Memorandum by Motorsport Industry Association
INTRODUCTION—INDUSTRY
1. The Motorsport Industry Association (MIA)
is the lead trade association for the motorsport and performance
engineering industry in the UK and is recognised in this role
by the DTI Automotive Directorate. The 289 MIA member businesses
transact over 50 per cent of the estimated value of the UK motorsport
engineering industry, representing over £2 billion of motorsport
related turnover. The industry employs 40,000 people of whom 25,000
are engineers.
2. The industry has recently been the subject
of a DTI Competitiveness Panel review. This led to the announcement
of £16 million of Government support to be spread over a
five-year period in conjunction with the establishment of the
Motorsport Development Board (MDB) and a supporting Government
Motorsport Unit (GMU) to facilitate this investment.
3. The UK's "Motorsport Valley"
cluster (predominantly situated within the South East, Eastern,
East Midlands and West Midlands regions of England) is widely
acknowledged as the world leader in the motorsport engineering
industry.
4. The strategy of the MDB is to consolidate
and strengthen this "unique resource and cluster" (Harvard)
and transfer its competitive advantages in technology and best
practice across all UK regions and across other high technology
sectors including automotive, aerospace, marine and bio-medical.
5. The essence of Motorsport Valley lies
in high value-added, niche performance engineering, with "speed"
only occasionally the outcome focus. The cluster is characterised
by a community of over 2,000 small to medium enterprises (SMEs),
an exceptionally high research and development (R&D) spend
averaging well over 25 per cent of sales and by its focus on low
volume, high value-added, fast-to-market production. Formula One
racing teams, international and national rally and racing teams,
manufacturers of all types of motorsport and performance engineering
(engines, gearboxes, brakes etc), circuit owners and promoters
and the associated services are all found in the Motorsport Valley
business community.
6. The annual turnover of the UK motorsport
and performance engineering sector is in excess of £5 billion.
INTRODUCTION—SPORT
1. The UK motorsport industry supports a
large variety of very competitive motorsport series. The Fédération
Internationale de l'Automobile (FIA) and national sporting authority,
the Motor Sports Association, dictate the international and national
motorsport calendars.
2. For example, the 2004 F1 calendar, which
will run from March to October, has 18 planned events, an increase
of two races from the 2003 season. Preparation for this high-level
and technical sport occupies the remainder of the working year
and the development of new cars is considered to be as, if not
more, demanding than the race season proper. The World Rally Championship
(WRC) calendar is even longer, running from January to November
each year. The UK's national motorsport calendar traditionally
runs from March to October, but over recent years it has become
common practice to run championships through the winter also.
COMPETITIVENESS
1. It is vital that the European motorsport
and high performance engineering industry retains its' competitive
advantage in the face of competition from the USA and Japan, where
no such working time restrictions apply. The ability of the European
motorsport sector to provide highly skilled engineering solutions
within a short timeframe is critical to this. With falling sponsorship
levels in motorsport, race teams are already under pressure to
deliver on-time and this will be compounded in 2005-06 with tobacco
advertising becoming illegal. The enforcement of working time
restrictions will impact upon the competitiveness of the sector.
It is also important to remember that motorsport is very much
a sporting environment, which sets it apart from a standard engineering
industry. Ultimately, if performance is adversely affected within
Motorsport Valley (Europe's centre of excellence for motorsport
and high-performance engineering) by the removal of the opt-out,
this could result in business going outside the European Union.
FREEDOM OF
CHOICE
1. Europe is home to a world class pool
of highly skilled engineers and a community of knowledge—both
technical and service related. Employees are aware of the demands
of the industry and choose to work the necessary hours to be involved
and succeed in the sport. Employees are well remunerated in recognition
of this effort and commitment and have a full range of compensatory
benefits available to them to maintain a healthy work-life balance,
such as holiday in lieu, travel, parental leave and flexible working
hours during off-peak periods etc.
SOCIAL RESPONSIBILITY
1. The entire UK motorsport and high-performance
engineering sector takes the social responsibility towards its
workers very seriously. The UK motorsport industry wants to work
within appropriate working time regulations. In consulting with
continental motorsport based companies, where a 35 hour week is
the norm, it is apparent that scant regard is given to this standard.
To ignore the directive as laid down in continental Europe, places
workers at a distinct disadvantage. The UK wants to work with
the EU to produce "workable" working time regulations
which may then be actively adhered to.
SPECIFIC FEEDBACK
ON QUESTIONS
RAISED BY
THE EU CONSULTATION
(1) What effect would a reference period of
four months, six months or 12 months have on the business
Race calendars and schedules are set by the
sports' governing bodies with recognised seasons rarely shorter
than eight months in duration. Often, the season is extended to
incorporate off-season or winter events. In the senior categories
of motorsport, the so called off-season is often busier as teams
design and construct cars for the following year's competition.
Consequently, a four or six month review period
is not appropriate for this style of operation, even an eight
month consideration is inadequate. It is paramount that, if the
opt-out is to be removed, a 12 month review be made available
to motorsport.
(2) The definition of working time following
recent rulings by the European Court of Justice on time spent
on call;
It is common practice within the industry for
time spent on aircraft travel, to and from a race venue, or at
rest in hotel accommodation, albeit with pager/mobile telephone
on hand, not to be included in working time.
(3) The conditions for the application of
the opt-out
Currently the opt-out rarely forms part of a
contract of employment. It is usually given to all new employees
as part of their induction following commencement of employment.
Employees are not under any form of duress to sign it. This is
about an individuals' choice to work additional hours, for which
they are financially rewarded as part of a successful team effort.
In many companies the agreement can be changed at any time in
writing with three months notice. A high proportion of employees
in the industry choose to sign the opt-out.
Some industry suppliers and service providers
can operate within the constraints of the Working Time Directive
without the need to use the opt-out. However, a high proportion
of suppliers are geared to respond in harmony with the delivery
demands of the sporting competition and employees consequently
choose to opt-out to involve themselves in the "teamwork"
necessary to meet this competitive challenge. Such demands are
understood prior to the signature of employment contracts and
in most cases the opt-out agreement is reached quite separate
to such a contract.
The industry believes it is important to maintain
the freedom of choice allowed by opting-out of working time regulations
and the resulting competitive advantage for the EU. Companies
that are responsible for their employees and operate in an inclusive
and consultative manner with staff representative groups and recognised
trade unions are keen to retain the existing opt-out agreement.
(4) Ensuring compatibility between work and
family life
Employees should be encouraged to use holiday
allowances and to take compensatory rest in order to ensure a
work-life balance.
Employees are both very highly valued and well
rewarded financially in comparison to employees within other engineering
industries.
Employees get enormous pleasure in seeing parts/cars
that they have helped produce take part in motorsport race series.
There is a high level of job satisfaction and employees take a
great sense of pride in their work and team/driver success.
The majority of staff employed within the industry
accept that their job is demanding, yet equally rewarding. Often
such working conditions are suited to the lifestyle of those in
such position—ie long working hours and travel are more
appropriate and acceptable to young engineers.
CONCLUSION
The UK motorsport sector needs to retain the
opt-out to the working time directive. In summary, the following
arguments should be considered:
— Maintenance of the UK and Europe's
competitive advantage.
— Pursuit of valuable links to other
high-performance sectors; eg aerospace.
— Retention of the world class community
of knowledge.
— The freedom of choice of the individual
to contribute to outcome performance.
— The willingness to develop and adopt
realistic "workable" Working Time Regulations across
Europe, unlike the current practice on the continent.
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