Tube drivers to start industrial action on Friday
London Underground tube drivers are beginning industrial action Friday over safety concerns and proposed operational changes. The RMT union, representing about half the driver workforce, rejected what it claims are dangerous cost-cutting measures that could eliminate jobs and reduce station staffing.
Axing unfair dismissal rights “not beneficial” for employers or staff, warn experts
Experts warn that proposals to remove unfair dismissal protections would harm employers, workers, and the economy. A leaked report recommends replacing existing laws with a “no-fault dismissal” scheme allowing easier termination, but economists argue the changes could increase workplace instability without delivering promised benefits.
Employers lose top talent due to neglect not pay, says study
A CIPD study reveals that poor management trust, job dissatisfaction, and excessive stress—not low pay—are the primary reasons employees leave. When workers feel disillusioned with senior management culture and values, they’re significantly more likely to seek new opportunities, even in challenging job markets.
Clegg promises yet more employment law change this autumn
The Coalition Government plans to introduce major employment law reforms this autumn, including significant tribunal system changes and new “smart regulation” designed to boost economic growth and reduce red tape for businesses.
Brain drain from 50p tax rate underestimated, warns Diageo chief
Diageo chief Paul Walsh warns that the 50p tax rate is causing high earners to leave the UK and deterring others from relocating there, claiming the brain drain impact is being underestimated by government and media.
Blog: Is regulation really to blame for hiring caution?
Regulation may not be the real barrier to small business hiring. Analysis of employment law claims shows discrimination issues—not unfair dismissal rules—drive concerns, while cash flow challenges from payment delays pose greater obstacles to recruitment.
Proposals to change parental rights slammed as “hideous”
A Liberal Democrat minister has condemned proposals to restrict maternity and paternity rights as “hideous,” signaling Cabinet resistance to recommendations from a government review aimed at cutting business regulations.
Only 20% of employers hire apprentices – and falling
Only 20% of UK employers hired apprentices in the past year, with just 15% planning to do so next year. A survey reveals employers view the apprenticeship system as irrelevant to their sector, too rigid, and of insufficient quality.
Unemployment “truly horrific” – and unlikely to improve any time soon
UK unemployment has hit a 17-year high of 8.1%, with 2.57 million people out of work and youth joblessness at 21.3%. Economists warn the private sector is failing to create enough jobs to offset public sector cuts, and conditions are unlikely to improve due to government commitment to austerity measures.
“Institutional inertia” leads to slow progress on female board directors
Institutional inertia is slowing progress on female board representation, with only 33 FTSE 100 companies setting targets to increase female directors following Lord Davies’ 2015 recommendation of 25% representation. Current trends suggest women will comprise just 21% of board positions by 2015 at existing rates.
Public sector job cuts hindering not helping deficit reduction, warns CIPD
The Chartered Institute of Personnel and Development warns that public sector job cuts are undermining deficit reduction efforts. A survey found job losses running five times above Office for Budget Responsibility forecasts, with over 600,000 positions expected to be lost by 2015-16—a third more than government projections.
Tory Conference: Employers invited to voice employment law concerns
The UK coalition Government is launching a three-week Red Tape Challenge inviting employers to suggest ways to simplify or remove employment law regulations. The initiative aims to reduce burdens on businesses and encourage job creation, including changes that will extend the unfair dismissal claim period from one to two years starting April 2012.
Customer service staff paid 34% below national average
UK customer service staff earned an average of £14,868 in 2010, roughly 34% below the national average wage despite the sector’s threefold employment growth since 2002. Industry experts call for better pay recognition to attract talent to this increasingly vital profession.
Whitehall needs skills revamp or reform will fail, warns report
A Parliament committee warns that Whitehall’s civil service reform will fail without building specialist skills in procurement and contract management, establishing clear leadership, and breaking down departmental silos that hinder decision-making and implementation.
Alternative pension proposals could undermine public sector strike case
Local Government Employers proposed a pension plan claiming to save the government £900 million annually without immediate contribution increases, but public sector unions rejected it, saying it could undermine their strike case and unfairly burden workers.
Blog: Restrictive covenants – fair and enforceable or a waste of time?
Restrictive covenants are common in financial services employment, but their enforceability remains controversial. A recent High Court case involving investment advisors and client contact restrictions highlights the ongoing debate about whether these contractual clauses are fair and effective or merely symbolic.
Stability, stimulus and solidarity key to employment and growth, says Cable
Business Secretary Vince Cable argues that stability, stimulus, and solidarity are essential to boost UK employment and economic growth. Speaking at the Liberal Democrat conference, Cable emphasized addressing home-grown economic problems and called for banks to increase lending to productive businesses.
Agency Worker Regs to remain unchanged
The UK government has confirmed that Agency Worker Regulations will take effect unchanged on October 1, entitling temporary workers to equal pay and benefits as permanent staff after 12 weeks. This comes after reports that Prime Minister David Cameron sought legal advice on potentially weakening the legislation, which could cost employers £1.8 billion annually to comply with.
Blog: It’s not just about the money
Employee retention during economic downturns depends on more than salary increases. While a recent survey shows workers increasingly prioritize pay and benefits, effective reward communication and promoting existing benefits can maintain staff loyalty and job satisfaction without requiring additional spending.
Vince Cable wages war on spiralling executive pay
Vince Cable proposes changes to company laws to control executive pay, which has risen fourfold since 1998 while share values lagged behind. Measures include giving shareholders binding votes on pay awards and placing employees on remuneration committees to promote transparency and prevent “rewards for failure”.
