Transfer of Undertakings (Protection of Employment) Regulations 2006

My Lords, I welcome the opportunity to speak on this Motion. My interest, as I am sure a number of noble Lords will understand, is to ensure that the rights of employees in merger and takeover situations are fully protected. As a former trade union official, it is not surprising that that should be my viewpoint. We already have the TUPE regulations, providing some protection for existing employees when a business is taken over. It is important for industrial relations generally that employees should continue to feel that protection exists. Job insecurity is not helpful in any industrial or commercial environment, particularly in a situation created by globalisation. As I understand it, there has been a view that the regulations need some revision, particularly on insolvency, as the noble Lord, Lord Hunt of Wirral, explained. However, there has been a long period of consultation. Since 2001, I believe, the DTI has consulted the CBI, the TUC, the Business Services Association and the Engineering Employers Federation. Of these, only the EEF, as I understand it, has raised strong objections. The CBI has accepted in principle with some reservations. There has also been a report from the Merits Committee. The CBI has apparently objected to the regulations on the grounds of the changes to provisions on service provision, and argues that they would create inflexibility in contract provision, reducing competition and innovation. However, the regulations, in changing service provision, are of value and improve protection for employees. In those circumstances, the regulations as a whole should be accepted. I support the Government’s position on this, and oppose the Motion of the noble Lord, Lord Hunt, despite the clarity with which he spoke to it. I am not convinced that the employee rights that concern me would be adequately protected if his Motion were carried. I note what the noble Lord says about the language, and am sure that the Minister will deal with that when he comes to reply. In the light of my reading of the regulations, and the position I take on the protection of employee interests, however, I do not feel, in the circumstances, that I am able to support the Motion of the noble Lord, Lord Hunt.