British business risks being ‘sleepwalked into disaster’ by workers’ rights bill
British businesses risk “being sleepwalked into disaster” by ministers’ attempts to change workers’ rights rules, the Conservatives have warned.
In an open letter to business leaders across the UK, Shadow Business Secretary Andrew Griffith said he was “genuinely concerned” over the impact of Angela Rayner’s Employment Rights Bill on the economy.
The bill, which is currently making its way through parliament, has been fiercely criticised by City bosses, who argue it could have “serious unintended consequences” for a range of industries and impact new hiring.
Griffith on Sunday urged firms to “speak up” and lobby government and local MPs over the changes, which are backed by trade unions and employment rights campaigners.
Major reforms introduced by the bill include shorter notice for strikes by unions, a union “right to roam” in private business premises and IT systems, and “swipe to strike” electronic balloting for industrial action.
It will also introduce a new government quango known as the “Fair Work Agency,” which Griffith said would be able to “pro-actively bring expensive and attention seeking cases against firms even where no employee has raised a complaint.”
The former City minister argued the changes would “fundamentally change the conduct and influence of trade unions” to the detriment of the UK economy.
A Labour spokesperson hit back at the claims, describing them as “sheer hypocrisy” from a party which “crashed the economy and familiy finances.”
“Labour do not think it’s fair for workers to be sacked without any good reason or denied sick pay from the first day they are ill. The Tories and Reform need to explain why they do.”
“These measures are developed with business, and good for workers and the economy.”
Workers’ rights bill to cost 50,000 jobs
Government data suggests the Employment Rights Bill would cost British businesses £5bn a year and the economy 50,000 jobs.
Firms have already been grappling with increases to national insurance contributions unveiled in Rachel Reeves’ Autumn Budget and global trade uncertainty.
“I write this open letter to you today, genuinely concerned that British businesses are being sleepwalked into disaster,” Griffith said.
The changes, he added, risk undoing years of consensus on workers rights that have “served our country well” under both Conservative, coalition and the Blair and Brown-led Labour governments.
“This is not good for the economy. I know it and every business I speak to around the country knows it.”
The government has been approached for comment.