Clause 9 - Employer's notice to end bargaining arrangements
Employment Relations Bill
3:15 pm
Mr Jonathan Djanogly (Huntingdon, Conservative)
That is not my reading of the Bill, although I may be wrong and would be grateful if the Minister addressed that.
The Minister said that he would not want the company to reapply every six months, but we know for a fact that that problem does not arise often in practice. We should also recognise that, for the most part, such circumstances will become an issue only if the company is doing badly. Companies normally do not like to get rid of staff simply to reduce the number to fewer than 21. If the number of workers falls below 21, it is likely that the company is having a hard time and looking to save itself. The flexibility that is provided for elsewhere is going to be restricted.
I return to the principle that my hon. Friend the Member for North-West Norfolk and I have maintained, which is that if the number of employees falls below 21, it should be possible to go for derecognition. Again, the provisions will restrict that. I get the feeling that the draftsman got a bit carried away on the clause, because it does not seem to recognise the reality of companies that face such difficulties.
I have had a quick look at the figures provided by the Minister. As I thought, only 15 per cent. of recognition applications are for companies with fewer than 50 employees. That probably has as much to do with unions not being bothered to recruit in smaller companies as it does with companies not wanting unions. That works both ways, but reinforces the point that one-size-fits-all legislation is not appropriate. There should be more tailored legislation, which should treat smaller companies differently from larger ones. For that reason—to do with the correct figure of six months—it would be worth while for the Minister to look again and perhaps bringing the matter back later.