Crystal Umbrella

We reported yesterday on the REC’s commitment to taking up the government’s red tape challenge in 2012 with the aim of advancing opportunities for PAYE umbrella contactors and other flexible workers.

However, they will have their work cut out for them according to a recent analysis by the British Chambers of Commerce (BCC), which concludes that despite the government’s commitment to cutting red tape, the regulatory burden on UK businesses remains far too high.

For example, the coalition’s ‘one-in-one-out’ approach, which requires departments to ditch old and outmoded laws if they want to introduce new ones, is deeply flawed, according to the BCC, because around 42% of regulations fall outside the policy. There is also evidence that some departments are resistant to the government’s policy of increasing transparency – the BCC had to resort to Freedom of Information (FOI) requests to get hold of some regulatory Impact Assessments from several departments.

BCC Director General John Longworth said “Regulation affects businesses every day. While some regulation is necessary to improve markets, an excess can add unnecessary burdens and hinder growth among businesses. Needless regulation creates uncertainty, and damages productivity, distracting firms from innovation and expansion. It is crucial that the drive to reduce the regulatory burden is treated as importantly as all other aspects of economic policy.”

Contractors from umbrella companies seeking new opportunities in 2012 will doubtless agree with his conclusion: “Only substantive and real reductions in the regulatory burden will give companies confidence and enable them to plan for future growth with certainty and clarity.”

Siemens are the only provider of technology services at the BBC. At present they have more than 200 IT contractors working for the broadcaster but yesterday those contractors were asked to vote on a 24 hour strike.

Bectu announced the ballot and stated that they were forced into considering industrial action after 70 contractors were laid off and contractors were subsequently informed that their pay would be frozen. This ballot is due to run until 19^th March. It is the advice of the union that contractors should vote in favour of the strike. Obviously any industrial action at the BBC could cause a great deal of disruption to their services.

Five years ago the BBC sold off its own technology arm and chose instead to outsource their technology requirements. The contractors currently working there are part of a £2 billion contract. Siemens is also considering off-shoring 50 contractor roles in the BBC’s server management department.

Bectu have commented that all BBC permanent workers should expect a pay deal which equals the 3.7% Retail Price Index with a 2% pay deal for the IT contractors. Bectu said it was a “double whammy” that saw pay frozen and contracted staff let go whereas many permanent BBC staff had actually received pay rises.

Suresh Chawla, Bectu national officer: “With the level of redundancies that we’ve already endured, and continue to face, it’s not even as if a pay freeze is safeguarding jobs.”