Mixed reaction to 'fresh' look at workers’ rights

Oct 21 2008 by Chris Knox, The Journal

NEWS that the Government is looking “afresh” at the cost of family friendly employment rights as a way of cutting costs for struggling business has sparked a mixed reaction among the North East business community.

As the new Secretary of State for Business, Enterprise and Regulatory Reform, Peter Mandelson has said that he is looking at ways of reducing the cost burden for small and medium sized business, with the delay to new flexible working rights being considered.

The right to flexible working was introduced in 2003 for parents of children under six, or 18 in the case of a disabled child.

Since then the Government has accepted the recommendation that more parents should be given the right to ask for flexitime, with an extra 4.5 million people hoping to benefit from a move. However, the onset of the credit crunch has since placed unprecedented strain on a number of firms, including fuel costs and tighter lending from the banks, which have created doubt among Government as to whether now is the right time to introduce a new wave of costly reforms.

The announcement led to anger from trade unions, with many concerned that a delay in flexible working legislation would go down badly with a national workforce already hit by a raft of job losses and squeezing pay packets.

Northern TUC policy officer Carolyn Clayton said: “Workers in the region with caring or other responsibilities shouldn’t be denied the opportunity to make their lives easier in the vain hope that rigid employment practices will save money or jobs.”

But Mike Parker, NECC spokesman, said: “Modern employers embrace family-friendly policies but small firms need help to introduce smarter working practices and they need the breathing space to make sure they can put these into action without harming their business.”