Memorandum by Liz Lynne MEP
1. Flexibility
of the labour market
How flexible is the labour market in the UK?
What could be the benefits of making it more flexible, and how
could this be achieved? In which ways, if any, could changes in
labour law help with this?
One of the most important ways of retaining
a flexible labour market is better regulation at an EU level and
better transposition and implementation of EU legislation by the
UK Government. Independent Impact Assessment of new legislation
must be introduced to force Ministers to look at the implications
of their decisions. Existing Regulatory Impact Assessments (RIAs)
are performed inconsistently and usually by the department that
is proposing the directive. These should be performed by a new
independent body, to give an objective view to Parliament. Sunset
clauses should be standard in EU and domestic legislation, with
different lifetimes set depending on the nature of the legislation.
EU and national processes need to be streamlined. The UK Government
must do more to ensure that proposed and existing legislation
is necessary at EU level and delivers genuine improvements to
social standards and Health and Safety at Work whilst at the same
time not being detrimental to business competitiveness. In the
health and safety field legislation must only be proposed if there
is medical or scientific evidence proving the need for it. The
European Commission should repeal or amend legislation that is
either unworkable at EU level or can best be left up to Member
States.
2. Employment security
2. What is the extent of employment security
in the UK? What could be the benefits of changing the present
arrangements for employment security? In which ways, if any, could
changes in labour law help with this?
Recent years have seen a decline in unionisation
and collective bargaining in the UK. Collective agreements are
often not applicable to many small businesses which make up the
vast majority of employers, where wages are agreed bilaterally
between owner-managers and employees. Employment security is therefore
often linked to flexibility, the availability of jobs in the economy
and the ease of which these can be obtained. Individuals value
the flexibility that so called "atypical" work, such
as temporary work, provides.
3. The concept of "Flexicurity"
How helpful do you think is the Commission's
concept of "flexicurity" seeking to combine the ideals
of a flexible labour market with those of employment security?
How practical could it be to strike a balance between these two
ideals and where should such a balance be struck? In which ways,
if any, could changes in labour law help with this?
The concept of flexicurity should broadly be
welcomed as a means to ensuring the development of modern, flexible
labour markets across the EU. However, it must be acknowledged
that there is not one single model of flexicurity that can be
delivered, given the diverse traditions in Member States across
Europe. Each Member State will have to mould any reforms to their
own situation. In line with the flexicurity approach, any measures
that lead from the green paper must be aimed at the promotion
of flexible labour law whilst at the same time protecting workers
where necessary.
4. Other labour market challenges
What other challenges are facing those involved
in the labour market? Respondents may wish to comment on their
knowledge of a variety of different types of "subordinate"
employment contracts and/or on their knowledge of the challenges
faced by those in self-employment, "economically-dependent"
self-employment and agency work. To what extent could changes
in labour law help to address these challenges?
A key challenge is to increase the skills levels
of individuals in the UK, irrespective of religion or belief,
age, gender, disability, race, sexual orientation. This is vital
if all individuals are to benefit from the flexible labour market
required if the UK is to remain competitive. It is vital that
disabled people and other minority groups are provided with better
training, skills and have the opportunity to fully participate
in the labour market.
In many cases contracting, self-employed work,
freelancing and temporary agency work provides choice and flexibility
for individuals, many of whom choose these options for a number
of different reasons.
For others, these forms of employment help to
provide a transition from unemployment to employment, and in many
cases suit the individual's and the company's preferences. The
greater flexibility provided by so called `non-standard' arrangements
is vital. Due to different working traditions, any definitions
of employment and self-employment should be dealt with at Member
State level.
Temporary and agency workers already enjoy many
of the same rights as employees. Further measures may be necessary
at Member State level to address the needs of some vulnerable
agency workers, which should be supported, but this cannot and
should not be attempted at a European level.
5. Groups covered by labour law
To which categories of workers should labour
law apply? Are any workers currently excluded that ought, in your
view, to be included? What is your view of the issues raised by
the Green Paper about the applicability of labour law to groups
of workers whose employment status is intermediate between that
of employee and self-employed?
The UK has given security to so called "atypical
workers" by extending key employment rights to "workers"
as well as to employees and by ensuring the relative flexibility
of our traditional contracts. The negative image given by the
European Commission of the various types of atypical work contracts
and of self employment is not justified.
Bogus self employment and undeclared work should
of course be clearly combated, but most self employment is not
bogus. There are measures that could be taken to enhance the status
of self-employment at Member State level, which would reduce the
risk of the comparatively small number of cases of "disguised"
self employment from succeeding. Self employed workers are already
covered by much of labour law in many Member States but the inclusion
of self employed at EU level as a matter of course is not the
way forward. Legislation should be looked at on a case by case
basis.
6. Role of EU Regulation
What is the role of regulation at the EU-level
in achieving a modernised system of labour law? Are there any
specific pieces of EU legislation that need either to be repealed
or to be introduced? Do you consider that the Green Paper's proposed
"Floor of Rights" for all workers is a viable one? In
order to promote worker mobility, would a Community-wide definition
of "worker" be useful?
The competence to modernise labour law lies
first and foremost at Member State level. The primary role of
the EU should be to organise exchanges of experiences and best
practice between Member States and monitor national reforms using
the instruments of the European growth and jobs strategy, while
at the same time bringing in legislation where it is necessary
for the functioning of the internal market.
Examples of legislation that should be withdrawn
are the Temporary Agency Workers Directive; currently stuck in
Council of Ministers, as well as the Commission proposal to remove
the UK's opt out of the Working Time Directive.
The proposal in the Green Paper for a "floor
of rights" dealing with working conditions is a positive
idea, in many ways EU legislation has already helped to secure
this, however such a concept should not be used as a justification
for further unnecessary or unworkable EU legislation.
There is no need to have a definition of "worker"
at EU level, which should be left up to Member States to define.
If such a definition was brought forward at a European level it
would contravene the different traditions and labour markets across
the EU. Any definition would be extremely difficult to draft and
would inevitably have negative consequences for the flexibility
of the UK's labour market. In particular, any definition concluded
at EU level may include self employed people and others providing
a commercial activity but not currently classed as 'workers' in
the UK. It is vital that the UK Government continues to push to
ensure that, in particular with regards to the application of
the Working Time Directive, EU legislation is applied to the worker
rather than to the contract, to prevent individuals having numerous
contracts with the same or different employers as a means of circumventing
the legislation.
30 March 2007
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