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REC takes stock of election results on industry

With the Labour Party’s share of the vote in yesterday’s local elections plummeting to 24 per cent, its lowest result in 40 years, there is growing speculation about how the fall-out could impact on Government policy in a number of areas of direct interest for the UK recruitment industry.  

There will almost certainly be a change in policy but at this current time there is disagreement as to which direction that change should be.

Gordon Brown stated before the elections that he will discuss any changes with the grassroots labour membership and has opened up a discussion on the future direction of policy.  

After the 10p tax blunder of last week and the loss of several key seats in traditional Labour heartlands in Wales and the north of England, the pressure is certainly mounting on Brown to pursue a policy agenda more in tune with core Labour values.

This has led to media speculation about a possible extension of rights to temporary and agency workers as the Private Members Bill goes to Committee Stage next week. 

However, REC Director of External Relations Tom Hadley, who was recently invited to address the Labour Party’s Policy Forum, believes that this is not a forgone conclusion.  

Commenting on the possible aftermath of yesterday’s elections, Hadley says:“Clearly the Labour party will be considering a possible change of direction in the wake of yesterday’s results and we fully expect the Trade Unions to use this opportunity to continue ramping up their calls for more legislation.

"Yes there is a risk, but the question is whether imposing more employment regulations such as those in the Private Members Bill on Agency Workers is actually a ‘vote-winner’ and whether it is in the Government’s political interests that the Trade Unions continue depicting such a bleak picture of the UK’s flexible labour market.  

"In such a delicate economic climate, imposing more regulation and potential barriers to job creation could actually be seen as counter-productive which is why it is not a foregone conclusion that yesterday results could lead to a hardening of the Government’s position with regards to our sector”.