Agency staff rights would hit small firms
SMALL businesses in the Tees Valley will be hardest hit if the UK government fails today to stop a European directive giving agency and temporary staff the same rights as permanent employees, warned a leading industry figure.
The Agency Workers Directive would give thousands of local casuals employed in businesses as diverse as canning factories and the ports the equal pay, holidays, training and pensions after six weeks with the same firm.
Britain and Germany are among those opposed to the directive, arguing that a flexible labour market is crucial to their economies, but they could be outvoted by employment ministers in Brussels.
John Wright, the Teesside-based chairman of the Federation of Small Businesses (FSB), backed the government. He said the move would affect smaller companies, particularly during busy trading periods.
He said: “It could inhibit small businesses taking on additional staff. Many employers will have to think very hard about whether they can take this risk.
“The situation could also limit employment chances for people, which I think is unfortunate.
“Employees should, of course, be given rights, but I think six weeks is a little bit short in relation to having full rights.”
However, Gary Watson of The New Group, whose Newcastle office supplies temporary staff to firms throughout the North-east and is the biggest provider of casuals to Teesport and Hartlepool Port, said any legislation which improved working conditions should be welcomed.
“Clearly, it’s going to have an impact on industries, but if it makes workers more productive it evens out the cost.” He didn’t believe it would dissuade employers from using casual staff, but agreed it would make the process “more complex”.
Alistair Arkley, who recently sold New Century Inns, said the directive could prove another nail in the coffin for the pub trade, which has already been hit hard by changes to part-timers’ rights.
“Quite a lot of this legislation is going to hit industries like ours where we are already targeted with a plethora of other legislation.”
