12 hours Ago By The Guardian
The government must close loopholes that enable firms exploiting workers to undercut British businesses or risk the UK becoming a “dumping ground” for goods made in poor conditions, MPs have said. In a report published on Monday, the business and trade select committee calls on the government to make it mandatory for companies to say how they will tackle modern slavery in their supply chain and to introduce bigger penalties for firms that do not comply, including “naming and shaming” businesses. It says action to toughen up the Modern Slavery Act is now a pressing need as Europe and the US are getting tougher on blocking the import of goods made under poor conditions.
The call comes after MPs said they were “pretty horrified” by the failure of Shein, the cut-price online fast fashion business, which mostly manufactures in China, to answer questions about whether its products included cotton produced in the Xinjiang region of China, which has been linked to forced Uyghur labour. Shein, which is hoping to list on the London Stock Exhange this year, wrote to the committee admitting that items heading to the UK were not subject to the same extra checks as those sent to the US, where there are strict rules banning imports of goods made in Xinjiang. “The UK is really now in peril of becoming a dumping ground,” said Liam Byrne, the committee chair, warning that the country was “in danger of operating a second-class regime to safeguard our markets against forced labour”.
The committee also urged the government to tighten up a number of elements in the employment rights bill, which is due to go before parliament this week, including tightening rules around zero-hours contracts and the notice period for changing shift patterns, as well as accelerating action against bogus self-employment. “We want ministers to make some strategic changes to the employment rights bill to help make sure Britain’s best firms can no longer be undercut by rogue companies cutting corners and exploiting their workers,” Byrne said. “What is good for Britain’s workforce is good for Britain and good for British business.
If we want Britain to become the fastest-growing economy in the G7 then we need to help every firm rise to the level of the best of British.” The committee said the government should set a clear reference period to judge the regular working hours of those on zero-hours contracts and define “reasonable notice” on changes to shifts more clearly. “It needs more detail,” Byrne said.
“We can’t let the bill become a colander so full of holes that it is too easy for bad companies to keep undercutting good businesses and exploiting workers.” The government will review the committee’s findings and consider its response. A government spokesperson said: “Our employment rights bill will upgrade workers’ rights across the UK, tackle poor working conditions and benefit businesses and workers alike.
Getting the labour market moving again is essential to economic growth, helping to deliver on our plan for change. “This pro-business, pro-worker government has engaged extensively with businesses and unions, and we look forward to continuing these discussions.” A string of updates to the employment rights bill are expected to be laid before parliament this week.
Changes are likely to include setting a probationary period for new workers at nine months, rather than the six months previously anticipated, and ditching a mooted “right to switch off” at evenings and weekends. There will also be confirmation of powers for the new Fair Work Agency, which will consolidate the work of several government bodies that now act to prevent modern slavery, enabling it to carry out police-style investigations, bring civil proceedings against companies and levy fines. A government source said: “It’s important that our changes to the employment rights bill work for businesses.
That is why we have engaged with so many employers to shape this legislation and make improvements that reflect our partnership with businesses across Britain. “We are bringing forward a new generation of workers’ rights, helping to raise living standards and grow the economy, because we know that workers who are looked after are more likely to stay in their job and are more productive, creating the right conditions for businesses to grow.”.
