According to a CBI survey of 750 firms, 18,000 manufacturing jobs were cut in the three months to July. Manufacturing jobs were lost in London, South East England, the east of England and Northern Ireland. These areas, and the North West and West Midlands, were more pessimistic about possible employment than other regions.
The study suggests that confidence among businesses has fallen in all parts of the UK for the first time in two years.
The Bank of England reduced interest rates from 4.75% to 4.5% at last week’s monetary policy committee meeting. However, Digby Jones, the director-general of the CBI, said a further cut was needed to stimulate the manufacturing sector.
Granville Technology group, the owner of Tiny and Time computers, was placed into administration last month, with the loss of 1,500 jobs. The company had been making monthly losses of up to £2m since the start of 2005.
The CBI said the sector is in decline, with manufacturers recording a fall in orders in the latest quarter of the year. It said manufacturing output was mixed, with a sharp decline in Wales and Yorkshire, while firms in the South West of England were reporting an improvement.
Doug Godden, the CBI’s head of economic analysis said: "This generally gloomy survey offers a slight silver lining, with the growth of companies' unit costs becoming more manageable".
Peter Gutmann, of Experian, which helped produce the research, said the effect of new orders had been offset by "the slowdown in UK retail sales, continued import penetration and stagnant exports to the eurozone".
Posted at 09:40 PM
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Government pushes to get disabled into jobs
Remploy, the country's largest provider of jobs for disabled people, has entered into an alliance with two charities, to establish a programme to help people with mental health problems and learning difficulties find work.
Pilot schemes, including training and mentoring programmes, will be established and, if successful, will be rolled out across the country.
The initiative is part of a government campaign to move one million people off Incapacity Benefit and into employment.
According to Remploy, there are more than 700,000 people across the UK with learning disabilities and mental health conditions who are on Incapacity Benefit and only 10% of them have been able to find jobs."
The group will meet in September to discuss ideas such as the appointment of workers as ‘buddies’ who will help and reassure people with a learning disability when they begin a new job.
Jo Williams, chief executive of learning disability charity Mencap, said: "It can be something as simple as making sure they know where to get a cup of coffee and are aware of the layout of the building." She said that hiring a person with a learning disability tended to raise staff morale.
Bob Warner, chief executive of Remploy, welcomed the introduction of training for workers on how to help colleagues with disabilities.
Kate Nash, Chief Executive of disability charity group Radar, said: "A significant number of people with learning difficulties or mental health disabilities are still disenfranchised from the workplace".
Posted at 09:40 PM
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Claim: a quarter of CVs are misleading
According to a report from the Risk Advisory group, a quarter of CVs submitted to finance firms contain incorrect or false information.
The report, which was based on a study of 3,000 CVs, identified false information about academic qualifications, previous jobs, gaps in employment and directorships. It found that incorrect CVs had an average of three pieces of misleading information on them.
"These results are a warning to employers of taking too much at face value when hiring people," said Richard Prior, the deputy director of the Risk Advisory Group. "Clearly any candidate could make a mistake when preparing a CV, but three mistakes are unlikely and effectively mean that these CVs are bogus."
The report supports a study by The Chartered Institute of Personnel Development (CIPD), which found that 50% of UK firms rarely or never checked the academic qualifications of prospective employees. However, a quarter of recruiters withdrew job offers after finding false information on a CV and 23% fired a member of staff they later found had lied in order to secure a job.
Posted at 09:40 PM
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August 05, 2005
Learning and Skills Council looks for business focus in education
The Learning and Skills Council (LSC), which funds the further education sector, has outlined proposals in its prospectus for change, which aim to make colleges in England more business-focused.
The LSC wants to provide employers with the skilled workers they need, and to give young people skills to prosper. Its proposals include asking businesses to give colleges a quality mark.
Mark Haysom, the LSC’s chief executive, said the organisation envisaged a network of colleges where priority was given to the needs of their customers. The plan aims to address concerns expressed by businesses that colleges do not provide them with the services they need. The LSC is seeking support for its prospectus for change from business organisations.
Neil Bentley, head of skills and employment for the Confederation of British Industry, said that 62% of its member firms assessed private training providers as good or excellent, but only 35% said that FE colleges reached this standard.
The government is also awaiting two separate reports - one from Sir Andrew Foster into the purpose of further education colleges, and one from Lord Sandy Leitch's business review of skills requirements.
Bill Rammell, the Higher Education Minister, applauded the LSC for taking the lead.
Posted at 08:16 PM
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August 01, 2005
Workers work best in mornings
A survey by Your Communications, a business services company, has shown that UK workers are at their most productive early in the morning, rather than late in the afternoon. Your Communications interviewed 2,000 adults for the survey.
Most workers surveyed thought they were at their most productive between 6am and 3pm rather than nine to five, 5% said they were at their most efficient after 3pm and 50% said they were best working from home.
Your Communications concluded that allowing flexible working could boost productivity and benefit the economy.
Paul Lawton, a spokesman for Your Communications said: "By taking a more open-minded approach to flexible work patterns, employers can bring about business benefits and strengthen employee loyalty".
UK employment law gives workers with young children and caring responsibilities the right to request flexible working. Employers are not bound to agree to the request, but they have to give a reason for refusal.
Posted at 07:21 PM
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July 25, 2005
IPPR suggests 67 as minimum retirement age
A new Institute of Public Policy Research (IPPR) report suggests that Britons should work until they are 67 before receiving a state pension, with the higher age being introduced between 2020 and 2030.
Peter Robinson, the report's author, said: "Raising the state pension age is vital if the UK pensions system is to remain sustainable and cope with the pressure of an ageing population." In October 2004, the commission estimated that over 12 million people in the UK were not saving enough for their retirement.
Mr Robinson noted an unwillingness among members of the public to accept that life expectancy is rising. He said that most people wanted to retire at or before the age of 65.
The IPPR believes it will be difficult to increase the pension age without a clear political consensus. Mr Robinson said that this could be achieved by linking an increase in pension age with an increase in the value of the basic state pension.
Stephen Timms, the Minister for pension reform, said that the government had no plans to increase the state pension age but would welcome more choice for people planning for their retirement.
The Trade Unions Congress expressed concern that poor people would be the most severely affected by planned reforms.
Nigel Waterson, the Conservative pensions spokesman, called for more flexibility to allow those who want to work for longer to do so. He said the government should provide incentives to encourage people to work for longer.
The Pensions Commission is expected to publish its final report in the autumn.
Posted at 11:22 PM
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July 18, 2005
DTI seeks end to forced retirement
The government is to give the over-65 age group the same protection against unfair dismissal as younger workers. Under a European directive, forced retirement before the age of 65 and age discrimination in recruitment, promotion and training will be banned.
The reforms will be implemented on 1 October 2006 and will bring UK laws into line with those in the USA and in most other European Union countries.
Employers will be required to give workers six months notice it they want them to retire at 65 and will also have to consider requests to continue to work after this age.
Alan Johnson, Trade and Industry secretary welcomed the plan and said "people need to be able to plan for their future and retirement should not come as an unexpected surprise".
However, David Willetts, the Conservative shadow Trade and Industry Secretary, said that the plan would not give older people protection against dismissal. He argued that employers would still be able to force workers into retirement at age 65 because retirement would not constitute unfair dismissal if it was on or after 65.
The Department of Trade and Industry (DTI) is consulting with employers over the implications of the new measures.
The charity Age Concern said that the government had missed an opportunity to end forced retirement.
Gordon Lishman, Age Concern's director general, argued that the skills of older workers would be increasingly relied upon but thousands of people would still be denied the right to choose when to retire.
Posted at 07:39 PM
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June 22, 2005
Call for tax credit overpayments to be scrapped
Reports by both the Citizens Advice Bureaux and the Parliamentary Ombudsman call for tax credit overpayments to be written off because the repayments are causing hardship to families.
Paymaster General, Dawn Primarolo, has asked HM Revenue & Customs (HMRC) to suspend the recovery of overpayments where there is a dispute between the HMRC and the tax credit claimant.
The Citizens Advice Bureaux report was based on 150,000 cases handled by the charity. It said that HMRC had "failed to live up to its own standards of information, clarity and efficiency of service" in the administration of tax credits. One of the main problems was overpayment, which exceeded £500 in more than 50% of cases.
The Parliamentary Ombudsman, Ann Abraham, said that Ms Primarolo had not given accurate information when questioned about overpayments in the House of Commons in February. Ms Abrahams said it was not possible to assess how many overpayments were due to government mistakes and how many were due to delays by claimants in reporting a change in circumstances.
Ms Primarolo said that she had acknowledged in Parliament that there were problems with the IT and administrative system, but that the system was not in total collapse.
George Osborne, the Shadow Conservative Chancellor, called for Ms Primarolo to appear before the House of Commons to explain the management of tax credit overpayments.
David Laws, the Liberal Democrat Shadow Work and Pensions Secretary, said that it was sensible and logical to write off the overpayments.
Posted at 07:35 PM
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June 14, 2005
Computer Club for Girls launched
Ruth Kelly, the Education Secretary is launching a scheme to promote IT careers to girls. At the moment, only 20% of the technology workforce is female. The same percentage of those studying IT-related degrees is female.
The Computer Club for Girls (CC4G) is being established in 3,600 schools across England. It is expected to significantly increase girls' confidence in IT and promote opportunities in science and technology careers.
The scheme enables girls to take part in a wide range of computer-based activities, such as designing their own celebrity posters, creating a fashion show or mixing music.
CC4G is funded by the South East England Development Agency, which hopes that 150,000 girls aged 10 to 14 will participate in the project. According to Pam Alexander, the agency’s chief executive, "One hundred percent of schools involved in CC4G pilots feel that IT confidence levels are improved as a result.”
When the scheme is established across the UK, it will be extended to include girls over 14-years of age. It is hoped that it will eventually also address the needs of boys.
Major firms such as IBM, EDS and British Airways have pledged to support the initiative, and other firms are encouraged to become involved.
Posted at 11:01 PM
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June 07, 2005
UK workers face tagging
Employees in warehouses and distribution centres are being required to wear electronic wrist-tags, which monitor and direct their actions, according to a report by Mike Blakemore of Durham University.
The surveillance tags pick up satellite signals instructing employees to move or pick up goods. They also monitor the time taken to perform tasks. Unions are concerned that the tags are being used to monitor breaks and even trips to the lavatory.
The report, which was conducted for the GMB general union, says that the use of the tags is increasing rapidly throughout the logistics industry. The GMB estimates that up to 10,000 workers are required to wear the tags at over 30 locations across the UK. This is causing some staff to walk out and increasing staff turnover. Companies using the device include major retailers such as Tesco, Marks & Spencer, Sainsbury's, B&Q, Boots and Homebase.
The report suggests that electronic tagging is the first stage of a process towards full automation of certain jobs.
Paul Kenny, the acting general secretary of the GMB, said: "This technology has been imported from the US. We will not stand by to see our members reduced to automatons."
Some employers have reported positive reactions to the tags. The Peacock Retail Group, which uses the devices at its centre in Nantgarw, Wales, said the tags had a "positive impact on team morale", making it easier for a team to do a job and leading to efficiency improvements.
Posted at 11:25 PM
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CBI supports flexible working rights
In a submission to the Government, business group the CBI, says that employers would be willing to extend paid maternity leave and introduce more flexible working rights, including allowing mothers to transfer part of their leave to fathers. However, it also says that no more changes should be made during the period of the present Parliament and that changes must also reduce burdens on business.
CBI deputy director-general John Cridland called for balance, saying "employers have been challenged to accept new family-friendly rights, in return, we have a challenge for government - demonstrate your commitment to smarter regulation by reducing the burden on employers alongside introducing these extra rights.”
Results from a forthcoming CBI/Pertemps Employment Trends Survey 2005 show that 75% of employee requests for flexible working were fully accepted, with a compromise reached on a further 15%. Only 10% of requests were turned down.
According to Mr Cridland, the CBI accepts the extension of paid maternity leave to nine months by April 2007 and to 12 months by the end of this Parliament, as long as the right to return to the same job is not extended beyond the current six months.
Posted at 11:22 PM
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June 06, 2005
Collective bargaining returns for UK workers
Incomes Data Services (IDS), has found that UK workers are increasingly using collective bargaining when discussing pay increases with employers.
According to IDS, national pay bargaining has re-emerged after being "largely extinguished" while Margaret Thatcher was prime minister. Salaries increased by 3.1%, on average, in the three months to April, less than the inflation rate.
Amicus, the UK’s largest private sector and engineering trade union, said that legal changes in 1997 had made group bargaining easier, and that the increase in group bargaining was the result of a campaign to inform workers of their rights. The union aims to continue to bring more collective power to industries, and will now focus on the engineering sector.
According to Amicus, workplaces with collective bargaining and trade union organisation tend to negotiate much stronger pay agreements.
Collective bargaining has been criticised for penalising the best-performing workers and unfairly rewarding weaker workers, and also for making it more difficult to incentivise staff members. It also limits flexibility in pay-structure.
EEF, which represents employers in the manufacturing, engineering and technology sectors, said that since collective bargaining stopped in the industry in 1989, companies have introduced various, good and effective methods of reviewing pay.
However, according to Amicus’s general secretary, Derek Simpson, collective bargaining will help to restore better employee pay, skills and pensions and will also help attract young people into engineering.
The IDS report was based on 200 pay settlements affecting a total of four million employees.
Posted at 10:28 PM
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May 18, 2005
Unemployment down, but jobless totals up
According to the Office for National Statistics, unemployment fell by 15,000 to 1.4 million in the three months from January to March, by the government's preferred ILO measure.
On a monthly basis, the number of unemployed people claiming benefit increased by 8,100 to 839,400 in April, while average earnings growth in the three months to March was up by 4.6%, although 0.1% lower than the previous month.
Jobs continued to be lost in manufacturing, reaching a record low of 3.23 million in the quarter to March. In total, 82,000 fewer people were employed in manufacturing than in the same period a year ago. The figures do not include the recent substantial job losses at Marconi, MG Rover and IBM.
Although the number of people in work increased by 87,000 to 28.61 million in the latest quarter, the number of economically-inactive people increased by 14,000 to 7.86 million. This figure includes people taking early retirement, looking after a relative or those who had stopped trying to find a job.
According to Alan Clarke at BNP Paribas, the figures could "open the way for an interest rate cut in the coming months."
The UK's unemployment rate of 4.7% is one of the lowest in the world, beaten by only Ireland, Austria and Luxembourg.
Posted at 09:10 PM
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May 16, 2005
50% employers expect to cut staff
A survey of 1,300 firms, by The Chartered Institute of Personnel, reports that nearly 50% of British employers expect to reduce the size of their workforce in the next year, especially those in the public sector.
According to analysts, recruitment confidence may have fallen following recent job losses and promises to reduce waste in the public sector. The survey reported that many firms plan to recruit migrant workers to fill any skills shortages.
The survey also identified that 75% of employers expect pay to increase by between 2% and 4% in the coming year, although director's pay could increase by over 5%.
According to BBC business correspondent, Nils Blythe, the findings in the survey contradict current employment levels, with a record 28.5 million jobs in the economy.
Posted at 09:54 PM
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March 16, 2005
Manpower: candidates market
Empliyment company Manpower has claimed that companies are optimistic about employing more staff over the coming three months.
Manpower also suggested that a skills shortage means that it is a candidates market, and that higher wages may be required to hire the best staff, leading to wage inflation.
The labour market is "positive and stable", with 76% of employers planning to maintain staffing levels.
According to their study of 2,100 firms, Manpower said the construction industry was especially buoyant with jobs, as well as the transport & communications sector. Only the utilities sector expected to see any cut in jobs before June.
While Manpower paints a picture of a strong labour market, it also reported that London was least likely to see increased employment, while Scotland was the region most aggressively planning to take on more staff.
Posted at 09:50 PM
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