Lib Dems Take Concerns Over Working Time Directive Straight To Brussels

2.00.24pm GMT Tue 20th Jan 2004

The EU's Working Time Directive must have in-built flexibility or risk damaging the competitiveness of small and medium size enterprises in the UK.

Ahead of Wednesday's debate on the implementation of the Working Time Directive, Malcolm Bruce MP, Liberal Democrat Shadow DTI Secretary, and Brian Cotter MP, Liberal Democrat Small Business Minister are in Brussels today meeting with UK Government officials, business organisations and MEPs.

Commenting on the review of the UK's right to opt out of a maximum 48 working week, Malcolm Bruce MP said: "SMEs are closing the productivity gap between themselves and larger firms."

"It should be stressed at this review that firms need to retain the opt-out, subject to safeguards against duress, if they are to maintain this steady rise in productivity witnessed over recent years."

Commenting on the need for UK ministers to ensure that flexibility is maintained, whilst British workers are protected, Brian Cotter said: "The Government must act to address EU concerns that the current regulations are being abused by some unscrupulous employers who are forcing their employees to work longer hours."

"A failure to do so could leave British businesses facing strict regulations that would undermine competitiveness."

Commenting on the Commission's review, Liz Lynne, Liberal Democrat MEP, who will lead Wednesday's debate for the European Liberals said: "Many employees in poorly paid sectors depend on overtime to make up their pay. So while we need to ensure that employees are not coerced to opt out of the working time limits, a blanket ban on opt outs would simply reduce

European competitiveness and penalise employees."

"Contrary to popular belief, the UK is not the only Member State that allows opt outs - France, Portugal and Luxembourg have all decided it is in their interests to allow opt-outs for particular sectors such as health and/or catering."

ENDS

Notes to Editors

• The Working Time Directive was introduced in 1993 and was translated into UK law in 1998. It introduced a maximum 48 hour week for employees, although voluntary opt-out provision means that member states may allow workers to exceed this limit, provided that an employer

gains the official agreement of individual workers.

• The European Commission launched a consultation on the operation of the Directive at the beginning of January, following the Commission's concern that some employers are abusing the Directive by pressurising staff to waiver their right to a maximum working week. They

are considering whether the opt-out should be abolished.

• British business organisations are warning that Britain will lose its competitive edge if the opt-out is scrapped and new inflexible rules are adopted.

• The Employment and Social Affairs Committee, of which Liz Lynne is a member, will be voting on its own initiative report, as part of its contribution to the Commission's consultation, on Wednesday 21st January.

• Malcolm Bruce and Brian Cotter will be visiting Brussels on Monday 19th and Tuesday 20th January in order to keep abreast of developments in the Europe institutions which affect British businesses. In addition, they hold regular conference call meetings with their Liberal

Democrat colleagues in the European Parliament, with the aim of improving working links between Brussels and Westminster and enhancing awareness of EU legislation within the British Parliament.

Amongst others they will be meeting representatives of the European Commission, the United Kingdom Permanent Representation to the European Union (UKREP), the Confederation of British Industry (CBI), the British Chambers of Commerce and Small Business Europe.

• The Table below is taken from Malcolm Bruce's PQ[143003] asking the secretary of State for comparisons of the productivity of SMEs and large businesses. It shows that productivity amongst smaller firms has been increasing steadily over recent years, in comparison to their larger counterparts.

Figure 1: Approximate Gross Value Added per employee(5), UK, 1999 to 2001

1999 2000 2001

SMEs 31,000 32,000 34,000

Large firms 34,000 34,000 35,000

(5) GVA is calculated at basic prices only. Public administration, education, health, financial intermediation and real estate have been excluded. There have been slight changes to the ABIs coverage over the period. Source: SBS, based on a special analysis from the ONS Annual Business Inquiry. [PQ 143003 10 Dec 2003]