4. Statement by the First Minister: Social Partnership

Part of the debate – in the Senedd at 3:40 pm on 9 July 2019.

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Photo of Paul Davies Paul Davies Conservative 3:40, 9 July 2019

Can I thank you, First Minister, for your statement? And I look forward to further scrutinising the details of your proposals in the coming months. However, I must say, from the outset, that I am very disappointed that you have chosen to politicise this statement and to suggest that Conservatives, whenever they are in Government, take a confrontational approach. That is not right, because, as a Conservative, I very much agree with you that these issues should be approached in a collaborative way. I believe I speak, though, on behalf of all businesses who are disappointed by what you had to say today who have undertaken this collaborative approach, and will probably now feel more pressure to comply with these plans.

Now, the businesses I've spoken to believe this voluntary approach has worked over the years, and indeed is working. Now, as you know, the 'Good Work Plan' already commits to ensuring that workers can receive fair and decent work, and I understand legislation will be brought forward at a UK level to provide workers with the right to request more stable contracts. Now, in your statement today, First Minister, you make it clear the present model of a voluntary social partnership has reached the limit of its effectiveness. Are you saying that this model has, therefore, failed, given that this has been the policy of successive Welsh Labour Governments over the last 20 years? I'm sure successive Welsh Governments would disagree with you on that.

First Minister, I'm sure you will agree with me that this approach needs much more work, and therefore shouldn't be just rushed through this Parliament. Now, whether we like it or not, 43,000 people are currently employed on zero-hours contracts, and, of course, the effects of the social partnership Act should be carefully considered through a consultation, in my view, as should all aspects of the effects that the Act will have on both Welsh workers and businesses. Surely only when a comprehensive consultation is completed and reported back to the Assembly should it then decide on the most appropriate course of action, rather than just first legislating for a Bill that has not yet been consulted upon with those that it would impact the most. Will you, therefore, First Minister, commit to holding a comprehensive consultation with all stakeholders so that everyone's views are actually taken into consideration? And if you don't commit to this, what steps will you be taking in order to ensure that trade unions act in the interests of their members, that business organisations act in the interests of their members, and that the public voice is heard loud and clear as well? 

Now, I appreciate people will have different views on zero-hours contracts and the effect this can have on working people. And you will be aware, First Minister, that the Taylor review of modern working practices reports that one fifth of people on zero-hours contracts are in full-time education. And, apparently, 68 per cent of those on such contracts do not want more hours. Therefore, it's crucial, I think, that we continue to create opportunity for flexible employment for those who want it. Can you therefore outline how this proposed social partnership Act will continue to allow for flexible employment for those who rely on flexible employment, but at the same time still protecting workers' rights? I'd be grateful if you would perhaps expand on this, because I agree that we must deal with less scrupulous employers, but we must also ensure a flexible economy going forward as well. 

First Minister, the Minister for Housing and Local Government's written statement this morning said that the new social partnership and fair work directorate will be positioned within the office of the First Minister and Brexit. However, the report recommends that the office of fair work not be positioned within a particular department. Will this mean, therefore, that you, as First Minister, will have direct control over the establishment and direction of that directorate? And how will you ensure that this new department will actually operate across the whole of Government, given that it will actually be located under you? 

So, with that, Deputy Presiding Officer, can I thank you, First Minister for your statement this afternoon? I and my colleagues look forward to scrutinising your plans further over the coming weeks and over the coming months.