Working Hours to be Limited for Small Business
Yesterday was a good day to bury bad news as Labour MEP’s voted to end the working hours exemption for small business.
The full story is in the FT. There is still time for negotitation, however, it does show that small businesses might well be facing yet another limitation on their ability to be competertive.
EU threat to hours opt-out angers business
By Jean Eaglesham in London and Helen Warrell in BrusselsPublished: November 6 2008 02:00 | Last updated: November 6 2008 02:00
The UK faces a “big battle” to retain its exemption from Brussels rules imposing a 48-hour week, business leaders warned yesterday, after a Labour rebellion contributed to a European parliamentary committee’s vote against the opt-out.
The government was adamant that it will fight to defend the position, agreed this year by European Union member states when London offered a compromise on agency workers in return for protecting its opt-out from the working time directive.
The vote by the employment and social affairs committee to end the opt-out, by 35 votes to 13, means the issue will go to a full meeting of the European parliament next month.
Lord Mandelson, the business secretary, said the committee’s decision was “not surprising in the least”. He vowed that the government will “continue to stand firm to protect the opt-out” which was “essential to Britain’s labour market flexibility”.
Loss of the opt-out, first negotiated in 1993, would risk “losing jobs to China and India”, which were focusing on Europe as US demand faltered, he said.
Business groups called on ministers not to give ground in the run-up to next month’s crucial Strasbourg vote. “The big battle’s going to be in the parliament and to stop concessions being made ahead of the vote,” said David Yeandle, head of employment policy at the EEF manufacturers’ body.
