Sectoral Collective Bargaining

The Government are committed to strengthening the collective voices of workers and restoring the principle that work should always pay. That is why we introduced the Employment Rights Bill, which will restore the school support staff negotiating body and introduce a framework for a fair pay agreement in adult social care. Combined with other measures in the Bill, that will empower workers, unions and employers to come together to negotiate fair pay, terms and conditions.

I thank the Minister for that answer. It was fantastic of the Labour Government to bring in the Employment Rights Bill within their first 100 days—an absolutely brilliant achievement. Experts say that sectoral bargaining is a force to be reckoned with for both employees and employers, so what plans might the Government have to extend sectoral collective bargaining in other sectors of the economy?

My hon. Friend is right to say that there is plenty of evidence worldwide that collective bargaining improves terms and conditions and the overall vitality of the economy, but we must start somewhere. About 5% of the entire working population are employed in adult social care, and with a 25% turnover rate and rampant abuse of zero-hours contracts and the minimum wage laws, we felt that that sector needed the most attention first. We must make a concerted effort to drive up working conditions, because those who work in that area have been undervalued and underappreciated for far too long, and that has to change. We must focus on getting it right in adult social care, and we will see where that takes us.

Undoubtedly, Government legislation is empowering the unions—we saw that this week when the Secretary of State for Scotland was unable to meet CBI Scotland, an important body, because he could not enter his own building because of a picket line. We read in the papers this morning that ASLEF, a rail union, insists on using fax machines and will not allow its members to use email. How is that helping collective bargaining?

I have to educate the hon. Member on what trade unions do. ASLEF is not a union in the adult social care sector, which is what we are talking about here. We want to work on a tripartite basis—business and workers, together with the Government—to get terms and conditions right. Given that we had the lowest increase in living standards on record under the Conservative Government, I would have thought that he would want to support that too.

I call the shadow Minister.

The Government’s impact assessment for the adult social care sector confirmed that collective bargaining will be very costly for business. If pay awards match those of junior doctors, the cost of the increased wage bill will be £5.8 billion, driving up business rates, reducing employment or hours, and imposing further costs on business. Can the Minister confirm when further collective bargaining will be rolled out, to which sectors, and by how much those businesses can expect to be clobbered?

If the shadow Minister is complaining about the state of the adult social care sector, he should look to his own party and how the sector was left to rot for 14 years. The impact assessment says that the overall cost to employers will be 0.4% overall and, as the economic analysis says, the make work pay package will help to raise living standards across the country and create opportunities for all. I think 0.4% is a fantastic achievement to get such a deal. If he does not want to support improved working conditions for people, an end to fire and rehire and better maternity protections, he should continue to vote against the Employment Rights Bill, but I do not think his constituents will thank him for that.