of ignoring the issue, as if the previous Government had a good record. They did not. Furthermore, more than 20,000 members of staff working for Labour councils are on zero-hours contracts. This is a challenge for both sides. My personal view is that we need much more robust research to identify the scale of the problem. I can see how unscrupulous employers are abusing zero-hours contracts, but I know from my own experience of talking to people who work in the university sector and the NHS that some of them like those contracts.
I have had meetings with the Secretary of State about this, and my personal request to the Minister is that we conduct some really robust research involving consultation with all sides, including the trade unions and employers, so that we can make an informed decision. A much more robust code of practice would certainly be helpful. However, the most important thing is that this is about jobs, and on that the coalition is delivering.
Julian Smith (Skipton and Ripon) (Con)
I pay tribute to Labour Members, particularly the hon. Member for Hayes and Harlington (John McDonnell), who highlighted examples of employer malpractice. They raise powerful issues that we need to address.
The points that I shall make will not belittle those issues, nor shall I suggest that we should not take better enforcement action on such malpractice, but I want to make the case for the Government, who for the whole of this Parliament are reviewing employment law. They are considering that framework for two big reasons, the first of which is jobs. The Government have been proven right that consideration of employment law, and they are considering other parts of the legal system as well, can lead to the creation of jobs—1.4 million, as we heard earlier. The second reason is that when we poll employers in Britain or talk to them about what is causing them issues in their business, they say that it is employment law.
Generally, employers do not want to take away workers’ rights, and often problems arise because of bureaucracy, perhaps when they want to make people redundant when the work relationship has broken down. The Government have rightly decided to consider employment law from the perspective of employers in much more detail.
Some initiatives have been referred to, such as that to make things easier if the relationship between employee and employer breaks down. It is a modest proposal on settlement agreements, which are a simplified form of compromise agreements, which developed under Labour. Employers will have two years to make a decision on a worker, which will give them the confidence to take somebody on and allow them to end a relationship if it is not working out. As my hon. Friend the Member for Watford (Richard Harrington) said, an employer would not bring a relationship to an end unless there was a real problem. Employers want good workers and will look after them.
Stephen Lloyd
Does my hon. Friend agree that one challenge in countries such as Italy, or even France, is the fact that it is so expensive to hire new people that the economy is locked down and sclerotic? That means that it is almost impossible for young people to get a job.
Julian Smith
My hon. Friend is right: we are the envy of most countries in terms of our employment law. The shareholder initiative has received a lot of criticism but it is just another attempt to make it easier for new, smaller, principally technical companies to take people on, give them a shareholding, maintain their fundamental rights but provide a bit of flexibility. It is not just about making things easier for employers, however, as the Government have a good track record on employees. We have introduced the commitment to flexible working and are bringing forward shared maternity and paternity leave. Labour Members talk about a high level of pay, but the Government have introduced shareholder votes for executive pay, and we are pushing forward with numbers of women on boards. We are reviewing zero-hours contracts and the minimum wage has risen under this Government. I think we can be proud.
Ian Murray
My hon. Friend is a committed trade unionist and is committed to the north-east. He highlights an important point. Where there is a partnership between trade unions and employers, it is possible to have a really productive work force, which benefits everyone. Every successful industry in the country has had that powerful and strong relationship between trade unions and employers.
We have talked a lot this afternoon about zero-hours contracts. The CIPD released figures just last month showing that up to 1 million people were on such contracts. I understand the hon. Member for Eastbourne (Stephen Lloyd) wanting to highlight the fact that zero-hours contracts have been around for a long time. Indeed they have, but the issue is the explosion in the number of such contracts in the past few years and their exploitation. They work for some people, and that is something that we have tried to deal with by looking at the ways to resolve some of the issues. But Ministers have not done enough in this area. They have instigated a half-hearted investigation while continuing a laser-like focus on removing people’s rights at work—an approach now synonymous with the report produced by Adrian Beecroft. This timid response is emphasised by the fact that not one Conservative Member of Parliament attended the recent Westminster Hall debate on zero-hours contracts.
We recognise the flexibility of zero-hours contracts, but we have to deal with exploitation on a cross-party basis because everyone in the House realises that it is a problem. We welcome the steps set out by the Leader of the Opposition just last week.
I was struck by some of the issues raised by hon. Members in the debate. My hon. Friend the Member for Hayes and Harlington (John McDonnell) always speaks so wonderfully on these issues. He highlighted problems in some of the industries around the country in terms of workers’ rights. It is about dealing with the abuses. This is not about setting one group of people off against another, setting employers off against employees or setting trade unions off against anyone else. It is the responsibility of the Government, politicians and constituency Members of Parliament to deal with those abuses.
My hon. Friend the Member for Paisley and Renfrewshire North (Jim Sheridan) mentioned the Lib Dems’ refusing to stand up to the abuse of zero-hours contracts and said that we did not spend enough time dealing with cases of people who are killed at work.
Ian Murray
I am struggling for time I am afraid.
It surely cannot be right that people go to work to earn a living for their families and do not return home. We do not concentrate enough on such issues.
The hon. Member for Eastbourne mentioned zero-hours contracts. He was right to do so, and I hope that he will join us in trying to deal with the issue. He cares passionately about it, and I hope that we are able to do something on a cross-party basis.
My hon. Friend the Member for Inverclyde (Mr McKenzie) always speaks well in employment law debates. I think it struck the whole House when he said at the end of his speech that we had spent the 19th and 20th centuries building up rights and we should not spend the 21st demolishing them.
My hon. Friend the Member for Bolton West (Julie Hilling) is passionate when she speaks about her involvement with trade unions, and she is right that the contribution that they make to our communities makes the economy stronger. We should welcome that rather than attacking it.
The signs of the cost of living crisis that faces millions across the UK are there for all to see. The weekly shop is more expensive. Energy bills seem to be rising day to day. Living expenditure such as travel is becoming more and more unaffordable. On top of all this there is a hidden contributor to the cost of living crisis—job insecurity compounded time and again by the Government’s ideological attack on rights at work. The Government fail to recognise that growing insecurity in a Tory-Lib Dem Britain further squeezes people’s living standards and hampers economic recovery.
It has been a good debate this afternoon and I hope that Lib Dem Members in particular take heed of some of the issues raised and change their tack on employment rights.