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Amicus urge stronger employment laws now to save UK jobs

Monday 12th June 2006
 
Amicus say the UK’s commitment to weaker employment protection is costing the country thousands of vital and well paid jobs and endangering our economy.
 
Amicus is calling on the government to act now to introduce stronger job protection after thousands of closures and job losses have been announced all over the country in recent weeks including Peugoet in Coventry, Vauxhall in Ellesmere Port, HP in Birmingham and the Prudential in Belfast.
 
The union says that the fact that other European countries such as France, Spain and Germany have stronger employment laws means UK workers are most vulnerable to redundancy when multinational companies seek to make cuts or move jobs to low wage economies to pursue bigger profits.
 
Soeaking at the union’s conference starting in Scarborough today, Amicus’ General Secretary, Derek Simpson, will say: “Successive UK governments have insisted on setting minimum standards for redundancy in the hope that a ‘flexible’ economy will attract greater and employment and investment here but the reality is that our workers are just made more dispensable.
 
“I haven’t noticed any multinationals creating jobs here lately but we’re being inundated by news of closures and job losses at rates that exceed every other European country.
 
“We need the government to act, and now. If they don’t, there won’t be anything left to save and it’s not only UK workers that will pay the price - they will too at the next election.”
 
Amicus has launched a million pound advertising campaign encouraging the UK public to boycott Peugeot following the company’s decision to close its UK productive UK site to produce cars in low wage Slovakia, with the loss of 2,300 jobs.
 
Amicus say that minimum redundancy pay in some EU countries is almost five times that of the UK and so, for example a redundancy in France would cost Peugeot £100,000 compared to a likely average of £25K that UK Peugeot workers can expect.
 
Evidence also suggests that flexible labour laws have a negative impact on the wider economy, In France, for example, which enjoys much stronger employment protection, and a maximum working week, productivity is 25% higher than the UK and manufacturing jobs have increased by 150,000 since 1997.
 
In Germany, where workplace legislation is also much tougher than the UK, productivity is 18% higher than the UK and manufacturing has increased by 120,000 jobs since 1997. Over a million manufacturing jobs have been lost in the UK over the same period. Between June 1997 and the end of 2004, the UK has lost 22 per cent of its manufacturing jobs. In France and Germany, the loss has been between 5% and 6%.
 
Amicus say though that it’s not just highly skilled and well paid jobs that are being lost here in the UK, technology and banking and insurance jobs are being lost abroad just as quickly.
 
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Please call Catherine Bithell in the Amicus press office for further information on 020 7420 8909 or 07958 473 224