Short-time working

A powerful lobby involving the TUC and employers’ organisations has called on the government to introduce a temporary short-time working scheme. It would partially compensate workers for lost earnings where there is an agreed reduction in working hours and pay, and make a commitment to training. Arrangements like this can be found across the EU (see Labour Research March 2009, pages 18-21), providing an effective way for struggling businesses to cut costs, and giving hard-pressed employees vital financial help.

The British Chambers of Commerce (BCC), the EEF manufacturers’ organisation and the Federation of Small Businesses (FBS) all put their names to the proposal, along with research body The Work Foundation. The BCC’s director general David Frost said: “Successful initiatives from previous recessions should be revisited and applied to the present climate — a short-time working scheme is one of them.”