Campaigns Roundup

So, after a jam-packed term, Parliament is now in recess for the next six weeks of summer. MPs might not be back in Westminster until 4 September but there certainly isn't any slowdown for the REC Campaigns team. We'll be spending the next six weeks responding to consultations, and preparing for Autumn Budgets, Party Conferences and more!   

Repeal of Regulation 7 of the Conduct Regulations

Last week, the High Court determined that the decision to proceed with the repeal of Regulation 7 in England was unlawful and has made a decision to 'quash' the legal provisions which repealed Regulation 7. This means that from 10 August 2023, it will be unlawful for employment businesses to supply agency workers to clients to carry out the work of their own workers taking industrial action. You can review the advice to all REC members here.

With the Regulations now quashed, the Government faces two decisions: whether to appeal, and if Government does not appeal (or loses the appeal) whether to bring forward a replacement instrument to replicate the effect of the 2022 Regulations after a proper consultation period. On behalf of agency employers, we have written this week to Secretary of State for Business and Trade (DBT) Kemi Badenoch, and Deputy Prime Minister Oliver Dowden encouraging them to do neither.

Home Office Shortage Occupation List (SOL) campaign win

In June, the REC responded to the Migration Advisory Committee's (MAC) latest review of the SOL. The purpose of the list is to determine where there are sector-specific shortages. For jobs on the SOL, the immigration rules for work visas are relaxed to make it easier for overseas workers with the required skills and experience to come to the UK.  

In our submission, we called for 10 occupations across the driving and logistics, construction, and hospitality sectors to be added to the SOL. In March 2023, the Home Office accepted the MAC's recommendation to add five construction sectors to the interim SOL, which was due to expire in July. In our submission, we asked for all five occupations to be added to the official SOL. On Monday, the Home Office confirmed this was the case. That means that bricklayers and masons, roofers, roof tilers and slaters, carpenters and joiners, plasterers, and construction and building trades not elsewhere classified are now included on the SOL. The MAC's full report will be published in Autumn and we will keep members updated on further developments.  

Department for Transport (Future of Freight Council People and Skills Delivery Group)

After the severe shortages across the HGV Drivers sector following the UK's decision to leave the EU and exacerbated by the Covid-19 pandemic, the Department for Transport (DfT) set up the Future of Freight Council to monitor issues like workforce planning and regulation in the sector.). The REC has been invited to sit on the newly formed People and Skills Delivery Group, which will be identifying key challenges to the driving and logistics workforce - and  putting forward policy recommendations to address them.

Labour Market Enforcement Strategy (LMES) - 2024/25 Call For Evidence

The Director for Labour Market Enforcement has announced a call for evidence from stakeholders to help shape the UK Labour Market Enforcement Strategy 2024/25. This call for evidence seeks evidence and views covering emerging trends and risks to labour market non-compliance. You can feed into the call for evidence by clicking here or by emailing Patrick on patrick.milnes@rec.uk.com. The deadline for submissions is 8 September 2023.

Media Corner

The REC has achieved more than 400 media mentions so far this month, owing partly to press interest in our reaction to the Regulation 7 case outcome. We also appeared on LBC radio to give more explanation as to why the union court win means agency workers can no longer be used to break strike action. The BBC, The Times and Reuters were among a media that were very interested in our analysis in our recent Report on Jobs which shows there was a significant step up in the number of candidates looking for a new permanent or temporary role. This is likely driven by people reacting to high inflation by stepping up their job search, and by some firms reshaping their businesses in a period of low growth. It is no surprise, therefore, that the rate at which wages are rising has dropped again, we said.

Separately, REC’s Deputy Chief Executive Kate Shoesmith wrote an article in HSJ saying that agency staff deserve more respect than the NHS workforce plan shows them, with the plan based on a poor understanding of NHS staffing costs and failing to present a cohesive strategy to make effective use of agencies.

Research Corner

The REC’s latest Report on Jobs showed that temp billings rose for the thirty-fifth time in a row in June, but permanent hiring decreased again amid economic uncertainty. There was a significant increase in candidate availability for permanent and temporary roles in all four monitored regions of England. Recruiters have linked this increase to lingering economic uncertainty and company layoffs. But on the other hand, there was growth in vacancies for temps and permanent staff in hotel & catering and blue-collar jobs, and for temp positions in retail. Although starting permanent salaries and temp hourly billings continued to rise in June, the rate of inflation was the softest recorded since April 2021.

Also, read our next Labour Market Tracker which is out today.