APPENDIX
Table 1
Table 2
| Hours per week (UK)
| Male | Female
|
| 1-19 | 5 per cent
| 24 per cent |
| 20-29 | 5 per cent
| 20 per cent |
| 30-39 | 20 per cent
| 31 per cent |
| 40-49 | 39 per cent
| 10 per cent |
Source: Working Time Flexibility and Family Life;
An Analysis of the "Households, Work and Flexibility"
Surveys (Nov 2002).
Memorandum by Freight Transport Association (FTA)
FREIGHT TRANSPORT
ASSOCIATION
Freight Transport Association represents companies operating
over 200,000 goods vehicles, almost half the UK fleet. Its membership
is comprised of manufacturers, retailers, logistics companies,
hauliers and organisations in the public and private sectors including
local authorities and NHS Trusts. FTA members consign over 90
per cent of freight carried by rail and over 70 per cent of exports
by sea and air.
BACKGROUND
Council Directive 93/104/EC required the Council on the basis
of a Commission proposal accompanied by an appraisal report, to
re-examine specific derogations. To this end a report has been
produced by Dr Catherine Barnard that examines the use and necessity
of the opt-out from the average 48 hour working week in the United
Kingdom.
INDUSTRY POSITION
Freight Transport Association and its members do not condone
abuse of any legislation, and in particular regulations designed
to protect health and safety. Contrary to some public statements
that have been made, the Barnard report does not highlight widespread
abuse of the opt-out provision. Indeed the document reports that
bodies such as ACAS and the Health and Safety Executive have not
identified any concerns in respect of compliance with working
time regulations.
FTA members employ a significant number of workers that currently
enjoy the protection afforded by 93/104 including the option in
agreement with employers to opt-out of the average 48 hour working
week. This provision in the directive affords workers the opportunity
to increase earnings by working voluntary overtime at premium
rates and, at the same time, provides employers with much needed
flexibility to meet the demands of their businesses in the most
efficient, cost effective way possible.
In addition to the hire and reward and own account sectors
of the freight transport industry FTA membership includes manufacturers,
retailers, service providers, utilities, health and public authorities
many of whom could be adversely affected by any amendment to the
provision of the opt-out.
PRACTICAL IMPLICATIONS
Distribution is a 24-hour, just in time industry which responds
to the demands made on it by the rest of the economy. This can
mean transferring stock between depots and also retail stores
at very short notice that in turn generates overtime for warehouse
staff. Very often it is the availability of overtime at premium
rates that attracts workers to a particular company.
The opt-out is also crucial for companies where short life
products are manufactured. For instance one large national bakery
company supplies 25 per cent by value of the UK market and supplies
13,000 outlets. Under normal circumstances working time in this
business verges on 48 hours per week. However, when mechanical
breakdowns occur in one of its plants another bakery in another
part of the country is required to step up production to compensate
for the shortfall and this would require employees to exceed the
average of 48 hours.
It is anticipated that if the opt-out were removed workers
and employers will seek to utilise all hours available, and the
above is only one example where business would be damaged by loss
of flexibility when unexpected problems arise.
In another example one of our member companies has advised
that 20 per cent of its non-mobile workers had chosen to opt out.
However in the same company 90 per cent of mobile workers, who
are not subject to the road transport directive, had chosen to
opt-out. The reasons provided for this high rate of opt-out amongst
mobile workers in addition to flexibility in terms of staffing
and costs was workers' expectations of earnings.
FTA members have expressed concerns that removing the opportunity
to opt-out would create problems, in that industry would lose
essential flexibility, resulting in significant increased costs.
The freight transport industry and many other sectors of industry
currently suffer from skills shortages that would be exacerbated
by restricting workers' choice to undertake hours agreed with
employers. A recent FTA survey revealed that 74 per cent of respondents
are experiencing difficulties in recruiting transport management
staff or were finding it harder.
Reduction in take home pay would adversely affect and limit
life style choices, which would encourage workers to seek secondary
employment without informing employers of the other's existence.
This scenario could put greater pressure on workers to work even
longer hours that would be more harmful to their health than undertaking
overtime at premium rates for their first employer.
REFERENCE PERIODS
Calculating working time over a 52 week reference period
may, in some instances, provide a solution for specific businesses.
It must not, however, be regarded as a solution to the overall
negative effect that would be created by losing the option to
opt-out.
CONCLUSION
Freight Transport Association submits that the opt-out provision
in Directive 93/104/EC is essential to provide the flexibility
needed by UK industry in general, and the freight transport industry
in particular. Claims of abuse of the opt-out in the United Kingdom
are largely unsubstantiated and should not jeopardise the economic
business case for retaining this provision. It is also essential
that workers retain the freedom of choice to agree hours of work
with their employers.
The CBI document "Maintaining a dynamic labour market"
presents case studies, some of which are from FTA member companies.
Freight Transport Association supports the CBI in the views expressed
in its report.
February 2004
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