Justin Madders
MP for Ellesmere Port and Bromborough · Labour · United Kingdom
“Friend the Member for Dunstable and Leighton Buzzard asked about, will consider the points raised in this debate and whether any of them can be put into future updates to guidance. As was mentioned, good passenger information is central to standards.”
“As the roads Minister, I of course recognise the importance of bus stops and the important effect they have on the streetscape. My hon. Friend the Member for Dunstable and Leighton Buzzard made clear that she is passionate and informed about the importance of bus journeys to everyone.”
“Where responsibility for highways or individual assets sits elsewhere, close and effective working between the relevant authorities is essential. We expect local plans to join up services, infrastructure and passenger information, rather than treating them as separate issues. That will no doubt be music to the ears of my hon.”
“Our guidance encourages authorities to take a strategic approach to stops and interchanges, including keeping an inventory of infrastructure, identifying priorities for investment and setting locally appropriate standards for facilities and maintenance.”
“She is absolutely right that the quality of a bus stop is about more than accessibility, although of course accessibility is vital. Passengers notice whether a stop is easy to find and use, whether it offers shelter or seating where appropriate, whether it is clean, whether the surroundings feel safe and well maintained and, as we have di…”
“That approach reflects a simple principle: local transport authorities know their areas and are best placed to plan improvements across the whole local bus network. That is why the Department’s vision for buses, within an integrated transport system, puts local transport authorities at the centre of delivery.”
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“The most illuminating statistic is probably that 2 million workers say that they are fairly or very anxious about unexpected changes to their hours of work. You might think that that is because that comes with not just an impact on their life—“I do not know which days I’m going to be working next week, and I have to make it work alongside childcare”—but a potential income risk as well. In many respects, the working lives of low-paid workers are less secure than those of higher-paid workers. My hope is that some of these measures will go some way to redressing that balance.”
“They are also more likely to rely on statutory sick pay if they fall ill, so for many low-paid workers, falling ill comes with an income shock. That is not the case for someone like me: if I fall ill, I go home and pick up an online meeting or two if I can, but if I cannot, I will get paid as normal. That is not the case for many low-paid workers, so that is a real insecurity. Obviously, there are zero-hours contracts as well. For low-paid workers, I think roughly one in 10 is on a zero-hours contract. For higher-paid workers—the top fifth in the hourly pay distribution—it is a vanishingly small number and very uncommon indeed. I am sure that you have heard plenty of evidence about the kind of impact on security that zero-hours contracts can bring to some—not all—workers.”
“Q What is your assessment of the current landscape, in terms of security and income, for lower and middle-income earners? Nye Cominetti: It is a good question. One of the ways that I like to think about this package of reforms is that it extends to low-paid workers the kind of everyday flexibilities and dignities at work that people in professional jobs such as me and you take for granted. It is not the case that all low-paid workers hate their job or face the risk of losing their job every week, but it is the case that they experience a higher level of insecurity than higher-paid workers do. You can look at that in various ways. In recessions, low-paid workers are more likely to lose their job, so they face a higher risk of losing their job in downturns.”
“It does not directly answer your question, but there was a study in America of Walmart workers which found that they would accept a 7% pay cut in exchange for being treated with better dignity by their managers, including things such as better advance notice of their shifts and not getting messed around late in the day to come in and pick up extra hours. I definitely cannot quantify it, but more ambitious researchers might be able to.”
“Q I assume that it would be quite difficult to quantify in economic terms the impact of removing that anxiety for 2 million workers, but if you were able to have a go at that, I would be interested to hear it. Nye Cominetti: I would not want to try. It is not quite the same, but the closest that some studies have tried to get is saying to workers, “Would you consider this alternative job, which would improve your terms and conditions in these respects, but offer you lower pay?” That tries to get at the question of how much pay people would be willing to trade off for those other benefits, such as a more stable income or a better relationship with management.”
“With the right consultation, I think we will get to a position where we look back at this as a milestone in changing how we do things, a paradigm shift in relations. I think that it will drive better engagement not just for unionised workforces, but for workforces more generally, because that is where employers will see that they can answer the challenges on the next generation of technology insertion and organisational design, and make sure that they can get the talent that they need.”
“That is not just good employers that are larger, and we think that with the right degree of consultation, which the Government have committed to, we will be able to address those areas where there are a few wrinkles and things to ensure work in practice. We have to reflect on what the alternative was. The deregulatory, more de minimis approach to employment regulation applied previously, and if that trajectory had continued, we would not have addressed the issues of precarious work and productivity, and we would not have been able to do that in a way that looks at the workforce of the 21st century, as opposed to looking backwards. There is a lot in the Bill, but that is not surprising. There will probably be a long period of adjustment.”
“If we look at other G7 countries, a tripartite system is what drives higher levels of productivity, lower levels of inequality, and ultimately, higher levels of investment and economic outcomes. We think that the Bill is a long overdue step in the right direction of moving some power back towards workers and away from businesses, too many of which exist for exploitation. Mike Clancy: I echo those comments. If we look at the responses from the business community, yes, there is going to be some anxiety about the detail and how it will work—again, I reference my experience not just in ACAS, but from working with employers more generally—but we find ways to do this and operate in practice successfully. Good employers have nothing to fear in the Bill.”
“Ultimately, we have seen that as they have lost their guaranteed hours—in zero-hours jobs, for example—and there has been the removal of their employment rights, those people are less able to exercise those rights. So we see the Bill as a major way of moving industrial relations forward. We would also point to the work around the pandemic. In the last 14 years, we were very much locked out of Government in most areas, yet when the pandemic came around, there was a fantastic bit of work between the CBI, the TUC and the Government, with Rishi Sunak standing on the steps of No. 10 talking about the fantastic work that led to the furlough scheme, which saved millions of jobs and millions of people from poverty. What surprised us is that that great work was then stopped virtually as quickly as it happened.”
“Q It is a pleasure to see you in the Chair this afternoon, Sir Christopher. Good afternoon, gentlemen. Generally speaking, do you think that the Bill will improve working conditions, particularly for those in low-paid and insecure work? Andy Prendergast: I think the Bill is a major step in the right direction. One of the big problems that we have seen, certainly over the last 30 to 40 years, is the huge increase in insecurity in the workforce. That tends to have a massive impact on the individual concerned and their ability to fully partake in the economy, and to make long-term commitments through mortgages and loans—the kind of stuff that drives the economy.”
“Professor Simms: Could I chip in as well and emphasise the point that Simon has just made about skills and training? Skills and training of managers—the professionalisation of managers—and of our workforce are really crucial ways of shaping productivity and innovation. They intersect very strongly with some of the issues in the Bill. In general, the push to professionalise management of work—the managerial decisions—is a really important part of that more complex story that Simon has just spoken to. The signals through the law, but also through other areas of policy, to managers, organisations and employers about the professionalisation of their management are a really important thing that the state can do to support that general up-tick in productivity and innovation in general.”
“Not necessarily, because that depends upon how we regulate other areas of the economy, and that is affected very much by the way corporate governance works and also by training and other aspects that are not all covered by the Bill. But is this Bill essential in the area of labour law for improving economic performance? Absolutely. Does it go in the right direction? Yes, it does. The research we have done in Cambridge, which I mentioned in my written evidence, shows that, on average, strengthening employment laws in this country in the last 50 years has had pro-employment effects, for various reasons. That is, as I said in my notes, not a predication or a forecast, but historically in this country, stronger labour laws are not associated with unemployment.”
“Certainly, a generation ago, the World Bank was quite hostile to the idea of labour law and said that labour laws, in aiming to help workers, might harm them. That, however, is no longer the World Bank’s position. The World Bank has said that there can be too little labour law in an economy—too little protection for innovation and productivity. Of course, productivity has many causes, and the way we regulate labour is only one issue. If we are talking about labour law, though, these reforms are essential to help improve the productivity position. Will this law on its own lead to an improvement in UK productivity?”
“Q Just to aid the witnesses, it was the shadow Minister who used the term “re-unionisation” in the evidence session on Tuesday, rather than one of the witnesses. That may be why it is not something that is particularly resonating with you. I want to ask you in particular, Professor Deakin, about the impact of the regulations on increased productivity and innovation—the general economic benefits. Do you think that that will have a positive impact on such issues? Professor Deakin: I think so. The evidence internationally is that there is a strong correlation between stronger labour protection and both productivity and innovation. I think that sentiment in the research community has shifted very much in the past 20 years. That is partly because we have better data and probably better methods.”
“Professor Bogg, do you want to add anything? Professor Bogg: I am just a simple lawyer; I would not like to offer any views on the economics of it all. I will defer to my expert colleagues.”
“Re-resourcing that expertise to support both employers and workers’ unions to make good decisions that never become a breach of any rights is really important.”
“As the Lady Chief Justice said, the rule of law costs money in order for it to be done properly, so the tribunal system will have to be properly resourced. There needs to be a commitment to a principle of effective access to dissuasive remedies. That is absolutely central to all of this working or not working. Professor Simms: Can I pick up on the enforcement case? It is important for the Committee to properly understand that the organisations that will be merged into a new agency have had to cut back, to some extent, on their advice and guidance to employers and employees because of the challenges of resourcing over the last years. They still work in those spaces, but they cannot do it at the scale that they have previously—ACAS in particular.”
“Q I am a simple lawyer, too. Could I ask you, Professor Bogg, how you feel the fair work agency will help improve the employment landscape? Professor Bogg: This is really the most critical point of all. We can enact shiny rights and put them on the statute book, and if they are not enforced, there is not much point to the entire exercise. What will be critical is the proper resourcing for a new body. The right direction of travel is for that to occur through a new agency, rather than having to co-ordinate across different agencies. I think that will make things more efficient. It is also important that the employment tribunal system is properly resourced. I saw the welcome announcement that the time limits will move from three months to six months, in line with the earlier Law Commission recommendation.”
“I believe that collective remedies, particularly through arbitration, which can be brought by trade unions—hopefully in future to the Central Arbitration Committee —are more effective than individual claims in many cases. It is not just a question of resourcing the new fair work agency. I think there should be a greater role for collective arbitration, and in my note I made some suggestions based on precedents from the 1970s, which could easily be used again.”
“The message being given, or the one that has been given, is that compliance with the legal obligations is in some sense optional, and not complying can be profitable for firms. We are not the only country in that position. It is also an issue in the United States. However, we can do more. We can certainly resource the inspectorate. In my note, I suggested that we can also facilitate collective remedies in addition to individual employment tribunal claims. It is difficult for an individual to take a claim to a tribunal, and it can also be costly for employers, who will, in many cases, have to organise a legal team to fight a case, and they will not get their costs back. It seems to me that neither side is necessarily happy with the way the employment tribunal system is working.”
“Professor Deakin, anything to add? Professor Deakin: Enforcement is really critical. We do not have an effective enforcement regime in this country. Recent research on the minimum wage, for example, shows that on the whole, employers that do not comply with it can actually save money by not doing so. They are rarely punished, fined or required to pay wages back in a way that even covers the gains they make by not paying the minimum wage. We are not effectively prosecuting minimum wage breaches. We treat breaches of the criminal law involving theft in a supermarket, for example, and in other contexts extremely seriously. We do not treat wage theft with anything like the same seriousness. There are hardly any company director disqualifications in cases of non-payment of the minimum wage.”
“They do not need to rely on the Government for that; they can just give them better contracts if they want. There are a number of concerning aspects to the Bill, which could be counterproductive if the objective is higher living standards. As I understand it, this Government’s priority is wealth creation, prosperity and jobs. Ultimately, although I do not believe that this legislation will be devastating to employers, I think it will be damaging for job creation and therefore counterproductive to wealth creation and to achieving higher standards of living.”
“Luke Johnson: I would slightly differ, in that I think some areas are increasingly onerous for employers. Increasingly, when I talk to entrepreneurs, they are looking to outsource, offshore or automate rather than employ people. Not all of that is legislation and regulation; post furlough and lockdowns, there is a vast amount of talk among employers and owners of businesses about workforce motivation. That goes back to a point that Michael made earlier about the number of people not in work who are of working age and able-bodied. I think this is an issue for society as a whole, and I think a happy society is one in which people are productively occupied. I am surprised that you say that many employers want greater protections for their staff. They are very entitled to give them to them if they want.”
“Q Good afternoon. A number of witnesses, including many from the business community, have welcomed the intention behind the Bill to increase workplace protections. Do you feel that the current employment law landscape is too favourable to employees, too difficult for employees or about right? Michael Lorimer: From my perspective, there is a pretty good balance between employer and employee at the minute. I am sure you could unpick that, and there could be cases for either side, but as somebody who runs a business in, quote unquote, a “fast-moving environment”—in fact, Luke Johnson’s business is much faster-moving even than ours—where you are focusing on driving your business and trying to get results, I think that there is actually a good balance. I am not particularly in favour of tinkering too much with it. That is my personal view.”
“I looked at them and considered how things are working out now under three bodies with different governance, different plans and different ways of doing things, and whether I think that under a fair work agency regime those things would be done better. A fairly quick assessment is that half of them would definitely be done better; the other things would probably be done much the same. The ones that relate to having a better joined-up approach, to greater efficiency and to better sharing of information among bodies are the things that I think the fair work agency will do a lot better.”
“Q May I ask you, Margaret, for your views on how the fair work agency might help in the enforcement landscape? Margaret Beels: I took on this role in the expectation that there was going to be a single enforcement body, which the previous Government had referred to but did not bring about. I was strongly supportive of the creation of a single body and accordingly I am supportive of the creation of the fair work agency. From my perspective, which involves looking at what has worked under the existing arrangements and what could work better, I went back and looked at the recommendations in the strategy that I most recently published, on 11 November, and it had 12 recommendations.”
“I have found it really difficult to answer that question about the effectiveness of the different activities.”
“Q Could you give us some examples of the sorts of areas or issues that might benefit in that way? Margaret Beels: One of the things I found it hard to do was to assess the impact of the different bodies, because they all have their own governance arrangements. I have a statutory responsibility to decide whether more should be spent in one body or in another. In practice, however, because they run under their own governance, it is really hard to do that and assess whether spending a bit more on national minimum wage enforcement or a bit less on employment agencies would be better value for money, because value for money for the public purse is really important. We are all public servants: we are all accountable to you as parliamentarians and to the public.”
“I think, to the extent that the Bill will address some of the issues affecting more precarious workers, that will be of benefit.”
“Real clarity and distinction of who enforces what seems to me very important. There is no difference between us on this, nor anything in the Bill that would confuse that. The maintenance of that clarity, so that people can understand what their rights are and how to exercise them, seems to us an important precondition to the Bill being successful in that aim. Margaret Beels: The research I referred to, which is being published tomorrow, demonstrates that the workers more at risk of precarious work are female workers and younger workers, as well as workers from a lower-working-class background. The industries in which they work that are most at risk of being precarious are hospitality, retail, agriculture and construction.”
“Q Do you both feel that the Bill and the fair work agency in particular will help to protect people with protected characteristics at work? John Kirkpatrick: It is clear, Minister, that a number of people with protected characteristics are particularly vulnerable to the sorts of practice or exploitation that the fair work agency would devote itself to being concerned about. I would defer to Margaret on whether the unification of the existing authorities will make for improved enforcement. If it does, it will clearly be of benefit to those people. I suppose the one thing I would add is that it is really important in this kind of area and these parts of the labour market that there is clarity on both employers’ obligations and employee’s rights, and what their sources of redress might be if those rights are breached.”
“Q The shadow Minister was right: your response to the initial question was a comprehensive critique of the Bill. I will ask you a bit more about sexual harassment and the issues with preventing that and dealing with third-party harassment. Have you been concerned about that? Dr Stephenson: We have not done as much work in this area as organisations such as the Fawcett Society or some of the trade unions, but we are very conscious that for women working in the hospitality sector, for example, third-party harassment can be a really serious issue. We think it is important that women have those rights and protections, but beyond that it is more that we would support them than that we have done much detailed work.”
“The regulations are fairly straightforward. I would like to emphasise that they are important for strengthening the information-sharing network within the economic crime space. They will enable Companies House to support the Government’s efforts in fighting economic crime and in ensuring that creditors in insolvency proceedings are able to get the best use of the tools available to them to secure the best return. I commend the regulations to the Committee.”
“The functions can often go beyond the sale of property or personal belongings, into applications to the court to reverse transactions that were made prior to the insolvency proceedings and were not in the best interests of all the creditors. The functions might even extend to asking the court to make directors of the company personally liable where they have allowed the company to continue to trade beyond the point at which insolvency was inevitable, causing further losses to creditors. For those kinds of actions, the office holder could benefit from information that the registrar’s current powers do not allow her to share. The draft regulations will allow the registrar to share relevant information that the office holder needs to perform their functions and provide the best returns for creditors in insolvency proceedings.”
“For instance, there may be circumstances where it is beneficial for the registrar to share information with certain office holders involved in administering insolvency proceedings. Such office holders will most often be insolvency practitioners, but may also be the official receiver, or in Scotland the accountant in bankruptcy. Although the registrar has the power to share information with public authorities, under the 2006 Act, the functions undertaken by office holders relate to private matters, due to the nature of insolvency proceedings. As such, they also involve the identification and realisation of assets in insolvency proceedings. Therefore, the registrar is not currently able to share information with such office holders for those purposes.”
“Additionally, feedback mechanisms have been established with other Government bodies and businesses in the anti-money laundering regulated sector, to enhance the quality of the information being shared. We are here today to move further on that progress and discuss the draft regulations, which will amend the Companies Act 2006 to give the registrar of companies greater powers to share non-public information with enforcement agencies and other bodies, for the performance of their functions. The 2023 Act amended the 2006 Act to give the Secretary of State the power to make regulations that allow the registrar to expand the information sharing to specified persons for specific purposes.”
“As we embark on this journey, we recognise that although significant progress has been made, more remains to be done. The Government are committed to ensuring that the 2023 Act not only meets but exceeds expectations, establishing a transparent and secure economic system that protects citizens and businesses from the harms of economic crime. A key priority for Companies House is increasing its intelligence capabilities and embedding that further into the law enforcement ecosystem. There has been significant progress in this area already; Companies House has introduced extensive legal gateways for data sharing with law enforcement, other Government bodies and the private sector. That has led to a more efficient sharing of suspicious activity with law enforcement agencies.”
“The 2023 Act reforms the role of Companies House and increases the transparency of UK companies. The reforms will create a more reliable companies register and instil confidence in our business environment, safeguarding rights and the safety of individuals. The reforms, which, it is only fair to acknowledge, begun under the previous Government, will not only strengthen our business environment but support our national security, enhance our international standing and contribute to the UK’s economic growth. As we know, the reforms are already under way; stronger rules and checks introduced since March have already helped to cleanse the register and disrupt organised crime. Companies House is also undergoing a full organisational transformation to implement those changes.”
“I beg to move, That the Committee has considered the draft Information Sharing (Disclosure by the Registrar) Regulations 2024. It is a pleasure to see you in the Chair, Dame Siobhain. The draft regulations were laid before the House on 22 May and are part of a programme of statutory instruments that implement reforms under the Economic Crime and Corporate Transparency Act 2023, which I will hereafter refer to as the 2023 Act. The new Government are committed to holding accountable those who abuse our open economy, and to enhancing the UK’s reputation as a hub for legitimate businesses. Our vision is to create a more transparent and accountable corporate environment that not only fights economic crime but fosters trust and integrity within our financial systems.”
“I thank the shadow Secretary of State for his welcome. I also welcome him; I think this is the first time we have appeared opposite each other. I will have to correct him. I am not actually the Minister responsible for small businesses, but his points are important. There is a range of economic levers within my portfolio, and we take an interest in all the matters that affect the economy. He will know that it is incumbent on the Opposition to suggest alternative propositions. However, we note the support for the draft regulations. It is important that we have constructive dialogue in this area. It is an important space where parties should be able to work together. Question put and agreed to.”
“It is a pleasure to see you in the Chair, Ms Vaz. I refer to my entry in the Register of Members’ Financial Interests and to my membership of Unite and the GMB.”
“Therefore, there are there are some practical questions about, first of all, the principle of different suitable notices of shifts depending on different forms of work, and about some practicalities, which I am sure are solvable, around the management of it.”
“What if two chefs say, “Do you mind covering Saturday, because I want to go out with my friends?” “Yes, of course; that’s fine.” Is that allowed, or can that decision only be taken outwith that notice period? There are also questions around other things. What if you put out a message saying, “There is a shift available; does anybody want it?” Have you made an offer of employment to everybody you have put that message out to? Is there a time after which you are not allowed to do that? One last thing: what if somebody agrees to move their shifts around—so you say on the Friday, “Do you mind coming in this Saturday and you can have next Saturday off?” “Yes, absolutely. Fine.” Is that acceptable?”
“In general, with different sorts of work, it is reasonable to say that there are different versions of what “reasonable notice” means. If I were going to go and work on an oil rig for three months, I would want more notice of a change of shifts than if I was going to work in the local pub. Therefore, I think it is partly about figuring out what the right starting position for notice is. It is partly about reflecting differences in things, such as whether it comes with a residential element; there are questions around that. Then there are some practical things that I think will come out in the wash, but do need considering, such as shift swapping.”
“Q Mr Simpson, can I take you back to your traffic light? We will go to amber, because you mentioned the notice of shift as an issue in the amber section. I am aware from the UKHospitality workforce strategy that there is a general view that the hoteliers charter is a model of good practice, which does require reasonable notice of shift. Could you explain a little more what your concerns are on that? Allen Simpson: It is more about the unknown. Again, reasonable notice is an important principle and there should be protections. I think that the challenge will be—I notice, by the way, from what I understand from having read what is, again, a complex and lengthy piece of work, that the Government are intending to leave it to case law and employment tribunal systems to figure out what “reasonable notice” means.”
“They were in favour of one at the introductory rate, which was developed by the Low Pay Commission. I would really like to see the FWA have that kind of tripartite guiding force to make sure that it is as much of us and our union colleagues as it is of the Government.”
“Maintaining expertise as we move into the FWA is really important, and that goes with properly resourcing the FWA and giving it the capacity to maybe draw down some of the claims that currently take two years to go to employment tribunal. The other thing, which is maybe a bit more challenging, is that, when we have done this in the past, success has been delivered by making these bodies of the labour market, not of the Government. If you go back to the 1970s, the Health and Safety at Work etc. Act 1974 was guided into existence for its first two decades by the Health and Safety Commission. As a former low pay commissioner, I will say that we hear a lot about businesses’ views of the minimum wage in the ’90s; they were against the minimum wage at £7.20 an hour in 1999, and that is why it was not introduced.”
“One of the most common worries that I hear about this Bill, for which I will not hold you accountable, Minister, is the experience that businesses have had of being the ones who comply and take on the on-costs—there are quite significant costs associated with this Bill—and then watching people flout the law and not face enforcement, so a fair work agency is a good idea. If I may, I have a couple of guide points that we have heard from our members. One is that we are great fans of the Employment Agency Standards Inspectorate. We think it does excellent work as our regulator. It sometimes annoys the hell out of me, but that is what it is for. The team there are deeply expert, and, in the creation of the fair work agency, I would be—if you would forgive a Scottishism—scunnered if we lost that expertise.”
“Q That is helpful; thank you. I appreciate that we have not got much time, so I will ask just one more question, if that is all right, of Mr Carberry. Obviously your organisation prides itself on having members who absolutely comply with the standards set by law. Do you feel that the fair work agency will be a good vehicle to help drive up standards, and is there anything in particular that you would like to see it focus on? Neil Carberry: I think it is reasonably well noted that we were disappointed that an employment Bill was not brought forward in the last Parliament. It is time to raise enforcement standards.”
“There is an opportunity, through some of the measures in the Bill, to improve productivity and improve security for people in the labour market, but we need to ensure that some of those other measures are not undermining those benefits. Jim Bligh: I agree with that as well, and I endorse everything that Jamie just said. I think that the statutory sick pay clarifications are particularly helpful, and the clarity on parental leave should be helpful too. Flexibility is also important, and we need to ensure that the flexible working practices that are already widespread in our sector, as I know they are in other sectors as well, are protected and clear. I think there are concerns that potentially outweigh some of those benefits, which we are very keen to explore with the Government through the consultation periods.”