JobJustice

Monday, 20 February 2012

UK economy to fluctuate during 2012

New numbers from the Office for National Statistics (ONS) showed an increase in retail sales for January, compared to December 2011. Kate Davies, Head of UK Retail at the ONS, said that the growth had been expected.

“All sectors are experiencing some growth when you look year-on-year. In particular the household goods sector has risen from where it was previously, it's ended a long run of contraction. The most prominent driver behind this growth comes from the non-store retailing sector [mail order and internet] but also from food stores and clothing stores.”

Whilst the figures were positive the Chief of the Bank of England, Sir Mervyn King, warned that although the UK is unlikely to hit another recession, growth is predicted to be slow and fluctuate.

“The fiscal consolidation and tight credit conditions at home and the weakness of our major overseas trading partners are acting as a drag on growth.

“The underlying need for repair of balance sheets means that the path of recovery is likely to be slow and uncertain. For much of this year, there is likely to be a zigzag pattern of alternating positive and negative quarterly growth rates.”

Sir Mervyn acknowledged that some businesses had recorded a positive start of the year but highlighted that the fragile economic climate meant that this trend may weaken through the year.

He also expressed sympathy over the inflation’s impact on people’s savings, stressing that he understood the frustration over the lack of growth but said that this was a natural consequence of the financial climate.

“These are consequences of the painful adjustment prompted by the financial crisis and the need to rebalance our economy. Unfortunately there is no easy remedy.”

For jobseekers January will have been a relatively good month, compared to previous ones, as some businesses were able to recruit more staff. However, the fragile financial climate is still leaving many potential employees unengaged and many of those currently employed fear that they will be made redundant.

Monday, 13 February 2012

Workers risk exclusion from pension schemes

Last year the Government abolished the default retirement age and many employees were concerned by the prospect of a future in which they would lose their job earlier than anticipated, leaving them in financial hardship. New figures from the Office for National Statistics (ONS) now indicate that pension schemes are getting more expensive to finance as we live longer.

In 2011 mortality rates were much lower than expected, and the ONS attributes the fall to medical advancements. The Head of Mortality Research at Punter Southall, Ross Matthews, said that as life-expectancy increases so, inevitably, does the cost of pension schemes.

"If the 2011 fall in mortality rates continued, a man of 65 retiring today could expect to live to 91, three years longer than the typical current estimate of 88. A 45-year-old would live to 95, seven years longer. This equates to an increase of up to 15% on pension scheme liabilities, potentially driving deficits by up to 50%."

Not only are pension schemes getting more expensive to finance but some low-earning employees also risk falling outside the ambit of such schemes. The trade Union Congress (TUC) has warned that a pension scheme to be launched later this year, which would automatically enrol employees, could leave out thousands of low-earning female workers.

At the moment, workers would be automatically enrolled if they earned just under £7,500 a year. However, there are indications that the limit will be increased to £10,000, which the TUC said would adversely affect 1.8 million female workers.

Brendan Barber, the General Secretary of the TUC, said that the Government should freeze the earnings threshold. He feared that the exclusion of thousands of workers would have unintended consequences beyond what could be forecasted.

"Whether this is the best way to help the low-paid is an interesting debate, but it would be disastrous if it had the unintended consequence of excluding a significant proportion of women workers from pensions saving."

If the earnings level is increased it would also affect 500,000 men according to the TUC. However, as women are more commonly found in low-wage jobs they would be worse off as a whole compared to low-earning male workers.

In the current financial climate many are struggling with making ends meet, some to the extent that it becomes necessary to take on an extra job. By removing employees from retirement schemes more insecurity will burden many workers and add to a stressful everyday life.

Friday, 10 February 2012

Breaks during working hours

Workers over the age of 18 are allowed a rest-break of twenty minutes, if they work more than six hours per day, according to the Working Time Regulations 1998. This may be taken as a lunch break or not, but the rest period should fall somewhere in the middle of the working hours, rather than at their beginning or end. Additionally, the rest-break should be uninterrupted where possible. Some employers, of course, will allow longer or additional rest-breaks.

The Regulations do not require employers to pay their workers for rest-breaks within a period of work, however the matter of payment is frequently subject to normal practice in a particular workplace, or it may form part of a worker’s employment contract.

Young workers who are under 18 but over school leaving age have different arrangements. That is, if they work for more than four-and-a-half hours, they are allowed a rest-break of thirty minutes. As with adults, the rest-beak may be taken away from the workplace.

Under the Management of Health and Safety at Work Regulations 1999, pregnant workers and new mothers who have returned to work must be allowed more frequent rest-breaks and adequate seating should be made available for them during these breaks if needed. Employers must also allow any breaks a worker may need as the result of a health condition or disability.

However, there are a number of occupational exceptions to the rules concerning rest-breaks. For example, people in the armed forces, emergency services and police are not covered by the Regulations in some circumstances. Neither are some security workers, shift workers, railway workers or those who constantly travel for their work.

Furthermore, some businesses have some very busy trading periods and continuity of service is vital in some occupations such as the health industry. In these cases, instead of getting normal breaks, workers are entitled to 'compensatory rest'. This means that the rest-break can be taken later during the same day or taken on the next working day if possible.

If an employer does not allow statutory rest-breaks during working hours, or if they dismiss a worker for refusing to work through their rest-break, the matter can be raised with an employee representative or line-manager. If the matter cannot be resolved through the proper grievance procedure at work, they could seek the advice of an employment solicitor about the recourse of an Employment Tribunal.

Monday, 6 February 2012

Unemployed youths increasingly struggling with drinking problems and depression

The lack of jobs is having serious detrimental effects on job seekers. A recent survey carried out by the website patient.co.uk, which had more than 2,000 participants, found that the lack of financial stability is resulting in more people turning to alcohol and many feel isolated due to the lack of money.

Amongst those worse affected are young people who are increasingly prone to turn to the bottle and who face depression.

The Director of Campaigns Policy and Participation at YoungMinds, Lucie Russel, said that mental health problems are increasingly affecting youths. “This bleak outlook is understandably leading to concerns about the mental health of young people.

“The World Health Organisation predicts that by 2030 more people will be affected by depression than any other health problem yet investment in mental health remains sadly lacking. We are sitting on a mental health timebomb and urgent action is needed to invest in mental health support services for young people.”

Nearly half of the under-25s who completed the survey said that they felt isolated due to the lack of money as they can’t afford socialising.

Dr Sarah Jarvis, a GP author at the website, thought that the results were a cause of concern particularly in light of the fact that few young people seek help for their mental health issues.

“The research presents a worrying picture of youth health. This group are the least likely to visit their GP to discuss health concerns yet are being badly hit, mentally and physically, by the economic downturn.

“Taking time out to address health worries is not a priority for young people and is slipping down the nation's priority list as a whole. With things not set to improve any time soon, we could be facing real health problems before long.”

There have been many calls for the Government to make it its priority to engage more young people in employment so that their mental wellbeing does not deteriorate. However, Emily Robinson, the Director of Campaigns at Alcohol Concerns, stressed that alcohol abuse can be prevented by increasing the price of alcoholic beverages.

The Managing Director of patient.co.uk, Neil Laycock, said that the site had seen an increase in queries concerning health concerns.

“The financial crisis means we have less time, less money and more worry - factors not helpful to our health. The volume and changing nature of searches we've witnessed on the site suggested the connection. This research confirmed it. It also revealed something very important - that it's wrong to assume who may or may not be affected.”

Wednesday, 1 February 2012

Issues facing small companies and their employees

Small companies are an important part of the UK economy. It is estimated that there are 4.8 million small and medium-sized companies in the UK, and that they account for 60% of all private sector jobs. However, small companies who employ between one and fifty employees have been shedding jobs recently, rather than creating new employment. The issues facing small companies, exacerbated by the economic downturn, have consequences for employers and employees.

The loss of jobs in the small business sector has occurred despite several tax and deregulation initiatives from the Coalition Government, designed to help small companies have a more flexible approach to hiring new employees. For example, a temporary exemption to paying national insurance was introduced for start-up small enterprises that employed up to 10 people. However, only a few businesses took advantage of this offer and small companies often mention that it is too expensive to hire new employees because of insurance costs, and the cost of implementing health and safety regulations.

Traditionally, small companies are more likely to hire cheaper long-term unemployed and low-skilled workers and working for a small company has been seen by such workers as a bridge between unemployment and job advancement, through the experience gained. Women and older workers also make up a larger proportion of employees in smaller firms, and while this may reflect a more flexible approach to working arrangements, such employees may also be lower paid. However, if deregulation continues, a two-tier employment system could emerge that would be controversial, because it might mean that more vulnerable employees have less legal protection.

Further, one set of small companies thriving at present do not employ unskilled workers. These are the new wave of internet entrepreneur firms that use highly skilled employees, particularly based in London. However, several professional bodies associated with business have noted that small companies find young Britons lack the skills that workers from overseas display. Indeed, the employment of skilled workers from overseas has reached record levels.

In autumn 2011, the government announced that it is considering altering some current employment laws; particularly to help small companies with fewer than ten employees.