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'Landmark deal' secures more rights for agency workers
More than 1m agency workers have been granted increased rights following a "landmark deal" between the Confederation of British Industry, the government and the unions.
Ministers now plan to introduce legislation in autumn, which will see agency workers given equal pay and holiday entitlements after 12 weeks in a job.
Unions have lauded the deal for which they have campaigned. However, industry bodies have warned the move removes flexibility from the labour market at a time when it is most needed.
Unite joint general secretary Tony Woodley said: "This is a landmark deal for 1.4m agency workers currently working in the UK. It is now much harder for employers to treat agency workers as dispensable labour, hired and fired at will."
TUC general secretary Brendan Barber described the deal as "a victory for union campaigning".
However, the CBI, which was integral in the negotiations, described the deal as "the least worst outcome".
John Cridland, CBI deputy director-general, said that crucial to the agreement was the ability to deal with short-term demand for staff and that, while pay is covered, longer-term occupational benefits such as sick pay and pensions are not.
"Critically, as well as enabling the European directive on agency work to be put to bed, this agreement should allow the retention of the working hours opt-out from the working time directive, which is equally vital to the future of the British economy," he added.
Should the legislation be introduced, employers will have to pay equal salaries to temporary staff in addition to the agency fees that come with agency staff.
George Thompson of print recruitment consultants Harrison Scott Associates said: "Our view is that clients will be less inclined to use agency staff and look at ways to resolve peaks and troughs with flexi or overtime with full-time staff.
"Only a small percentage of our work is 'temp' business. In order to do our bit to help our client base, we will operate on a reduced margin after 12 weeks in order to share the added burden with the client."
One managing director of a large direct mail company, who did not wish to be named, added: "This is yet another obstacle put in the way of business. Margins are tight enough without additional costs."
Thompson: clients will be less likely to use agency staff
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Comments
Matthew Parker - 22 May 2008
I know at least one major printer that has been investigating ways of using its workforce more flexibly for some time. Now it will be time for others to follow suit. I expect there may be some interesting union negotiations coming up.
Matthew Parker
www.printandprocurement.com
Alastair Smith - 23 May 2008
As a medium sized print and mail house operating in an increasingly competitive environment any potential increase in direct costs needs to be avoided - at all cost! The direct mail industry is by it's very nature episodic and has natural peaks in demand during the year, which can put pressure on production houses to meet deadlines. This is when there may be the need to use agency staff. The crucial thing about agency staff is the fact that they can be drafted in at very short notice and let go once the 'crisis' is over - the comment by Tony Woodley, Joint General Secretary of Unite that it will stop agency staff being "hired & fired at will" is just missing the point entirely - wake up - the whole point of using them is to overcome a specific bottle neck in production. The industry is run on very tight margins and just cannot afford to pay the higher hourly rate for agency staff for prolonged periods. What businesses will be forced to do is look at other ways to handle the work, whether through cross training, split shifts, longer working hours or outsourcing to other trade houses, which will inevitably reduce the demand for agency work. Well done unions - you've managed to secure better working conditions for your members, but limited their opportunities.
Alastair Smith, Group Sales Director
nemc group
www.nemcgroup.com
Colin Thompson - 23 May 2008
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Colin Thompson
Cavendish
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