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IN MID-FEBRUARY THE EUROPEAN COMMISSION was the victim of a process more usual in the U.K.: a leak. The future of legislation on temporary agency workers, or temps, proved to be a bone of contention between the European social partners, ETUC and UNICE when they negotiated on part time and non-agency temps. Although they came to an agreement, which led to EU directives, on these last two groups of employees, agency temps' regulation defeated them. In these circumstances the Commission would normally put forward its own proposals and it appeared to be formulating these when a report in the Financial Times of 18th February blew the lid off their deliberations.
According to the FT the new directive 'would give temporary workers rights to the same remuneration as long-term employees doing comparable jobs. The proposals could cover pay, pensions, holiday and other benefits such as health insurance, interest-free loans, non-discretionary bonuses and share schemes'. Reaction from all sides came swiftly: the Confederation of British Industry (CBI) whose director-general, Digby Jones had already written to Romano Prodi, president of the European Commission, urging it to rethink, said the directive would be 'very damaging to the UK labour market'. Eva Casado, secretary-general of the International Confederation of Temporary Work Businesses, said 'The directive is outdated in its thinking. It should be looking to help the agency industry fulfil its economic contribution'. The British government was also worried 'Agency workers are entitled to a fair deal. But we would want to check very carefully the detail of any proposed directive to make sure it was compatible with UK practice and the need for flexibility' the Prime Minister's official spokesman told reporters.
However union figures took a different line. According to the Trade Union Congress, around half of temporary workers are paid less than permanent staff. While there is some protection for temps, many still do not receive sick leave or holiday pay. General Secretary John Monks said, 'Unequal treatment for temporary workers is as bad for business as it is unfair to workers themselves. We welcome any proposals that grant new rights to temporary agency workers'. While in a letter to the Financial Times Emilio Gabaglio, General Secretary of the European Trade Union Confederation, stated 'At least UK employers are consistent. Each time they sniff a proposal in the air that might increase workers' employment rights, they cry wolf and complain that it will cost them "billions of pounds"....In many European countries such protection already exists for temporary agency workers.... Here temporary agencies compete by offering quality services. This is how it should be'.
The Commission itself delayed publication of the proposals after the row and, with the number of agency employees in the EU predicted to increase from 2.5 to 6 million by 2010, it wants to head off arguments between the UK and Member States that already have stringent regulation of agencies.
Despite dire predictions from some commentators, the adoption of a brand new currency by 12 countries, more than 300 million people, 200,000 'holes in the wall' and 5 million coin operated machines went as smoothly as the EU could have wished. The Euro is now the only official currency in the euro-zone and guilders, drachmae and francs have been banished to the museums. The long information campaign leading up to the changeover ( see this page in our last issue) is thought to have helped and Europeans showed their enthusiasm when 150 million starter kits of euro coins were sold in two weeks. The main problems were reported to be long queues at banks and post offices when they re-opened with euros available in the New Year. At the end of the first week 75% of cash transactions were being conducted in the new currency and at the end of January 60% of the old bank notes had been returned to the national banks. Inflation was reported to be within 0.1% of that expected for January 2001.
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