In a first for the Government, Deputy Prime Minister, Angela Rayner, met with unions and representatives from major business groups, including the CBI and Federation of Small Businesses, to discuss Labour’s ambitious ‘Make Work Pay’ plans.
Rayner’s commitments will begin with banning zero-hours contracts, which, while sometimes exploitative, can also benefit both employees and employers. Research from Indeed Flex shows that 54% of UK HR managers support this move.
Benefits and concerns
Additionally, day-one rights will be introduced, covering sick pay, parental leave, and protection from unfair dismissal. Though advantageous for diligent workers, there are concerns about the potential exploitation of the system.
Furthermore, the minimum wage will be adjusted to a true living wage through the Low Pay Commission, reflecting actual living costs. Age bands will be scrapped so all workers are entitled to the same minimum wage. However, no timeframe has been provided for this change.
Responses to proposed changes
John Foster, CBI chief policy and campaigns officer, said:
“Politicians and businesses are united in wanting to raise living standards through higher levels of growth underpinned by increased productivity.
“Creating the conditions in which businesses can invest and create jobs is key to this. Today’s meeting was a welcome step in beginning the constructive dialogue that can deliver solutions that will be both lasting and effective.”
Rayner said:
“Our plan to Make Work Pay will bring together workers and businesses, both big and small and across different industries, for the good of the economy.
“This first-of-its-kind meeting has kicked off a new era of partnership that will bring benefits to everyone across the country striving to build a better life.”
Policy chair at the Federation of Small Businesses, Tina McKenzie, said
“We had a positive engagement with Angela Rayner and Jonathan Reynolds”, continuing by stating that they “hope this meeting is a signal that the Government will soon start a proper, meaningful and constructive engagement process as it moves from campaigning into practical policy making.”
“It will be crucial that the Government starts to demonstrate it is prepared to try and reduce harm to employment, small businesses, and the economy from any and every negative impact of these proposals.
“The new administration must listen to the real needs of small businesses on the ground and help, not harm, small business efforts to get people into work and secure the high levels of growth the country desperately needs.”
Jane Gratton, deputy director for public policy at the British Chambers of Commerce, said:
“It was important to be in the room today to represent the views of business, and to emphasise that the Government needs to genuinely listen as it develops its plans.
“Our members are clear that their employees deserve high standards of protection, but it’s important to guard against any unintended consequences of the proposed changes.
“This will require thorough and detailed consultation with firms of all sizes. The Government must take its time, engage with employers, and ensure that any changes are proportionate and affordable for businesses.”
In addition to day-one rights, a single enforcement body will be created to ‘strengthen the collective voice of workers’ by ensuring that all employment rights are supported.
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