Labour’s plans to boost workers’ rights have widespread support among senior managers, a new survey suggests, as the TUC hits back at corporate lobbying against the proposals.
In a poll of business decision-makers commissioned by the union federation and the thinktank the Institute for Public Policy Research (IPPR), several of Labour’s key workers’ rights policies were backed by a clear majority.
More than two-thirds of managers (68%) agreed with the general statement that ordinary workers’ rights should be strengthened, and 74% thought it would help with retaining staff.
When it came to specific measures, almost three-quarters (73%) supported giving workers protection from unfair dismissal on day one, and 74% backed making them entitled to statutory sick pay from their first day of illness (currently there is a three-day wait).
It comes as the big unions prepare to gather in Brighton on Sunday for the TUC’s annual congress, against a backdrop of vocal business concern about the plans.
The TUC general secretary, Paul Nowak, said: “There is a big disconnect between some of the more siren voices in the business community and the reality on the ground.
“This polling shows there is large-scale support for boosting workers’ rights among company managers and decision-makers. They are the ones talking to their staff members every day. And they know their workforces do a better job when they are happy and more secure at work.”
George Dibb, associate director for economic policy at the IPPR, said: “The UK economy must break out of the low-productivity, low-investment trap that we’re currently in and a stronger baseline of workers’ rights is an essential part of that.”
Some business groups, however, are alarmed about the government’s agenda on workers’ rights. The Federation of Small Businesses (FSB) has predicted potentially “devastating” consequences if small companies are fined for failing to comply with the new rules.
The Institute of Directors blamed the plans, together with fears of tax rises, for a drop in business confidence in its latest survey of members.
On Thursday, the Recruitment and Employment Confederation (REC), which represents the recruitment industry, launched a campaign called “temp work works”, urging the government not to interfere with “life-changing flexible contracts”.
Labour has promised to outlaw “exploitative” zero-hours contracts by giving workers the right to a contract setting out their regular hours, though the details are yet to be ironed out.
Launching the campaign, the REC’s deputy chief executive, Kate Shoesmith, cautioned against basing policy on what she called “outdated assumptions” about flexible work, and called on the government to conduct more research.
The deputy prime minister, Angela Rayner, and the business secretary, Jonathan Reynolds, met business leaders earlier this week in an attempt to reassure them about how the new deal for workers would operate, promising continued consultation.
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The proposals include dozens of changes, which are likely to amount to the most significant reform to the labour market in decades. As well as new laws, the government has promised tougher enforcement of existing employment regulation.
The prime minister will address the TUC congress next week and is expected to highlight the workers’ rights agenda, which was drawn up over many months in consultation with Labour-supporting unions.
Anthony Painter, director of policy at the Chartered Management Institute, said recent polling of its members suggested managers were “completely relaxed” about Labour’s agenda.
“I don’t get the sense that it’s universal in the business community or it’s even a majority, I think it’s a few voices. It almost feels like going through the political motions, to be honest,” he said. “It’s responding to the changes in employment that have happened over the past few years, and most good employers do a lot – if not most – of this stuff anyway.”
The TUC/IPPR survey was carried out in August by the pollster Opinium and involved 1,000 senior and middle managers, with a focus on recruitment, in companies with 10 or more employees.
The survey’s third sponsor was the political research group Persuasion, which works closely with the IPPR. Steve Akehurst, Persuasion’s director, said: “You could be forgiven for thinking that increasing workplace protections was a divisive issue. But this is an area of real consensus. Enhancing workers’ rights is one of the government’s most popular policy agendas. Voters across the political spectrum support the plans as do businesses large and small.”
Rayner said: “This shows the wide support for our ‘make work pay’ plans, which will improve living standards and increase job protections for all. Good employers know it makes business sense to move with our agenda and we are engaging them at every step of the way as we progress our plans.”