Effect of Legislative Change Introduced by Labour Governments - Research Paper Example

When the Labour Government came to power 12 years ago workers had no right to minimum pay, no right to paid leave and the imbalance between work and family life meant that workers often had to choose one or the other at a cost to themselves and the economy ..... We had a mandate and a mission to change that and we did." Pat McFadden MP, Minister for Employment Relations, April 2009 Critically comment on the above statement with reference to effect of legislative change introduced by labour Governments since 1997 in relation to one or more areas of individual employment rights. Introduction The labour party was founded in the 20th century and took over leadership in 1997 under the then youthful leader Tony Blair. The party promised a number of reforms especially in employment. The labour party has strong links to the trade union movement and even today it claims to represent the interest of the workers. Kelly (1999). The party has traditionally lobbied for government intervention in the economy and better working conditions for the workers. The change of guard at the helm of party leadership has not affected its policies and it continues to fight for the rights of workers in matters relating to working hours, minimum pay and paid leave. According to the party’s policies, it does this without causing unnecessary distractions to the economy and in way that will not inconvenience employers. In critically discussing the above statement, it is imperative to look at the policies introduced by the labour government and their effect over the years in which they have been operational. It will also be critical to look at the policies that existed previously and how convenient/inconvenient they were to the working population. The facts relating to the three major labour policies will also be explored and thoroughly analysed. The Minimum wage Sloman (2006 p.27) says that the minimum wage policy was the “brainchild of the labour party” and it was one of the major campaign policies in the 1997 election. The policy was initially opposed by the conservatives but was finally implemented in 1999. It saw the minimum wage for workers fixed at £5.73 per hour for adults and at £4.77 per hour for those aged between 18 to 21 years. The minimum wage for those aged below 18 years but who have completed the minimum education was put at 3.53 pounds. The minimum wage policy is considered one of labour’s party’s most visible achievements. Hard line critics of the policy led by the current conservative leader David Cameron beat a hasty retreat and also supported the minimum wage policy. Initially the policy was opposed on the premise that it would significantly increase the cost of doing business and lead to massive layoffs. Economist argue that while the minimum wage policy has a wide appeal especially among the working class majority, it may not be sustainable especially in times of economic depression such as the one witnessed at the end of the year 2008 According to Sloman (2006,P. 103),critics of the minimum wage policy point out that employment in the long term may not increase in the same proportion as it would have if the minimum wage was not set. This may lead to massive unemployment when population growth is taken into consideration. Consequently increase in the minimum wage may not have the desired effect if unemployment or massive job cuts are witnessed in the long term. (Sloman 2007). Further, the effect of the minimum wage may not adequately address the challenges faced by low income workers if for instance most of the high paying jobs end up with relatively well off families. It is also worth noting that the informal sectors of the economy may end up absorbing most of the workers released from the formal sector hence creating a less stable economy. Taking the above economic issues into consideration then it can be rightly argued that none of the negative impacts has been witnessed in the UK. “The fact that even those opposed to the policy are now solidly behind it shows the extent to which the policy has been a success”. Kelly (1999, p.201). Consequently as far as the minimum wage policy is involved even the harshest critics would give the labour party a thumbs up for a job well done. Therefore the minister of employment relations is right in saying that the labour party has kept its promise and mandate in making the life of UK workers better. Imbalance between work and family. According to the Perrons (2006, p.81-82), there has always been a “tug of war between work and family life not only in the UK but also around the world”. This tussle between these two options has always been a source of conflict in the household and the work place. Sometimes choice is necessary leading to huge opportunity costs. There is no shortage of stories of women who have given up on wonderful careers to raise a good family. Fathers have also expressed their displeasure at the inconvenience of working at the expense of spending some quality time with family. (Perrons 2006) Kelly (1999, p.22) says that the choice of one over another was considered a sacrifice too big to make by the labour party. Economists also pointed out that it could have a negative impact on the economy and performance at the work place. For instance psychologists argue that the husband of a mother who has just given birth is likely to give less output when compared to a bachelor. Chances are that he will spend a considerable amount of time thinking about the new born. (Baum 2002) It is due to these factors that the labour government proposed and implemented new reforms that would cater for workers, families and employers so as to ensure that maximum utility is achieved among the three parties. The reforms titled “supporting hard-working families” were aimed at creating a strong economy as well as a healthy and happy work force. Maternity leave. The length of the maternity period and the payment due was one of the major sources of conflict between employers and trade unions. The new rules introduced by the labour government stipulated that new mothers were now entitled to a nine months maternity leave. The good news does not end there for new mums as they are also entitled to a much better payment of £112.75 per week. Plans are underway to increase the maternity period to one year although this policy is still at the formulation stage and may come into effect at the end of the current parliament. Paternity leave. Paternity leave was introduced by the labour government to ensure that the father of child also takes sometime off to be with the newborn and also spend some time with the family. To qualify for paternity leave, one has to be the biological father of the child or be married to the mother of the child. A partner of a woman with a baby is also entitled to paternity leave. Individuals who qualify for paternity leave are entitled to 123 pounds for a consecutive period of two weeks. Perrons (2006) notes that to further make the life of parents with special needs much easier, the employment laws introduced by the labour government state that parents of a disabled child can work for flexible working hours. This allows them to spend more time with their children with special needs. To cater for the future well being of the child, the laws make it possible for parents to register their children with child trust fund. The fund is used by the government to help children from poor backgrounds and enable them to live a comfortable life. It also provides them with an opportunity to be the best they can be in life their current economic status notwithstanding. Flexible working There has been a concerted effort by the labour government to implement a law that will ensure flexible workers. The need of flexible working hours has been a major issue especially among women legislators. (Baum 2002). Psychologists argue that even children over the age of six still need to be closer to their parents. That is why legislation passed in the year 2003 stipulate mothers with children aged below 16 year are free to ask for flexible working hours. Going by this age, an extra 4 million parents are eligible to work on flexible hours. The law requires that employers give priority to mothers with children aged below six years and still consider those with children aged below 16 years. The rationale behind the law is to ensure that parents spend more time with their children and mould them to become better and hard working citizens. Proponents of the flexible working hours policy argue that prior to this law, mothers had to perform two demanding roles and this reduces their productivity in both. What constitutes flexible working hours? Baum (2002) explains that it ranges from working from home for mothers and also working part time. It also includes staggered working hours where mothers of young children work for less formal hours. Flexible working hours also encompass sharing of jobs and working in shifts. To be eligible o work for flexible hours one should have worked for at least six months and have a child aged below six years. Mothers with children aged below 18 year and have special needs are also given priority under this law. The law also has sections which provide for the father or any other legal guardian to be eligible for flexible working hours. Right to paid leave Improved employment terms for the working class was one of the major policies of the labour party before the 1997 elections. Trade unions bargained hard for better pay and the right to paid leave was one of their major concerns. The labour government took over and it did not disappoint in introducing reforms in this critical area. The right to paid leave has been extended to all workers including those in the informal sector. To be at the same level with their European counterparts the number of leave days in the UK was increased to 28. Although it still falls short when compared to other countries in the EU such as Austria with 36 days official leave, it is a great step forward towards making life better for workers. Wade (2002, p 101) quotes the all familiar saying in justifying increased paid leave days in the UK. “All work and no play make Jack a dull boy” He continues to state that vacation for workers is important if their full potential at work is to be tapped. It is for this reason that a compulsory leave payment was introduced. Even employees who do not go on vacation are asked to relax and forget about work so that on return they can be more productive. The law makes it easier even for new workers to get paid leave. It states that workers who are on full time employment are entitled to paid leave if only they are employed by the same employer for a period of at least four months. Paid leave also applies to fathers who are on paternity leave. (Mclloroy 2007) The fathers of new born kids are entitled to a paid paternity leave of up to two weeks. In a major precedent setting ruling, the European court of justice ruled that even workers on a short term contract are entitled to a four week annual leave. Mclloroy (2007, p.201) further argues that the practice of workers placing employees on temporary employment was also addressed by the law. “It clearly states that workers in temporary employment should also be given annual leave if the period of temporary employment exceeds one year”. The employment laws in the UK have undergone a complete overhaul since the labour government took over. At the same period the EU has also passed several laws to govern and protect the right of workers. The extent to which the laws brought about by the labour government have been successful is debatable but there is no doubt that progress has been witnessed. There has been less conflict between workers, employers and the government. Therefore the statement by the employment relations minister is correct. The imbalance between work and life had reached a critical stage where parents had to choose between work and taking care of their little kids. Initial fears that the newly passed laws would be an extra cost to employers were rested after the implementation of the laws and no major negative impact was reported. The minimum wage law was a hot issue and raised a major public debate but after its implementation it became clear that it was only a storm in a tea cup. Artis and Nixon (2007, p.107) say that the law was actually good for the economy by raising the spending power of workers. They further argue that increased spending in an economy encourages growth and sets the pace for new industries to crop up. The two authors give the example of the United States where minimum wage was set and this did not negatively affect the local economy. European employment laws and their effect on UK labour laws. Since the European Union came into place, they have introduced a number of laws that have left the UK back on the drawing board. They affect the UK employment law and to some extent the rights of workers. The UK has been forced to alter some of its employment laws as a result of new laws which are in practice in the UK. According to Kelly (1999, p.78) “the labour party was initially opposed to these changes but backed down after it became clear that the unity of the EU was under threat”. Taking into consideration that the UK resisted measures to change its currency, then resisting a change on employment laws would be a hard sell. Geyer, Mackintosh and Lehman (2005) point out that one major hot issue that the UK contested was the right of citizens of EU countries to work anywhere within the regional bloc. It was feared that workers from less developed EU nations would all move to the UK or other more developed members. Another source of conflict between the UK and EU laws was witnessed in 2001 when the UK passed a law that allowed companies to access internet and other communications of their employees without their knowledge. The same law also allows employers to tap their employee’s telephone conversations again without their consent. The controversial law further stated that the companies should forward any information which may be a threat to state security to government security agencies. As was bound to happen the law was quickly challenged by human rights activist who argued that it was in contravention of Article 8 of the European human rights laws which state that every employee has a right to his/her privacy and that of the immediate family. Trade union members and human rights activist pointed out that the two laws were in conflict and the UK version ought to be repealed. Artis and Nixson (2007,p.101-105) highlight the case of local laws proposed by the soccer governing body FIFA which brought into limelight a potential clash of the two laws. FIFA suggested that to avoid an influx of foreign players in the English premier league then the at least six players should be from the home country. The proposed law proved controversial since UK laws state that citizens of European Union are free to work anywhere within the EU. Human rights activist were at it again and they claimed that the law was as good as discrimination at the work place. The issue was put on hold pending further discussions as the European court of justice is expected to rule on whether the law amounts to restriction and free movement of workers. The supremacy of the European law over any member countries is emphasized by Geyer, Mackintosh &Lehman (2002.). They say that where there is conflict between national and European laws then the latter takes precedence. Most of the conflicts related to labour laws in the UK have been adequately solved mostly when this clause is cited. It has helped in ending conflict between employment laws passed by countries and those passed by the EU. The consolidation act. The trade union and labour relations act popularly known as the consolidation act of 1992 expressly defines trade unions, their laws and what can and cannot do on behalf of workers. (Mclloroy 2007) It also states the circumstances under which a trade union may be deregistered. The consolidation act was which was passed in 1992 has undergone quite a number of changes so that it can comply with EU labour laws. Conclusion. The labour government came into office loaded with promises especially on working class workers. Did it disappoint? No. Employment laws that have taken place in the UK are remarkable. The minimum wage law stands out as one of the most outstanding achievements by the labour government. Even critics of the labour party agree that the policy was a major success. The imbalance between work and family was a major hindrance to career women who also wanted to settle in family life. Courtesy of the labour government, changes were made to accommodate such mothers who can now work for flexible hours. The extension of the maternity leave to nine months and the cheeky paternity leave has also proved to be another major score for the labour government. Although some changes have been proposed, it is already a success. The only major blemish on the impressive labour reforms in employment is the sometimes embarrassing clash between EU and UK labour laws. “We had a mandate and a mission to change that and we did” is consequently a true reflection of what the labour government has done to make life better for the working class. Reference: Artis, M & Nixson, F 2007, The economics of the European Union: policy and analysis Oxford University press, Oxford. Baum, J S 2002, A practical guide to flexible working hours, McGraw-Hill, Columbus, OH. Geyer R, Mackintosh, A & Lehman, K 2005, Integrating UK and European social policy; the complexity of Europeanisation, McGraw-Hill London. Kelly, N R 1999, Changing party policy in Britain, Wiley Blackwell, San Francisco CA. Labour party, Supporting hard working families: Winning the fight for Britain’s future. Available from http://www.labour.org.uk/supporting_hard-working_families Mcllroy, J 2007, Trade unions in Britain today, Manchester University press, Manchester. Michael, S & Mahon, R 2002, Child care policy at the cross roads: Gender and welfare state restructuring, McGraw-Hill, London. Perrons, D 2006, Gender divisions and working time in the new economy, Elgar publishing, London. Olivo, LM &Laurence, M 2005, Labour relations: the unionised work place, Edmond Montgomery, Ontario. Sloman, J 2006, Minimum wage economics, Financial Times Prentice Hall, London. Wade, M 2004, Flexible working hours in practice, Wiley publishing, West Sussex. Read More