Clause 1
Temporary and Agency Workers (Equal Treatment) Bill
10:30 am
Frank Doran (Aberdeen North, Labour)
My hon. Friend is absolutely right. When Labour came to office in 1997, we had a policy to develop the principle of a flexible work force, which was necessary in a global economy. At the same time, we wanted to establish a floor of minimum rights that were available to every worker and that protected them from exploitation. We have done that job remarkably well through, for example, the minimum wage and several other measures such as the Employment Rights (Dispute Resolution) Act 1998 and subsequent legislation. One thing that we have not done—it is unfinished business for many of us—is deal with the problem of agency workers. That is what the Bill is intended to do.
The hon. Member for Huntingdon said that in the vast majority of cases, agency workers are not exploited. I do not know where he gets that information from. Most of the surveys that I have seen have been of employers. As my hon. Friend the Member for Ellesmere Port and Neston said in relation to a previous amendment, the workers who tend to be surveyed are not going to tick a box to say that they are dissatisfied with their work. Most of them are too scared, and they are not prepared to put their employment at risk.
It is worth looking at a recent survey that was part of a process that has been started by the TUC. It published last week the latest findings of a commission on vulnerable employment that it has set up. That commission includes a number of distinguished representatives of not just the trade union world but business, including Kevin Beeston, the chairman of Serco, a large international company, and Paul Myners, chair of the Land Securities Group. The executive summary of its report states:
“The Commission on Vulnerable Employment estimate that around two million workers in the UK find themselves in vulnerable employment—which we”—
the TUC—
“define as precarious work that places people at risk of continuing poverty and injustice resulting from an imbalance of power in the employer-worker relationship.”
Again, the focus is on vulnerable workers.
Interesting evidence was submitted to the commission by Community, the trade union. As I have said, most of the surveys that have been conducted have been of employers, and if we go directly to agency workers, they do not give honest replies, for their own protection. Community surveyed its members across a wide range of workplaces. It organises and represents workers across the UK in steel, wire, textiles, footwear, knitwear, betting shops and the voluntary sector. In particular, it has looked after the interests of the blind since it merged with the union that previously represented them.
Some of the findings of Community’s survey were interesting. Some 75 per cent. of workplaces surveyed used temporary and agency workers, which is quite a high proportion. In those workplaces, 40 per cent. of temporary contracts rarely lasted more than a week. Those involved are often unskilled workers—“On the Waterfront” is one of my favourite films, and it shows the sort of employment situation that exists. People are picked for work on an almost daily basis in some cases. According to Community’s findings, some workers in factories such as I have mentioned are on just two hours’ notice, which is a difficult position for any employee to be in.
Community found that temporary and agency workers are paid less than permanent employees in 56 per cent. of workplaces surveyed. That relates to the point that my hon. Friend the Member for Lewisham, West made that temporary workers can undermine the terms and conditions of existing workers. More than 60 per cent. of temporary and agency workers are not entitled to the same holidays as permanent staff. Again, that undermines conditions, as does the fact that in 40 per cent. of workplaces, temporary and agency workers are replacing what would normally be overtime for permanent staff.
We should remember that the union has membership in each of the workplaces surveyed, and recognition in most of them. Terms and conditions are negotiated between the employer and the union, on behalf of its members and all the employees. They therefore tend to be the better workshops and places of employment, where there is independent negotiation.