Baroness Foster says new employment rights laws would 'unsettle' the UK economy - and cause a fall in growth and productivity
New employment legislation “completely unsettles” the economic balance required between economic growth and workers rights – and will lead to a fall in growth and productivity, Baroness Foster has said.
The former DUP first minister says that the government has listened to trade unions when creating its new employment law – but questioned whether ministers are balancing that responsibly with “the voice of the job creators both big and small”.
However, a Treasury minister has said that Labour’s plan for workers’ rights will put more money in people’s pockets and give them the security to spend it.
Lord Livermore made his comments after being tackled over warnings by the budget watchdog that the Employment Rights Bill threatened to have an overall “negative” economic impact.
The new legislation aims to tackle a range of issues, including on the gender pay gap, maritime employment rules, redundancies, poorer conditions for outsourced staff – and new trade union and industrial action rules.
During a debate in the House of Lords, former NI economy minister Baroness Foster said that the Bill was “completely counter intuitive” to the government’s claim that growth would be the key marker of economic success.
“Of course employees need to have rights in the workplace and these have developed in a sensible and proportionate manner over the years, whether that be in connection with pay or… conditions of employment.
“However, this Bill, my Lords completely unsettles the balance required for competitiveness, productivity, and growth on one side and the rights of employees on the other and that can only lead to discontent, a lack of investment and will inevitably lead to a fall in growth and productivity not an increase”, the crossbench peer said.
Mrs Foster said that a recent increase in the minimum wage was a was a good thing, but when taken with an increase in national insurance contributions it is not hard to understand how small firms are struggling.
Employment rights legislation is devolved. Former NI economy minister Conor Murphy had brought forward similar proposals here – which has prompted concerns from business groups.