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UK’s Labour Government Bows to Business over Implementing Temp Rights

2 November, 2009

The UK Labour Government dealt a blow to the country’s temporary and agency workers when it announced a two-year delay in the implementing of the Directive on Temporary Agency Work, the year-old EU policy which mandates equal treatment to contract and agency workers.

In May 2008, UK’s Trades Union Congress (TUC) and the Confederation of British Industry (CBI) struck a compromise that would give agency workers equal protection rights and similar work conditions as permanent workers after 12 weeks’ employment.

The compromise, brokered by the Labour Government of Prime Minister Gordon Brown, was intended to take effect in the fourth quarter of 2009.

But on 15 October, the office of Brown Cabinet Minister Peter Mandelson, the Business, Innovation, and Skills Secretary, announced a range of regulations would be delayed, including the granting of new and first-time rights to agency workers. The effective date now is 11 October 2011, the very latest under the EU Directive.

The consultation period for the new UK regulation to comply with the EU Directive had closed in July. But with the 15 October announcement by Mandelson’s office, that period has been extended until 11 December 2009, allowing businesses more time to carve around the edges in order to gain even greater labour flexibility.

The UK is the leading EU country where employers use the biggest proportion of temporary and agency workers. An estimated 1.4 million people are subjected to low employment conditions and lack of job security through labour-hire firms.

After the inordinately long 12-week waiting period in the UK, temporary or agency workers in Britain would be eligible for equal pay, the same level of holidays as permanent staff, and the same health and safety protections and other statutory social benefits such as child care and work leave.

General Secretary Paul Kenny

In response to last month’s announced delay, GMB General Secretary Paul Kenny called it “a very serious electoral mistake by the Labour Government,” referring to next year’s British General Election. “Agency and temporary workers have been abused and exploited for too long. The only people cheering this decision are from the bodies representing those who have been doing the exploitation.”

The UK Business Secretary’s office attempted to justify the delay by stating the Labour Government recognized “the need to avoid changing requirements on business until the economic recovery is more firmly established.”

But TUC General Secretary Brendan Barber said “agency workers are even more in need of protection during a recession. Vulnerable workers are always the first to suffer when times are hard.”

TUC General Secretary Brendan Barber

A recent poll by the TUC found that more and more rogue employees and agencies are using lack of employment rights and the insecurity of agency workers to treat temporary staff badly – paying them less, avoiding holiday and redundancy pay, and neglecting any training or development opportunities that might land such workers into full-time employment.