More AWD news

As I posted yesterday, the government is pushing ahead with the union-inspired agenda regarding agency workers. Here's part of a statement from the REC summarising the situation:

As expected, The Prime Minister’s draft legislative programme announced today includes a specific mention of more regulation on the agency sector. The full statement on agency work is as follows:

“We are committed to both flexibility and to fairness in the workplace and we will do nothing that jeopardises jobs and businesses taking on workers. But most people agree that it is not fair that even after months in the job, agency workers can currently be paid less than the staff they work alongside ---- and as a result permanent staff can feel they are being unfairly undercut. So My Rt Hon Friend the Secretary for Business plans to bring forward legislation - subject to an agreement between employers and employees, and in Europe - that will for the first time ensure new rules for fair treatment of agency workers here in Britain.”

This statement suggests that there will be a swift move, under the next Parliament (roughly Nov 08 - Nov 09) to implement the Agency Workers Directive. The REC has consistently held the view that the EU Directive holds more chance of a workable outcome than the Private Members Bill on Agency Work that is current being debated in the House of Commons. The work of REC Recruitment Champions has played a key role in ensuring that this Bill is unlikely to go forward. As discussions now move over to a possible outcome in Brussels, REC members can play an equally important role in ensuring that any new EU Legislation is workable in the UK. The Prime Minister himself made it clear that the intention was not to jeopardise jobs and opportunities and the REC will be working with Government, the CBI and other stakeholders to ensure that this is the case.

Today’s announcement by Gordon Brown suggests that there could be agreement on the AWD at the 9th June Employment Council, or perhaps shortly after the French take over the Presidency in July. Any agreement between Ministers in Council would then have to go to the European Parliament for a second reading. If the Parliament accepts the position of the Council, with no amendments, it is possible that the final text of the AWD would be available around 6 months after agreement in Council. This is a very tight timetable if legislation to implement the Directive is to be introduced in the next Parliament.

In addition to this the Government is pushing forward with its planned Agency Work Commission. The Commission would be made up of representatives from the CBI and the TUC. The TUC have yet to confirm that they will sit on the Commission, but it is thought that this is becoming more likely.

If everything comes together the recruitment industry could see new legislation on the pay and conditions of agency workers by April 2010. The framework of the legislation will be the Directive. It is thought that the Agency Work Commission would be allowed, under the terms of the Directive, to set a derogation period after which equal treatment rights are implemented.