2nd Nov 11
Morrisons discusses denying temps equal pay
by Natasha Redman
Less reasons: Morrisons latest to consider dodging new rule
Less reasons: Morrisons latest to consider dodging new rule
A string of retailing and manufacturing employers are following Tesco’s lead by talking with their recruiters about a loophole in the law which is aimed at giving agency employees the same pay as full-time staff.
The UK’s fourth biggest supermarket chain Morrisons confirmed it has held talks with its recruiters within the logistics and manufacturing side of the business about adopting the ‘Swedish derogation’ model, which basically waives the rights of temps to new benefits. A Morrisons spokesman said that the group was using agencies that had taken on the get-out clause, pointing out that the business was taking a legitimate route.
Under the new regulations which came into effect last month, around 1.4 million agency workers are believed to be eligible for the same equal benefits and wages as permanent employees after only 12 weeks in a particular job. The law, which has been taken from a similar law on the continent, is expected to cost companies £1.8m per year to implement, with some critics warning that it has arrived at the worst time possible for businesses.
Also under the new rules, bosses can legally opt-out of workers’ new rights by requesting that their recruiters directly employ the temps, so they are not classed as agency workers anymore and therefore become exempt from the law.
Morrisons said that the derogation model was one of several strategies the grocer was adopting to deal with the new rules. The retailer would also reduce the amount if temps it uses in its logistics and manufacturing division over time, and instead employ more staff directly, said the spokesman.
Elsewhere, the largest food producer in the UK, Premier Foods, with brands including Mr Kipling, Branston and Hovis, is also taking advantage of the derogation model. The group employs 14,000 staff and relies on temps during peak periods, like Christmas, to help it push out huge orders.
In addition, the manufacturer is believed to be reinstating “beginner” pay grades for permanent workers who are newly employed, which are less than the rate that fully-trained staff earn. This is so when the group compares agency and permanent worker rates it can pay the lower rate to temps.
Separately, a number of investigations are being carried out by the Bakers, Food and Allied Workers Union concerning the new law. The union alleges that Park Cake Bakeries, the Oldham and Bolton-based supermarket dessert supplier, has ripped up its new recruits’ permanent contracts, offering them overtime benefits and lower wages. This would result in the “comparable” rate of pay which is used to work out agency workers’ wages falling, saving large sums.
Our Stories
- Sandwich labels misleading shoppers
- Unemployment drops unexpectedly but worse still to come
- Tesco store managers see annual bonuses cut
- Royal Mail: half London sorting office to be sold
- Panasonic announces £3.4bn loss
- Thomas Cook attacks government over holidays at home promotion
- Clinton Cards falls into administration
- Wet April sees high street spending fall
- Five tough years ahead for UK jobs market
- Deal struck to save Thomas Cook
- Discount battle leads to sales decline at Morrisons
- Wetherspoon founder: pubs plans to be hit by taxes
Popular Topics
afghanistan al qaeda amazon Apple ASDA bank of england barack obama BBC british airways china david cameron Debenhams Egypt facebook george osborne Google India ipad iphone ivory coast japan Libya London M&S Marks & Spencer Morrisons nhs North Korea Office for National Statistics pakistan protests russia Sainsbury’s South Korea terrorism Tesco Tunisia UK UK retailers UK retail news UK shopping us Waitrose Wikileaks x factorArchive
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- January 2009
