Letter from employer organisation members to Minister Murphy on the Good Jobs Consultation

Dear Minister Murphy,

Re: Good Jobs Consultation

We, the undersigned representatives of the Confederation of British Industry (CBI), the Federation of Small Businesses (FSB), the Institute of Directors (IoD), the Northern Ireland Chamber of Commerce and Industry (NI Chamber), and Manufacturing NI, write to you as employer organisation members of the Labour Relations Agency’s Engagement Forum. We appreciate the opportunity to provide our collective feedback on the Good Jobs Consultation.

We are writing in advance of the closing date of the consultation, to set out some of the main concerns that our employer members have, so that these can be considered further as soon as possible by the Minister and the Department. We will also submit fuller responses by 30^th September.

The Principles of Good Jobs

We commend the Department for the Economy for its commitment to fostering good jobs in Northern Ireland. We welcome a number of the proposed changes to employment law, particularly those that aim to achieve parity with employment laws in Great Britain, where appropriate. These changes have the potential to create a more equitable job market, benefiting both employers and employees. It is worth noting that, collectively, we all support the objective of seeing good terms and conditions being made available for employees and workers across Northern Ireland. Our members are also committed to this, but we must strike a balance to ensure that Northern Ireland does not become overly bureaucratic and remains sufficiently competitive to be seen as open for investment and growth, both for our indigenous businesses and for our FDI companies.

Many companies are already setting new standards in employment practices, and this is being driven at a faster pace due to a tight labour market. They can currently adapt to their particular industry and workforce, and some feel that legislation at the extent proposed may restrict this level of flexibility borne out of effective relationships with their employees.

Need for Further Discussions

The Consultation proposals are both numerous and complex, so we believe that further, detailed discussions with employers and trade unions will be essential even after the consultation period concludes at the end of September. It is crucial to ensure that the development and implementation of changes is practical and beneficial for all stakeholders involved. There is a need to consider impacts not only on sizes of business, but also on sectors and on different company structures, from family firms to international organisations.

Timing Concerns

We also wish to express our concerns regarding the timing of the consultation. Conducting such an important and substantial consultation during the summer period, when many people are on holiday, has posed challenges for effective engagement with our members. We continued to urge the Department to consider extending the consultation period or provide additional opportunities for input to ensure that businesses are fully informed and that all voices are adequately heard.

Moreover, the scale and scope of the proposed changes take considerable time to work through with various sectors and sizes of business. It has proven impossible to effectively engage in the timeframe provided.

Zero Hour Contracts

We would be supportive of some aspects of the proposed reform only, such as removing exclusivity restrictions within Zero Hour contracts, which we recognize is restrictive on the ability of workers to pick and choose for which companies they want to work. We are also against any exploitative practices, but our feedback would suggest that the majority of people on these types of contracts have signed up to them deliberately to enable maximum flexibility.

We are therefore not supportive of an outright ban as this does not appear to have been thought through in detail – the existence and operation of these types of contracts can be very positive for some part-time and casual workers, especially older employees who want flexibility to come back into the workforce, and students who want to pick and choose when they can work. They are also vital to the operations of many businesses, particularly in the hospitality and entertainment sectors.

Northern Ireland already has the highest rate of economic inactivity in the UK and there is a very real risk that some “semi retired” workers who contribute economically, via zero hours contracts, could, if not allowed to work in a highly flexible way, fall into the non-working/economically inactive population, potentially deciding instead to simply retire.

Right to Disconnect

Northern Ireland is an international economy and several of our members have told us about the importance of connecting to their teams and customers in time zones to the west and to the east, such as in the US, China and India. In this regard, there appears to be no clear rationale for legislative intervention into the employee/employer relationships that can be required to facilitate this international trade, nor has any need or clear purpose behind this proposed change been set out. On occasion, it is vital for businesses and employees to work outside of normal hours, whilst other employees like to split their daily hours to suit childcare needs, for example for school pickup etc. For that reason, a Code of Practice, setting out good standards of practice aimed at avoiding any unreasonable demands, is likely to make more sense.

Trade Union Rights

While we support aspects of the proposed changes around employment terms and facilitating effective mechanisms for employees to have a voice, we do not see how the proposals for expansion of trade union rights a, including additional powers and reach, especially into smaller businesses, would enhance job creation or improve the quality of jobs in Northern Ireland. We do not consider that they are required nor, indeed, would be helpful to maintain a fair and productive working environment.

The dynamics of organisational cultures are sensitive and business places high importance on preserving a positive and collaborative work environment. In many larger businesses trade unions currently fulfil their advocacy role without compromising the core values and organisational culture, however there is a strong resistance to the introduction of any measures that would upset this balance. There is also strong resistance, especially amongst medium and smaller businesses, to any measure of compulsion to accept trade union involvement below the current threshold of 21 employees.

Balloting period

The proposed reduction from 7 to 5 days, is not seen to be workable by any of the parties we engaged with.

Holiday Pay

Our Members by in large understand the proposals to move to a 52 week calculation period, as is the case in GB. However, they are adamant that there is a need to clarify that there will be a 2 year back<![if !supportFootnotes]>[1]<![endif]>stop period for any new claims.

Conclusion

In conclusion, we welcome the Department’s efforts to improve employment laws and develop better jobs in Northern Ireland, however, we strongly advocate for continued dialogue with employers and trade unions to refine any proposed changes in a way that will achieve your overarching objectives whilst not doing damage to the flexibility and competitiveness of our businesses. We look forward to working collaboratively with the Department to achieve these goals.

Thank you for considering our views. We remain committed to supporting the development of better jobs in Northern Ireland and look forward to further engagement on this important matter.

Yours sincerely,

Kirsty McManus, Director of Northern Ireland, IoD

Roger Pollen, Head of FSB Northern Ireland

Suzanne Wylie, CEO, Northern Ireland Chamber of Commerce

Angela McGowan, Director, CBI Northern Ireland

Stephen Kelly, Chief Executive, Manufacturing NI