Agency workers deal is another brick in wall of labour market rigidity

Release date: 20/05/2008

Britain’s manufacturers responded to today’s announcement that a deal has been agreed on temporary agency workers warning that business will view it as yet another step on the road towards eroding the flexibility of the UK labour market.

Commenting, EEF Chairman, Martin Temple, said:

"This is a bad day for business and represents yet another brick in the wall of labour market rigidity in the UK. At a time when business needs all the tools at its disposal to work flexibly and be quick on its feet, it is very unhelpful to add further constraints on the use of agency workers.

"However, we recognise the changing political scene in Europe and the pressure the government has encountered to find a solution. But this deal will only be acceptable if it results in a significantly better European Directive than is currently on the table."

On the specifics of the agreement, Martin Temple, added:

"The critical issue for business will be ensuring there is a clear and limited definition of basic working and employment conditions to which equal treatment will apply and that this is strictly adhered to in any future legislation."

Notes for editors