The Lib Dems' attack on workers' rights is a betrayal of their history

The tragic irony of Lloyd George’s successors pushing through regressive Conservative legislation.

You don’t have to look too hard at the record of this Conservative-led government to find examples where right-wing ideology and purblind prejudice have trumped reason and evidence in the formation of policy. Dismantling our National Health Service through financial competition, when all experts favour closer integration and collaboration, is one glaring and destructive example. Another is the crumbling foundation stone on which the government’s failing economic strategy is based: that public sector cuts will incentivise investment by the private sector. Seven hundred billion pounds of capital and assets hoarded in banks and corporate balance sheets is one evidence-based yardstick by which we might measure the margin of error of that call, though a more human scale might index the months of misery endured by the young unemployed of Britain as they wait for an upturn in our economic fortunes. However, I’m tempted to suggest that the most egregious example came yesterday, when Jo Swinson, the Liberal Democrat minister for employment relations, announced that she was cutting the minimum notice period employers have to give before making large-scale job cuts from 90 to 45 days.

This idea was first floated earlier in the year by Conservative donor Adrian Beecroft, in his slash and burn report on employment law. Beecroft infamously concluded that "employment law and regulation impedes the search for efficiency and competitiveness" and suggested that long established protections against unfair dismissal should be scrapped, parental leave and flexible working curtailed, pension rights reduced or removed altogether for employees in firms with just five workers, gangmaster licensing repealed, TUPE rules hobbled and the Agency Workers Directive dumped. Rather than recoiling from this shameful list, Tory minister Mark Prisk boasted that 17 of the 23 recommendations were already being implemented, though Vince Cable sounded a note of sanity in declaring it "complete nonsense to think that if labour rights were stripped down to the most basic minimum, employers would start hiring and the economy would soar again."

The Business Secretary pointed to evidence that Britain already has one of the most flexible labour markets in the developed world, a fact borne out by the OECD’s assessment of employment protection, which shows that British workers enjoy significantly fewer rights and statutory protections than their international counterparts.

Employment Protection in 2008 in OECD and selected non-OECD countries*

Scale from 0 (least stringent) to 6 (most restrictive)

And perhaps the Business Secretary’s influence can be seen in today’s decision to implement Beecroft’s recommendation on cutting the 90 day rule, insofar as the BIS Impact Assessment does concede that Britain has "one of the most flexible labour markets in the world according to the OECD’s employment protection index." However, Cable’s writ clearly doesn’t run too far, certainly not far enough to head off Tory-led determination to curtail workers’ rights. And thus the same Impact Assessment finds a way past the evidence to conclude (without supporting data of any kind) that "the UK performs relatively less well on the component of that (OECD) index that relates to collective redundancies and there may be room for greater flexibility here."

That greater flexibility entails making it easier and cheaper for employers to sack workers in batches of a hundred or more, by reducing the notice period, and thus the amount of time employers have to pay workers whom they intend to fire, to 45 days. This, like Beecroft’s other recommendations, is meant to "promote growth". But read the report in fine detail and you will struggle to find any empiric or even consistent anecdotal evidence to support this conclusion, as even BIS concludes the data is mixed:

Some UK employers have argued that the current regime for collective redundancy consultation is harming their competitiveness on a global level. They state that it is much quicker to restructure in other, competitor, nations, both within the EU and beyond. However, further discussion in focus groups with employers suggests this is not a universal view, and that in fact many view the process as easier in the UK than the rest of the EU.

Er, so which is it? They don’t say. But as someone who has worked for multinational companies with operations in counties across the world, I can tell them for free that everyone knows it’s far easier to lay people off here than it is in France or Germany, Belgium or Italy. In fact, as the OECD says, it’s easier here than just about anywhere apart from the US. And thus the only thing than can explain this change is not evidence, but ignorant prejudice: they think they know in their guts that British workers are a drag on our economy – amongst the most idle in the world, as another Tory publication recently described them – and that transferring yet more powers from labour to capital, from workers to corporations, will shake them up and render more dynamic our failing economy.

So, there you have it: another triumph of ideology over evidence for Tories who are determined to drive through every last post-Thatcherite prejudice they stored up and brooded on during their time out of office. For me, as a Welshman, the tragic irony of Lloyd George’s successors pushing through such regressive Tory legislation is rich indeed. Do Swinson and Cable not recall with pride that theirs was the party that first introduced unemployment insurance or the Whitley Councils on employment relations? Can they really say they are equally proud, almost a century later, to now be reducing workers' rights? The Welsh Wizard must be spinning in his Gwynedd grave.

Business Secretary Vince Cable with employment relations minister Jo Swinson. Photograph: Getty Images.

Owen Smith is shadow welsh secretary and Labour MP for Pontypridd.

Photo: Getty Images/Richard Stonehouse
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Here's how Jeremy Corbyn can win back the Midlands

The Midlands is where elections are decided - and where Jeremy Corbyn can win. 

The Midlands: this “formless” place is where much of Labour’s fate lies. The party witnessed some of its most disappointing 2015 results here. In those early, depressing hours of 8 May, Nuneaton was the result that rang the death knell of Labour’s election chances. Burton, Cannock Chase, Halesowen & Rowley Regis, Redditch and Telford weren’t far behind. To win here Labour need to build a grassroots movement that engages swing voters.

Luckily, this is also a place with which Labour’s new leader has a natural affinity. The bellwether seat of Nuneaton is where Jeremy Corbyn chose to hold his last regional rally of the leadership contest; just a couple of counties over you’ll find the home Corbyn moved to in Shropshire when he was seven. He cut his political teeth round the corner in marginal constituency The Wrekin; it was in this key seat he did his first stint of campaigning. Flanked by a deputy leader, Tom Watson, who represents Labour stronghold West Bromwich East, Corbyn has his eye on the Midlands.

As MP for Islington North since 1983, Labour’s leader has earned London-centric credentials that have long since overshadowed his upbringing. But Corbynism isn’t a phenomenon confined to the capital. The enthusiasm that spilled out of Corbyn’s summer leadership rallies across the country has continued into the autumn months; Labour’s membership is now over 370,000. It’s fast catching up with 1997 figures, which are the highest in the party’s recent history.

London is the biggest beneficiary of this new movement - with 20 per cent of Labour’s members and 19 per cent of new members who signed up the week before conference coming from the capital. But Corbynism is flourishing elsewhere. 11 per cent of all Labour party members now reside in the southeast. In that same pre-conference week 14 per cent of new members came from this mostly Tory blue area of the country. And since last year, membership in the southwest increased by 124 per cent. Not all, but a good deal of this, is down to Corbyn’s brand of anti-austerity politics.

A dramatic rise in membership, with a decent regional spread, is nothing to be sneered at; people are what you need to create an election-winning grassroots movement. But, as May proved, having more members than your opposition doesn’t guarantee victory. Corbyn has spoken to many who’d lost faith in the political system but more people need to be won over to his cause.  

This is clear in the Midlands, where the party’s challenges are big. Labour’s membership is swelling here too, but to a lesser degree than elsewhere. 32 per cent of party members now and 13 per cent of those who joined up in seven days preceding conference hail from this part of the country.

But not all potential Labour voters will become card-carrying members. Corbyn needs to speak to swing voters. These people have no party colours and over the summer they had mixed views on Corbynism. In Nuneaton, Newsnight found a former Labour turned Ukip voter who thought Corbyn would take Labour “backwards” and put the economy at risk. But a fellow Ukip voter said he saw Corbyn as “fresh blood”.

These are enduring splits countrywide. Voters in key London marginal Croydon Central gave a mixed verdict on Corbyn’s conference speech. They thought he was genuine but were worried about his economic credibility. While they have significant doubts, swing voters are still figuring out who Labour’s new leader is.

This is where the grassroots movement comes into play. Part of the challenge is to get out there and explain to these people exactly who the party is, what it’s going to offer them and how it’s going to empower them to make change. 

Labour have nascent plans to make this reality in the Midlands. Tom Watson advocated bringing back to life this former industrial heartland by making it a base for manufacturing once again – hopefully based on modern skills and technologies.  He’s also said the leadership team will make regular regional visits to key seats. Watson’s words chime with plans floated by shadow minister Jon Trickett: to engage people with citizens’ assemblies where they have a say over Labour politics.

But meetings alone don’t make grassroots movements. Alongside the economy, regional identity is a decisive issue in this – and other – area(s) of the country. With the influx in money brought in by new members, Labour should harness peoples’ desire for belonging, get into communities and fill the gaps the Government are leaving empty. While they’re doing this, they could spread the word of a proper plan for devolution, harking back to the days of municipal socialism, so people know they’ll have power over their own communities under Labour.

This has to start now, and there’s no reason why the Midlands can’t act as a model. Labour can engage with swing voters by getting down to a community level and start showing – and not just saying –  how the party can make a difference. 

Maya Goodfellow is a freelance journalist.