The Deputy Prime Minister Angela Rayner said that the Cabinet is fully in support of the Employment Rights Bill, despite fears that some businesses and senior Labour politicians were trying to weaken it.
The recent promises of chancellor Rachel Reeves to reduce regulations and boost the economy seem to contradict measures like creating a Fair Work Agency.
Rayner confirmed, however, that plans for enhancing workers’ rights would be protected against any plans to remove regulation deemed to be obstructive of economic growth. He added that business leaders, who were sceptical regarding the proposals, should “get onboard” because the measures actually support economic development.
She told The Guardian that the bill would help more people enjoy the fruits of growth: “Absolutely, the cabinet is united because they know this is both pro-worker as well as pro-business.”
“The Prime Minister was very clear in his speech earlier in the year that people must feel growth. It’s impossible to have growth that ordinary workers can’t feel.
“It’s pointless for us to say, as a Labour Government, that these [growth] numbers are wonderful at the next general elections. The people in our communities can’t even see the results of all these investments.
According to the Financial Times however, senior Labour figures are trying to soften reforms to boost business confidence, despite opposition from the TUC and unions.
Jonathan Reynolds, business secretary, said, at an event about growth, on Thursday, “I said we would never introduce any changes that would make hiring more difficult for companies.” This is why my department consults on many key aspects of the Make Work Pay Reforms.
It is expected that Ministers will announce changes to the Bill in late November, after consultations are largely concluded. The government insists that it is not their intention to dilute plans, but rather to clarify them.
Rayner stated that a stronger workers’ right would increase productivity and reduce sickness rates. She attended an event hosted Julian Richer founder of Richer Sounds hi fi chain to celebrate the fifth anniversary his Good Business Charter accreditation. The scheme has been signed by more than 1,000 companies, including Aviva and Legal & General.
Richer asked: “Please tell me what religion or moral code supports paying workers less than a living wage or accepting the uncertainty and misery that zero-hours contracts can cause to workers when they are forced upon them against their will?” More than half of FTSE 100 companies now pay it. “I’m clearly not some maverick benevolent philanthropist with a soft touch.”
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