EU agency directive ‘could cost 9,400 jobs’

UP TO 9,400 jobs could be lost if the EU agency worker directive is implemented in its current form, a leading economist has claimed.

In a study of the impending directive to be published today, economist Jim Power claimed that if the directive is transposed in its current form, the flexibility of Ireland’s workforce will be damaged, the country’s competitiveness will be affected and up to 9400 jobs could be lost.

In compiling the report on behalf of the National Recruitment Federation, Mr Power interviewed employers from the multinational and state sectors to assess the likely impact of the directive on employers and the economy as a whole.

“There are many reasons why certain employers engage staff through agencies but the overriding reason is the flexibility that it permits, the reality is that the jobs created offer convenient high quality employment for many workers in Ireland.”

He said it was difficult to see how the legislation as drafted in its pure form could benefit employers, the agency workers and the economy in general.

“Government needs to listen to the views expressed by employers of agency workers and apply the legislation in a more flexible manner, with a derogation of up to 12 months and greater clarification of the issues involved,” he said.

The report argues that Ireland has recently seen increased competition from Britain for foreign direct investment with lower corporate tax rates to compete with Ireland and that our flexible, educated workforce is our final trump card.

It further argues that Ireland needs to agree a longer qualifying period than the 12 weeks introduced by Britain in order to gain a competitive advantage.

The IBEC director of industrial relations, Brendan McGinty, agreed with the thrust of the report and said the implementation of the directive without “significant derogations” would have significant negative effects on the economy.

“Foreign-based headquarters with Irish subsidiaries have enormous discretion about where to locate investment including non-EU countries which have no restrictions on agency work.

“Less competitive agency work in Ireland will contribute to decisions being made to direct investment to other countries. Ireland needs more than ever to avoid restrictions on the ability of employers to create of jobs,” he said.

However, a spokesman for Irish Congress of Trade Unions hit out at the report. “It’s entirely speculative and based on interviews with multinationals who have a vested interest and lobbied against its introduction so I’d take this with a grain of salt,” he said.

“This is a directive across the EU and I don’t see other countries jumping up and down with these kind of doomsday scenarios.”