Intelligence Briefing - 27 November 2009

EEF responds to new Composites Strategy

Having helped shape the document, EEF has attended of the launch of the government’s Composites Strategy by Lord Mandelson. This recognises the significant potential for composite technologies. We believe that creating critical mass in this nascent industry would provide considerable supply chain benefits to some of the UK’s vital manufacturing sectors. At the launch event we argued that the strategy needs to be viewed in the context of the broader support picture. In particular we also stressed the need for measures to provide long-term finance for growth, ongoing incentives for capital investment and certainty over skills funding.

For further information contact Jeegar Kakkad, Senior Economist

Conservatives lobbied on waste

We discussed the key challenges and barriers for manufacturers in delivering the government’s waste objectives with Shadow Secretary of State for Environment, Food and Rural Affairs, Nick Herbert MP. We explained that overly complex waste regulation and lack of waste infrastructure is making waste handling unnecessarily costly for business. We added that raising landfill tax alone would not deliver the necessary capacity to deal with the problem and argued for a more strategic and incentive-led policy framework for waste and resources.

For further information contact Vanessa Fandrich, Senior Climate & Environment Policy Adviser

Government officials pressed on EU Emissions Directive

Continuing our lobbying activity on the proposed Industrial Emissions (IPPC) Directive, we met with DEFRA, BIS and DECC this week to ensure that the UK government continues to lobby for the European Council politically agreed text to remain unchanged during ‘second reading’ in the European Parliament in January. All three Departments were able to provide assurance that they are campaigning to ensure this outcome is achieved.

For further information contact Kevin Considine, Senior Climate & Environment Policy Adviser

DEFRA consults EEF on civil sanction proposals

EEF was invited to a meeting with senior DEFRA officials this week to discuss extracts from the Regulatory Enforcement and Sanctions Act 2008, which could lead to new monetary penalties for environmental non-compliance. We were encouraged by the government’s policy changes, in particular the method for calculating variable monetary penalties, which has taken on board EEF concerns which were outlined in our formal consultation response. Subject to ministerial approval the guidance and regulations are expected in the early New Year.

For further information contact Kevin Considine, Senior Climate & Environment Policy Adviser

EEF steps up campaign for deregulation of private pensions

We met DWP officials and staff at the Pensions Regulator this week to discuss our response to the government’s consultation on draft Regulations to amend the legislation on Employer Debt. We stressed that, whilst it was important to protect pension scheme members, the legislation needed to be changed to reduce the adverse effect this was having on the ability of companies with defined benefit pension arrangements to restructure their business without incurring major costs. In particular, we suggested that companies which own 100% of other companies in their group should be able to restructure their business without triggering any employer debt provisions.

For further information, contact David Yeandle, Head of Employment Policy

Energy prices information for members

Earlier this year EEF launched a service to benchmark energy prices for companies of different sizes using data provided by members. Since then nearly 80 companies have signed up and the second set of results is now available on our website.

For further information contact Roger Salomone, Energy Adviser

In the news

With the Pre-Budget Report rapidly approaching attention has turned to our campaign for the extension of measures to underpin a recovery and put in place a long-term plan to reduce public spending. Our submission was reported in the FT and the BBC website and widely throughout the regional press. Our views on the need to retain reformed RDAs were also covered in the FT, forming a united front with the other main business bodies, whilst our calls for a Bank for Industry are receiving increasing support from commentators, on this occasion in the Sunday Times. The regional press have started to pick up on the winners of EEF's 'Future Manufacturing' awards which have been held across the country including the apprentice categories in the South West, and the winners in the North East. Steve Radley's latest opinion column in The Manufacturer appeared discussing the forthcoming Copenhagen Summit.

Weekly Focus

Earlier this year, EEF undertook a survey of its members’ human resources policies and practices as well as sought their views on some key current employment policy issues. In doing so, we asked a number of questions that have featured in earlier EEF surveys so that changes in our members’ policies and practices, as well as their views on employment policy issues, could also be analysed.

The results of the survey and accompanying analysis are now available for our members in three briefings on our website:

1. Current and future employee relations climate

This looks at the role of trade unions, the extent of workforce consultation arrangements and the impact of the recession on the employee relations climate.

2. Company pension and retirement arrangements

[link to be added; awaiting approval of an article]This looks at what is happening to company pension arrangements and assesses how employers are dealing with the right of workers to request to work past the default retirement age of 65

3. Flexibility in the manufacturing workplace

This looks at the various ways in which manufacturers respond to fluctuations in demand, including flexible working arrangements, agency workers and the individual opt out from the Working Time Directive

Economic data

Forthcoming data and statistics

30 October: Lending to Individuals

1 November: Manufacturing PMI

3 November: Services PMI

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