Wednesday 30 May 2012 8:03 pm

CBI: Listen to Beecroft to increase hiring

THE CONFEDERATION of British Industry (CBI) called today for the government to adopt at least some of the Beecroft report’s controversial proposals to free up the jobs market, as a new survey showed most employers think tough labour market rules are hitting Britain’s competitiveness. The business group believes excessive red tape stops entrepreneurs and small firms from hiring, because they fear the consequences of firing ineffective workers. Adrian Beecroft suggested reducing the consultation period on mass-redundancies and allowing “no fault” dismissals. “Some form of compensated no-fault dismissal could help small firms,” said the CBI’s Katja Hall. The report identified the agency workers’ directive introduced in the Autumn as a specific measure which has hit job-creation, instead of achieving its stated aim of protecting agency staff. Fifty-seven per cent of firms said they use fewer agency workers as a result, while 12 per cent lowered headcount overall. “Alleviating these damaging effects should be an issue of the highest priority for the government, starting with working in Brussels to get rid of the directive entirely.”