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CBI WARNS EMPLOYEES OF THREAT TO JOBS, OVERTIME AND PENSIONS
Business leaders will issue a strong warning today (Thursday) that threatened EU regulation would slash the chances of work and overtime for thousands of people in the UK.
They added that the "dam had burst" on pensions as rising costs trigger an acceleration in the number of employers moving away from final salary schemes.
The warnings come in a wide-ranging annual assessment of trends in the world of work, published by the CBI with employment agency Pertemps. It will show:
- 45 per cent of employers would offer fewer temporary work assignments under the Temporary Workers Directive.
- 59 per cent of employers said the directive would impose extra costs making temporary workers less affordable, removing a vital flexibility for employers and denying a crucial route into work to the unemployed, ex-offenders or working mothers.
- Proposals to remove the right to opt-out of the Working Time Directive would cost thousands the choice to do overtime. Thirty-nine per cent of employers said losing the opt-out would have a serious impact on their business. Only 27 per cent said it would have no impact.
- 19 per cent of all employees regularly used the individual opt out. In the smallest companies 24 per cent regularly used it. Removing this right would take away their opportunity to earn extra and damage companies' competitiveness.
Tim Watts, Chairman of the Pertemps Group said: "Many people choose flexible working arrangements because it suits their lifestyles. The UK's flexible labour market creates many more employment opportunities. That is why more women and traditionally under-involved groups are in work in the UK than in most other European countries. Squeezing these people out of the world of work would be bad for them and bad for the economy."
The report also shows firms increasingly being priced out of final salary pensions. Almost half the employers with a final salary pension scheme last year closed it, usually to new entrants. In last year's survey a quarter had closed their scheme. This year 27 per cent of firms were offering a final salary scheme compared with 43 per cent a year ago.
The CBI stressed that employers are still committed to pensions despite the difficulties. Stakeholder pensions were being offered by 57 per cent of firms and, where final salary schemes remain, the average employer contribution is nearly three times the average employee contribution.
CBI Deputy Director-General, John Cridland, said: "We reject charges that we are anti-regulation, what we oppose is bad regulation. This survey shows inappropriate and unnecessary EU rules threatening the freedom of individuals to work when and how they choose.
"On pensions the dam has burst as rising costs overwhelm employers who are increasingly being forced to pull out of final salary schemes for new employees. So far the loudest calls have been for things such as compulsory employer contributions and pensions protection which will only push up costs. We need radical proposals that will make pensions simpler and more affordable.
"Well crafted, thought-through, legislation can achieve its objectives without excessively damaging, or unintended, consequences.
The survey shows government trade union legislation has not destabilised UK industrial relations. Of the quarter of companies that recognised a union only three per cent had done so since the introduction of the Employment Relations Act in 1999. The proportion of companies expecting an approach for union recognition has steadily fallen. In this survey only five per cent expected one compared with nine per cent last year and 13 per cent in 1999.
Trade union involvement in worker consultation has declined. Ahead of the National Information and Consultation Directive being introduced in 2005, more companies were introducing mechanisms for informing and consulting employees. Forty seven per cent said they had a mechanism compared with 35 per cent in 2002. Ninety per cent used regular team meetings to involve staff. But 67 per cent of companies that had a procedure said trade unions were not involved. That compares with 45 per cent last year and 40 per cent in 2001.
The CBI also says that the impact of legislation giving a right to request flexible working has not been overly damaging. Most employers had not suffered because 80 per cent already seriously considered such requests. Eighty-two per cent of employers offered part-time working. Thirty-four per cent offered job sharing and 32 per cent flexi-time.
Employers increasingly recognise that their own skills are the key to their future competitiveness. In the last two years management skills have overtaken skills of the workforce as the main human resources factor determining future competitiveness and were expected to become even more important.
Management skills were regarded as the most important element of competitive advantage by 56 per cent of employers. Workforce skills were mentioned by 44 per cent. Looking ahead 67 per cent believed management skills will be the most important and 31 per cent workforce skills.
3 September, 2003
Notes to Editors:The survey was carried out between 1 May and 28 May 2003, 550 companies responded to the survey
Media Contact:Richard Dodd, CBI Press Office 020 7395 8086 richard_dodd@cbi.org.uk