Employment Law News Roundup – 28.6.22

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Agency Workers To Replace Striking Staff

The Government is to legislate to allow employers to bring in agency workers to fill in for staff who go on strike.

Under regulation 7 of the Conduct of Employment Agencies and Employment Businesses Regulations 2003, employers currently cannot recruit agency workers to conduct "duties normally performed by a worker who is taking part in a strike or other industrial action." In an announcement made on the 23rd June 2022, the Government is looking at repealing what it refers to as "burdensome legal restrictions". This can be done via statutory instrument, subject to parliamentary approval.

These proposals re agency workers come in the wake of a 3 day strike by around 40,000 rail workers employed by Network Rail and 13 train operators, who are members of the National Union of Rail, Maritime and Transport Workers (RMT), who went on strike on the 21st, 23rd, and 25th June 2022. Around 10,000 staff from London Underground, who are also members of RMT, also went on strike on the 21st June 2022. British Airways staff based at Heathrow are also planning to strike, and there are fears of a "Summer of Discontent" with other strikes potentially in the offing.

As a result of the rail strikes, large numbers of people reverted back to working from home as they had done during the Covid-19 pandemic lockdowns.

Reaction To Agency Worker Proposals

On the back of the Government's agency workers announcement, Kwasi Kwarteng, the Secretary of State for Business, Energy and Industrial Strategy, stated: "Once again trade unions are holding the country to ransom by grinding crucial public services and businesses to a halt. The situation we are in is not sustainable. Repealing these 1970s-era restrictions will give businesses freedom to access fully skilled staff at speed, all while allowing people to get on with their lives uninterrupted to help keep the economy ticking."

Grant Shapps, the Secretary of State for Transport, added: "Despite the best efforts of militant union leaders to bring our country to a standstill, it's clear this week's strikes did not have the desired impact due to more people being able to work from home. However, far too many hard-working families and businesses were unfairly affected by union's refusal to modernise. Reforms such as this legislation are vital and will ensure any future strikes will cause even less disruption and allow adaptable, flexible, fully skilled staff to continue working throughout."

Nevertheless, Neil Carberry, the chief executive of the Recruitment & Employment Confederation (REC), sounded a note of caution. He argues that: "Repealing the ban on agency workers replacing those on strike is the wrong policy - it puts agency workers and agencies in an invidious position, and moves the focus away from resolving the dispute. @RECPress will oppose any moves in this direction."

Pension Pots For Women Less Than Half Of Those Of Men

Data just released by Insurer, Legal & General (L&G), shows that the average pension pot for women is just 46.15% of those of men with women retiring with pensions of £12,000.00 on average, compared with £26,000.00 for men. According to L&G, who describe the position as a 'gender pension gap', the gap reaches "55% at the point of retirement".

Reasons For Gender Pension gap

L&G identify several reasons for the gap, including the following:-

  • the gender pay gap
  • there are less women in senior leadership positions
  • women are more likely to take career breaks for childcare reasons or as unpaid carers
  • what L&G refer to as "lower fiscal confidence"
  • high childcare costs acting as a barrier to returning to work post maternity leave, either full-time or at all
  • according to L&G, "900,000 women in the UK retire early each year due to Menopause, meaning women are leaving the workforce at the exact time when their earning potential is likely at its highest."

Last Updated:  Sunday, August 21, 2022

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