Supply chains missing from Bill mean UK risks
becoming dumping ground
In a report today the BTC calls for the Employment Rights Bill,
currently heading to report stage in its passage through
Parliament, to close once and for all the loopholes that have
allowed some companies to exploit work insecurity and undercut
Britain's outstanding employers.
The Committee heard from business groups worried about the rising
cost of doing business and firms citing a need for labour
flexibility. But the Committee found evidence, across business
sectors and types, of exploitation enabled by work insecurity.
Workers on zero-hours contracts are most likely to be 16-24yr old
females working part-time and in the accommodation and food
sectors. On the day the Committee heard evidence from McDonald's,
there were national news reports of hundreds of fresh cases of
harrassment and sexual misconduct, with claims of managers
demanding sex to secure paying shifts.
Evri put forward its “self-employed+” status with some benefits
as a solution to the problems but the Committee's evidence
session brought scores of direct contacts from individual drivers
accusing Evri of bad working practices that, like the McDonald's
allegations, are enabled by the lack of contract
guarantees. Evri refused to recognise the significant and
consistent allegations in evidence in Parliament.
Amazon was unable to tell the Committee why its workforce went on
strike, while Frasers Group's Sports Direct confirmed over three
quarters of the staff at its Shirebrook warehouse are agency
workers, despite promising in 2016 to increase the proportion of
staff on contracts.
The Committee is also concerned about the risk that unscrupulous
companies might side-step reforms to zero-hours contracts by
using agency workers. Evidence from companies like Uniqlo, Lush
and Gymshark raised questions about firms using the multi-tiered
system to drop down through the work benefits ranking, to
engaging self-employed workers with even fewer benefits and
protections than agency work offers.
There is also concern about what's missing from the Bill. In a
widely reported exchange in Parliament Shein
repeatedly failed to answer a question about the source of cotton
in products shipped to the UK. In subsequent correspondence
it was confirmed that
– unlike the US - the UK does not require legal assurances on the
geographic origin of products. Likewise the FCA explained there is
no requirement on investors interested in a listing on the London
Stock Exchange to consider the risk of forced labour in a
company's supply chains - only make their own assessment of how
material that risk is.
The checks are so weak the Committee says the UK is at “serious
risk of becoming a dumping ground” if it does not align with
tougher laws amongst UK allies, including blanket import bans
from regions where forced labour prevails.
The Committee makes a series of five key recommendations to
tighten up the Employment Rights Bill at Report Stage including
the need to for ministers to:
- Be explicit in law about precise
reforms to end exploitative zero-hours contracts.[1]
- Accelerate, not slow down, reform
of worker status and bogus self-employment.[2]
- Set out a clear plans to adequately
resource the Fair Work Agency must be appropriately
resourced.[3] New rights
must also be explained to employers. The Committee calls on Acas
to lead an information campaign to do this.[4]
- Modernise the ways unions are
allowed to organise in the digital age to ensure appropriate
rights of access[5] for
unions and equal time to present their case to workers.[6]
- Review and update the Modern
Slavery Act to make modern slavery statements mandatory, to
introduce penalties and to “name and shame” for companies not
disclosing action plans.
BTC Chair Rt Hon said “As we've
travelled the country, our Committee has heard loud and clear
that getting the right workers for the right roles is the number
one challenge for British business trying to grow. It's obvious
we can't fix that problem by letting rogue firms sidestep new
rules and mistreat their workforce.
“We know that business is worried about the rising costs of
employment but we also heard how Britain's most outstanding
employers are fantastic places to work with tried and tested ways
to partner with their workforce. But we've also taken evidence
about abuse of workers that has frankly horrified us.
“So we want ministers to make some strategic changes to the
Employment Rights Bill to help make sure Britain's best firms can
no longer be undercut by rogue companies cutting corners and
exploiting their workers.
“What is good for Britain's workforce is good for Britain and
good for British business. If we want Britain to become the
fastest growing economy in the G7, then we need to help every
firm rise to the level of the best of British. The Employment
Rights Bill could help if ministers take action on our
recommendations.'
Notes
[1] Rec 4 on page 36
[1] Rec 6 on page 37
[1] Rec 8 on page 37
[1] Rec 9 on page 38
[1] Rec 11 on page 38
[1] Rec 12 on page 38
