Many thanks to Mike for inviting me and for your warm welcome.
Sorry I cannot give you the sort of detailed speech about our
employment relations’ policies that Alan Johnson would have given. I
will have to save that for another time. But I am delighted to have the
opportunity to introduce myself.
Patricia Hewitt has re-organised the DTI’s Ministerial portfolios,
so I am responsible for employment relations, competition and consumers.
In its first term, the Government introduced a platform of decent
minimum standards, under the theme “Fairness at Work”. Every
employee now has the right to a minimum wage, paid holidays, rest
breaks, time off for family emergencies and a cap on the working week.
Part-time workers have the same rights as their full-time colleagues.
The qualifying period for unfair dismissal was reduced from two years to
one.
The Government’s vision for labour markets in its second term was
set out in “Full and Fulfilling Employment” produced jointly by DTI,
HMT, DWP and DfES last Summer. This set goals of:
- full employment – giving as many as possible the opportunity of
a job;
- more diversity and choice, particularly in the hours people work;
and
- more high performance workplaces, with higher productivity.
To make it easier for parents to participate in the labour market,
the Government has improved existing maternity rights (for example,
extending the payment period for Statutory Maternity Pay to 26 weeks)
and introduced paid paternity and adoption leave. Since April 2003,
there has been a new right for parents with children under six or
disabled children to request flexible working.
There were many who said that this new legislation would adversely
affect the economy but the UK labour market is performing well. The
employment rate is 74% overall and 63% for women, above the targets that
the EU set at the Lisbon Council. Unemployment (on the ILO measure) is
5.1%, the lowest of the G7 countries, but disadvantaged groups (some
ethnic communities, older workers) suffer disproportionately. Days lost
due to industrial action rose last year (mainly because of local
government and firefighters strikes), but are still less than a tenth of
the average figure in the 1970s. The number of disputes (140) is at an
all time low. The UK has the most flexible labour market in the EU,
according to the OECD.
But we are mindful of the pressures on business and are committed to
achieving the Government’s better regulation objectives. You asked us
not to keep changing employment law every few months. The Better
Regulation Task Force agreed. So as Patricia Hewitt announced at the end
of March, as far as DTI's domestic employment regulations are concerned,
we will have only two implementation dates, 6th April and 1st October,
making it easier for businesses to plan ahead and prepare for
forthcoming changes to the law. Keeping in line with tax changes.
The Chancellor made DTI’s commitment to two implementation dates
one of the ‘’12 key principles of intervention in the labour market’’
in his Budget Report. He also encouraged other Departments to follow
suit.
The other key principles apply to all Departments and include the
consideration of alternatives to regulation, ‘thinking small first’,
and proper consultation and RIAs. There is also a focus on dispute
resolution and better information, which DTI already features in its
work programme.
I am keen to hear your views today and look forward to receiving your
comments on the consultation papers that I will be publishing in the
next few months. These will cover draft legislation on:
- informing and consulting employees;
- preventing age discrimination in employment and vocational
training;
- dispute resolution in the workplace; and
- employment tribunal reform.
As announced earlier this year, we will also consult on revisions to
the Transfer of Undertakings (Protection of Employment) Regulations (TUPE).
And later this year we will be announcing a Bill to implement the
recommendations of the recent Review of the 1999 Employment Relations
Act.
At European level, we will continue to work for an Agency Work
Directive that gets the right balance between protecting agency workers
and protecting their jobs.
I will also be meeting John and his colleagues on a regular basis.
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