3. Statement by the Minister for Housing and Local Government: The Fair Work Commission's Report

Part of the debate – in the Senedd at 3:03 pm on 7 May 2019.

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Photo of Mark Isherwood Mark Isherwood Conservative 3:03, 7 May 2019

Well, 38 years ago, I was party to my thesis at university with two other students on industrial democracy, believe it or not, looking at many of these areas and experiments and proposals at that time, but, at core, recognising that a successful organisation listens to its customers, both externally and internally, and that an organisation that maximizes productivity and success, recognises employees, gives them responsibility, acknowledges their strengths, but also develops their potential—. How, within this, therefore, do you propose to recognise the need across all sectors, not just the private sector, to maximise the potential of effective performance management, where too often we hear, when the term is used, of appraisal only, which is meant to be a single snapshot of a year and not an opportunity to lecture an employee, when throughout the year the individual should be given voice to agree their needs, propose their own ideas and agree models and action plans to take that forward, including the training skills and involvement that they need to mutual benefit? Again, that seems to be something I couldn't pick out from the report thus far. 

You say that fair work accords with long-established traditions in Wales of social solidarity and community cohesion, and, clearly, it's disappointing that Wales, two decades after devolution, has the highest percentage of employees not on permanent contracts, the—once again—highest levels of unemployment and, of course, lowest levels of wages across the UK. 

You say the Welsh Government has been clear that, in leaving the EU, there should be no weakening of existing employment rights and I, of course, agree with you on that. What consideration have you given to the actual withdrawal agreement between the United Kingdom of Great Britain and Northern Ireland and the European Union and Council, where it, for example, refers to the rights of workers, the right not to be discriminated against on grounds of nationality, the right to equal treatment in respect of conditions of employment and work, and collective rights and so on, and also states that the United Kingdom should ensure no diminution of rights, safeguards or equality of opportunity as set out in the 1998 agreement entitled 'Rights, Safeguards and Equality of Opportunity' should result from withdrawal from the union. 

Beyond that, in your statement, you refer to collective bargaining and the role it can play in economic growth. A quick look at the UK Government website: it says you will need to work with the unions to discuss changes to employees' terms and conditions, but what discussions have you had or will you have with employers—private sector, third sector and statutory sector—to look at the potential implications of different models of taking this forward? As you know, at the moment, bargaining in the private sector is primarily conducted at company or workplace level, but industry-wide agreements or organisation-wide agreements are more common in the public sector. So, how will you ensure that the voice of employers, as well as employee representatives, are engaged in maximising employment and productivity and minimising absenteeism and labour turnover as we take this forward?

Of course, at UK level, the UK Government commissioned a report from Matthew Taylor regarding modern working to ensure that employee rights are protected and upgraded as we leave the EU and the UK labour market is successful and competitive as it evolves. The resulting 'Good Work' plan is part of the UK Government's modern industrial strategy and includes and upgrades the rights of millions of employees to ensure we benefit from fair and decent work. So, what assessment has the Welsh Government made of the UK Government's 'Good Work' plan and the opportunities that it represents for enhancing employee markets, conditions and terms in Wales in areas over which the Welsh Government has devolved responsibilities? What plans has the Welsh Government made to adjust the strategic objectives of Business Wales and the Development Bank of Wales in relation to the promotion of collective bargaining? What practical measures is the Welsh Government itself taking to support fair work, or the 'Good Work' plan, potentially, in employment in Wales? What assessment—finally—has the Welsh Government made in relation to how much public money will be involved in the adoption of the report's recommendations, for example, its suggestion that the Welsh Government continues investment in the Wales union learning fund, and the suggested promotion of fair work through other measures, including the development of a communications and marketing strategy to create widespread awareness of the agenda? Thank you.