The Coalition Government argues that reducing
the 'burden' of employment law on employers
through radical reform is essential for economic recovery.
Foreign Secretary William Hague recently suggested that radical reform to the labour market and the welfare system would be the legacy of the Coalition Government.
Chancellor George Osborne took up this theme in his
Mansion House speech in London on Thursday 14 June 2012.
In this speech, Osborne hailed "more
pro-business employment law" as one way in which "we have [...] made our
whole economy a place that better supports businesses, wealth creation
and new jobs."
'Deregulation drive' will not aid job creation, says CIPD
However, a growing number of individuals and professional bodies disagree:
Programme of radical employment law reform is ongoing
- The CIPD says: "We do not believe that a 'deregulation drive' will
lead to employers creating more jobs, thus stimulating economic growth."
(For further detail of the context of these remarks, see Update 17 here)
- The ILO argues that the austerity measures and tough labour market reforms that many countries (including the UK) have launched in response to the crisis are making things worse, not better.
- The Coalition Government's argument that making it easier for firms
to hire and fire workers will aid recovery is not backed up by
according to University of Cambridge Reader in the Political Economy of
Development Ha-Joon Chang.
- Employment law considerations are not putting employers off hiring,
argues Heather Stewart in the Guardian: "Firms are not hiring for two
interlinked reasons: the crippling uncertainty of the eurozone crisis;
and a severe lack of demand. Why hire staff if you've got no customers
to sell to?"
As employment law specialist Darren Newman reports,
Adrian Beecroft's controversial compensated no-fault dismissal
proposals would appear to have met their "final death."
Despite this setback, the Coalition Government's radical programme of employment law reform is ongoing.
Read the complete post at http://www.xperthr.co.uk/blogs/employment-intelligence/2012/07/coalition-governments-deregula.html
3 Jul 2012 8:00 AM
XpertHR - Employment Intelligence
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