Bad Work: the Government’s Response to the Taylor Review

By Dr Katie Bales, Prof Alan Bogg, Prof Michael Ford QC, Prof Tonia Novitz and Ms Roseanne Russell, Centre for Law at Work (University of Bristol Law School).

© Alexander Baxevanis

Don Lane was a DPD courier, whose written contract described him as an ‘independent contractor’, aiming to ensure that he was neither an ‘employee’ nor a ‘worker’ and therefore was not entitled to the legal rights such as  protection against dismissal, the national living wage, paid holidays, or even statutory sick pay. He suffered from diabetes and, having already been fined £150 for attending a hospital appointment earlier in the year, died in January 2018 after working through the Christmas season despite illness. His employers knew that he had suffered from a diabetic collapse at work but adopted a system which strongly discouraged him taking any time off for sickness: no income for sick leave and, worst of all, fines. The media has documented other examples of the abusive treatment of ‘gig’ workers in courier companies such as Hermes and Amazon.

In July 2017, ‘Good Work’, Matthew Taylor’s Review of ‘Modern Working Practices’ was published. The Report aimed to promote ‘good work’ through the adoption of 53 recommendations. In February 2018, the Government published its response, also entitled Good Work, mostly accepting the Review recommendations, but ducking their implementation by offering further ‘consultation’. Accompanying the thinly reasoned Response were four hastily drawn up consultation papers, on employment status, transparency in the labour market, agency workers and enforcement of employment rights.

While the Government says it is contemplating ‘the single largest shift in employment status since the Employment Rights Act in 1996’, its focus is on clarifying rather than extending its ambit. The reason seems to lie in its endorsement of the ‘flexibility’ of the current UK labour market, following Taylor’s lead, enabling individuals and employers ‘to make the choices that are right for them’. The notion that such choices are structurally constrained is ignored; rather the blame is laid at the door of the exceptional ‘bad’ employer. While some improvements are contemplated, they do not broaden the scope of access to statutory rights at work in a way that would have helped Don Lane or will prevent other forms of abuse. (more…)

New book on enforcement of labour standards through public procurement

By Dr Albert Sanchez-Graells, Reader in Economic Law (University of Bristol Law School).

Smart procurement aims to leverage public buying power in pursuit of social, environmental and innovation goals. Socially-orientated smart procurement has been a controversial issue under EU law. The extent to which the Court of Justice (ECJ) has supported or rather constrained its development has been intensely debated by academics and practitioners alike. After the slow development of a seemingly permissive approach, the ECJ case law reached an apparent turning point a decade ago in the often criticised judgments in Rüffert and Laval, which left a number of open questions.

More recently, Bundesdruckerei and RegioPost have furthered the ECJ case law on socially orientated smart procurement and aimed to clarify the limits within which Member States can use it to enforce labour standards. This case law opens up additional possibilities, but it also creates legal uncertainty concerning the interaction of the EU rules on the posting of workers, public procurement and fundamental internal market freedoms. These developments have been magnified by the reform of the EU public procurement rules in 2014.

This freshly-released book assesses the limits that the revised EU rules and the more recent ECJ case law impose on socially-orientated smart procurement and, more generally, critically reflects on potential future developments in this area of intersection of several strands of EU economic law. The book includes four contributions by Bristol scholars, including Prof Phil Syrpis‘ perspective from an EU constitutional law standpoint, Prof Tonia Novitz‘s reflections on collective bargaining and social dumping in posting and procurement, Ms Nina Boeger‘s thoughts on public procurement and business for value, and my own views on the competition and State aid implications of the use of procurement to enforce labour standards.

The collection of essays includes additional insights by colleagues at Oxford, Cambridge, Turin, Birmingham, Leicester, Warsaw, and the UNCITRAL, and is the result of a conference held at the University of Bristol Law School in May 2016. The papers have been constantly updated and include an assessment of the agreed revision of the Posted Workers Directive in the fall of 2017.

Full details of the book are as follows: A Sanchez-Graells (ed), Smart Public Procurement and Labour Standards–Pushing the Discussion after RegioPost (Hart, 2018).

North-South Free Trade Agreements – Trade, Policy and Europe

By Dr Clair Gammage, Lecturer in Law, and Prof Tonia Novitz, Professor of Labour Law (University of Bristol Law School).

On 4 October 2017, we held an event at the University of Bristol Law School, funded by PolicyBristol, considering the dynamics of negotiation, implementation, and enforcement of North-South trade agreements.

The first panel (Clair Gammage, Maria Garcia and Tonia Novitz, chaired by Phil Syrpis) examined the external policies of the European Union (EU) particularly in the context of regionalism and free trade agreements (FTAs). The significance of power disparities between trading partners in the negotiation process was considered and it was argued that true ‘partnerships’ in trade will be established through an inclusive and participative approach, as advocated by Clair Gammage in her book on North-South Regional Trade Agreements as Legal Regimes (Edward Elgar, 2017).

The second panel (Emily Jones, Sophie Hardefeldt and Gabriel Siles-Brügge, chaired by Tonia Novitz) examined how the UK could – in the event of Brexit – depart from or improve on the practices of the EU. Issues regarding human rights protections, development and transparency were considered, echoing many of the themes emerging from the discussion of the first panel. (more…)

The Scope for Collective Bargaining in Posting and Procurement––What Might Come From Recent Court of Justice Case Law and the Proposed Reform of the Posting of Workers Directive?

By Prof Tonia Novitz, Professor of Labour Law (University of Bristol Law School).

Modern Times, starring and directed by Charlie Chaplin
Modern Times, starring and directed by Charlie Chaplin

Workers posted from one European Union (EU) Member State to another would seem to be in need of urgent social protection. Recent evidence produced by the European Commission indicates that, between 2010 and 2014, the number of workers posted from one EU State to another increased by almost 49% (in total approximately 1.9 million workers). More importantly, posted workers tend to earn substantially less than local workers, with reports of income of less than 50% than that usually paid in a given place for the same job. Further, there are indications that, in certain sectors, such as the construction industry, posted workers may be at greater risk of harm through violation of health and safety standards. The reasons may seem obvious, since the language, laws and legal system of a host State are likely to be foreign to posted workers who can also be left without effective local trade union representation.

In the Laval case (C-341/05), the capacity for minimum wages (and other work-related benefits) to be set for posted workers by collective bargaining by trade unions in the host State was cast into doubt. Collective bargaining (and the collective action that generated such bargaining) was considered to be too unpredictable in terms of effect and outcome, creating an unjustifiable barrier for the free movement of service providers. It was only in the case of ‘social dumping’, a nebulous term of uncertain reach, that collective action aimed at conclusion of a collective agreement could be permitted in respect of a particular group of posted workers. Instead, the Court relied on Article 3(1) of the Posting of Workers Directive 96/71/EC (PWD), which envisages only the setting of minimum standards in relation to certain matters. This may be done by ‘law, regulation or administrative provision’ but also by ‘collective agreements or arbitration awards which have been declared universally applicable…’ in accordance with Article 3(8) insofar as they concern’ activities listed in the Annex largely pertaining to the construction industry. EU States may also take the option to give such legal effect to universally applicable collective agreements in other sectors in accordance with Article 3(10). Through this prescriptive treatment of the appropriate limits of collective bargaining, what had been seen by some as a ‘floor of rights’ in PWD came to be a ‘ceiling’. If the national measures taken in respect of protection of the rights of posted workers did not fit within the ambit of the precise terms set out in the PWD, then they were impermissible, despite the apparent scope in Article 3(7) for a more generous interpretation of the Directive ‘more favourable to workers’. (more…)