Select Committee on Trade and Industry Minutes of Evidence


Examination of Witnesses (Questions 360-378)

UNION OF SHOP, DISTRIBUTIVE, AND ALLIED WORKERS

20 DECEMBER 2004

  Q360 Judy Mallaber: So did you pick that as a suggestion to be looked at because it seemed to be at about the right level of pay or because you thought there was actually a logic to using a median?

  Mr Markall: There was a logic. As I said, we had to try to find a point of reference in our mind and a realistic anchor to answer the question; "what do you think it should be?" We chose that anchor because it was the kind of proportion that used to prevail all down the years, certainly until the Wage Councils were lost. There seemed no good reason not to address that as a way forward going into the future, not least because it repaired the damage that had been done.

  Q361 Judy Mallaber: On the Low Pay Commission itself, you obviously like that approach; are there ways in which they work which you would like to see them do differently or are you pretty satisfied with the mechanisms that they use and the work that they do?

  Mr Markall: This is a fair question. We are delighted with what they have done so far. We may say go a bit further, go a bit further, but I do not think anyone could detract from the way they have operated, the caution they have exercised and the prudence they have brought to bear. I think the fact that the Government has embraced, by and large (not entirely) what the Low Pay Commission has  had to say, certainly on adult rates, is a recommendation of their way of working.

  Mr Lillis: Also what they have done for the million of workers not covered by collective agreements with trade unions. It has helped bring their wages up so that has been a big positive as well.

  Q362 Chairman: Two small things there. One, to what extent do the views you have just expressed enjoy currency with other unions in the TUC because your evidence is a wee bit different from what we have seen from the TUC?

  Mr Markall: The TUC is a confederation and people have different priorities. Some will talk about a money sum, some will talk about a formula. We are principally a supporter of the Low Pay Commission and that way of working.

  Q363 Chairman: One other question, your members who are currently in these jobs are very often on the minimum wage, so what is the point in being in a union if their wages are going up anyway? They are not going to go up by very much but what is the point of being in a union, or is that a question I should not be asking?

  Mr Markall: The answer is something I wear as a bit of a medal really. It is because being in a union is about a lot more than your basic rate of pay. All the surveys that engage people about why they do or do not join a trade union show that the people who join do so for protection and defence at work, and that has always been so and it still is, and that is about a lot more than basic pay, particularly in an arena where anything like a handsome pay deal is unheard of. We are talking about percentage points above inflation for the most part in retail, and not something that is going to have people turning cartwheels. What we have to do, as I think I mentioned earlier, is to extend our bargaining agenda to the whole range of fronts that matter to people, and they do matter. We listen to what our members say, strangely enough. For donkeys' years they have been saying, "I cannot get someone to mind my kids and get to work reliably." "I hate it when they are ill and there is nothing I can do about it." "I don't like the way my manager keeps chopping my hours." Those are the kind of issues we have to engage in as much as anything else.

  Mr Lillis: Those are some of the bread and butter issues but the other point I would make is USDAW as a union has continued to grow year-on-year by a 10,000 or 12,000 net increase. Even with the turnover we have of 60,000 or 70,000 members, we are still getting a net increase of between 10,000 and 12,000 each year, so there is evidence that people continue to join unions as opposed to not.

  Q364 Mr Clapham: Before I turn to the Working Time Directive could I just ask a question in terms of what you had to say there, Mr Markall, about trade unions being much more than wage rates, relating to the health and safety of retail workers. Is health and safety an issue and, if it is, is it more an issue related to physical injuries such as the lifting type of injuries or is it more the psychological type of injuries? Is stress a problem? If so, are these physical and psychological injuries, shall we say, more relative in the larger companies than the smaller companies?

  Mr Markall: With respect, I am going to pass to Ruth to answer this because she has headed up an enormous campaign around this question that bears on the kind of pressures and stresses that people are under in the retail environment. Can I do that?

  Q365 Mr Clapham: Yes, certainly.

  Ms Stoney: Our Freedom from Fear campaign has looked very much at the massive issue of violence and threats and abuse against shop workers. It is a job that involves an incredible amount of skill in dealing with the public, and in dealing not only with criminals who try and target retail but also with aggressive and abusive customers, and those stresses place enormous psychological strain on people. We have had a lot of evidence and I do not think we have found a single shop worker who has not suffered certainly from verbal abuse during their working life and many of them suffer this on a daily basis, and it makes it a very difficult part of the job. It is also a very strenuous job. Within a four-hour shift, a check-out operator will lift a tonne from a sitting position, and this has very serious implications for a lot of our members with manual handling injuries, and particularly for women who are pregnant it is a   very serious problem. There are both the psychological and stress pressures, particularly on the violence and abuse side, for people in management roles. Retail management is one of the most stressful occupations you can have because you are dealing not only with the pressures of a very competitive sector but with aggressive and abusive people as well.

  Q366 Mr Clapham: Can I ask in relation to what you said there about pregnant woman et cetera in the seated position at many of the check-outs, have you had any input at all into the design of seating so that people get more ergonomically designed seating?

  Mr Lillis: Yes, our own health and safety department has worked with most of the big retailers over a number of years in terms of design, involving employees and members in that, so in particular we work closely with the likes of Tesco's on the design of any product that is going to be used by staff, so yes there is quite a bit of co-operation. It is in everybody's interest.

  Q367 Mr Clapham: What about common law damages, do you refer cases to your solicitors? Is it one of the issues, for example, that you are able to campaign on?

  Mr Lillis: I think for the vast majority of the trade union movement in terms of free legal services, it is one of the big pluses that people have because of the high cost of legal services. If you join a union there is a free legal service there. I think compensation recovered last year was just over £1 million for our members. We do not want to be having to recover that, we do not want our members injured, but it is a fact of life, it does happen.

  Q368 Mr Clapham: Can I turn now to the Working Time Directive. Do you have any information on how it is impacting on your members?

  Mr Markall: We have conducted two pieces of survey research in the last 12 months, one with our road transport drivers. They are the people who drive the very large vehicles who will be covered by the Road Transport Directive next March but who had been entirely excluded from the scope of the Working Time Regulations until August 2003 when they were only partially included, so in terms of the length of the working week for a heavy goods vehicle driver, who are even now completely unregulated, there is regulation on driving time but not working time. We conducted a survey of them about 12 months ago to see what their experiences of the long hours working were and we also conducted a survey very much more recently in August/September of this year of people in what we broadly term "white collar" occupations where we felt long hours of working may have been an issue, and the way in which they accessed or were refused access to the opt-out and how those long hours came about and under what conditions and so on and so on. I am happy to pass that information to the Committee or to try and encapsulate that for you as well if you have got time.

  Q369 Mr Clapham: That would be helpful. Can I just ask in relation to the opt-out, did your surveys find that employees were coming under any undue pressure to opt out?

  Mr Markall: Of both groups, about 30% told us they felt they had been put under pressure to work long hours. Road transport drivers could not have been put under pressure to opt out because it simply was not relevant for them, they were not covered in the first place, but both groups felt pressure to work long hours and in the case of the white collar workers to opt out of any 48-hour control. So there was some clear evidence that that was happening. Something like a quarter of the white collar people believed when they entered the job that working long hours was a condition of employment. That is not to say the employer was hoodwinking them but maybe saying they did not know any better, and certainly there was a problem there.

  Q370 Mr Clapham: And that is contained in the surveys that you did and you are going to let us have them?

  Mr Markall: Absolutely.

  Q371 Sir Robert Smith: Can I expand on the working experience. How much of it is also about the anti-social hours rather than the length of hours that people are having to work in the 24-hour lifestyle?

  Mr Markall: The two can be one and the same thing very often and certainly the evidence of the drivers that reported to us about the impact on their social and family lives was quite extraordinary and some of it was very moving. The extent to which their relationships had collapsed, their children had grown up and they had never seen them, and so on. This was among a body of muscular, male drivers where the stereotype would tell you not to expect that kind of feedback. There was clearly some very real impact and damage being done to their lives by the kinds of hours and shift patterns they were expected to work.

  Q372 Sir Robert Smith: How is the current practice progressing? There is quite a lot of talk about enlightened employers working round people's school day or family commitments and flexible rostering especially in the retail sector. There is talk of that; I just wondered how much of a reality it is.

  Ms Stoney: Just to come in on that, I am working currently on USDAW's Parents and Carers campaign, so we are looking at a lot of these issues. Obviously in retail and the service sector as a whole it is a major problem in that the busiest times are at the weekends and in the evenings when particularly people with parental responsibilities have the most problems in being able to work and they want and need to spend their time with their children. So there are serious problems around that. A lot of retail contracts are now being changed so that people do have to be quite flexible around when they work and the experience varies company to company. We are finding that a lot of companies are needing to bring in flexible hours contracts where people work from a core of a low number of hours and then have to flex up at times when it is busiest in the run up to Christmas but that then they are struggling when they are on low pay in those low hours. In the best cases then—and it may vary from store to store and manager to manager—people may be able to input themselves when they are able to work and the store will try wherever possible to work round that, but obviously in the worst case scenarios it is far more prescriptive about when they are rostered to work and it is much more difficult for them to swap shifts and to change.

  Q373 Sir Robert Smith: So flexible working is getting worse for people. You are saying in the good store with the good manager there is an input from the person affected who can maybe take advantage of the flexibility but in the bad or medium store with an okay manager?

  Ms Stoney: In our members' experience, flexibility is a dirty word because it is flexibility in the interests of the employer not of the employee.

  Q374 Sir Robert Smith: What is the trend at the moment? Is it getting worse for the employee or—

  Ms Stoney: I think we would find that it is definitely getting worse because of the increased competition in retail. Because retail customers tend to swap and change and use their market power, then the amount of time that specific stores are able to allocate on their staff often depends on the turnover, either in the preceding weeks or in the period going up to that, so a manager will never know how many person hours they can offer until they know what the turnover of the store has been and then they have to create their rotas and shifts based on that number of person hours and it can go up or down from week to   week, which creates serious problems with interaction with the benefits system as well as for people with caring responsibilities and people just trying to pay their mortgages from week to week where they have got a varying amount of income. They will quite often try and take second jobs but that is very difficult to fit in where your hours are varying. This is one of the reasons why job satisfaction is decreasing because people have much less control over their hours and their pay.

  Q375 Mr Clapham: Are there any employers that stand out as being much more, shall we say, compassionate than the others?

  Mr Markall: What Ruth said is accurate but what you may find is it is in the nature of large retail businesses that you could have a very progressive policy at corporate level, and there are employers who fit that model, but by the time it finds its way on to what could be several 100 shop floors, if it is a large retail enterprise, with goodness knows how many thousands of management teams, the message gets a little wobbly and the practice is rather different. It is true to say that there are some employers now who are keen to understand what they call "their people" better, to make it easier to work for the "business concern", as they put it and to be more attentive—very ambitiously on paper—to the needs and interests of the vast number of people who are on their payroll. It is easy to be cynical but they are only doing and saying what generations of trade union people have told them: treat your people well and you will get a more stable, less costly and more productive workforce, and at least at corporate level some of them are trying to embrace that message. It is easy to be cynical. They have colonised everything else. They have colonised the clock 24 hours, they have colonised out of town, they have colonised the competition. They are now turning to the last body of people where they can gain a competitive edge and it is the most difficult body of people, the people with hearts and minds. Nonetheless, some of them are extremely intent on making sure they win those hearts and minds and that is what we are in the business of helping them to do.

  Mr Lillis: The fact we launched a Parents and Carers campaign for 2005 and beyond is in some respects to test some of the corporate policies that they have on flexible working. One of the core issues that impacts for us is the high turnover of staff in retail, which puts immense pressure on the managers in running their businesses. Again, it is a two-way process, it is having to work together to get solutions not in terms of flexibility one way just for the employer, but flexibility to ensure that our members, their employees, have the flexibility for their care and duty to their families, their children, the elderly, the disabled, and bring that in. We can all work together to that end. Some of the big retailers are working quite closely with us on this. I think Graham is right, when it comes down to the shop floor level there are immense pressures on everyone, and the corporate policy goes out the window.

  Q376 Judy Mallaber: Can I just ask on that last issue whether you have managed to do any analysis of responses by employers to requests for using the new flexibility in terms of having children? Have you done any analysis of what the response has been and how far that has been taken up by large stores?

  Ms Stoney: We are currently trying to analyse and get evidence from our members who have requested flexible working on what the response has been. Obviously in general people are more likely to come to a trade union if they have been refused a request but we are certainly getting very high levels of requests being refused and our union reps, who are trying to support people in the workplace in both successful and unsuccessful requests for flexible working, particularly for mothers who are returning to work after having a baby, are finding that there are very high levels of refusal of people's requests to work flexibly, and the figures that the DTI have brought out of 90% of requests being accepted is certainly not our experience and we are looking to bring together a body of evidence of when that policy is refused to show what our members' experience has been.

  Judy Mallaber: Thank you.

  Q377 Chairman: I live in Edinburgh, a city of nearly half a million people and they have four or five big supermarket chains. Do people move within the chains or do they move from one company to another? The "voting with their feet" syndrome. Do you have instances of people who go from, let's say, Tesco's to Sainsbury's because they are not getting the flexible working in the one and they might get it in the other. If you have membership in one the names will crop up again so does your database throw up that sort of information?

  Mr Lillis: Our database does not throw it up. However, we are in the process of doing work on that because clearly with 60,000 or 70,000 turnover in our own membership in the retail sector it is in our interests to try and reduce those numbers. Certainly as a local official going round a store you will meet people in Tesco's who have left and six to eight weeks later you will meet them in Sainsbury's or you will meet them somewhere else. They tend to have breaks for specific reasons. They will leave for three or four months and then go to another retailer but most of them tend to stay in the retail environment.

  Q378 Chairman: Okay. I think that has covered virtually everything. I think there are one or two points we would like you to get back to us on but we will be in touch with you. We will probably not be putting pen to paper until early in the New Year and if you wanted to send in anything that your research has thrown up we would be very grateful and very happy to receive it.

  Mr Lillis: We will certainly do that.

  Chairman: Thank you very much.





 
previous page contents

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2005
Prepared 18 May 2005