EmploymentRelations Bill - a mixed bag of measures, says IoD

On the day of theSecond Reading of the Employment Relations Bill, the IoD commented that theproposed legislation was a mixed bag of measures, of differing value.

Richard Wilson,Business Policy Executive, said:

TheBill contains an assortment of measures, of varying degrees of merit. Someaspects of the proposed legislation, for example, the measures designed toprotect individuals who request flexible working from unfair dismissal, areperfectly reasonable.

Similarly,although the IoD did not support the introduction of compulsory trade unionrecognition under the Employment Relations Act 1999, most of the measures inthe Bill relating to this matter should be broadly acceptable to business. Muchof this section of the Bill clarifies existing arrangements.

However,the IoD does not support the provisions in the Bill that enact the EuropeanUnions Information and Consultation Directive into UK law. Firstly, theDirective is unnecessary in practice because many business owners alreadycommunicate with their employees. Secondly, the Directive is wrong in principlebecause it conflicts with the principle of subsidiarity, whereby decisionswithin the EU should be taken at the lowest possible level. Thirdly, on theGovernments own estimates, the cost of implementing the Directive could amountto at least 430 million over ten years. Indeed, the IoD agreed with LordSainsbury of Turville when he stated that The Government see no need for theproposed directive establishing a general framework for informing andconsulting employees in the European Community, which is difficult to reconcilewith subsidiarity and would cut across member state traditions to no benefit.

Ends 14.1.04 No.225

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Notesto Editors

1. For more informationon the Institute of Directors views on the consultation documents that informthe Employment Relations Bill, see www.iod.com/policy/consultations. Inparticular, see the responses High Performance Workplaces (November 7^th2003) and Review of the Employment Relations Act 1999 (February 2003).

2. The Institute ofDirectors is a non-party political independent organisation with around 55,000members. In addition to its wide range of business services, the IoD providesan effective voice to represent the interests of its members to government andkey opinion-formers. It also brings the experience of business leaders to bearon the conduct of public affairs