A new report from the Business and Trade Committee is urging the government to make “strategic changes” to regulations to ensure the UK doesn’t become a “dumping ground” for goods made by firms employing exploitative labour processes.
The ‘Make Work Pay: Employment Rights Bill’ paper, published today (3 March), makes a series of recommendations to the government and fellow MPs.
This includes proposed amendments to the Employment Rights Bill that is currently passing through the House of Commons, as well as a call for the Modern Slavery Act to be toughened up, with new “name and shame” penalties for non-compliant firms.
The report follows an inquiry that was launched by the committee to review the government’s plans to reform and enhance labour rules in the UK.
Horrific
Liam Byrne, who chairs the committee, said MPs had been “frankly horrified” by some of the labour practices uncovered by the inquiry.
“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.”
Questioned
The Guardian reports that Chinese fashion manufacturer Shein was among the companies to have concerned the committee.
The firm was asked a series of questions regarding products alleged to include “cotton produced in the Xinjiang region of China, which has been linked to forced Uyghur labour”.
Amazon, Sports Direct, Uniqlo, Lush and Gymshark are also cited by the report as firms that the committee interviewed as part of its inquiry.
Recommendations
The report makes five recommendations to the government to ensure that its regulatory changes succeed in raising labour standards in the UK in such a way that doesn’t risk the country becoming undercut by lower standards elsewhere. These are:
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Ensure legal reforms to end zero-hour contracts are “explicit”
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Accelerate reform of “worker status and bogus self-employment”
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Adequately resource the Fair Work Agency and employ Acas to lead an information campaign to employers about new rights
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Modernise how unions are “allowed to organise in the digital age”
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Update regulation to make modern slavery statements mandatory, including a “name and shame” penalty for companies that don’t disclose action plans
Government response
A government source told the Guardian that Sir Keir Starmer’s administration remains committed to the reforms and that it was working in partnership with British businesses on the improvements:
“We are bringing forward a new generation of workers’ rights, helping to raise living standards and grow the economy, because we know that workers who are looked after are more likely to stay in their job and are more productive, creating the right conditions for businesses to grow.”
Byrne, however, said that the changes to employment rules “need more detail” to ensure that ethical UK firms aren’t undercut by “bad companies”.
“We can’t let the bill become a colander so full of holes that it is too easy for bad companies to keep undercutting good businesses and exploiting workers.”
