Gary Titley: Leader of Britain's Labour MEPs

Unions and business are at loggerheads following a vote in the European Parliament calling for an end to Britain's opt-out of legislation on maximum working times.

MEPs voted by 378 to 262 to phase out Britain's opt-out over a three-year period.

Accepting a recommendation from the Parliament's social affairs committee, the MEPs backed proposals that would see a maximum 48-hour working week regulated over a year rather than the current 17 weeks.

The decision immediately provoked a major political controversy over the impact of the proposals on Britain's competitiveness.

The government, backed by business leaders, has been opposing any move to end the opt-out.

And the European Council, representing national governments, has yet to decide on its position.

It will vote on the proposals through a qualified majority mechanism, with some of the new EU member states thought likely to back Britain's position.

The debate on the issue has been complicated by support for an end to the opt-out from Labour MEPs, contrary to the position of the party in Westminster.

Vote controversy

Gary Titley, leader of the Labour group in the Brussels parliament, said the vote had been about delivering a good work-life balance for UK families.

"The measures we are supporting give workers a good degree of flexibility to manage their working hours," he said.

But their vote against the opt-out brought a damning response from the Conservatives.

"Are they on the side of Britain or our competitors?" asked shadow foreign secretary Liam Fox.

"The government must now use all their diplomatic efforts to ensure that Britain is not saddled with yet more regulation that will cost British jobs."

The Liberal Democrats also said the opt-out should be retained.

"Old Labour is now challenging Tony Blair head on, and it has been left to Liberal Democrat MEPs to stand up for the right of workers to negotiate their own hours," said trade spokesman Malcolm Bruce.

"If people are being exploited then of course they should have recourse to the law, but the application of this directive could actually lead to a cut in people's wages.

"The British government must stick to its guns and prevent this change getting through the EU Council of Ministers."

Nationalists split

Plaid Cymru backed an end to the opt-out while the SNP was in favour of retaining the measure.

SNP MEPs voted against ending the UK opt-out on the grounds that it will cause problems for Scottish employers and workers.

"This is a poor decision of the Parliament, and goes much further than the European Commission had actually proposed," said SNP MEP Ian Hudghton said.

"The eventual consequences of this decision will add to the costs of business and essential public services and not make the lives of workers easier as is intended. It is a poor decision."

But Plaid Cymru European spokesman Jill Evans said it was important to "end to the culture of long hours and low wages prevalent in Wales' job market".

"Today's decision by the European Parliament is very good news for Welsh workers who are being exploited," she said.

"We've long been fighting for this and working with trade unions in Wales to improve protection for workers.

"The New Labour government has behaved disgracefully in trying to defend the long working hours culture."

Britain's Green Party also voted to end the opt-out.

"Greens have long recognised that if we want a vibrant society with active citizens and engagement in community life, we must address Britain's long hour's culture, which is why we have consistently opposed the opt-out," said MEP Jean Lambert.

Collision course

European socialists said the vote left the Parliament on a collision course with the Commission.

The socialist group of MEPs said that the Commission's insistence that the opt-out should continue to be available was "disgraceful".

EU ministers are now expected to discuss the issue at a meeting on June 3, but governments were warned that the size of the vote in favour of scrapping the opt-out meant Parliament's position was unlikely to change during any future negotiations.

Business reaction

The CBI said the vote showed MEPs had "learned nothing about the challenge of globalisation".

"Presumably these are the same MEPs who will be complaining about employers relocating to China and India in the years to come," said director general Sir Digby Jones.

"The current opt-out system works, in large part, extremely well.

"It gives employees choice in the hours they work, allowing them to generate wealth for their families and companies to generate wealth for the nation.

"People need the opportunity to aspire and earn extra money if they want to."

Sir Digby also warned the vote would "take Europe's economy backwards".

Labour MEPs

Miles Templeman, director general of the Institute of Directors, said EU markets should be made more flexible, not less.

"Business is trying to face up to the problems of the 21st century, but MEPs have voted for a policy straight out of the 1970s," he said.

"It is deeply regrettable that the government's own MEPs again ignored ministers' advice and voted against the interests of the British economy.

"This makes it essential that the government maintains a blocking alliance in the Council of Ministers. They will have our strong support in doing so."

British Retail Consortium chief Kevin Hawkins said the decision "creates yet another unnecessary regulation".

And Forum of Private Business chief executive Nick Goulding said Labour MEPs had "sold British business down the drain".

Union reaction

TUC general secretary Brendan Barber said the vote was a "victory for a common sense compromise".

"Working more than 48 hours week in, week out, year in, year out is undoubtedly bad for health and productivity," he said.

"Tired workers are more likely to have accidents and to suffer illness.

"Today's employer rhetoric about choice fails to convince. UK employers have had nearly a decade to implement a system free of abuse that gave staff a genuinely free choice.

"But research shows that less than half the workforce even know they have a right not to work more than 48 hours a week, and that two out of three who work more than 48 hours a week have not been asked to sign an opt-out.

"Of course some employers rigorously follow the rules, but these figures show a large number cannot be trusted not to ignore or abuse the rules."

And the Transport and General Workers Union also welcomed the vote.

"The opt out is harming the health and safety, the family life and the productivity of British workers," said general secretary Tony Woodley.

"MEPs have done the right thing for British workers who have been put under unacceptable pressure to sign away their rights in the past by employers.

"The UK has the longest working hours of any European Union country and it's about time those in a position to affect legislation took a stand. The UK government should support this."