Employment minister Kate Dearden has defended Labour's radical workers' rights reforms, stating they merely bring the UK onto a "level playing field" with other major economies. Speaking at the International Labour Organization conference in Geneva, she argued the changes are necessary after years of lagging behind.
Key Reforms and Business Concerns
The Employment Rights Act, which became law last year, includes enhanced sick pay, stronger dismissal rights, and union access to workplaces. Business groups warn these measures will increase costs and deter hiring. However, Dearden countered that the UK now matches rights in most OECD countries.
Zero-Hours Contracts Under Scrutiny
Ministers are consulting on regulations to provide workers with regular hours, replacing exploitative zero-hours contracts. Dearden acknowledged some workers prefer flexibility but emphasized the need to balance security and flexibility. She noted that insecure work undermines economic growth.
Industry leaders like Helen Dickinson of the British Retail Consortium urged caution, warning against regulating flexible jobs out of existence. Dearden responded that getting the balance right could be transformative for low-paid workers.
Future Considerations
Dearden highlighted areas for further action, including rights for unpaid carers and the impact of AI on the labour market. She has launched a consultation on carers' rights and commissioned a fact-finding exercise on AI's effects.
On the minimum wage, she reiterated Labour's commitment to equalising youth rates with the adult rate, though the timeline is left to the Low Pay Commission. Despite think tank warnings about rising youth unemployment, Dearden said there is no evidence of harm from recent wage increases.
