The Liberal Democrats and the Tories have clashed over a late evening vote on the Employment Rights Bill that saw LibDem peers fall in behind the Labour government.
Tory business speaker Andrew Griffith accused the Liberal Democrats of voting with Labour in the House of Lords on Wednesday night on the basis that the party received five peerages, as also revealed last night.
He said in parliament on Wednesday the peerages were “all it took” for the party to “throw every British business under the bus” with its voting stance to try to push controversial reforms through.
The Lib Dems hit back against suggestions that it voted with the government on Wednesday in the Lords as a result of the peerages, dismissing Griffith’s accusations as “fabrication” and “entirely unconnected”.
Despite the Lib Dems’ support, the government was defeated in the Lords after crossbench support backed an amendment to prevent the full abolition of the cap on compensation for unfair dismissal.
The proposed abolition of the £118,000 compensation cap was part of a compromise struck between union bosses and business leaders to extend the period for unfair dismissal claims from one day to six months under one of the most controversial aspects of the Employment Rights Bill.
Tory opposition figures have remained defiant on standing against Labour’s workers’ rights reforms by voting against the government in both the Lords and Commons.
The Lib Dems have voted with both Labour and the Tories according to different elements of the workers’ rights package.
Employment Rights Bill tensions flare up
In the House of Commons on Thursday, Griffith linked this week’s House of Lords selection announcement – which featured the addition of 25 Labour peers, five extra Liberal Democrat peers and three more Conservative peers – to the vote last night on the Employment Rights Bill.
“Five Lib Dem Lords are leaping – that’s all it took for the Liberal Democrat party to throw every British business under the bus and expose them to the unimaginable liability of infinite tribunal payouts.
“On Monday the Liberal Democrat spokesman was against, on Wednesday they were for and goodness knows where they will be when it comes back to the Commons on Monday.”
In response to Griffith’s comments, a Lib Dems spokesperson told City AM: “This is an utter fabrication. We worked to secure substantial improvements to the Employment Rights Bill in the Lords, ensuring the Bill operates more fairly for both workers and employers.
“Our peers voted for various amendments to the Bill last night on that basis. It is entirely unconnected to the announcement of new peers.”
MPs will have to respond to the Lords’ proposal next week in the continued game of ‘ping pong’ between the two chambers on the Employment Rights Bill.
Labour officials have grown exasperated with blockages in the Lords, laying the blame on hereditary peers, a system it is in the process of abolishing.
“Why did we lose the vote last night? [Because of] 25 Tory hereditary peers,” said trade minister Chris Bryant.