I could not have put it better myself, and I thank my right hon. Friend for his timely intervention and for all his work on this issue, for which he has won respect from those on both sides of the House.
It is all well and good for the Government to announce increases in fines for non-payment of the national wage, but without enforcement those increased fines exist only on paper. Instead of reforming the employment agency standards inspectorate, the Government effectively disbanded it in all but name in July 2013.
Modern-day slavery thrives in the UK, feeding off victims’ vulnerability, dependency and marginalisation. Victims are coerced through physical means, including violence, and more commonly through psychological means, including the abuse of power, deception and threats, as many Members have highlighted. Exploiters use vague employment relationships and arrangements as well as hidden costs, fees and debts owed by workers to trap people in precarious situations, preying on the vulnerability that pervades high-risk employment sectors.
Let me give another example. As we know, increasing numbers of construction workers in this country face the problem of false self-employment. Although the construction work force has been falling, the Union of Construction, Allied Trades and Technicians reports that the number of self-employed workers in construction rose by 37,000 between 2009-10 and 2011-12. It estimates that about half of those are falsely self-employed. That precarious employment status leaves construction workers extremely vulnerable to abuse, as employers are absolved of responsibility for their employment rights and entitlements. Despite recognising that false self-employment is a problem, the Government have reduced safety protections for two thirds of all self-employed workers.
I urge the Home Secretary to consider extending the remit of the Gangmasters Licensing Authority into industries such as construction. Hospitality, care and cleaning are vital sectors, as they are industries where there is a high risk of forced labour and exploitation that particularly affects women.
As I said earlier, the Home Secretary deserves credit for pushing the issue of modern-day slavery to the front of the political agenda, but political decisions taken elsewhere in Government will determine whether she is successful. However well meaning her intentions, the good work in the Bill risks being undermined by the Government’s consistent attack on employee rights and protections. It is disingenuous of the Government to say that they are combating modern slavery with one hand while the other hand is actively promoting the conditions under which that slavery can take root.
Worker protections have been sacrificed through measures introduced by the Government such as reduced health and safety reporting requirements, limits on health and safety protections for self-employed workers and the introduction of fees for employment tribunals. The enforcement of GLA licence violations has been undermined by the light sentences awarded in many labour exploitation cases. Offenders receive only small fines, convictions without punishment or suspended sentences and too often victims receive no remedies.
The prevention of modern-day slavery means ensuring that the cracks in our labour protection framework that permit widespread abuse against global workers are closed. To do that, we need an effective labour inspectorate that engages with workers to gather vital intelligence about those who exploit their vulnerabilities. We need a strengthened and adequately resourced GLA, acting as an intelligence gathering and enforcement agency with a remit extended to high-risk sectors such as construction,
hospitality, care and cleaning. We need a GLA that can enforce unpaid wages and other payments due to workers to ensure employment law is effective in practice. Finally, we need a GLA that sits within the Department for Business, Innovation and Skills, not the Home Office, with employment law enforcement rather than border control as its key priority.
I hope that the Home Secretary will work with Members on both sides of the House and organisations external to the House that want to strengthen the Bill in that regard. However, the debate in which the Home Secretary needs to engage most pertinently is not the one taking place in this Chamber but the one with her Cabinet colleagues whose agenda on labour market reform and red-tape cutting has directly undermined her attempts to address modern slavery with this Bill.
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