PRESS RELEASE 4 August 1998

'Fairness at work': good, but could do better

The Low Pay Unit today welcomed the government's the Fairness at Work White Paper which it believes represents the possibility of a fairer deal millions of British workers who have the least employment protection in the industrialised world. The Unit is particularly pleased with the reduction in service requirement for unfair dismissal from two years to one and the similar reduction for access to extended maternity leave.

However there is disappointment with certain proposals which may leave the low paid and those in insecure employment little better off than they are now.

Trade Union recognition: The proposal to exempt firms with under 20 employees from the obligation to recognise a trade union denies an important right to those who need it most. Most cases to the Unit are from workers in small firms where lack of bargaining power is one of the main reasons for poverty wages and exploitation.

Waiver of redundancy rights: The proposal to retain the waiver of redundancy rights fixed term contracts means employers can continue to avoid their obligations by giving serial contracts instead of employing workers on a permanent basis. A recent case to the Unit involved an employee who had been on successive temporary contracts for five years. Such abuse of the waiver must be stopped.

Zero-hours contracts: The Unit is disappointed that there is no proposal to abolish zero hours contracts. This pernicious practice provides only one-way flexibility whereby the employer neither has to give work nor wages while the employee is prevented from claiming benefits.

Parental leave: The Low Pay Unit urges the government to introduce paid parental leave. Without remuneration, the low paid will effectively have no access to such a right as they simply cannot afford to take time off. Low paid fathers in fact have to work even longer hours when a child is born to cover extra expenditure.

Bharti Patel, Director of the Low Pay Unit, said:

"There is a great deal to do in order to restore fairness to the workplace after years of deregulation. This White Paper represents a first step in that direction. However the proposed denial of rights to some of the lowest paid workers undermines the overall aim. We urge the government to give equal rights to all and put the protection the most vulnerable at the centre of its policy."

For further information contact Bharti Patel on 0171 713 7616