Commenting on the detailed note of the Conservative / Liberal Democrat coalition negotiations set out today, Stephanie Bird, Director, Chartered Institute of Personnel and Development (CIPD), said:
“Employers will welcome the certainty that is offered by the policy programme agreed in the negotiations, and the prospect of a stable government to tackle the economic challenges Britain faces in the immediate future.”
National Insurance Contributions / welfare to work:
“We’re delighted that the employers’ National Insurance Contribution rise will now be scrapped. We have argued since the policy was first proposed in the pre-budget report in November 2008 that it may be damaging to jobs at a time when the labour market could ill-afford such risks, and employers clearly told us that the rise would lead to less job creation and more redundancies. Its reversal will bring some cheer to employers and by extension job seekers.
“Proposals to simplify the array of welfare to work programmes and refer those job seekers most in need of support immediately for help rather than asking them to wait 12 months look sensible. Today’s unemployment figures highlight the scale of the challenge, and the new government has no time to waste in adding flesh to the bones of these proposals.”
Default retirement age:
“The phased abolition of the Default Retirement Age is a large, pragmatic step towards a goal the CIPD has called and campaigned for now for many years. The DRA may encourage some managers to avoid efficient performance management of senior workers nearing retirement, and unfairly characterises all older workers as having a sell-by date. Its abolition could have a dramatic impact on the way older workers are perceived in the workplace, and on their ability to contribute their energy and experience to delivering on the business objectives of their employers.”
Migration and recruitment:
“We have consistently highlighted the deep concern our members have about any moves to impose an arbitrary cap on non-EU migration. This could leave many employers struggling to hire the talented performers they need to survive and thrive in the still-tentative recovery. We note that the two parties are committed to jointly considering the mechanism for implementing the limit, and hope they will consult openly and extensively with employers before legislating or acting on this commitment.”
Working time:
“Although it is unclear how much room for manoeuvre the new government has on this point, we welcome the commitment to seeking to limit the application of the Working Time Directive. Britain’s flexible labour market has served employees and employers well during the recession. Maintenance of the UK’s growing flexible working culture offers the prospect of a far greater contribution to well-being and work-life balance than the kind of regulatory approach embodied in the Working Time Directive.”
