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Britain looks likely to lose its fight against the EU’s proposed new rights for temporary workers. Employers argue that the change, which would give Britain’s estimated 1.3 million agency workers the same pay and workplace conditions as permanent staff, puts 250,000 jobs at risk.
Ministers have run out of allies in frantic behind-the-scenes talks to block the legislation, after finding themselves on the wrong end of a piece of classic EU horse-trading. All but four of the 27 member states have swung behind the plans, enough to force Britain to go along under qualified-majority voting.
The rights, which are due to be decided by EU employment ministers tomorrow, would apply to workers hired through an agency or other third party and would take effect a maximum of six weeks after a worker has been hired.
Business leaders said that the rights would put companies off hiring agency workers for busy periods or one-off projects and force permanent staff to work longer hours instead.
The TUC, however, has long campaigned for an end to “two-tier” workers doing the same job on different pay and conditions. It warned ministers that there would be a political price to be paid if they resisted the new rights.
John Hutton, the Business Secretary, will try to persuade fellow EU ministers to put off a vote on the plans, despite Britain’s weak position. He is furious that the Portuguese, who hold the rotating EU presidency, have linked the reforms to another long-standing employment issue, the working-time directive. This sets a limit on working hours but has been mired in disagreement for years.
Some countries, however, have been persuaded to drop their opposition to the agency workers’ rules because they have been promised a better deal on working hours. Among them is Poland, following the election of a more EU-friendly government. Britain is supported only by Germany, Ireland and Malta.
A source close to Mr Hutton said that the Government was unhappy at the linking of the issues. “The agency workers’ directive, as currently worded, could have a negative impact on employment. We are committed to the principle of agency workers’ rights, but the directive brings it in sooner than is in Britain’s interest. The two directives have been linked for the sake of expedience, rather than because they are related. We are trying to unlink them.”
Brendan Barber, the TUC General Secretary, urged the Government to end its opposition to the temporary agency workers’ directive. He added: “Agency workers have been vulnerable to real injustice for far too long. The Government should understand the strength of union feeling on this issue. There will be a political price to be paid if the UK Government simply follows the business agenda and not the social justice agenda and they fail to grasp this new opportunity to break the EU deadlock.”
Alan Duncan, the Tory business spokesman, said: “This is yet another EU attempt to impose a ‘one size fits all’ solution. Of course all temps in the UK need to be paid a fair rate and legislation to help this is welcome. However, this would be bad for individuals, bad for companies and bad for the economic health of the country.”
John Cridland, deputy director-general of the CBI, said: “A quarter of a million UK jobs are on the line if this draft directive goes through. The Government has, rightly, been rock solid in opposing this legislation.”
Helen Reynolds, chief executive of the Recruitment and Employment Federation, which represents temp agencies, said: “It is vital that any agreement does not result in fewer temping jobs in Britain. The recruitment industry places 1.3 million people into temporary work across the UK every week, allowing employers to bring in extra resource at short notice.
“Our independent polling shows that over 80 per cent of temps are satisfied with their assignment. There simply is not the abuse on the ground to support the need for this directive.”
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I work for an agency who are not very good at paying out wages to there people when its a bankholiday they always say its jumped back into there accounts. i will never ever work for an agency again as they will lie through there teeth to get themselfs out of paying there temps.
alison, haverhill, uk
My company employs agency workers. the product we make has a varying demand throughout the year. Agency workers are used in the busy periods, and the company couldnt sustain to employ people when there is less demand for their product . I would be worried if my company had to turn away business because it couldnt meet demand or had to lay off permanent employees when demand is low.
worried worker, Glasgow, scotland
I have always temped and like many others I do this as a lifestyle choice. I have no wish to be bound under contract and the hourly rate makes up for the lack of benefits. I would like you to consider what would happen to me in my current situation. I am 21 weeks pregnant. Do you think any company would take me on at this stage under the proposed regulations? I would be unable to earn a living while I prepare for the birth of my first child.
Jenny, London,
I was just wondering, what legislation is actually in place in the UK for agency workers? Theymust have some rights, I know of the National Minimum Wage, Working Time Regulations, but do they have any others?
Leo, Bath
Leo, Bath,
The benifits Agency staff get are increased hourly rates over people that have perm roles with the company they all work in. I'm sure the person sat next to you getting a lower salary becasue he is a perm doent care if you get any benifits. Being an agency employee you get noting bar a higher rate. If you want all the 'extras' you have been talking about stop moaning, get paid less and become a perm member of staff. Its that simple"
Ben Guy, Southampton,
In my last job I was working for an agency and about 4 days before I was due to have been there 12 months, they sacked me, no reason stated apart from "staff cuts". It basically means the agency will get rid of everybody that came in just under one year ago and get some new ones off of the agency; obviously the new workers then have fewer rights than the person who would have been there over 12 months. You have absolutely no job security at all.
6 weeks is much more reasonable to get an idea of if this person deserves a permanent position in the workforce and is long enough for that person to have gained at least some job security. Any project exceeding 6 weeks should be budgeted to cover permanent staff.
Basically what they are saying is, they didn't hire enough people to do the job in the first place and relied on agency staff to fill that void and liked to have the option to sack all agency staff at any point they see fit. major fact bein that agency staff work for less money.
Andy Towell, England,
"I get absolutely no benefits at all: no pension, no sick leave, no car, no health insurance, and only the statutory holidays I accrue through my agency."
My goodness 'cynic', are you a public sector worker too?
Judy , Liverpool, england
I've been temping at a major multi-national company for just under six years now and, aside from a decent hourly wage which I negotiated with my line manager when I said I'd leave, I get absolutely no benefits at all: no pension, no sick leave, no car, no health insurance, and only the statutory holidays I accrue through my agency. The reason: "shareholder value": i.e. I'm not on the headcount. I can't be the only one in this situation and love my colleagues and job so I stay where I am. This proposed legislation won't change anything - the corporations will always find a way around it even if it is just to set up 6 week contracts to end on a Saturday and recommence the following Monday.
cynic, London,
I am absolutely delighted that this is going to happen. Employers scream 'job losses' every time there's a change in the date! Let's see what actually happens if this change takes place. Besides which, permanent equally paid jobs should always take priority over badlty paid agency jobs. I would love to see the demise of discriminatory agencies as well as agency jobs. Let's hope that the demise of agencies is close too.
Judy , Liverpool, england
Two points which are difficult to get away from- It goes without saying that many agency staff are first class but it is all so true that many of the major cock-ups in business and government are down to the use of agencies. In the case of the railways this has on a number of occasions resulted in the loss of life.
Secondly,ex-temp is correct, the use of agencies is essentially about the reduction of costs (wages but especially pension rights) and the avoidance of employment
responsibilities.
Edward Welsh, Lampeter, Wales
As for the argument that reforming temp conditions will drive businesses into poverty, companies which employ temps are already paying full wage for them - except the money which could be going to pay a fair wage and basic benefits instead goes to the third-party recruitment agency as their commission, with some agencies taking a full 50% as their cut. That 50% goes to pay the holidays, sick days, and pensions of recruiters, many of whom have no actual business experience themselves, but woe betide the temp who needs to take just one morning off for a doctor's appointment.
What's wrong with UK business? It's not skills or training, it's the fact that we've tolerated a system which views recruitment as a function of sales and marketing and not human resources. Common sense please, once and for all.
Ex-temp, UK,
To put the governments attitude towards caring for workers into some prospective, its best to know that Nu Labour is reducing staffing levels within the civil service by enforcing redundancies on full time staff, whilst continuing to employ and extend the contracts of temporary staff. This process is being followed throughout England, yet strangely enough not in Scotland where our leaders herald from, why? What are the public servant unions doing about this situation, absolute nothing, proving they wonât rock Labours boat. Is there a hidden agenda here?
Michael, Sheffield,
Like the ex temp, I fail to see what the fuss is about. In my 'permanent' position I was made redundant the first time after 2 years and the second after 5 months but as it was within the same company my longevity allowed me some kind of compensation. In 'permanent 'positions I would have had to give a month's notice. My employer gave me 10 minutes to pack my stuff. This is about companies as usual, not the individual. It'll be interesting to see how many individuals want the security and how many just want the two weeks over the christmas rush. Unfortunately those millions on benefits can't 'temp' as jumping in and out of the bucket effects their benefits so many don't think it's worth it and seek only more permanent positions as a result. I personally hope it goes through, if only to see the repurcussions in a few years time, but then I'm a person, not a plc
nathalie, London,
A whole industry of flexible IT consultants will be shut down overnight if this goes through. Labour HATE this type of flexible working (witness their attempt to destroy this industry in the form of IR35) and whilst spouting pro-business rhetoric about protecting our employment laws, they will quietly allow these laws to reach the statute book here.
Whilst their rhetoric is pro-business Labour is predominantly funded by the unions. It's the 'third way', you see - court both of the opposing interest groups and use the support from both sides to push your own self interests - that of retaining power.
The EU is where Labour find both their excuse and a version of their own New World Order. This is why Blair is now simultaneously busy converting to Catholicism and putting his name forward as the first EU President under the newly adopted EU Reform Treaty.
Edwin Thornber, Bucharest,
To Josh Jacklin: Could your inability to get a job be something to do with your punctuation?!
CC, Kent,
As having worked at a temp the only thing that a temp has to look forward to is being laid off as most companies use them as lower paid workers so that they can lay them off as the business changes without having to pay redundancy.
My only fears over this is that temps will be laid off after 6 weeks so will be always in a state of flux.
James Haley, Leeds, UK
Seven against one for. Speaks for itself. I cannot improve on the comments made except - Let us have a vote on the EU Treaty - as we were promised.
jwilliams, Birmingham,
Temp = slave labour. Full stop.
Bill Beetham, Moscow, Russia
I spent 6 years temping, as a maintenance electrician/engineer, and it was far better than having a full time job. It's not two tiers, it's two ways of working. It suits some people- those who are more flexible and prefer autonomy to security, and not others- those who are wedded to an old fashioned employee mentality. The sense of freedom for me, that I could walk out if I wished, take time off pretty much as I wished- these were profound boons.
Part of it of course is that to prosper as a temp you need to be good at your job, day in and day out. Those who are will do well (and be offered permanent jobs- I was offered loads and refused every one). Those who aren't so good won't do so well. That's how a market works.
This will ruin temping, and ruin things for the temps (like I was). Socialist, protectionist, rubbish. The TUC don't give a fig about temps. They're just desperate to reduce the numbers to protect the jobs of their own members.
Ian Bland, Northampton, England
We should pick just the bits of EU legislation that suit us like the rest do instead of implementing all the garbage this unelected bunch churn out whether it's good for this country or not. Give us a vote on this corrupt gravy train
Kate, Newcastle, England
I thought there were red lines!
Presumably this further bit of socialist legislation was not covered. Europe is heading to be ovetaken by the rest of the world, left as an overregulated, over protected and plain bad place to run a business. Most leaders in business work rather more than 35 hours a week - yet more employers will shun taking on employees with the high burdens going with them as baggage, and get more from thier own staff.
James, Sevenoaks, England
Another reason why Brown should have had the Referendum, we don't want all this European socialist
garbage in Britain. As the country is forced to eat this rubbish we will go further and further down the drain
until Europe has Britain on the ropes.
Barry Holmes, Christchurch, New Zealand
to be honest with you, at the moment it is hard enough to get a job without the eu doing this, i am a professionaly qualified MCDST MCP CompTIA A+ and CompTIA NET+ Computer Technician and because im only 18 and lack of experience i cant get a job so if they do this i will have no hope in hell of getting a dream job, as they will not recruit temps, so to be honest with you its the goverments i want to look big and hard strategy, instead of coping with the big intrests of its nation, so ok my tax money is repaving a perfectly good road, and paying for someone whos trying to kill me for there religious beliefs to have healthcare after hes done it, thats why i have my doubts about this nation, think of all the poor people who are going to do with out, with the its alright im in my nice cushy job with my mercades on the drive in my 4 bedroom house, where theres people aspiring to get there yet there being shuned, if they go through with this and unemployment soars i hope every one stands up
josh jacklin, stevenage, hertfordshire
Helen Reynolds is dead wrong: it is vital that the agreement DOES result in fewer temping jobs in Britain. This notion of temps as short-term workplace saviors just a phonecall away is a lie. Those are the minority. The majority of temps are on assignments for six months, a year, two years, seven, ten - with lower wages, no pension, no sick pay, no holidays, no training, no management, no right to ask questions, and no future. Our two-tier employment system is an embarassment and a disgrace, and UK businesses have gotten away with the joke for far too long. Let the REC and the CBI squeal all they want: the days of British industry using temps to do more work with no obligation or responsibility are numbered.
Ex-temp, UK,