Select Committee on European Union Minutes of Evidence


Examination of Witnesses (Questions 100 - 119)

WEDNESDAY 25 FEBRUARY 2004

MR IAN BRINKLEY AND MR PAUL SELLERS

  Q100  Earl of Dundee: You mention the UK dichotomy of long working hours, but not terribly good productivity. I think you intimated that some managers may use long working hours as a substitute for failure to invest enough capital or to improve working conditions and to train employees. Is it therefore your view that if the UK WTD opt-out were to be removed, as a result these weaknesses would be addressed which at the moment you think are leading to low productivity in the UK?

  Mr Brinkley: It would certainly give employers a major incentive to do so, because the easy options would be closed down. What we do know from the research which has been done is that British managers are not as good as their counterparts in other countries in introducing these new work practices and getting them to perform effectively. That does suggest there is something which is holding them back from making sure that the introduction of these things is happening on the same scale as we see in other comparable economies. It will certainly be a  powerful incentive to address these more fundamental issues.

  Q101  Earl of Dundee: Your corollary might almost be, in a curious way, that you would recommend the opt-out for our continental partners, if the managers are better there, but you would correctly say that so many of our managers are not good enough and therefore the two things, the WTD opt-out married to less than competent managers, do not co-exist well.

  Mr Brinkley: Indeed. The weaker the management base is, the more likely they are going to go down the easy route. If you have poor quality managers, then if they can simply load the hours on, they will do so. Looking at the other issues is much more difficult, more challenging, but that is where you will get the sustainable growth and sustainable productivity. You need to try to push as many managers and as many companies as possible down that high productivity route.

  Q102  Lord Howie of Troon: I have been a manager in my time and I worry how poor I was at it. If the management is not good, as you say, will they be able to cope with this problem? The incentive might be there, but the capability might not be there, if you are right.

  Mr Brinkley: Yes, that is why it is very important, when you are talking about removing the opt-out, to try to match it with all the work government are doing in terms of trying to improve managerial skills, managerial capacity. There is now quite a big programme going through to try to address these very issues through the skills strategy. It is trying to make sure you have this read-across from removing the opt-out from the Working Time Directive and improving the skills of management in industry and all the other things which have been done to drive up productivity in the workplace. It would be a mistake just to look at the opt-out as a single isolated measure. It has to be seen as a package of measures to try to drive up workplace productivity and the performance of managers is a very important part of that.

  Mr Sellers: We feel that there is some parallel with the national minimum wage. Low pay was another solution which some managers were tempted to use. Cutting that off was widely predicted to lead to disaster; obviously it has not done that so far and there have been some productivity improvements in the UK which have stemmed from the national minimum wage. In all this, it helps if there is a narrative which managers can follow, a series of best practice ways to deal with this.

  Chairman: Anyone else on this point? If not, can we go on to health and safety? I am always very keen on this because this, of course, is a directive which is made under the article of the Treaty which deals with health and safety. Sometimes when you see some of the comments which are about you wonder whether you have been swept away into some other part of human enterprise. Basically that is the key. We do have a number of questions about health and safety and Baroness Howarth of Breckland would like to open up.

  Q103  Baroness Howarth of Breckland: In your written evidence you state "There is compelling evidence that working more than 48 hours per week is associated with a range of physical and mental problems". It quotes the HSE report estimating that stress-related illness costs UK employers £1.24 billion a year. Do you have reliable independent information to show what proportion of the workforce suffer directly from working more than 48 hours and what proportion of the stress-related illness costing £1.24 billion is attributable to working long hours as against other factors? I am also interested in whether you have a comparison of that with other European countries? Is there an evidential cross-over piece of work which shows a comparison?

  Mr Sellers: The work in that area was somewhat under-developed and perhaps that is not surprising because we work long hours in the way that the rest of Europe does not quite match. We have an incidence of long hours which is four times that of the European average for instance. I am not sure that there is comparative work on stress. We lead the European Union in cases of stress and we lead the European Union in long hours and the Health and Safety Executive, among others, have said that the likelihood of suffering from stress is higher for those who work long hours. Other than that, there is no quantifiable work to pin it down more tightly.

  Q104  Baroness Howarth of Breckland: Do you want to say more about the first part of my question? Do you have reliable independent information which can separate out the stress-related illness from the long hours as against other factors, because there are all the other factors? How is the evidence based?

  Mr Sellers: Are you trying to get at how much stress is actually caused by work and how much is caused by family issues? Is that what you are trying to get to?

  Q105  Baroness Howarth of Breckland: Yes.

  Mr Sellers: I am not sure that is fantastically helpful, because those background issues are there whether you work long hours or not. Stress is caused by people moving or divorce and that background of stress is there anyway. It is the additional stress of long hours which we think—

  Q106  Baroness Howarth of Breckland: But you say quite clearly in your evidence that this is caused by long hours. What I am trying to get at is whether that is verifiable evidence and you are saying it is a bit difficult to verify. So what basis do you have for saying that £1.24 billion a year is due to long hours?

  Mr Sellers: There is a clear link in the evidence and the most authoritative that we have has come up with that number. We have not actually checked that number ourselves.

  Mr Brinkley: I think it would be true to say that it is probably more circumstantial evidence than something which would stand up entirely in a court of law. It is pretty strong circumstantial evidence.

  Q107  Baroness Howarth of Breckland: There is also work which shows that people may work long hours but do not feel stressed if they are satisfied in their workplace. Therefore looking for satisfaction of job and workplace environment could have as much benefit as shortening hours. What do you think about that comparative evidence?

  Mr Brinkley: It would be a rather dismal prospect if we thought that contentment and happiness and achievement in the job actually depended on working long hours. That comes from the job itself and you should not actually make the linkage. Certainly looking back over the past decade, by and large the average satisfaction people get from jobs has gone down and that is what the evidence from the SRC research programmes has shown and this is also the same period where the number of hours worked in excess has gone up. There is possibly a general association there.

  Q108  Baroness Greengross: There is also some work at University College on inequalities in health and a lot of evidence to suggest that the people who have autonomy, self-direction in their work have much longer life expectancy and also a healthier, longer life. Those are the people who on the whole work longer hours. I am just wondering whether anybody has tried to bring those things together. It would be very interesting to know whether those people, because they are self-managed and have an opportunity to direct their own work, are the people who suffer this stress in your view, or whether we are looking primarily at a different level of worker where they do not have enough choice and autonomy in their workplace, which is a huge factor in creating stress.

  Mr Brinkley: You are right: there is that clear association. People who feel they have more control over how they do their work and the pace at which they do their work very clearly register higher levels of job satisfaction and it is undoubtedly true that they are less likely to suffer from stress. There is a major problem which needs to be confronted across much of industry. The working-hours connection is more incidental than a direct cause of it. Economic theory alone suggests that the degree of contentment and achievement, job satisfaction, will go down with every extra hour you work. You are undoubtedly right in saying that people who have more autonomy do have less stress, but I would not necessarily say it is linked to long hours. I do not think you need to work long hours to have a fulfilling job.

  Mr Sellers: It is quite interesting to unpack how much autonomy some managers and professional people have, if they are driven by heavy workloads. Some people are in a situation of having to work overtime as well. In many cases people do not just have a choice over what hours they work, even managers and professionals.

  Chairman: I should mention that I spent last Thursday participating in a research project on stress and health. I do not know that they learned much from me, but they were trying to.

  Q109  Baroness Massey of Darwen: What about the rights of workers to choose to work longer hours? Should that not be protected? Do they not have the right to do that?

  Mr Brinkley: Certainly as a health and safety measure you cannot have an absolute right to work long hours. No-one would seriously argue that if you were driving a lorry or a train or aeroplane or something of that sort you should simply be allowed to work as many hours as you can. Health and safety legislation is where this measure comes from and inevitably it is going to impose constraints on what people can and cannot do. The Working Time Directive is, in that sense, no different. The opt-out was a way of trying to address this problem. It was trying to reconcile the desires of a small minority of people to work long hours with the desires of the majority to work a reasonable number of hours. In our view that has failed. In terms of a practical workable measure which would reconcile those two particular interests, we have not found a workable solution to the opt-out.

  Q110  Baroness Massey of Darwen: When you say "a small minority of people" and "the majority" what do you mean? How do you know?

  Mr Brinkley: We have a variety of polling evidence about the number of people who say they are trying to reduce their hours. Paul can give you the actual figures, or we can write with more detail, if that would be more convenient.

  Mr Sellers: There are some questions in the labour force survey which are helpful in trying to answer this: "Would you like to work fewer hours?" "Would you like to work fewer hours even if that meant a reduction in your pay?" a rather stronger formulation. When you ask the first question to full-time workers you get 10 million people saying they want to work fewer hours. If you ask those who work more than 48 hours, 80 per cent say they want to work fewer than 48 hours and it is no surprise that a smaller number, but still three in ten, say they want to work fewer hours even if their pay were cut as a result.

  Q111  Baroness Massey of Darwen: Is this workers across the board?

  Mr Brinkley: Yes.

  Mr Sellers: We have done a detailed breakdown by occupation as well.

  Q112  Baroness Brigstocke: I can see how it works for managers and workers, if they are in a factory or in an office, but an awful lot of people will not fit into the categories, however many categories you go and   ask. Very often the people who answer questionnaires are those who answer questionnaires and the ones who are quite happy with what they are doing do not bother. I have to say I just worry about economic theory dictating one's life. I wonder how we here compare with other EU Member States when it comes to making different arrangements for people with different needs from the point of view of working. Can you imagine somebody at university who is just about to make a great discovery and then says "Oh, no". I know it is a ridiculous example, but you could have an example of somebody feeling like that and suddenly having to stop and leave the office or whatever it was when they had a good idea for their company, for instance. I cannot understand how this would all work in other EU countries. Do you know how it does, to make the differences for people who need to work longer hours?

  Mr Brinkley: We do not have any data on that, but clearly it must do because it has not had any impact on the creativity of European fashion industries or the great universities of Europe or the areas you are thinking of. These are all world class centres and they seem to have coped with the idea of having some control of working hours very easily; it does not seem to have inhibited them in any way. Clearly there must be ways round all these potential problems and they seem to have worked in Europe. An interesting follow-up suggestion would be to try to find out a bit more detail about exactly how they have done it and see how we could apply that in this economy.

  Q113  Baroness Brigstocke: It would be very interesting.

  Mr Sellers: We are working on that.

  Q114  Baroness Brigstocke: They might not always be doing what they say they are doing.

  Mr Brinkley: I think I would defend the robustness of the labour force survey, which is where our numbers come from. It is actually a very big sample survey and has a fairly good track record of reliability. I treat the answers coming out with a degree of confidence.

  Mr Sellers: There are some exemptions for genuinely autonomous workers as well within the limits of the Working Time Directive. Somebody who can decide to go off and play golf tomorrow is going to be covered by these kinds of arrangements and it may well cover the research scientists you mentioned.

  Q115  Lord Howie of Troon: How do you deal with those workers who choose to work longer hours by having two jobs?

  Mr Sellers: The Road Transport Directive is about to come into force and that is a slightly different piece of legislation, but overlapping with the Working Time Directive, with no opt-out and a 48-hour limit for HGV and PSV drivers. The relevance of mentioning this piece of legislation is that they have actually taken into account the fact that workers might have two jobs and the legislation actually says that the employer will ask the worker in writing whether they have another job in order to collect the hours. The Working Time Directive does not do that and it seems quite sensible for employers to ask that kind of question. You might want to know whether someone was working for your competitors, for instance.

  Q116  Lord Howie of Troon: I hesitate to name an occupation, but I was really thinking of postmen. They have a tendency to fill their day in a meaningful manner. How do you feel about that? I think you probably like it.

  Mr Brinkley: I am not quite sure what the question was, I am afraid.

  Q117  Lord Howie of Troon: If you have a postman who is doing his fulltime job, a hypothetical one, postman Bob, he will very frequently have finished his working day by the afternoon and he may find himself engaged in other gainful employment for the rest of the day over and above his 48 hours or whatever it is. Is he committing some misdemeanour?

  Mr Sellers: The Working Time Directive limits would apply to both jobs.

  Q118  Lord Howie of Troon: It does not apply. He can do this regardless, so the Working Time Directive becomes in some respect a kind of chimera.

  Mr Sellers: All the hours will actually be counted for the purpose of the limits. If you have one job, two jobs, three jobs or four jobs, those hours will count towards the 48-hour limit.

  Q119  Lord Howie of Troon: Are you telling me that he would be prevented from working more than 48 hours in his two jobs? Is that what you are telling me?

  Mr Sellers: That is correct. That is what happens across the European Union with the exception of the UK.


 
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