(Lab):...Britain today is overwhelmingly a
white-collar service economy. The issue is that that economy is
today in its turn being invaded and radically restructured by the
digital revolution, particularly the dramatic changes and advances
occurring in AI. What has happened in manufacturing could sweep
through whole swathes of the rest of the economy over the next few
years, so I would be much less sanguine about this than my noble
friend Lord Knight. At the moment, there are high overall levels of
employment, even if many jobs are unstable and part-time,
especially in the so-called Gig economy. What these figures mask
is the retreat of work from the lifespan. I am sorry not to be able
to quote a dentist; instead I have to quote a famous American
economist, Jeffrey Sachs, who has provided an analysis of
this..
Lord
(Lab):..I am nearing the end of my contribution and will
focus on just one other thing. Noble Lords have talked about the
redistribution of wealth and the noble Baroness, Lady Wheatcroft,
rightly referred to a new global tax system. Workers’ rights in
a Gig
economy have been referred to and the Taylor
report focused on the importance of that. Our economy is still too
London-centric. The devolution of power has a role to play in this
regard, not just through a northern powerhouse but in all the
regions of the United Kingdom. We used to think in the trade union
movement that one thing would be the answer to all our problems,
but I have not heard it mentioned today—namely, the theory that
with increased automation we might have a shorter working week. We
can dream, can’t we?
(LD):..Finally, we
need new employment models. The noble Lord, Lord Knight, spoke of
job insecurity, and he is correct. People are in work but they are
not necessarily secure in their work. They are working in
the Gig
economy already and have seen what it is like.
The UK framework of employment rights, regulations and protections
has been built up over decades but is failing this kind of
employment model and is unfit for purpose. We need a review of
those laws and the enforcement of whatever comes up. It is time for
change, and the Taylor report eloquently pointed to that change. I
would welcome the Minister’s comments on that...
(Lab):...Technology has
brought us the Gig
economy: business models based on immediate communication
between the hub and the worker, with workers being prepared to work
as and when required. Evidence shows that many of those working in
this way like the idea that they can work and also engage in other
activities. It suits some people’s lifestyles. Nobody should think
that the Gig
economy is a temporary blip on the employment scene. It
is here to stay. Uber might be having a problem at the moment, but
it will be back—and it is up to the Government and/or TfL to ensure
that the service is regulated in such a way that the availability
of this technology-based transport service is a benefit and not a
danger to London and Londoners. The number of black taxis licensed
at any one time is limited by Transport for London and a limit on
the numbers of private hire vehicles on our streets would also be a
good thing. The environment needs protecting, as well as the health
of the public.
Secondly, in order to benefit from these changes and
opportunities, we need to put far more emphasis on the importance
of education and training. Recent work on apprenticeships is to
be welcomed, but the financial settlement for schools continues
to militate against the encouragement of vocational training and
many schools are notoriously ignorant of the needs of industry or
business. Careers service advice, in many cases, is to aim low to
avoid disappointment—and is pretty non-existent in others. We
need people in schools who are equipped to prepare our children
for a future of change and challenge. It cannot be right that
young people are left to fend for themselves when it comes to
identifying their future pathways.
Thirdly, we will need to embrace the Gig economy, but it must be regulated to
protect workers from exploitation and ensure that everyone in the
enterprise receives a fair share of the cake...
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