Business leaders have warned Angela Rayner her workers’ rights plan could harm jobs and growth.
The deputy Prime Minister and business secretary Jonathan Reynolds held talks with the top bosses of business groups and trade unions yesterday.
It was there that industry figures urged the new government to do its best to ‘reduce harm’ to firms and the wider economy from its plans.
There are fears too stringent rules could limit firms from hiring more people.
The new raft of employment laws have been promised within Labour’s first 100 days of taking office on July 5.
But ministers will iron out the details over the coming weeks, with Labour keen to satiate the concerns of businesses, as well as workers and their trade unions representatives.
The policies include giving workers rights from day one in new jobs as well as a crackdown on zero-hours contracts.
Angela Rayner was last night warned that her workers’ rights plan could harm jobs and growth
Industry figures urged the new government to do its best to ‘reduce harm’ to firms and the wider economy from its plans (file image)
Before the election, Lord Mandelson – the architect of New Labour’s 1997 election victory – urged the party to tread carefully so it did not cripple thriving British businesses.
Labour also plans to scrap Tory moves to restrict workers from going on strike.
Tina McKenzie, policy chair at The Federation of Small Businesses (FSB), which has over 215,000 members, said: ‘It will be crucial the Government starts to demonstrate it is prepared to try and reduce harm to employment, small business and the economy from any and every negative impact of these proposals.
‘The new administration must listen to the real needs of small businesses on the ground and help, not harm, small business efforts to get people into work and secure the high levels of growth the country desperately needs.’
And Neil Carberry, who runs the Recruitment and Employment Confederation (REC), said: ‘There’s lots to do – businesses have some concerns but we will get there.’
He added: ‘Changes made to businesses rather than with business are inevitably going to fail. It’s a great start to be talking to each other and working through some of the things that are really concerning REC members about the plan ahead.’
Jonathan Geldart, director-general of the Institute of Directors, said further consultation would be ‘essential to minimising the risk of unintended consequences of these reforms’.
Ms Rayner, a former union shop steward, said the meeting was the ‘first of its kind’ and had ‘kicked off a new era of partnership that will bring benefits to everyone across the country striving to build a better life.’
Concerns have been expressed by industries, including hospitality, that are reliant on part time and temporary workers.
They say these employees also appreciate flexibility and hope this is respected by the new rules.
Business lobbyists said yesterday talks had felt constructive but they would await further details. More talks are to be held as the legislation is hammered out.