21st May 2008
Business groups critical of agency workers' deal
Many business groups have reacted negatively to yesterday's announcement of improved rights for agency employees.
Under the agreement, reached between the government, the Trades Union Congress (TUC) and the Confederation of British Industry (CBI), agency workers will be entitled to 'equal treatment' after 12 weeks' service in a given job.
The agreement defines equal treatment as "at least the basic working and employment conditions that would apply to the workers concerned if they had been recruited directly... to occupy the same job". The government said that it hopes to bring it into law in the next Parliamentary session, due to begin in late Autumn.
"This is the right deal for Britain," said business secretary John Hutton. "It will give people a fair deal at work without putting their jobs at risk or cutting off a valuable route into employment."
TUC general secretary Brendan Barber referred to the organisation's recent Commission on Vulnerable Employment, which called for stronger protection for agency workers: "Today's agreement is a victory for union campaigning," he added.
Business groups have been less enthusiastic, however, with CBI referring to the agreement that it helped broker as "the least worst outcome".
The British Retail Consortium (BRC) said that the changes would damage the UK's flexible labour market. "This announcement seems like a cosy stitch-up between government and unions," said BRC director-general Stephen Robertson. "But the unions are wrong to regard this as a victory for workers."
"Adding prohibitive costs will deter companies from using agency workers and twelve-week contracts will become the norm - this is not in the interests of employers or workers."
The British Chambers of Commerce described the deal as bad for the country and for business, while the Federation of Small Businesses (FSB) said it was "disastrous".
Tina Sommer, the FSB's EU and internal affairs chairman, said: "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."
Under the agreement, reached between the government, the Trades Union Congress (TUC) and the Confederation of British Industry (CBI), agency workers will be entitled to 'equal treatment' after 12 weeks' service in a given job.
The agreement defines equal treatment as "at least the basic working and employment conditions that would apply to the workers concerned if they had been recruited directly... to occupy the same job". The government said that it hopes to bring it into law in the next Parliamentary session, due to begin in late Autumn.
"This is the right deal for Britain," said business secretary John Hutton. "It will give people a fair deal at work without putting their jobs at risk or cutting off a valuable route into employment."
TUC general secretary Brendan Barber referred to the organisation's recent Commission on Vulnerable Employment, which called for stronger protection for agency workers: "Today's agreement is a victory for union campaigning," he added.
Business groups have been less enthusiastic, however, with CBI referring to the agreement that it helped broker as "the least worst outcome".
The British Retail Consortium (BRC) said that the changes would damage the UK's flexible labour market. "This announcement seems like a cosy stitch-up between government and unions," said BRC director-general Stephen Robertson. "But the unions are wrong to regard this as a victory for workers."
"Adding prohibitive costs will deter companies from using agency workers and twelve-week contracts will become the norm - this is not in the interests of employers or workers."
The British Chambers of Commerce described the deal as bad for the country and for business, while the Federation of Small Businesses (FSB) said it was "disastrous".
Tina Sommer, the FSB's EU and internal affairs chairman, said: "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."
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