FSB: Agency workers deal ‘disastrous’ for small businesses, warns FSB

The deal brokered by the Government to give agency workers similar employment rights as full-time staff after a mere 12 weeks of employment would be disastrous for small businesses, the Federation of Small Businesses (FSB) has warned today.

Tina Sommer, FSB EU and International Affairs Chairman, said:

“This is a disastrous deal for small businesses, which rely on the flexibility provided by agency workers.

“Agency fees and high hourly rates mean temporary workers, far from being seen as cheap labour, are already a costly but useful way of responding to fluctuations in demand. If that flexibility is lost, many small businesses will stop using temporary employees.

“Part of the reason for the UK’s relative economic success in the past decade has been the flexibility of its workforce. This deal could put all that at risk at the worst possible time.

“After month-on-month increases in unemployment and with economic growth at its lowest point since the last recession, this is the last thing small businesses need.”

ENDS

Notes to Editors:

1. Small businesses generate over half of UK GDP and employ over 13 million people. Over 97% of businesses employ less than 20 people and often rely heavily on temporary and agency workers to cover unexpected gaps in employment.

2. According to the Recruitment and Employment Confederation, 1.4 million workers are placed in temporary employment each week.

3. More information on existing rights agency workers are entitled to can be found here: http://www.direct.gov.uk/en/Employment/Employees/EmploymentContractsAndConditions

4. The FSB is Britain’s biggest business organisation with over 215,000 members. It exists to protect and promote the interests of the self-employed, and all those who run their own business. More information is available at www.fsb.org.uk.

Contacts:

Federation of Small Businesses:

Stephen Alambritis: 020 7592 8112 / 07788 422155
Simon Briault: 020 7592 8128 / 07917 628998

For regional FSB contacts please go to www.fsb.org.uk/regions