PRESS RELEASE 26 March 2002

LPU warns the Government over their pro-business stance on the EU Agency Workers Directive

The Low Pay Unit today issues a warning to the Government over its stance on the proposed EU Commission Directive on agency work. The LPU would be opposed to any Government moves to press Brussels for an exemption of at least a full year from the principle of equal pay and employment rights for agency workers.

The Directive has been drafted under the principle of non-discrimination, seeking to ensure that agency work is finally brought into the mainstream labour market. The proposals are designed to eradicate exploitation with minimum EU-wide levels of protection for agency workers in respect of equal basic pay and employment rights as comparable permanent staff.

The Low Pay Unit believes the Government has not fully considered the implications of its position. The information at its disposal is not accurate. A report for the DTI suggests that the number of agency workers may be underestimated by as much as 100 per cent. There are also more fundamental objections:

• The EU Commission states that more than half of fixed-term workers in the EU are women. If this pattern is replicated in Britain, then the Government’s position could well be challenged on equity of treatment (an important principle in the Directive). The Government accepted this when adopting the Part-time Workers Regulations, so why should these proposals not be viewed in the same light?
• Much EU employment legislation seeks to strike a fair balance between flexibility in working time and security for workers. The CBI claims that the Directive will make recruiting temps ‘less attractive’. But it simply seeks to award fairness for agency workers in respect of pay, working hours and holiday entitlement. Too often we see ‘flexibility’ translating as the abrogation of basic employment rights. There is no justification for diluting or impeding the EU Directive.

Richard Towers, Director of the Low Pay Unit, said:
The Government talks of ‘fairness at work’ and a ‘culture of rights’ but how can it be fair to expect agency workers to go without basic employment rights that are a cornerstone of other types of employment? Surely, equal treatment in terms of basic pay, working hours and holiday entitlements can be accommodated by the world’s fourth largest economy?

There is no justification for the exemption of a growing employment sector from basic working rights. Increased choice and flexibility should apply to both employer and employee alike. At present, agency workers are attractive to companies because they can be hired and fired almost at will. The Directive makes no attempt to overturn that power imbalance, it simply sets minimum standards. The Chamber of British Commerce says that European law should not be allowed to damage the British labour market. If awarding basic employment rights to workers risks damaging the labour market, then it is fragile indeed.

For further information contact:
Richard Towers, LPU, on 0207-435-4268