Blair rapped over agency workers legislation

The Association of Technology Staffing Companies (Atsco) has criticised government plans to introduce the EU Agency Workers Directive.

Ann Swain, Atsco chief executive, described the change of policy as politically motivated and likely to damage UK competitiveness.

"UK plc is being sold down the river because there's an election coming up and Tony Blair needs the unions on his side," she said. "He has back-tracked on what he's said all along. We're really disappointed about this."

The legislation will compel employers to give all freelance workers the same benefits as permanent staff from day one. Atsco claims this will force companies either to reduce pay rates or employ fewer contractors.

"It's not good for business and it's unnecessary," said Swain. "The UK has a flexible workforce that's the envy of Europe. To damage that is ridiculous."

The government originally opposed the directive, which is designed to prevent the exploitation of temporary workers, on the ground that it was inappropriate for the UK's flexible, knowledge-based workforce.

But at the TUC Conference on 13 September, the Prime Minister confirmed earlier reports of a change of policy.

"You know our concerns on agency workers to maintain necessary labour market flexibility," Blair told the conference. "But whilst we must meet those concerns, we will support the EU Agency Workers Directive."

Atsco has pledged to work with other groups to fight the directive's introduction.

"We will be lobbying the government hard. We're already working in Europe alongside the CBI, providing case studies to show the effects this legislation would have," said Swain.

"We've also worked with the Professional Contractors Group on this. Their members don't want it either. We're all singing from the same hymn sheet."

A possible compromise could be to allow contractors to opt out of the legislation, but Swain suggested that this was far from ideal.

"That would be Tony Blair's get-out-of-jail card. It helps our members, but frankly it doesn't help the rest of UK plc," she said. "This legislation is sensible for a number of European countries, but it's wrong for us."