Interest rates
We welcomed the cut in interest rates but urged the Bank of England to be ready to take further decisive action if necessary. Currently, we believe that despite the manufacturing sector’s continued resilience, the risks to the wider economy are increasing with tighter credit conditions, falling house prices and weakening global growth posing significant threats to business investment and consumer spending. Whilst we believe the Bank’s gradual approach to rate cuts has been right so far, should the situation in the financial markets deteriorate further the bank must take more drastic action to ensure this does not spill over into the real economy. For further information, contact Senior Economist, Jeegar Kakkad jkakkad@eef.org.uk
Future EU employment issues
This week we used our regular series of meetings with key officials in Brussels to gain the latest intelligence about the employment issues that may be taken forward by the French Presidency of the EU during the second half of 2008. It seems likely that, unless the European political scene changes dramatically (which is probably unlikely), the French Government will try to broker a deal between Member States during its Presidency that will link the review of the Working Time Directive with finalising the text of the Temporary Agency Workers Directive.
During discussions with the senior French official responsible for employment issues in Brussels, we expressed our practical concerns about the most recent versions of the texts of both of these Directives, pointed out the additional costs and administrative burdens that they would impose on manufacturers and suggested some ways in which our concerns could be addressed. We also expressed strong opposition to these Directives, dealing with very different issues, being linked together for purely "political" reasons, a view that we explained was shared by EEF's sister organisations in other Member States including France.
For further information, contact David Yeandle, EEF Deputy Director of Employment Policy, at dyeandle@eef.org.uk
Pensions
We are one of a small number of key organisations invited to join the Employer Representative Committee of the Personal Accounts Delivery Authority (PADA).This Committee will provide PADA with practical advice on the implementation of personal accounts when they are introduced, one of the key elements of the government’s pensions reform programme. One of our key issues is to ensure that personal accounts are simple for employers to administer and we will be using our position on the Committee to press for this.
For further information, contact David Yeandle, EEF Deputy Director of Employment Policy, at dyeandle@eef.org.uk
Manufacturing Alliance
We take the lead role in chairing the Manufacturing Alliance, bringing together the major trade bodies representing sectors including the aerospace, chemical, machine tool, electronics and construction sectors. This group meets quarterly to discuss issues affecting the wider manufacturing sector and consider areas where we may make joint representations. Issues discussed included concerns on the slow progress of the Leitch recommendations, the prospects for a resurrection of the Agency Workers Directive and proposals for an increase in healthy and safety penalties. For further information, contact Campaigns Adviser Nick Bowes nbowes@eef.org.uk