Continued pressure for agency workers directive undermines claims of many EU governments to support greater flexibility

December 2007

The Government is to be congratulated in fighting off pressure from other EU governments for the agency workers directive for now. However it is vital that the government continues to fight to consign this directive permanently to the dustbin, according to Chartered Institute of Personnel and Development (CIPD).

Arguing that the continued pressure to keep this directive on the agenda casts serious doubt on the proclaimed intention of many EU governments to move towards greater flexibility, Mike Emmott, CIPD Employee Relations Adviser, said:

"We welcome the news that the proposed agency workers directive has been blocked. If implemented, it would undermine the UK's flexible labour market. The concept of 'flexicurity' is a myth behind which those in Europe opposed to any form of flexibility can shelter. EU governments who back this rigid, backward-looking proposal destroy the credibility of their proclaimed intention to move towards greater flexibility.

"In the UK, this directive is an answer to a non-problem. Temporary workers are not an under-privileged and disaffected group. Many of them have chosen temporary work because it suits their life style. Research shows that temporary workers are more satisfied and engaged with their work than those on permanent contracts.

"A key economic benefit of agency working lies in better matching of workers to jobs. Temporary work allows individuals to explore different opportunities, and employers to get to know a number of different workers, so that their longer-term decisions about employment will be more soundly based. This can be particularly beneficial for groups such as young people, women and ethnic minorities who are more likely to be engaged in temporary work.

"This directive would remove all of these benefits of agency working to the UK economy, despite the fact that it can be shown to promote the kind of labour market flexibility to which the EU says it is committed. This directive would hit Britain disproportionately hard, and would cost jobs. It is vital that the British government remains resolute in its efforts to permanently consign this proposal to the EU's legislative dustbin."

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