Political Monitor
Excerpt from Political Monitor for APSCO for the week 24/5/2010
What's being said in Parliament
Queen's Speech 2010
The Queen this week set out the government's proposed programme of legislation at the state opening of parliament.
The Queen opened her speech by saying that the coalition government's legislative programme would be based upon the principles of freedom, fairness and responsibility, and said that the first priority of the government was to "reduce the deficit and restore economic growth. Action will be taken to accelerate the reduction of the structural budget deficit".
In the speech, a number of employment proposals were mentioned. These included:
- Plans to "remove barriers" to flexible working and extend the right of flexible working to all workers
- Changes to national insurance which will "safeguard jobs and support the economy"
- Reviewing the timetable for increasing the state pension age
- Promoting equal pay
Relevant Bills:
Financial Reform Bill
Will shift responsibility for macro-regulation of the banking system from the Financial Services Authority to the Bank of England. Despite earlier reports there is no mention of a levy on the profits of UK banks.
National Insurance Contributions Bill
Will block next year's 1% rise in NI contributions by employers. UK-wide.
Office of Budget Responsibility Bill
Will provide a "statutory underpinning" to new Office of Budget Responsibility, which will provide borrowing and economic growth forecasts for the Treasury. Main elements of the proposed bill "have yet to be decided upon". No mention of reforming the remit of the National Audit Office, which was predicted in advance media coverage.
Pensions and Savings Bill
Will restore the link between earnings and the state pension from 2012. Applies to England, Scotland and Wales. Will legislate for the phasing out of the default retirement age and set a timetable for raising the state pension age, depending on the outcome of a review.
Welfare Reform Bill
Will create a single welfare-to-work programme and make benefit payments more conditional on willingness to accept work. Benefit changes will be UK-wide, but will need parallel legislation in Northern Ireland, where it is devolved.
Other measures will be implemented via secondary legislation, included in future draft bills or remain commitments at this stage.
Other measures to be implemented via secondary legislation:
Cap on non-EU economic migrants allowed to work in UK
What Stakeholders are saying
Working Time Directive 'should go', says CIPD
The coalition government has been urged to support the repeal of the Working Time Directive, which aims to limit worker?s hours, because of its "negligible" value in tackling unhealthy workplace behaviour. The Chartered Institute of Personnel and Development (CIPD) said that employers were not convinced about the merits of the directive, which was intended to limit working hours to 48 a week.
Many workers opted out of the directive, while surveys consistently show that the UK continues to have a long hours working culture. The CIPD said that the directive should be repealed under a review currently being undertaken by the European Commission.
A survey of 800 employers by the CIPD found that one in four gave no paid paternity leave above the statutory minimum, with only two out of five offering two weeks pay.
Mike Emmott, employee relations adviser at the CIPD, said:
"While employers are supportive of the national minimum wage and a plethora of equality rights, they are yet to be convinced about the merits of the Agency Workers Directive and the Working Time Directive. The CIPD believes that the Working Time Regulations in particular have negligible value in limiting unhealthy workplace behaviour. We are, therefore, calling for its repeal in the context of the review currently being undertaken by the European Commission.
The more intractable challenge to both the Government and employers lies in encouraging more working fathers to take up their entitlements to paid paternity leave. If flexible parental leave is going to become a reality, we need a step-change in the reward policies of UK organisations that encourages more fathers to take their statutory rights.
This is something that will only be achieved through cultural change - and legislation is emphatically not the answer. The new Government will have to think imaginatively if it is to nudge and lead this change."
TUC general secretary Brendan Barber said:
"Good employers that treat agency workers fairly have nothing to fear from the legislation coming in this autumn. But sadly there are too many employers who behave less well when it comes to temps, which is why unions campaigned long and hard for extra protection for agency workers. Similarly too many employees are still being put under pressure to work long hours by their employers, and excessive working time makes for unhealthy employees.
Recent research has shown that over-long hours increase the risk of contracting heart disease, whilst the CIPD's own research indicates that a quarter of employees who worked long hours became ill. We shouldn't be allowing the UK's long hours culture to put the safety, health and well-being of workers at risk, and that must mean strengthening the working time rules not relaxing them."
All insights