FSB News Release
PR 2012 18
Issue date: Wednesday May 9, 2012
The Federation of Small Businesses' reaction to the Queen's Speech
Enterprise and Regulatory Reform Bill:
The FSB welcomes measures aimed at resolving workplace disputes and reforming the employment tribunal system. It believes these measures will considerably improve small business owners' willingness to take on more employees.
Specifically, the FSB welcomes the idea of compromise (settlement) agreements which should enable both employees and employers to part company in a mutually acceptable way.
Optional conciliation would also be welcomed if ACAS is provided with the resources to effectively carry out its workload
The FSB particularly welcomes the efforts being made to make tribunals more cost-effective and fairer to the employer. With FSB research showing that the typical cost of a tribunal is £6,900, together with the amount of time spent preparing for it, this burden is often too great for a small business with the result many weal claims are settled rather than contested.
John Walker, National Chairman, Federation of Small Businesses, said:
"We welcome the principal of a new role for ACAS in receiving all claims. However, compulsory ACAS "Early Conciliation" is a concern despite its initial attraction. We would not support this unless satisfied that the process will not require the business to be legally represented, and, it is a genuine streamlining of the existing process rather than an additional administrative layer.
"A fundamental difficulty of current employment tribunals is that they are a no cost option for an employee. So we welcome the reforms, especially proposals to introduce fees for claimants as it will help reduce the perceived risk of taking on staff. We also hope that the proposals will reduce the number of serial claimants and speculative claims.
"Under the current proposals to introduce claimant fees into the employment tribunal system the majority of claimants would be fee exempt. We are calling for a two stage fee structure to be put in place. Initially, a claimant would pay a small amount to complete the first stage of the process and then another fee if their case was heard. We believe that the majority of claimants should pay fees and these should be lower than proposed with a higher fee being payable if a claimant believes their claim is worth over £30,000. This would level the playing field between employers and claimants."
Groceries Code Adjudicator Bill:
The FSB welcomes measures in the Bill as a sure sign the Government is committed to protecting smaller businesses from potentially one-sided and damaging trading relationships with large supermarket chains.
The key to allowing small producers and suppliers to thrive throughout the UK is to establish a healthy and mutually-supportive relationship between all businesses in the grocery trade, no matter how large or small.
John Walker, National Chairman, Federation of Small Businesses, said:
"The introduction of a Grocery Code Adjudicator should help provided it is given the power to impose significant financial penalties on offenders. In addition, it should be able to ‘name and shame' offenders given that in many instances, the financial clout of large supermarket chains would allow them to pay any fines with ease.
"The Adjudicator's remit also needs to go further than watching direct suppliers' relationships with supermarkets. It should have some power over indirect suppliers' relationships with supermarkets. Very few farmers deal directly with supermarkets so if the code is to protect them too, it needs to cover indirect supply as well.
"We would like the Government to consider granting anonymity to suppliers who do complain to the adjudicator as there is a risk they might be dropped by supermarkets for doing so."
Energy Bill:
John Walker, National Chairman, Federation of Small Businesses, said:
"Whilst we accept there is a need to stimulate investment in a new a generation of nuclear power stations and renewable energy infrastructure – small businesses have been subject to a remorseless increase in energy costs and it is essential that the reform of the electricity markets is accompanied by strong safeguards for consumers and measures to increase competition and break the dominance of the big six energy companies."
Water Bill:
THE FSB welcomes legislation that would allow businesses for the first time to choose who supplies their water.
John Walker, National Chairman, Federation of Small Businesses, said:
"Small businesses have faced regular increases in utility bills and the introduction of competition should have the potential to drive down water bills for business users. "However, the Government must make sure the introduction of competition in the water sector for business does not replicate the same mistakes as that of the energy markets, where a few large companies dominate the market and stifle competition.
"The introduction of competition in the water market but also be accompanied by appropriate consumer regulation to ensure small businesses are able to switch supplier with ease and not be subject to some of the unfair contract practices that exist in the energy markets."
Ends