-
One third (33%) of
businesses, in a BCC survey, think the current trade union
proposals in the Employment Rights Bill would have a negative
impact
-
Only 2% of these firms think
these proposals would be positive
-
79% of firms don't feel the
impact of new government policies is being properly
assessed.
-
77% don't think policy
change is moving at the right
pace.
-
69% think Government
policies, such as tax, employment and regulation, are barriers
to growth
Research by the BCC has found that
businesses are worried about the speed with which the Employment
Rights Bill is being put through Parliament and have serious
concerns about it.
Many firms do not think its impact has
been properly assessed and fear that, combined with the increased
tax burden, it will be a barrier to
growth.
Businesses are also sceptical about
the benefits of the bill with just one in 50 firms saying they
think the trade union proposals will be
positive.
The research comes ahead of the Report
Stage of the Employment Rights Bill beginning in the House of
Lords today (Monday 14 July).
Jane Gratton, Deputy Director
Public Policy at the British Chambers of Commerce,
said:
“The opportunity to make any
significant changes to the Employment Rights Bill to ease the
cost and disruption to business is fast disappearing over the
horizon. While the government has consulted on several aspects,
and listened to some concerns, the legislation still does not
strike the right balance.
“A number of the proposals are deeply
worrying for employers. They will increase employment costs,
complexity and risk for firms, particularly SMEs who will be
disproportionately affected. We are likely to see
unintended consequences that could limit people's employment
opportunities and the UK's economic
growth.
“To grow our economy, firms must have
the flexibility and agility to deal with challenges and
opportunities. Government needs to help not hinder businesses -
to innovate, adopt new technologies and be more productive
and competitive. By adding more restrictions and building in
further delays before change can happen, the Bill jeopardises all
of this. It is creating a lose-lose scenario for everyone in the
workplace.
“While there many are things in the
legislation that reflect what good businesses are already doing,
there are some specific proposals that need amending. Planned
changes to dismissal rules, trade union ballot thresholds and
zero hours contracts, for example, are some of the critical areas
that need to be revisited.
“The government must continue its
positive approach to engagement with business and remain open to
changes. Only then can it ensure this legislation is
proportionate, affordable and right for both firms and their
employees.”
END
Notes to editors:
- Spokespeople are available
for interview
- The trade unions results are
based on responses from 635 businesses online. Around 94% are
SMEs (fewer than 250 employees), 54% are in the services sector,
33% are in the manufacturing sector and 41% are exporters. The
fieldwork was conducted between 24 April and 14 May.
- The government policies
results are based on responses from 1,297 businesses online.
Around 91% are SMEs (fewer than 250 employees), 67% are in the
services sector, 33% are in the manufacturing sector and 43% are
exporters. The fieldwork was conducted between 20 January and 10
February.
