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Latest public policy news

CIPD members play key role in ‘wellnote’ consultation


More than 20 CIPD members attended two consultation meetings at the Department for Work and Pensions to discuss the government’s plans to revise the FMed3 sicknote. The government wants to revise the current sicknote so that it becomes a 'wellnote', which places more emphasis on what people can do rather than what they cannot do. The new sicknote will aim to provide a framework to encourage more GPs to help people with health problems make phased returns to work in reduced hours or less demanding roles as part of the rehabilitation and recovery.

Members taking part in the consultation meetings were unanimous that the sicknote needed to be amended, however there was a range of views over how much detail a new wellnote should aim to provide because of concerns over the knowledge of GPs in fitness to work issues. However participants in the consultation felt that any amendment to the sicknote that encouraged more GPs to at least have a conversation with their patients about the possibility of phased return to work would be a positive step.

CIPD research shows that nearly 80% of HR practitioners believe GPs and employers should work together more closely to aid people’s return to work. However more than 40% of employers rate the level of support from GPs in helping people back to work as poor or very poor, with just 20% reporting that the support they receive is good or very good.

The proposal to revise the sicknote is one of the recommendations coming out the review of the health of the working population review conducted by Dame Carol Black, the government’s National Director for Health and Work.

New Government skills agency gets underway

 
On 1 April 2008, the UK Commission for Employment and Skills (UCES) started its work as an employer-facing body that will provide independent advice on how to raise the skill levels of UK workers; as set out in the government-commissioned Leitch report on skills. The commission will assume the responsibilities formerly held by the Sector Skills Development Agency and the National Employment Panel which include managing the performance of the sector skills councils.

New Government research strengthens case for flexible approach to retirement


Research out from the Department for Work and Pensions (DWP) has further challenged the traditional approach to retirement. The report confirms previous research findings from the Chartered Institute of Personnel and Development (CIPD), which show employees wish to work past the state retirement age for both personal and financial reasons. In response to the new research from the DWP, the CIPD is calling for Government to scrap the default retirement age of 65 and do more to encourage flexible working for older workers.

The CIPD report, Future demand for working among older workers, surveyed 1,000 workers aged between 50 and 64 years and found that almost two fifths (38%) of individuals plan to carry on working beyond 65. Currently, only 11% of the workforce work beyond State Pension age.

Interestingly, among those who said they did not plan to work past 65, 31% would change their mind if their employer allowed them to work flexibly; highlighting the unsuitability of a one-size fits all default retirement age.

Charles Cotton, Reward Adviser at the CIPD says: “Both our own research and the report published today from the DWP show that people are increasingly eager to work past the default retirement age, for social, personal as well as financial reasons.

“However, it is clear that Government policy could do more to encourage more older workers to stay on by extending the right to request flexible working beyond parents and carers and making pension arrangements more flexible. It should also remove the default retirement age of 65, rather than wait until the 2011 policy review, as this is proving to be a bureaucratic barrier for HR professionals and a barrier for many older workers who wish to work beyond retirement age.

“Forcing older workers into retirement with the default retirement age not only penalises those employees who enjoy work or need the income, but it diminishes the pool of talent for organisations who might otherwise employ workers past 65. It also condemns far too many workers in the years before their 65th birthdays to bad management that fails to make full use their talent, experience and potential.”

CIPD responds to "Working for a healthier tomorrow" report

The CIPD has welcomed proposals outlined in a major new Government report to improve the level of support available for people off work ill to help them make timely and successful returns to the workplace.

The report, Working for a healthier tomorrow, published today (17 March) was the response from a review of the health of the UK’s working population overseen by Dame Carol Black, the National Director for Health and Work.

Recommendations in the report include plans to revise the current FMed3 sicknote to focus more on what people can do rather than what they can’t, and to help improve communication between GPs and employers.

Other recommendations include a plan to pilot a ‘Fit for work service’ to give people suffering from stress and other mental health problems, as well as musculoskeletal injuries early access to counselling and physiotherapy.

The Government is also proposing to launch a major drive to promote understanding of the positive relationship between health and work among employers, healthcare professionals and the general public.

Ben Willmott, CIPD Employee Relations Adviser, commented: “The CIPD is optimistic that plans for a new ‘wellnote’ to replace the current FMed3 sicknote will help GPs and employers to work together more closely to help people on long-term sick leave make gradual or phased returns to work in reduced hours or less demanding roles as part of their rehabilitation and recovery.
“We also support the Fit for Work service pilot scheme to help people access treatments such as counselling and physiotherapy which are crucial if they are to overcome stress and other mental health problems, as well as musculoskeletal conditions – the top causes of employee absence. “

Research shows that the longer that people are off work ill, the less chance they have of making a successful recovery - after six months’ absence there is only a 50 per cent likelihood of the employee returning to work.

CIPD respondeds to the Budget

Commenting on the Chancellor's Budget statement Dr John Philpott, Chief Economist, Chartered Institute of Personnel and Development (CIPD), said:

“While a hit on Britain's drinkers is the most noteworthy feature of Chancellor Darling's first Budget his message on the overall economic outlook is less sober.

“If Mr Darling is to be believed, the UK is well placed to weather this year's global economic storm and set to sail into calmer waters from 2009 onward. Times will be tougher than of late – and worse than expected last autumn - but still good by current international standards and in comparison with previous tough times.

“The Chancellor had little scope to do much in this year's Budget and didn't do too much to disguise his limited room for manoeuvre. The Budget is broadly neutral - mildly expansionary in 2008-9 with a tiny give away clawed back in the following two financial years. Mr Darling is offering what amounts to small change to business - though the business community in general will be happier with the Chancellor this time around than they were with his pre-Budget report. There will, however, be cries of anguish from the drinks industry and the hospitality sector. With real incomes already being squeezed and consumers cutting back on spending it won't just be the patrons of bars and restaurants who are crying over their drinks tonight.

Gerwyn Davies, CIPD Public Policy adviser, comments: "While we endorse the additional resources allocated to welfare reform and skills that build on existing initiatives, the CIPD welcomes the breathing space that today’s announcement offers to our members, who have had to contend with streams of employment legislation and initiatives in recent years – albeit many of them well received and positive for the workplace. With recent CIPD research showing a record number of our members planning to carry out redundancies in the next three months, however, all efforts now need to be directed towards optimising organisational performance and minimising redundancies so that organisations are well placed to capitalise on any recovery in economic performance.

“Further investment to enable employers to take on more apprenticeships is also welcome. The CIPD has called for further support for employers taking on apprentices, so we are keen to see the detail of the government’s proposals trailed in today’s budget.”

Parliamentary reception outlines CIPD stance on agency workers

The CIPD set out its stance on rights for agency workers in a joint debate with TUC general secretary Brendan Barber and Shadow Business and Enterprise Secretary Alan Duncan at a House of Commons reception on Wednesday, 5 March.

CIPD Employee Relations adviser Mike Emmott highlighted the research findings; 47% of respondents believe that the proposed European Agency Workers Directive would make hiring temps more bureaucratic and 61% think it would increase labour costs.

Emmott, emphasised CIPD support for the establishment of a commission to help reach agreement on the issue. He continued: “Our latest survey findings suggest that a qualifying period of at least six months is necessary to command the support of employers. However with a third of employers believing the agency workers will have a negative impact, the proposed independent commission will need to work hard to allay employer concerns."

Brendan Barber called for agency workers to be given equal rights from day one, which he said was the only way to ensure their fair treatment. He said the TUC was still considering whether to support the idea of a commission to help resolve the matter. “We don’t want to see further delay or any attempt to shelve this issue,” he commented.

The opposite position was taken by Alan Duncan, who argued strongly that giving equal rights to temps would harm the flexibility of the UK labour market, and would reduce overall employment levels. He said that many people choose to be agency workers because they value the flexibility it gives them to suit their lifestyle.
He opposed the idea of a commission to discuss an issue that should have been ‘kicked into the long grass’ and called on the Government to defend the UK’s position in Europe with more vigour.

Official figures showing UK attracting fewer Eastern Europeans pose challenge for incoming points based migration system

Figures released by the Home Office indicate that work related migration from the eight central and eastern European countries that joined the EU in 2004 (the so-called A8 countries) has clearly passed its peak. This, says John Philpott, Chief Economist at the Chartered Institute of Personnel and Development (CIPD), presents the Government with a potential policy dilemma as it prepares to launch its new points based migration system for curbing immigration from outside the EU.

Dr Philpott continues:

“The tide of immigrants from the A8 countries has clearly turned as more find jobs at home or elsewhere in Europe. The government's official barometer shows that the number of eastern Europeans applying to work in the UK fell by 20,000 between 2006 and 2007. And the final quarter of 2007 saw the smallest quarterly inflow since the first quarter of 2005 when the UK jobs market was a powerful magnet for work hungry Poles.

“Either way, these latest figures demonstrate that employers can't take for granted the availability of a steady supply of willing and eager workers from Poland and other less developed EU states. The irony is that this is becoming apparent just as the Government is about to introduce its new point based system for managing migration from outside the EU which will make it harder for employers to hire migrants for the kinds of routine less skilled jobs that the vast majority of A8 migrants have in recent years been happy to do.”

CIPD welcome move to long-term solutions for long-term unemployed


The Chartered Institute of Personnel and Development (CIPD) welcomes government incentives, to encourage voluntary and private firms to offer employment to long-term job seekers. The CIPD also supports the move to give the largest grants to those companies which employ job-seekers for longer than six months, signalling an emphasis on long-term solutions rather than quick-fixes.

CIPD Skills Adviser Dr. John McGurk commented: “Welfare to work schemes should be based on what works in practice. If the private sector can deliver better outcomes for individuals and employers than Whitehall then we should embrace that change.

“Existing New Deal providers are already working with the government and helping to get people back in to work. These organisations will increasingly take the burden, incentivised by the government to ensure that people fill the jobs that the economy generates.

CIPD welcomes £37 million employment relations shakeup


The CIPD has welcomed the announcement of £37 million of extra funding for Acas to simplify the dispute resolution system by Pat McFadden, Minister of State for Employment Relations. This extra funding, announced at today’s joint CIPD/Acas conference, will expand on the services Acas offer such as their helpline, to help prevent disputes from happening at an early stage.

Increased use of mediation and improved informal conflict management by line managers can help organisations reduce the very significant financial costs and days of management time associated with conflict at work. Research from the Chartered Institute of Personnel and Development (CIPD) reveals that the average employer spends 350 days a year of management time dealing with formal disciplinary and grievance cases and employment tribunal applications.

Mike Emmott, CIPD’s Employee Relations Adviser said: “Hopefully this investment signals the start of a gradual culture change in how conflict at work is managed, from one where litigation is frequently the first step, to one where mediation and more informal dispute resolution in general become much more commonly used.

“We are delighted by the government’s decision to invest in Acas to help it develop its helpline and other services to support effective and early conflict resolution. The CIPD regards informal conflict resolution as a core people management skill and has just published Managing conflict at work: a guide for line managers to help equip line managers with the skills, knowledge and confidence to identify and manage workplace disputes.

“We‘re pleased the statutory dispute resolution regulations are on the way out. This additional investment in promoting the use of mediation and informal conflict resolution generally will help ensure the abolition of the regulations is accompanied by a real push to secure better employment relations for the benefit of employers, employees and the UK economy as a whole.”

Train apprentices to gain, says CIPD


McDonald's has gained Government approval to become an exam board meaning that staff will be able to earn qualifications which are equivalent to an A-level in running a burger restaurant. Two other firms - Network Rail and Flybe - were also approved to award their own qualifications.

The CIPD welcomed the governments renewed calls to expand apprenticeships in the UK, but is concerned that small/medium enterprises which provide the majority of apprenticeships lack the financial support they need. The CIPD believes the government should re-examine the tax agenda especially capital gains tax with a view to offering tax relief on train to gain schemes.

John McGurk, CIPD’s Learning, Training and Development adviser said: “The CIPD is delighted the government is formally recognising high quality in house training programmes like those announced today. With an increasing number of UK organisations facing acute recruitment and skills shortages, many employers see in house training and apprenticeships as a better means of addressing these than externally provided courses.

“Organisations must also be aware skills training should be transferable to other roles and companies, allowing individuals to develop and contribute to the UK’s knowledge economy.”

 Last Updated 8 April 2008