EU Agency Workers Directive

The next major step in this protracted process has now been reached. Here is what the REC has to say about it:

An agreement on the EU Agency Workers Directive was reached late last night by EU Employment Ministers in Luxembourg. This decision means that the Directive, which gives temps the right to the same pay as an equivalent permanent worker, could come into force in the UK by April 2010.

Commenting on the agreement, REC Chief Executive Kevin Green says: “Whilst yesterday’s agreement is significant, there is still a substantial amount of detail which needs to be decided upon. Although new regulations are unlikely to come into force until 2010, the next few months will be crucial in influencing the detail of what equal treatment provisions in the UK will look like.”

The text agreed yesterday in Luxembourg confirmed that there will be some level of flexibility in terms of how the new EU regulations will apply in the UK. This has been a key element of the REC’s campaign and, for example, means that equal treatment will only apply after 12 weeks of an assignment rather than from day one. As discussed at last week’s REC Agency Summit, one of the key issues is to ensure that the scope of equal treatment provisions is tightly defined and does not cover a full range of employee benefits and occupational pensions. The initial feedback from yesterday’s meeting in Luxembourg indicates that we could have a positive outcome on this issue, as well as on the definition of who constitutes a ‘comparable permanent employee’. One of the other positives is the focus on finding alternative dispute resolutions to limit the number of employment tribunals that could result.

There is still plenty of scope for disaster here: the devil as always will be in the detail. REC's press release actually has more teeth than their statement above, sent out to member, and deals with the subject pretty well.

Agency workers update

Here's what Anne Fairweather of the REC had to say yesterday prior to the announcement of a deal between the TUC, CBI and the government:

…the move to 12 weeks is a significant change in direction from the Government who once declared that temporary workers did not need any further rights (in the DTI publication Success at Work in 2006). REC does not believe that there has been sufficient evidence presented to justify equal treatment provisions and is very disappointed that the Government appears to be changing its position on this matter. We will therefore emphasis this disappointment in our press line if a final agreement between the CBI and TUC is reached.

The point about the government moving from its stated position in 2006 is a good one. As I posted a week ago, it is really symptomatic of the weakness of the government that it has buckled under pressure from the left of the PLP and the unions. The REC can 'express…disappointment' at the lack of 'sufficient evident' and the government's volte face (u-turn to you and me) as much as it likes, but since when did rationality and consistency win against raw politics?

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.

Petition refuses to die

Having put it to death and then resurrected it as an experiment, we are now planning to resubmit the petition at an opportune moment, assuming that the Agency Workers Bill lives on. Currently Brown looks to be trying to find a fudge that will keep the unions happy.

So the petition remains open. Do sign it, if like us you think that AWB would, overall, be bad for temps, employers, recruiters and the economy as a whole.

Blink and you may have missed it

If you were in any doubt as to whether the media regards our industry as boring, it should have been dispelled by its response to the debate over the Agency Workers Bill. The only thing that seems to have awakened the lobby from its torpor is the fact that a lot of Labour MPs turned up to vote and sing the Red Flag (yes really).

Yesterday union bosses were called in to Number Ten and Brown apparently suggested a dither, or "official review", as it is known in the trade. The should kick the issue into the long grass for about six months, but it sounds as though the godfathers were not buying the idea.

The general consensus, such as there is seems to be that the government is opposed to the bill and so it would be astonishing if it went through. However the unions and their client MPs look certain to fight the issue too and defy the government. The last thing Brown will want to do is to call in the Tories to defeat his own party.

Thanks for the support

Many thanks to those of you who supported our last minute petition against the AWB, and to everyone who helped us publicise it. We got 363 signatures, which I suppose is not bad considering that we only started it on Monday, and managed to build up quite a head of steam over the four days of its short life.

The petition was delivered to every MP yesterday.

Agency Workers Bill passed

Bad news today, I'm afraid. The predicted government opposition to the Bill did not materialise, and neither, for the most part did Her Majesty's Loyal Opposition. In event the government sat on its hands, presumably as a sop to its sponsors, the trade unions, whose baby this was.

According to the Electoral Commission 18 months ago, unions provide Labour with 75% of its funds. The influence they wield as a result became clear today.

The CBI, I am told, predicts a loss of 250,000 jobs if this Bill passes into law.

Sign our petition

The Agency Workers Bill goes before the House on the 22nd. If you have not already registered your disapproval, there is still time to do so by signing our petition.