Beecroft report has very little industry support says UK’s largest employers’ organisation

The UK’s largest sectoral employers’ organisation has slammed the Beecroft report, saying the measures suggested have “little support from industry”.

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The UK’s largest sectoral employers’ organisation has slammed the contents of the Beecroft report, saying the measures suggested have “little support from industry”.

adrian beecroftEEF, formerly known as the Engineering Employers’ Federation, has spoken out against the “the concept of compensated no-fault dismissal” saying:

“Its benefits would be limited and… it would make little or no difference to recruitment plans. [EEF] also believes that the proposals risk undermining the gains that employers have made in increasing flexibility and productivity by working more collaboratively with their employees.”

The chief executive of EEF, Terry Scuoler, said:

“The government is right to focus on making our labour market more flexible, but the case for no-fault dismissal is far from proven. We’ve found little support from industry for introducing no-fault dismissal, its benefits look pretty limited and we’ve seen no evidence that it would increase recruitment.

“The government now needs to take a hard look at whether the claims for its benefits are real, and at the risk of damaging employment relations. We are concerned that the controversy over no-fault dismissal is distracting attention from the issues that really matter to business.”

As Declan Gaffney showed on these pages last year, there are two big problems with the assumption deregulation will reduce unemployment:

The first is that the UK labour market is already one of the least regulated among comparable nations. This immediately makes predictions of any significant employment effects from further deregulation implausible.

The second is that nations with much higher levels of regulation have been at least matching and in some respects exceeding employment performance in the UK and other low regulation countries for some time.

 


See also:

Cameron puts anti-worker ideology before evidence in Regulatory Reform Bill 9 May 2012

Osborne’s dogmatic return to Thatcher-era employment law 10 Apr 2012

Osborne’s solution to unemployment? Make it easier to unemploy people 7 Mar 2012

Cable falls in line with Beecroft’s anti-worker voodoo economics 23 Nov 2011


 

Meanwhile the exemplary low regulation economy, the United States, has registered an abysmal employment performance at least since the turn of this century. The idea of lower regulation as a route to employment growth is therefore a particularly hard sell these days.

Taking these points in turn, the UK has the third lowest level of employment protection of all OECD nations. It is ranked 7th in the world for labour market flexibility by the World Economic Forum.

Chart 1 below shows where the UK fits in a sample of comparable wealthy nations. (Tories try to argue, absurdly, that the UK has a particularly high level of labour market regulation.)

OECD

In the chart, these countries are colour-coded into three ‘families of nations’ using a standard classification based on geography and welfare state institutions. The point of grouping countries in this way is that we can compare employment performance with levels of employment protection.

The red columns, which generally show the highest levels of protection are continental Western European (CWE) nations; the blue countries with very low levels of protection are the English-speaking (Anglo) nations while the green Nordic countries are in an intermediate position, but closer to the CWE nations.

Because the United States has the lowest levels of protection, it is worth looking at how it compares with countries in the much more regulated CWE and Nordic groups. We show results for people of prime age (25 to 54) from 1991 to 2009. (The reason for concentrating on this age band is that its employment is less affected by educational participation and pensions policies.)

For men, prime age employment in the U.S. peaked at the end of the last century and then fell sharply. Although there was some recovery in mid-decade, employment remained far lower than in the late 1990s, before plummeting with the last recession. The CWE countries overtook the US at the turn of the century and the Nordic countries in 2005.

At a time when unemployment is so high, the government cannot start pandering to the priorities of a few big business owners.

 


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31 Responses to “Beecroft report has very little industry support says UK’s largest employers’ organisation”

  1. David Gillon

    The odious Beecroft proposals (just read the section on disability equality) would devastate the employment of those who fall foul of employers by becoming disabled, by speaking out against bullying managers, or a range of similar situations in which the employee is the innocent victim and the employer the aggressor. Taking on the management in these situations (btdt) is already heavily weighted against the employee, but Beecroft wants to remove even more protections from those with the least power, and further enable the bullies – what more do people need to know!

  2. Brian Tomkinson

    Beecroft report has very little industry support says UK’s largest employers’ organisation – http://t.co/Z1aB63Cs

  3. Janet Graham

    Beecroft report has very little industry support says UK's largest employers' organisation, by @KatieDagger: http://t.co/WaJr2vGc

  4. David Gillon

    Lack of industry support for Beecroft proposals http://t.co/h1aox1lZ suggests Tories may have lost their magic touch with business.

  5. Anonymous

    That the myth of not being able to sack persistently under-performing employees is just that, perhaps? There needs to be an official mythbuster on it, just as the HSA has done mythbusters on badly researched press stories…

  6. Jonathan Taylor

    Beecroft report has very little industry support says UK’s largest employers’ organisation. http://t.co/ws5VzRbE

  7. Suzy Franklin

    Beecroft report has very little industry support says UK’s largest employers’ organisation. http://t.co/ws5VzRbE

  8. Richard Exell

    Beecroft report has very little industry support says UK's largest employers' organisation http://t.co/U8bdfBgm @leftfootfwd

  9. BevR

    RT @leftfootfwd: Beecroft report has very little industry support says UK's largest employers' organisation http://t.co/AaMpSBYW

  10. @GrannyWils

    RT @leftfootfwd: Beecroft report has very little industry support says UK's largest employers' organisation http://t.co/AaMpSBYW

  11. Gemma Tumelty

    RT @leftfootfwd: Beecroft report has very little industry support says UK's largest employers' organisation http://t.co/AaMpSBYW

  12. TheCreativeCrip

    Lack of industry support for Beecroft proposals http://t.co/h1aox1lZ suggests Tories may have lost their magic touch with business.

  13. Blarg1987

    His report would be more credible if there was also carrotsfor employees i.e. people working n PLC’s etc should have the same pension rights as the CEO and board.

    Also the report offers no suggestions to make companies more efficent by getting ride of senior management more easily who in alot of cases are the cause of company failures through misusing company resources and introducing wasteful policies that can cost companies jobs in the short term and profits in the long term when the said policies fail to work.

  14. Dave Watson

    Beecroft report has very little industry support says UK’s largest employers’ organisation. http://t.co/UsopyQjC

  15. GeneratingGenius

    Little support from industry for Beecroft report's backing for no-fault dismissal. Let's hope so. Via @leftfootfwd. http://t.co/gq7BVksd

  16. JC

    You’re absolutely right, any organisation is able to sack persistently under-performing workers. All you need is a good HR department, sound legal advice, about 18 months and about £50,000. While larger organisations will have these at their disposal, smaller organisations of under about 25 people will not. These are the small businesses etc that would experience the difference.

    All depends on whether we think these are useful or not.

  17. Jon Purdom/Paco Saez

    Now the CIPD slam no-fault dismissal as a "licence for bad practice" – here's our report on why Beecroft's bunkum: http://t.co/WaJr2vGc

  18. jayblanc

    Now the CIPD slam no-fault dismissal as a "licence for bad practice" – here's our report on why Beecroft's bunkum: http://t.co/WaJr2vGc

  19. Tony Burke

    RT @leftfootfwd: Beecroft report has very little industry support says UK's largest employers' organisation http://t.co/MXmqPzbg

  20. Katie Stanton

    Even employers are giving Beecroft the cold shoulder now (via @leftfootfwd) http://t.co/TRWIPcno @unitetheunion @TUCrights

  21. Ian Woodland

    RT @leftfootfwd: Beecroft report has very little industry support says UK's largest employers organisation http://t.co/ti0woNZN @soton_unite

  22. Barry Navarro

    Now the CIPD slam no-fault dismissal as a "licence for bad practice" – here's our report on why Beecroft's bunkum: http://t.co/WaJr2vGc

  23. Rob Lane

    Now the CIPD slam no-fault dismissal as a "licence for bad practice" – here's our report on why Beecroft's bunkum: http://t.co/WaJr2vGc

  24. Yrotitna

    Now the CIPD slam no-fault dismissal as a "licence for bad practice" – here's our report on why Beecroft's bunkum: http://t.co/WaJr2vGc

  25. Anonymous

    As I said, they need a mythbusters to deal with that kind of lie.

  26. Hilda Palmer

    Now the CIPD slam no-fault dismissal as a "licence for bad practice" – here's our report on why Beecroft's bunkum: http://t.co/WaJr2vGc

  27. tracey warner

    Now the CIPD slam no-fault dismissal as a "licence for bad practice" – here's our report on why Beecroft's bunkum: http://t.co/WaJr2vGc

  28. Superstaticgirl

    And the SMEs have Acas to help them create procedures which can do the job for much cheapness.

  29. Look Left – Racism at Euro 2012, the Diamond Jubilee and remembering Margaret Bondfield | Left Foot Forward

    […] EEF, the UK’s largest sectoral employers’ organisation, who this week laid into the Beecroft report – the report by a big bucks Tory donor that calls for workers’ rights […]

  30. Left Out

    Beecroft, regional pay and a dearth of industry support: http://t.co/xeKsr0z3 #PMQs

  31. Steve Jary

    Beecroft, regional pay and a dearth of industry support: http://t.co/xeKsr0z3 #PMQs

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