UK TEMPS FACE EU THREAT TO 160,000 ASSIGNMENTS - CBI SURVEY
Employers tell unions that harmonised employment rights would be "damaging for the unemployed"
Britain’s army of agency temps could lose up to 160,000 employment opportunities a year under EU plans to further ratchet up employment rights.
A CBI survey, published today (Thursday), indicates that a draft EU directive on temporary agency work would cause 57 per cent of firms to offer fewer temp assignments.
The employers’ body uses the findings to urge the trade union movement not to campaign for harmonisation of EU employment law. It says harmonisation proposals – recently mooted by trade union leaders – would be "damaging for the unemployed”.
The EU directive proposes giving agency workers rights to the same pay and conditions as full-time staff in the organisation where they temp. Most significantly, it forces host firms to negotiate temps’ contractual terms, matters currently handled by the supplying agency.
CBI estimates based on the survey show that the resulting administrative burden would cause:
- 10 per cent of firms to stop using temps, with the loss of some 12,000 assignments
- 32 per cent to reduce agency work significantly, cutting up to 150,000 assignments.
A further 135,000 assignments could also be at risk with 16 per cent of firms making small reductions. Only one per cent of firms said they would replace temps with permanent staff.
John Cridland, CBI Deputy Director-General, pointed out that the UK has around 770,000 agency workers, more than any other EU country.
“These proposals would deliver a serious blow to the UK. The CBI supports minimum standards for agency workers, but it is unreasonable to expect the host business to set pay levels as this is a matter for agencies. Fifty nine per cent of businesses are unprepared to be involved in doing this.
"Temping is a crucial way of getting people into the labour market and of helping people balance home and work responsibilities. Most large firms use agencies to meet temporary or unexpected upturns in demand, while small firms usually use them to cover for absence. We must prevent these damaging proposals from harming our labour market.”
Mr Cridland acknowledged that the European Commission had responded to business concern by suggesting the rights should apply only after six weeks. But he made clear that any time limit of less than 12 months would be unacceptable to business as it would cover too few assignments.
The CBI survey shows 65 per cent of assignments last longer than six weeks while 17 per cent last longer than 12 months. Even with a six-week concession, 63 per cent of firms said the proposals would introduce “complex red tape”, while 19 per cent said the requirements would be “unmanageable”.
Almost 40 per cent of first time agency workers were previously long-term unemployed and within a year around 40 per cent of temps get permanent jobs. Mr Cridland said the proposed directive is a good example of how harmonisation of EU employment law harms job creation.
“The directive is a classic example of how rigid law can damage the people it is intended to protect,” he said. “Employers in some countries will be relatively unaffected because temping agencies operate differently, while the UK would be badly hit.
"EU countries have different cultures, economies and labour markets. Unions should join employers and ensure governments retain the freedom to find ways of creating wealth and jobs.”
7 August, 2002
Notes to Editors:Attached is a copy of the survey of 210 companies from all sizes and of all sectors. For more information contact the press office on 020 7395 8239 or page 076 2680 9070.
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