[UK] Workers’ rights reforms could benefit economy by £13bn

New analysis has shown that even modest gains from the UK government’s workers’ rights reforms would benefit the economy by over £13bn a year, WiredGov reports.

The TUC analysis, released on November 16, models some of the key benefits of the Employment Rights Bill; identified by the government’s impact assessment of the Bill.

The research reportedly reveals that even if the Bill delivers only small improvements in areas such as employee wellbeing, industrial relations and labour market participation the economic gains will outweigh any costs.

The analysis considers the scale of the benefits implementing the Employment Rights Bill could bring across a range of workplace measures:

• Workplace stress: The TUC found that between £490 million and £974 million would be gained by reducing the number of working days lost to stress, depression or anxiety.
• Staff wellbeing: £310 million to £930 million a year would be gained from improving staff wellbeing.
• Minimum wage compliance: £42 million to £168 million a year would be gained through improving minimum wage compliance.
• Strikes: £255 million to £510 million a year would reportedly be gained by resolving disputes that lead to workers taking action.
• Industrial relations: £2.7bn to £8.1bn a year would be gained through reduced workplace conflict
• Increased labour market participation: £1.3bn to £2.6bn a year would be gained through increasing employment for people currently looking after family or home.

According to TUC research, the cumulative impact of even modest improvements would be £13.3bn a year while stronger outcomes could generate even greater gains.  

The TUC stated that the analysis confirms the view of the government’s impact assessment that there are “clear, evidence-based benefits of government action through the Bill.”

In addition, the impact assessment warns that “not acting would enable poor working conditions, insecure work, inequalities and broken industrial relations to persist.”

As [part of his comments on the impact of the Bill on employers, Paul Nowak - TUC General Secretary - said, “The TUC stands ready to work with the government and employers. We recognise that businesses and unions will need advice to understand and implement these changes.

“But there is no case for delaying the reforms. People need jobs they can build a decent life on.

“Many of the arguments being used against this legislation are the same ones that were used against introducing the minimum wage – one of the great policy successes of the last 25 years.

“They were wrong then and they are wrong now. When working people thrive so do businesses and the wider economy.” 

Source: WiredGov

(Quotes via original reporting)

New analysis has shown that even modest gains from the UK government’s workers’ rights reforms would benefit the economy by over £13bn a year, WiredGov reports.

The TUC analysis, released on November 16, models some of the key benefits of the Employment Rights Bill; identified by the government’s impact assessment of the Bill.

The research reportedly reveals that even if the Bill delivers only small improvements in areas such as employee wellbeing, industrial relations and labour market participation the economic gains will outweigh any costs.

The analysis considers the scale of the benefits implementing the Employment Rights Bill could bring across a range of workplace measures:

• Workplace stress: The TUC found that between £490 million and £974 million would be gained by reducing the number of working days lost to stress, depression or anxiety.
• Staff wellbeing: £310 million to £930 million a year would be gained from improving staff wellbeing.
• Minimum wage compliance: £42 million to £168 million a year would be gained through improving minimum wage compliance.
• Strikes: £255 million to £510 million a year would reportedly be gained by resolving disputes that lead to workers taking action.
• Industrial relations: £2.7bn to £8.1bn a year would be gained through reduced workplace conflict
• Increased labour market participation: £1.3bn to £2.6bn a year would be gained through increasing employment for people currently looking after family or home.

According to TUC research, the cumulative impact of even modest improvements would be £13.3bn a year while stronger outcomes could generate even greater gains.  

The TUC stated that the analysis confirms the view of the government’s impact assessment that there are “clear, evidence-based benefits of government action through the Bill.”

In addition, the impact assessment warns that “not acting would enable poor working conditions, insecure work, inequalities and broken industrial relations to persist.”

As [part of his comments on the impact of the Bill on employers, Paul Nowak - TUC General Secretary - said, “The TUC stands ready to work with the government and employers. We recognise that businesses and unions will need advice to understand and implement these changes.

“But there is no case for delaying the reforms. People need jobs they can build a decent life on.

“Many of the arguments being used against this legislation are the same ones that were used against introducing the minimum wage – one of the great policy successes of the last 25 years.

“They were wrong then and they are wrong now. When working people thrive so do businesses and the wider economy.” 

Source: WiredGov

(Quotes via original reporting)