The Taylor Review And Its Fallout: What Are The Implications For The Flexible Economy?

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Date: 31st October 2017
Host: Bill Esterson MP Speakers: Jack Dromey MP, Simon McVicker, Hannah Reed, Mark Glover, Matthew Taylor.

Chair: Philip Ross 
Location: Westminster

SME4Labour held a fascinating forum in Westminster on the Taylor Review into modern employment practices. Commissioned and endorsed by the Prime Minister, in July Matthew Taylor published his far-ranging review into modern work. Covering everything from zero-hours contracts to reforming employment law, the report has provoked significant debate. The event was kindly hosted by Bill Esterson MP and chaired by Philip Ross of Labour Business. Speaking at the event were Jack Dromey MP; Simon McVicker, Director of Policy and External Affairs at the Association of Independent Professionals and the Self-Employed (IPSE); Hannah Reed, Senior Employment Rights Officer at the Trade Union Congress (TUC); and Mark Glover, Founder and Chief Executive of the communications consultancy firm Newington. Review author Matthew Taylor of the Royal Society for the Encouragement of Arts, Manufactures and Commerce (RSA) joined us in the second half of the session to discuss his report and to address some of the criticisms that have been levelled against it.

Chair Philip Ross asked how should Labour respond to the changing workplace landscape, highlighting the positive use of ‘worker-tech’ in the Taylor Review and its potential to assist in organising the self-employed. Host Bill Esterson MP briefly spoke about his background in small business and said that Taylor was asking the right questions, even if not everyone agreed with all of his solutions. MP and veteran trade unionist Jack Dromey said that the Labour Party is pro-worker and pro-employer and that there is “no contradiction” in that at all. He stated that SMEs are the “backbone” of the economy and that Labour’s plans in its general election manifesto – scrapping quarterly reporting for SMEs, a national investment bank with regional arms and so on – would be “transformative” and would greatly strengthen that backbone. Simon McVicker welcomed the Taylor review in highlighting much neglected issues around precarious employment but said that some issues remained undealt with. He spoke about IPSE’s work with the Community union on the vulnerable self-employed.

Hannah Reed of the TUC said that TUC analysis shows that insecurity in the workplace is primarily driven not by technological changes, as if often claimed, but rather by political decisions that hit the poorest and most vulnerable hardest. She agreed that Taylor had made a “timely” and much needed contribution to the discussion about workers’ rights and ‘good work’, and said that SMEs, the self-employed and trade unions are all workers and allies, and that they need to work more closely together in partnership.

Event sponsor Mark Glover outlined his company Newington’s work with taxi drivers in their struggle against Uber. Echoing Reed, Mr. Glover said that companies like Uber were less about technological developments and more about old fashioned exploitation and bosses cutting corners. He stated that “flexibility is used as an excuse for poor pay”, and highlighted issues such as tax and social profits.

Matthew Taylor said that he aimed to “nudge rather than shove” – so, for example, the review recommends a higher minimum wage for non-contracted hours (a “nudge”) rather than abolishing zero-hour contracts altogether (which would constitute a “shove”). Th is, he said, would stop bosses shifting risk onto vulnerable workers while maintaining flexibility and dynamism in the economy. He argued for the right to request a permanent or fixed contract and transparency around the labour supply chain and criticised certain industries, giving the example of road haulage companies, where workers are vulnerable and exploited with bogus self-employment.