Taylor Review of Modern Working Practices — House of Lords, 2017-07-11
Topic: Labor
David Prior (Conservative, Centre-right): My Lords, with the permission of the House, I would like to repeat a Statement made in the other place by the Parliamentary Under-Secretary of State for Small Business, Consumers and Corporate Responsibility, Margot James, on the independent review of modern working practices, which was led by Matthew Taylor and published earlier today. The Statement is as follows "Mr Speaker, the review sets out that British business is successful at creating jobs, enhancing earning power and improving life chances across the UK. Employment rates are the highest since records began. Unemployment and economic inactivity are at record lows. More people are in work than ever before and minimum wage rates have never been higher. This is a story of success and one which this Government will seek to sustain The UK economy’s continued success is built on the flexibility of our labour market, which benefits both workers and business. Businesses can create jobs and individuals can find work because our labour market regulation balances the demands of both. Minimum standards set a baseline, beyond which there is flexibility to set arrangements to suit all parties. Our dynamic approach responds well to fluctuations in the economic cycle without the structural weaknesses present in some other countries It is important that we preserve this success but also enhance it further. While the majority of people employed in the UK are in full-time, permanent employment, globalisation, demographics and especially technology are changing the way in which we work. We need to make sure that the British labour market stays strong and that everyone in the UK can benefit from it. That is why, last year, the Prime Minister asked Matthew Taylor, chief executive of the Royal Society of Arts, to lead an independent review of employment practices in the modern economy. That review has now been published and I am delighted to lay a copy in the House Library today. It is a thorough and detailed piece of work, for which I am very grateful not only to Matthew and his panel members but to the numerous businesses, trade unions, organisations and individuals who have provided their views on this very important topic The review has a strong overarching ambition: that all work in the UK should be fair and decent with realistic scope for fulfilment and progression. Matthew has outlined seven principles to meet this ambition, and I urge honourable Members to examine these principles and the rest of the report in detail, since it is an important contribution to a critical subject In summary, these principles are: that our national strategy for work should be explicitly directed towards the goal of good work for all; that platform-based working offers welcome opportunities for genuine flexibility but there should be greater distinction between workers—or as the review suggests renaming them, "dependent contractors"—and those who are fully self-employed; that there should be additional protections for this group and stronger incentives for firms to treat them fairly; that the best way to achieve better work is through good corporate governance, good management and strong employment relations; that it is vital that individuals have realistically attainable ways to strengthen their future work prospects; that there should be a more proactive approach to workplace health; and that the national living wage is a powerful tool to raise the financial baseline of low-paid workers but it needs to be accompanied by sectoral strategies, engaging employers, employees and stakeholders to raise prospects further This is an independent review addressed to government. While we may not ultimately accept every recommendation in full, I am determined that we consider the report very carefully, and we will respond fully by the end of the year Matthew Taylor has been clear: the UK labour market is a success; the "British way" works. But he has also said that there are instances where it is not working fairly for everyone. For example, he highlights where our legislation needs updating or where flexibility seems only to work one way, to the benefit of the employer. We recognise the points he makes. We accept that as a country we now need to focus as much on the quality of the working experience, especially for those in lower-paid roles, as on the number of jobs we create, vital though that is This Government have made a commitment to upholding workers’ rights. The Prime Minister has said repeatedly, in this House and elsewhere, that as we leave the EU there will be no rollback of employment protections. The Queen’s Speech also sets out that this Government will go further than that and will seek to enhance rights and protections in the modern workplace. Today’s publication of the Good Work review, and the public consideration of Matthew’s recommendations that will follow, will help to inform the development of our industrial strategy in the autumn. I commend the Statement to the House".