Fears over new rights for agency workers

11:22am Tuesday 4th March 2008

Plans to give agency and temporary workers more rights would be a blow to business in Sussex, it is claimed.

New legislation moved a step closer last month when more than 100 Labour MPs defied the Government to push through a Private Member's Bill at its second reading in the Commons.

This led to a showdown meeting between union leaders and Gordon Brown, who wants a commission to examine measures to tackle abuses of temporary staff.

The Prime Minister's spokesman said: "We recognise the concerns that have been raised. We are also talking to employers' organisations about this and we continue to believe that a commission which reflects the views of all sides, with an independent chairman, would be the right way forward."

Sussex Enterprise director of strategy Gill Edinburgh said: "It would have a serious impact on small businesses and the wider Sussex economy.

"Small businesses in particular are already straining to cope with the costs and resources involved in recruitment and adhering to employment legislation.

"We could see a big impact on the local economy if businesses restrict their growth by not employing temporary workers.

"Sussex also has a high proportion of seasonal employment, especially in the tourism and rural industries.

"The flexible labour market the UK has developed over the years has directly contributed to our economic growth and ability to remain competitive.

"Anything that would restrict that flexibility would be harmful. Temporary workers already have adequate protection which is handled by the agencies that manage them."

Tim Morton, of Morton's Fork contract and event caterers, said any legislation would have a huge impact.

The Chichester-based company can employ as many as 300 agency staff for large events.

Mr Morton said: "It will have a huge impact in terms of paperwork and red tape. People will end up having to do what they pay a premium for employment agencies to do, so you will lose the benefit of using agency staff.

Des Turner, Labour MP for Brighton Kemptown, believes the fears of businesses are groundless.

He said: "Agency workers have been treated very shabbily and don't really have any rights whatsoever. Frankly, the only word for it is exploitation."

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