Labour has been accused of taking Britain ‘back to the Seventies’ amid mounting fears crippling new employment laws will lead to more strikes, cost jobs and damage the economy.
A survey by the Chartered Institute of Personnel and Development (CIPD) found more than half of employers, or 54 per cent, expect levels of industrial action to pick up over the next 12 months.
More than two in three, or 69 per cent, believe trade unions ‘have the power to cause major problems for the UK economy’.
And 62 per cent of firms fear ‘the UK is entering a new, more unstable period of employee relations’, up from 53 per cent three years ago, according to the HR body.
The findings come ahead of Labour’s radical Employment Rights Bill becoming law this autumn despite criticism from business leaders and economists who fear it could act as a brake on growth.
The Government has admitted the package of reforms aimed at improving conditions for employees and boosting trade union power could cost businesses up to £5billion a year.
Keir Starmer and Rachel Reeves are pressing ahead with costly new employment laws
Tory business spokesman Andrew Griffith said: ‘When not worrying about the Chancellor hiking taxes, firms understandably worry about Labour’s back to the Seventies union rights Bill.
‘More strikes and more employment tribunals are the very last thing the stalling economy needs.’
In its submission ahead of the Budget on November 26, the Institute of Directors (IoD) called for ‘sensible reform’ to the bill ‘to preserve jobs’.
Rachel Suff, senior employee relations adviser at the CIPD, said: ‘Our research highlights the concerns many employers have about the impact of sweeping new rights and powers for trade unions, particularly among businesses with no experience of working with trade unions.
‘There’s a real risk that these new rights will lead to more employment relations challenges and potentially an increase in collective disputes unless the Government takes firm steps to help employers adapt and work in partnership with trade unions.’
The survey found that 40 per cent of employers oppose plans to reduce the notice period unions must give before taking industrial action from 14 days to ten while just 18 per cent supported the move.
Removing the current 50 per cent turnout threshold required in ballots for industrial action was also opposed by 35 per cent of firms. Just 22 per cent backed it.
And extending the period a mandate for industrial action can last from six to 12 months – allowing unions to call for strikes for a full year – was opposed by 31 per cent to 18 per cent.
The IoD has warned that the combination of the Employment Rights Bill, the £25billion national insurance tax raid and inflation-busting hike in the minimum wage are ‘directly increasing the cost and risk of employing staff and undermining job creation’.
Alex Hall-Chen, principal policy advisor for employment at the IoD, said: ‘A change of policy direction is needed if the government is to meet its target of stimulating growth and supporting businesses to create jobs.’
