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House of Lords blocks 'shares for rights' plan | House of Lords blocks 'shares for rights' plan |
(30 days later) | |
The House of Lords has blocked a move to allow employees to give up some employment rights in return for shares in the company they work for. | The House of Lords has blocked a move to allow employees to give up some employment rights in return for shares in the company they work for. |
Peers from all sides strongly criticised the idea put forward by Chancellor George Osborne at last year's Conservative conference. | Peers from all sides strongly criticised the idea put forward by Chancellor George Osborne at last year's Conservative conference. |
Former Tory cabinet minister Lord Forsyth labelled the scheme "ill-thought through, confused and muddled" | Former Tory cabinet minister Lord Forsyth labelled the scheme "ill-thought through, confused and muddled" |
The plan was defeated by 232 votes to 178 - a majority of 54. | The plan was defeated by 232 votes to 178 - a majority of 54. |
Ministers want to introduce a new owner-employee contract, which allows owners to award shares worth between £2,000 and £50,000 to their staff. They say the change would cut red tape and help businesses. | |
In return, the employee would give up certain rights, including unfair dismissal, redundancy, training rights and also the right to ask for flexible working. | In return, the employee would give up certain rights, including unfair dismissal, redundancy, training rights and also the right to ask for flexible working. |
'30 pieces of silver' | '30 pieces of silver' |
But peers attacked the plans, with former cabinet secretary Lord O'Donnell describing them as "very harmful to growth". | But peers attacked the plans, with former cabinet secretary Lord O'Donnell describing them as "very harmful to growth". |
"In the old days the price of slavery was 20 or 30 pieces of silver - is it now £2,000?" he asked. | "In the old days the price of slavery was 20 or 30 pieces of silver - is it now £2,000?" he asked. |
Lord Pannick, an independent crossbencher who led moves to throw out the new contract, told peers: "Employment rights were created and have been protected by all governments - Conservative and Labour - precisely because of the inequality of bargaining power between employer and employee. | Lord Pannick, an independent crossbencher who led moves to throw out the new contract, told peers: "Employment rights were created and have been protected by all governments - Conservative and Labour - precisely because of the inequality of bargaining power between employer and employee. |
"To allow these basic employment rights to become a commodity that can be traded by agreement frustrates the very purposes of these entitlements as essential protection of the employee who lacks effective bargaining power." | "To allow these basic employment rights to become a commodity that can be traded by agreement frustrates the very purposes of these entitlements as essential protection of the employee who lacks effective bargaining power." |
Lord King, a former defence secretary and one of 10 Conservative peers to rebel against the plans, said: "I'm a strong supporter of this government. | Lord King, a former defence secretary and one of 10 Conservative peers to rebel against the plans, said: "I'm a strong supporter of this government. |
"I hate standing up here to criticise something, but I have a greater duty to this government to prevent them going down a track that I think would lead to really unhappy consequences." | "I hate standing up here to criticise something, but I have a greater duty to this government to prevent them going down a track that I think would lead to really unhappy consequences." |
Tory Baroness Wheatcroft, a former editor and business journalist, said she feared the plan would "bring out the worst in business and not the best". | Tory Baroness Wheatcroft, a former editor and business journalist, said she feared the plan would "bring out the worst in business and not the best". |
Other Tory rebels included former Chancellor Lord Lawson, former cabinet minister Lord Deben and former chief whip in the Lords Lord Denham. | Other Tory rebels included former Chancellor Lord Lawson, former cabinet minister Lord Deben and former chief whip in the Lords Lord Denham. |
Labour's Lord Adonis said removing the clause would be an "act of mercy" to the government. | Labour's Lord Adonis said removing the clause would be an "act of mercy" to the government. |
'Humiliating defeat' | 'Humiliating defeat' |
"The idea that depriving employees of these basic rights is somehow going to boost growth is not supported by a single employer I have met, let alone [an] employee," he said. | "The idea that depriving employees of these basic rights is somehow going to boost growth is not supported by a single employer I have met, let alone [an] employee," he said. |
Defending the plans, business minister Viscount Younger of Leckie said: "This government wants a labour market that works for employees, employers and individuals. | Defending the plans, business minister Viscount Younger of Leckie said: "This government wants a labour market that works for employees, employers and individuals. |
"We want to give individuals more chances to share in the growth agenda and to own shares in their employer." | "We want to give individuals more chances to share in the growth agenda and to own shares in their employer." |
He said the scheme was a "new way of attracting high calibre talent to growing companies" although it "may not suit everyone". | He said the scheme was a "new way of attracting high calibre talent to growing companies" although it "may not suit everyone". |
Commenting on the defeat TUC general secretary Frances O'Grady said: "This humiliating defeat reflects the near universal thumbs-down it has received from business and unions. | Commenting on the defeat TUC general secretary Frances O'Grady said: "This humiliating defeat reflects the near universal thumbs-down it has received from business and unions. |
"The margin of defeat - a big victory for union campaigning - suggests that ministers should quietly abandon this policy." | "The margin of defeat - a big victory for union campaigning - suggests that ministers should quietly abandon this policy." |
It will now be up to MPs to decide whether to reinstate the plans when the Growth and Infrastructure Bill returns to the Commons. | It will now be up to MPs to decide whether to reinstate the plans when the Growth and Infrastructure Bill returns to the Commons. |
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