Cable’s fears over employment changes

The Business Secretary has claimed that new EU employment laws will impact upon the economy.

Vince Cable was speaking ahead of the changes in a private letter to Coalition colleagues, the Daily Mail has reported.

He said that the move from union chiefs to support the changes – which come into effect in October – left ministers’ ability to take action “constrained”.

The leaked letter was co-signed by deputy, Edward Davey, with the pair calling the changes “controversial”.

The reformed regulations for temporary workers have left many firms and businesses “concerned” over the costs implementing them will accrue, according to the letter.

However, they claim that their bid to dilute the changes has been shunned by the Trades Union Congress.

The letter claimed that if such an action was carried out without union backing the issue could end up in the courts.

Mr Cable and Mr Davey said: “Our ability to make changes is constrained because [the regulations] are based to a significant degree on the CBI and TUC agreement also brokered by the previous administration.

“The unique legal situation means amendments we might have made, which did not have the agreement of both those parties, could be ruled illegal by the courts.” 

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