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News > News Archive > 2008 > Employment Bill in the Lords

 

Employment Bill in the Lords

 

10 March 2008

The second session of the Grand Committee of the House of Lords was on 25 February however, their Lordships didn’t finish the business so there’ll be another on 13 March. That will be when they debate the question of the extent of the freedom for trade unions decide their own affairs, in accordance with the fundamental human right of association and the decision in ASLEF v UK. The trouble is, their Lordships don’t see it that way. Clause 17 in the Bill is limited to changing the right of unions to expel a member in relation to membership of a political party. This is far too narrow.

Lord (Bill) Morris says the Clause is “barking”, but not because it should be wider – because he doesn’t think unions should be able to expel people even on that narrow ground. The Liberal Lord Lester wants an amendment to say that unions can expel members on grounds of membership of a political party, but only if they guarantee there will be no financial consequence to the member. That would make things even worse than they are now. A union might tell an employer that they are expelling a fascist member of the BNP and the employer might sack the member. The fascist might not have a good case against the employer for unfair dismissal – BNP members are sacked from the police these days – but the fascist could claim all his or her loss of wages from the union!

There were also discussions about agency workers. There are two issues. One is that of “equal treatment”, which is also covered by Andrew Miller’s Temporary and Agency Workers’ Bill in the Commons. See our separate note about that.

The other is highlighted by the Court of Appeal decision on 5 February – James v Greenwich Council, where Mrs James, a former employer of the Council ended up being sent by an agency to work at the Council alongside others who were employees. After years of work, the Council told the agency they did not want her. She tried to take an unfair dismissal case, but she could not. She wasn’t an employee of the agency or the Council.

Lord “Digby” Jones – ex CBI chief – for the Labour Government responded that: “ One reason we have the most successful economy in the whole of Europe is that we have the most flexible labour market”. For “the most flexible labour market” read “workers having the worst individual and worst union rights”. He went on to say again that “Whatever certain people with vested interests might tell you, there is a connection between low levels of unemployment and high levels of flexibility”. This is utter deceit that he peddles in the interests of business. The fact is that the World Bank’s report "Unions and Collective Bargaining - Economic Effects in a Global Environment" found that coordinated collective bargaining tended to be associated with lower and less persistent unemployment, lower earnings inequality, and fewer and shorter strikes. It was an in depth report that reviewed more than a thousand studies on the effects of unions and collective bargaining. It’s also not true that the minimum wage cost jobs – as the CBI had predicted. The right for Mrs James and all agency workers to take an unfair dismissal cases wouldn’t harm the economy either. It might cost businesses behaving badly cash though and that’s who Digby Jones is protecting.

 
 

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