Agency worker rights would cause ‘irreparable damage’
Employers are warning that the EU laws to give temporary workers the same rights as full employees would cause ‘irreparable damage’ to the economy.
The Confederation of British Industry (CBI) warned that the plans to introduce the Agency Temps Directive, which is being discussed by ministers from across Europe tomorrow, would lead to less employers taking on temporary workers.
The directive would force employers to give the same pay and conditions to temporary workers as full employees after six weeks.
The CBI argues that temporary workers should not be entitled to the same rights and conditions until they have worked for a year. The employers warn that the UK will be hit the hardest by the directive as it has the largest temping market in Europe employing 700,000 people.
Digby Jones, Director General of the CBI stated, ‘The directive is a classic example of the European Commission preventing countries from developing labour markets in ways that reflect their different circumstances. Employers in some countries will be relatively unaffected because temping agencies operate differently, but the UK would be badly hit.’
The CBI highlighted that a survey found that 47% of firms would cut the use of agency staff if the directive was brought in. Forty-four per cent of business claim that the directive would add extra bureaucracy while 56% said expenses would rise.
The CBI believes that the directive would make it harder to adapt to demand increases, cope with absence and would increase the workload of permanent staff.
Mr Jones added, ‘Without improvements, taking on temps will be less attractive and that will do irreparable damage, not just to business but to employees as well. The UK has a strong record on creating jobs, particularly for those on the fringes of the labour market. This success story could be seriously undermined.’
However, unions have dismissed the CBI’s claims by arguing that ‘the moral case for treating temporary workers fairly’ was ‘obvious’.
The TUC disputed the CBI’s claims that temporary employment was a ‘stepping stone’ into full employment that would be damaged by the directive. The TUC argues that temporary work locks people into a constant cycle of low paid work.
The TUC argued that whilst employment has grown in the UK, the share of temporary work has fallen in absolute terms and as a share of the workforce from its peak in 1998 of 7.9%, back to the 1980s levels of 6.2%.
Brendan Barber, TUC General Secretary Elect commented, ‘It should require overwhelming evidence to persuade the government to oppose proper protection. Yet the arguments made by the employment agencies and business lobbyists do not stand up to scrutiny. The government should drop its objections to the EU Directive now that business arguments have been shown to be the prejudices of vested interests, rather than objective fact.’
The Government is expected to follow the CBI’s argument and call for a one-year delay in the award of employment rights to temporary workers.
