Zarah ChoudharyAnalysis published by the Trades Union Congress has found that even modest gains from the Government’s workers’ rights reforms could benefit the economy by over £13bn a year.
The analysis modelled some of the key benefits of the Employment Rights Bill – identified by the Government’s impact assessment of the Bill.
The research showed that even if the Bill delivered small improvements in areas such as employee wellbeing, industrial relations and labour market participation the economic gains will outweigh any costs.
Between £490m and £974m could be gained by reducing the number of working days lost to stress, depression or anxiety.
Between £310m and £930m a year could be gained by improving staff wellbeing.
Between £42m and £168m a year could be gained through improving minimum wage compliance.
Through resolving disputes that lead to workers taking action, between £255m and £510m a year could be gained.
Between £2.7bn and £8.1bn a year could be gained through reduced workplace conflict
And through increasing employment for people currently looking after family or home between £1.3bn and £2.6bn a year would be gained.
The research showed that the cumulative impact of even modest improvements could reach £13.3bn a year – and stronger outcomes could generate even greater gains.
The TUC said the analysis confirmed the view of the Government’s impact assessment, that there is “clear, evidence-based benefits of government action through the Bill.”
The impact assessment also warned that “not acting would enable poor working conditions, insecure work, inequalities and broken industrial relations to persist.”
The findings were published as TUC General Secretary Paul Nowak prepared to give evidence to MPs as the Employment Rights Bill entered its committee stage.
Nowak said he would tell Parliamentarians that improving the quality of work in Britain is an “urgent national mission” that will benefit workers and businesses alike.
Polling published in July revealed backing across the political spectrum for boosting workers’ rights.
Polling published in September revealed that an overwhelming majority (75%) of employers support the government’s measures, including nearly seven in 10 (69%) of small businesses.
Paul Nowak, general secretary at TUC, said: “Far too many working people are trapped in jobs that offer them little or no security. We can’t carry on with this broken status quo.
“Improving the quality of work in this country is an urgent national mission that will bring real economic gains.
“Driving up employment standards, improving employee well-being and increasing labour market participation is good for staff and good for businesses.
“When workers are treated well they are happier, healthier and more productive.
“The Employment Rights Bill is a historic opportunity to make work pay – and to create a level playing field that stops good employers from being undercut by the bad.
“It must be delivered in full.”
Nowak added: “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.”
