CBI warns of threat posed by EU working regulations

The CBI have warned that threatened EU regulation would slash the chances of work and overtime for thousands of people in the UK.

The business leaders confederation also warned that the "dam had burst" on pensions as rising costs trigger an acceleration in the number of employers moving away from final salary schemes.

The warnings follow the publishing of the wide-ranging annual assessment of trends in the world of work, carried out by the CBI with employment agency Pertemps.

The survey has revealed that 45% of employers are likely to offer fewer temporary work assignments under the Temporary Workers Directive. Almost two-third of employers reported that the directive would impose extra costs making temporary workers less affordable, removing a vital flexibility for employers and denying a crucial route into work to the unemployed, ex-offenders or working mothers.

Furthermore, the proposals to remove the right to opt-out of the Working Time Directive would cost thousands the choice to do overtime. Two out of five employers said losing the opt-out would have a serious impact on their business - only 27% said it would have no impact.

CBI figures revealed that 19% of all employees regularly used the individual opt out. This was slightly higher among smaller companies where almost one quarter opted out. According to the CBI, removing this right would “take away their opportunity to earn extra and damage companies' competitiveness”.

Tim Watts, Chairman of the Pertemps Group said: "Many people choose flexible working arrangements because it suits their lifestyles. The UK's flexible labour market creates many more employment opportunities. That is why more women and traditionally under-involved groups are in work in the UK than in most other European countries. Squeezing these people out of the world of work would be bad for them and bad for the economy."

The report also showed that firms were increasingly being priced out of final salary pension schemes - almost half the employers with a final salary pension scheme last year closed them to new entrants.

CBI Deputy Director-General, John Cridland, rejected charges that the CBI were anti-regulation. He said: “What we oppose is bad regulation. This survey shows inappropriate and unnecessary EU rules threatening the freedom of individuals to work when and how they choose.”

Carried out in May this year, 550 companies of varying size responded to the survey.

(SP)