Workfare goes underground as Holland and Barrett pull out

DWP pitches for small businesses instead

Holland and Barrett, one of the largest companies using unpaid workers from the government's various employment schemes, has pulled out, citing the bad press and in-store protests its participation prompted. It will now pay its workers on through government's apprenticeship program, guaranteeing them a wage of at least £2.60 per hour.

The company made the announcement on its Facebook page, writing that:

At Holland & Barrett, we take our responsibilities as a retailer and employer very seriously, and any possible compromise to the safety of our staff and customers from opponents of our work experience scheme is treated with great importance.

This factor, together with the planned introduction of a new full time, salaried apprentice scheme, means that the 60 people currently undertaking the work experience scheme will be the last to complete the eight week placement. After this time Holland & Barrett will not participate further in that scheme.

Speaking to Shiv Malik at the Guardian, Solidarity Federation (Sol Fed)'s Jim Clark, one of the organisers of the series of protests, responded:

Holland & Barrett's claim that pickets of stores could offer a possible compromise to the safety of staff and customers is completely baseless. On our pickets, the first people we spoke to were the staff, many of whom told us they agreed with the aim of our campaign and that overtime was no longer available in some stores as it was being done by unpaid workfare labour instead.

The workfare program has been a mess for the government since attention was first drawn to the compulsory nature of some of the unpaid work this spring. The Department for Work and Pensions was revealed to be telling claimants on one of the "voluntary" schemes that attendance was mandatory, and a number of high-profile companies stopped taking on workers under the schemes after a fraught meeting with Chris Graying, the minister in charge. And last month, the government's own research showed that mandatory work activity is "largely ineffective", according to NIESR's Jonathan Portes, who wrote:

Briefly, what the analysis shows is that the programme as currently structured is not working. It has no impact on employment; it leads to a small and transitory reduction in benefit receipt; and worst of all, it may even lead to those on the programme moving from Jobseekers' Allowance to Employment and Support Allowance.

Despite that, the government has decided to expand the MWA scheme; but it appears that the government is attempting to avoid the PR hits that has often come with businesses taking on workers from the scheme. Various small businesses have reported being offered participants directly, in a move which is seemingly an attempt to drive participation underground. If campaign groups like Boycott Workfare have to protest 60 businesses each with one worker, rather than one with 60, they will have their work cut out to effect a change.

That said, it is probably the case that if government is having to enact policy designed around making it difficult to protest, that is at least a symbolic win for the protestors. Gettin an actual win, however, will get a bit harder.

Chris Grayling, Minister for Work and Pensions. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Photo: Getty Images
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The Fire Brigades Union reaffiliates to Labour - what does it mean?

Any union rejoining Labour will be welcomed by most in the party - but the impact on the party's internal politics will be smaller than you think.

The Fire Brigades Union (FBU) has voted to reaffiliate to the Labour party, in what is seen as a boost to Jeremy Corbyn. What does it mean for Labour’s internal politics?

Firstly, technically, the FBU has never affliated before as they are notionally part of the civil service - however, following the firefighters' strike in 2004, they decisively broke with Labour.

The main impact will be felt on the floor of Labour party conference. Although the FBU’s membership – at around 38,000 – is too small to have a material effect on the outcome of votes themselves, it will change the tenor of the motions put before party conference.

The FBU’s leadership is not only to the left of most unions in the Trades Union Congress (TUC), it is more inclined to bring motions relating to foreign affairs than other unions with similar politics (it is more internationalist in focus than, say, the PCS, another union that may affiliate due to Corbyn’s leadership). Motions on Israel/Palestine, the nuclear deterrent, and other issues, will find more support from FBU delegates than it has from other affiliated trade unions.

In terms of the balance of power between the affiliated unions themselves, the FBU’s re-entry into Labour politics is unlikely to be much of a gamechanger. Trade union positions, elected by trade union delegates at conference, are unlikely to be moved leftwards by the reaffiliation of the FBU. Unite, the GMB, Unison and Usdaw are all large enough to all-but-guarantee themselves a seat around the NEC. Community, a small centrist union, has already lost its place on the NEC in favour of the bakers’ union, which is more aligned to Tom Watson than Jeremy Corbyn.

Matt Wrack, the FBU’s General Secretary, will be a genuine ally to Corbyn and John McDonnell. Len McCluskey and Dave Prentis were both bounced into endorsing Corbyn by their executives and did so less than wholeheartedly. Tim Roache, the newly-elected General Secretary of the GMB, has publicly supported Corbyn but is seen as a more moderate voice at the TUC. Only Dave Ward of the Communication Workers’ Union, who lent staff and resources to both Corbyn’s campaign team and to the parliamentary staff of Corbyn and McDonnell, is truly on side.

The impact of reaffiliation may be felt more keenly in local parties. The FBU’s membership looks small in real terms compared Unite and Unison have memberships of over a million, while the GMB and Usdaw are around the half-a-million mark, but is much more impressive when you consider that there are just 48,000 firefighters in Britain. This may make them more likely to participate in internal elections than other affiliated trade unionists, just 60,000 of whom voted in the Labour leadership election in 2015. However, it is worth noting that it is statistically unlikely most firefighters are Corbynites - those that are will mostly have already joined themselves. The affiliation, while a morale boost for many in the Labour party, is unlikely to prove as significant to the direction of the party as the outcome of Unison’s general secretary election or the struggle for power at the top of Unite in 2018. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.