Council fails to agree on protection for temporary agency workers, June 2003

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Series Details 4.6.03
Publication Date 04/06/2003
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Employment ministers from across the EU failed to reach agreement on a European Commission proposal granting minimum protection to temporary agency workers at a meeting of the Employment Council on 3 June 2003.

The draft Directive, tabled by the European Commission on 20 March 2002, envisages a minimum EU wide level of protection for temporary workers that would allow them to benefit from the same terms and conditions as their permanent colleagues. The European Commission claims such a move would help the sector to 'develop as a flexible option for employers and workers' and would help the European Union to achieve the goals set out at the European Council, Lisbon, 23-24 March 2000 of becoming the most competitive and dynamic knowledge-based economy in the world by 2010.

The majority of Member States and the European Parliament backed the plans and were keen to offer temporary workers protection from day one in a work contract. However, four Member States - Germany, the United Kingdom, Ireland and Denmark - opposed the plans, arguing that agency staff should work for six months before being entitled to protection. The Greek Presidency and the European Commission, eager to secure agreement on the draft Directive, proposed a compromise whereby the qualifying period would be set at six weeks but the four Member States still opposed this. They also argued that an exemption to the principle of equal treatment in view of the specific conditions of Member States' labour markets should be permanent rather than for a transitional period of five years after the date of implementation of the Directive, the period supported by the other Member States.

The UK government has come under particular pressure from business groups to oppose the plans amidst claims that it would undermine the UK's flexible and successful labour market. According to the Department for Trade and Industry there are 600,000 temps in the UK, a figure believed to make the UK the largest temping market in Europe. A survey carried out by the Confederation of British Industry (CBI) in conjunction with employment agency Pertemps suggested that 47% of employers would take on fewer temporary workers if the law were adopted whilst 56% of firms said the law would increase costs. Digby Jones, CBI Director-General, noted his concerns about the proposal in a letter to European Commissioner for Employment and Social Affairs, Anna Diamantopoulou, in which he wrote:

'It is unnecessary and wrong to drag firms into negotiations over pay and conditions when hiring people from an agency for short periods. That should remain a matter for the agency and worker. Without improvements [to the proposal], taking on temps will be less attractive and that will do irreparable damage, not just to business but to employees as well. The UK has a strong record on creating jobs, particularly for those on the fringes of the labour market. This success story could be seriously undermined'.

However, trade unions have criticised the UK government for failing to accept a reasonable social provision. Brendan Barber, General Secretary of the Trades Union Congress, said:

'The government has sided with business interests to "scupper" the prospect of agency workers getting equal pay and basic rights in the foreseeable future. It is bad for business and unjust for agency workers to be denied protection from sub-standard treatment'.

Officials in the European Union have also criticised the UK and the three other Member States for blocking the proposal. Anna Diamantopoulou, European Commissioner for Employment and Social Affairs, expressed her 'deep disappointment' at the Council's failure to reach an agreement saying it meant temporary agency workers would remain 'second-class' workers and Dutch MEP, Ieke van den Burg, one of the architects of the directive, said that 'blocking minorities are very unproductive'.

The issue will now be re-launched under the EU Italian Presidency, in the second half of 2003 when both the European Commission and the Italian government will seek to find a more successful compromise.

Links:
 
Council of the European Union:
03.06.03: Press Release: Employment, Social Policy, Health and Consumer Affairs Council, Luxembourg, 2-3 June 2003
 
European Commission:
03.06.03: Press Release: Anna Diamantopoulou 'very disappointed' about Council's failure to find political agreement on temporary agency workers' directive [IP/03/796]
20.03.02: Press Release: Commission calls for protection of temporary agency workers and for steps to help develop the sector [IP/02/441]
Proposal for a Directive of the European Parliament and the Council on working conditions for temporary workers [COM(2002) 149 final]
 
European Sources Online: Financial Times:
04.06.03: Britain halts EU plans for temps' pay and rights
 
BBC News Online:
02.06.03: EU temp law 'threatens jobs'
 
Confederation of British Industry:
Homepage
CBI launches new bid to block 'irreparable damage' from EU temping law
 
Trades Union Congress:
Homepage
03.06.03: Press release: Government "scupper" decent pay and rights for UK agency workers
 
European Sources Online: In Focus
Protection for temporary agency workers, March 2002

Helen Bower

Compiled: Wednesday, 4 June 2003

The Council of the EU failed to reach agreement on proposal concerning temporary agency workers at a meeting of the Employment Council on 3 June 2003.

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