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4.15 pm

I should stress that we are not yet ready to present our detailed proposals for revision of the regulations. Some difficult legal issues must be addressed, and my officials are still considering them. Besides, we are obviously not in a position to prejudge the outcome of the public consultation to which I have referred.

Mr. Tim Collins (Westmorland and Lonsdale): May I express my hope, and that of many other Conservative Members, that the Minister receives the promotion that is due to him?

The Minister said earlier that consultation would take place in the autumn, and that proposals would be in place some time next spring. I appreciate that he may not be able to be precise, but can he give us some idea of the minimum period that will elapse between the conclusion of the consultation and the implementation of the regulations?

Mr. McCartney: I thank the hon. Gentleman for his initial comments. I do not know whether they were helpful or unhelpful, but they were certainly apposite, given that we are dealing with the transfer of undertakings from one job to another--although I am not sure that that covers Ministers.

The hon. Gentleman's main point is very valid. When my officials have completed their work, I shall be happy to give both the official Opposition and the Liberals a clear indication of the timetable for the proposals. That will involve consultation. This is the first opportunity that the Government have had, prior to consultation about specific regulations, to sit down with stakeholders and involve them in the preparation of a consultation document. When the timetable is produced, it will be as a result of agreement. The hon. Gentleman, however, asked a fair and reasonable question, and I shall answer it as soon as I can. If that is before the House returns from the recess, I shall write to him and to the Conservative and Liberal Democrat Front-Bench spokesmen, the hon. Members for Tiverton and Honiton (Mrs. Browning) and for Eastleigh (Mr. Chidgey).

The use to which the power will be put will, as I have said, be subject to consultation. That is why the amendment was drafted in relatively wide terms. I hope,

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however, that by describing in some detail the purposes for which we expect the power to be used, I have been able to allay any fears that hon. Members may have had. I trust that I have succeeded in making clear what are undoubtedly complex legal points.

Mr. David Chidgey (Eastleigh): It would be helpful if the Minister could clarify one point. He referred to the transfer of undertakings from the public to the private sector. May I take him back a few years, to a time when privatisation policies were in full swing and many public-sector agencies became private, contracted-out organisations?

In recent years, contracts have been re-tendered so that other private sector companies can bid for the privilege of undertaking the services. The Public Services Agency is an example. One problem that has arisen is exactly how the TUPE rights of workers are transferred to the second privatised employer who has contracted for those services. It has caused some confusion, and, as I think the Minister will know, what should happen is not made clear in the directive. Has the Minister taken this on board in the regulations, and, if not, can he assure me that he will?

Mr. McCartney: That is a fair and, indeed, important point. The whole purpose of agreeing the review with our European partners was to take account of exactly such issues.

Over the years, a complexity has arisen because of decisions made in courts and in employment appeal tribunals. There are grey areas applying to both employers and employees, which should not need to be there. A common approach is needed on the part of employers' and employees' organisations to put the matter right, which is why prior consultation is taking place. I trust that the consultation will address those issues fully and effectively, so that when the new proposals are introduced next spring there will be a sense of common ownership, and both rights and obligations in regard to what happens in the case of first, second and, potentially, third-generation contractual arrangements will be clarified.

Lords amendment agreed to.

Lords amendments Nos. 25 to 31 agreed to.

Schedule 1

Collective Bargaining: Recognition

Lords amendment: No. 32, in page 17, leave out lines 25 to 29 and insert--


("2A.--(1) This paragraph applies for the purposes of this Part of this Schedule.
(2) The meaning of collective bargaining given by section 178(1) shall not apply.
(3) References to collective bargaining are to negotiations relating to pay, hours and holidays; but this has effect subject to sub-paragraph (4).
(4) If the parties agree matters as the subject of collective bargaining, references to collective bargaining are to negotiations relating to the agreed matters; and this is the case whether the agreement is made before or after the time when the CAC issues a declaration, or the parties agree, that the union is (or unions are) entitled to conduct collective bargaining on behalf of a bargaining unit.

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(5) Sub-paragraph (4) does not apply in construing paragraph 27(3).
(6) Sub-paragraphs (2) to (5) do not apply in construing paragraph 30 or 36B.")

Mr. Ian McCartney: I beg to move, That this House agrees with the Lords in the said amendment.

Madam Speaker: With this, it will be convenient to discuss Lords amendments Nos. 72 to 74, 109, 110 and 198.

Mr. McCartney: Every time I say, "I beg to move," someone shouts.

The purpose of amendment No. 32 is to clarify the scope of collective bargaining and how it may be altered. We wanted it to be absolutely clear that, even if the Central Arbitration Committee issues a declaration of recognition, the union and employer could agree to alter the scope of collective bargaining to include other matters than pay, hours and holidays.

Similarly, amendment No. 198 clarifies the scope of collective bargaining in part III of the schedule by introducing a paragraph 70B. New paragraph 70C allows the parties to vary a bargaining method imposed by the CAC under part III. That mirrors the existing provision in paragraph 27 for bargaining methods imposed under part I.

I turn to the issue of whether a union should be required to give up an existing collective bargaining agreement to apply for recognition under part I. The CAC is required to reject applications for recognition in a bargaining unit if any union, including the applicant union, is already recognised to conduct collective bargaining on behalf of one, or more workers in the bargaining unit. One effect of that is to require a union that has a very limited, but possibly long-standing recognition agreement covering the union's role in disciplinary matters, for example, to give up that recognition to apply for statutory recognition under part I.

We do not believe that recognition for what might be called "non-core" issues should bar the union from seeking recognition through the procedure for pay, hours and holidays, if both the employer and union are happy for recognition to continue. The union should be able to seek recognition on the "core" issues of pay, hours and holidays without being forced first to tear up an existing agreement.

Therefore, amendment No. 73 provides that a voluntary agreement that does not include bargaining about pay, hours or holidays does not bar the recognised union from applying under part I. The employer will, of course, still be able to terminate the voluntary agreement if he or she wishes. It may be that an employer, faced with an application for recognition on pay and so on, wishes to renegotiate on the matters for which he already recognises the union. The Government's amendment allows that.

Amendment No. 72 is a technical change to the wording. Amendment No. 74 ensures that changes to a bargaining unit made by the CAC under part III are taken into account in deciding whether another unit is recognised.

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Amendments Nos. 109 and 110 ensure that the definition of collective bargaining in relation to changing the bargaining unit is the definition already in force--what the parties have agreed, or the CAC has imposed. Amendment No. 198 is equivalent to paragraphs 2(7) and 27, and applies to a new unit that is determined under part III. It allows both the definition of collective bargaining and the method for collective bargaining to be varied, or ended if the parties agree to do so.

Those are constructive changes. I commend them to the House.

Lords amendment agreed to.

Lords amendment: No. 33, in page 18, line 12, leave out from ("registered") to end of line 14 and insert


("in the register maintained under section 8 of the Merchant Shipping Act 1995 shall be treated as ordinarily working in Great Britain unless--
(a) the ship's entry in the register specifies a port outside Great Britain as the port to which the vessel is to be treated as belonging,")

Mr. Ian McCartney: I beg to move, That this House agrees with the Lords in the said amendment.

Madam Speaker: With this, it will be convenient to discuss Lords amendments Nos. 34, 38, 41, 45, 48, 57, 62, 65, 67 to 69, 75, 78, 85, 88, 90, 100, 101, 105, 107, 108, 111, 113, 114, 128, 133, 136, 139, 145, 147 to 149, 188, 205, 208 to 210, 213, 215, 216, 219, 224, 225, 231, 234, 235, 241, 244 to 246, 251 to 253, 256, 257, 259, 261, 267, 268, 274 to 277 and 279.


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