The CBI on Tuesday called on the Government to avoid further
employment legislation and instead opt to publish guidance and
codes for their members to follow.
This is a familiar cry and there are few employers who would
disagree in principle.
The CBI in its request is effectively asking the Government to
permit their members to run their own businesses as they see
fit. Most employers know a content workforce is a productive
workforce and are generally willing to come to agreement on
employees' requests for flexibility in say, working hours. In
return well treated and thus loyal staff are generally willing to
accept changes to their employment terms when times are
tough. The argument is that legislation hinders not helps
both employers and employees from coming to mutually satisfactory
working arrangements.
But whether or not "guidance or codes of practice" are the
answer is still a question that needs to be asked. Until the recent
crisis, banks were for the most part left to their own devices with
only the requirement that they follow certain codes of practice.
Likewise in the throes of the News of the World saga questions are
being asked why the printed press were effectively left to govern
themselves by way of guidance and codes. While not all banks,
newspapers and indeed employers should be tarred with the same
brush, what of the less scrupulous employer? If employers are
permitted this level of flexibility will we hear similar criticism
of their regulation in the future? Will employers be tempted
to exploit their strong bargaining position in the absence of
legislation?