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Labour are going to crash the economy/jobs market.

210 replies

Batmanisaplaceinturkey · 15/10/2024 11:23

Just a few of the changes
-Making it harder to dismiss a bad hire.
-SSP a percentage of earnings, available from day one of sickness.

And now plans to raise employers NI.

All very well if the employer is Amazon or Google but not so much the independent coffee shop down the road, the plumbers merchant, the cobblers, the florist etc. More expenses and red tape for them but who cares eh. Even if they do survive their costs will have to rise.

Labours plans will have unintended consequences.

OP posts:
Lanneederniere · 15/10/2024 15:11

DogInATent You clearly fail to understand how difficult it is for employers to terminate an employment contract due to underperformance, and the financial and emotional cost of dealing with proceedings by aggrieved ex-employees.

Single Employment Tribunal (ET) receipts and open cases increased by 6% and 7% respectively, while disposals decreased by 11% in Q3 2023/24, compared to the same period a year ago. In Q3 2023/24 Multiple ET receipts, disposals, and open cases all increased, by 3%, 100% and 2% respectively compared to Q3 2023/24.

Every one of these cases represents expense and stress for employers, and usually disappointment and outlay for ex-employees.

This is set to significantly increase under Labour.

You see that as a good thing?

DogInATent · 15/10/2024 15:01

Lanneederniere · 15/10/2024 14:38

As an employment lawyer, I contend that this ridiculous comment illustrates the level of extreme naivety of many people in the UK.

To those fearing that members of my sector are 'rubbing their hands' over Labour's new legislation, I wouldn't go that far, but let's just say, we are hiring appropriate candidates for the anticipated increase in volume of work.

That doesn't make me happy, though. Employers deserve better.

You're saying that an employer cannot terminate an employee that doesn't meet performance requirements?
(after due process)

SunriseMonsters · 15/10/2024 14:54

WestwardHo1 · 15/10/2024 14:23

The economy was in an entirely different place in 1999.

It didn't thrive simply because Tony Blair introduced the NMW.

And it has been pointed out by plenty of others that while in essence being a laudable policy, the actual effect it has had is to keep wages artificially low, while they are topped up by the government with taxpayers' money.

Edited

It was largely the tax credit system rather than the minimum wage policy that depressed productivity and salary increases.

IDontHateRainbows · 15/10/2024 14:48

Mummyoflittledragon · 15/10/2024 14:45

I don’t follow politics as closely. Off the top of my head.

Under Labour PM Ted Heath - the 1973 the 3 day working week caused by a lack of energy with dwindling reserves of fuel exacerbated by the Minor’s strike of 1972.

Overspending in good times meaning there was no money saved for good times with the 2008 global financial crisis. The famous letter left for the conservatives “I’m afraid there is no money”.

Tony Blair’s PFI hospital financing scandal, the consequences of which is still felt to this day, 25 plus years on.

The lack of confidence in the current Labour government with their on the back of a postage stamp decisions just over 100 days in.

I agree your list is incomplete and Labour’s list will be shorter just by dint of them being fewer years in office.

Both parties are equally clueless imo.

And how much less money was left for Labour after the Tories left this year?

We are more in debt in 2024 than we ever were in 2010.

Mummyoflittledragon · 15/10/2024 14:45

JandLandG · 15/10/2024 12:19

"Labour are going to crash the economy/jobs market."

Nope.

The Tories did that when they caused the 20 odd percent inflation by their "dash for growth" budget in the early 70s.

The Tories did that by trashing the economy in the early 80s deliberately to destroy town and communities.

The Tories did that withe Lawson's reckless budget in 87/88 that caused double digit inflation

The Tories did that when they followed that up with a huge slump in 91/92/93 - their second recession of that administration.

The Tories did they when they humiliatingly had to crash sterling out of the ERM in 93.

The Tories did that with their pointless and harmful "austerity" under Osborne and Cameron after Brown and Darling had lead the world in recovery and mitigation of the GFC - caused by the Tories' friends in banking and finance ofc.

The Tories did that when the clown Truss did what she did when those idiots voted her in for those 40 odd days.

And the Tories did that when they wasted billions and billions of £ on covid and the contracts with their mates and the shambolic administration of recovery loans and the covid app.

That's a quick and incomplete list just off the top of my head of why your perspective and original point is completely wrong.

The Tories are clueless on the economy as experienced by ordinary people and have repeatedly demonstrated that - see above. The Labour Party are trying to fix the mess we're in.

I don’t follow politics as closely. Off the top of my head.

Under Labour PM Ted Heath - the 1973 the 3 day working week caused by a lack of energy with dwindling reserves of fuel exacerbated by the Minor’s strike of 1972.

Overspending in good times meaning there was no money saved for good times with the 2008 global financial crisis. The famous letter left for the conservatives “I’m afraid there is no money”.

Tony Blair’s PFI hospital financing scandal, the consequences of which is still felt to this day, 25 plus years on.

The lack of confidence in the current Labour government with their on the back of a postage stamp decisions just over 100 days in.

I agree your list is incomplete and Labour’s list will be shorter just by dint of them being fewer years in office.

Both parties are equally clueless imo.

Lanneederniere · 15/10/2024 14:38

DogInATent · 15/10/2024 13:44

So you want to get rid of him based on his performance and competence? You have valid reasons for ending his contract. You're not planning on dismissing him unfairly, or firing him to employ someone else on lower pay. What's the problem? - you performance manage them and if they don't shape up you can fire them.

They're even proposing a consultation on a statutory probation period.

As an employment lawyer, I contend that this ridiculous comment illustrates the level of extreme naivety of many people in the UK.

To those fearing that members of my sector are 'rubbing their hands' over Labour's new legislation, I wouldn't go that far, but let's just say, we are hiring appropriate candidates for the anticipated increase in volume of work.

That doesn't make me happy, though. Employers deserve better.

RedHelenB · 15/10/2024 14:34

Batmanisaplaceinturkey · 15/10/2024 11:35

I didn't say workers shouldn't have rights. They already have rights.

Not as many as they should have, and not so many as they had before the last 14 years of Tory rule.

Nomorepants · 15/10/2024 14:32

SunriseMonsters · 15/10/2024 12:09

Instead we have a Government that was even contemplating penalising pension saving (when UK savings rates are already among the lowest in the developed world). What do they think pension funds do with invested money? A very strange way indeed to stimulate economic growth and investment.

There seems to be no joined up thinking whatsoever and no understanding of the very obvious fact that tax policies etc affect people's decisions and behaviour.

Where are the innovative policies to support and grow SMEs in key growth sectors? Where is the rationalisation of the income tax rates/ cliff edges? Where are the plans to enforce education laws, provide appropriate specialised schools to foster the varying talents the modern economy requires and link education properly with industry to provide high quality technical apprenticeships etc? Where is the support for start-ups and the investment grants to develop the technologies of the future? Where are the reforms to make it easier for smaller enterprises to raise capital so they aren't all sold off to huge international competitors? Why are large chunks of our energy, water and infrastructure run for profit by companies owned by foreign states so that they can subsidise these services for their own citizens while we receive sub-standard services at exhorbitant cost? What's their plan to close the trade deficit so we stop importing inflation due to reliance on imports of essential goods like food and fuel? What's their plan for water and food and energy security as the climate change issue bites? What are they doing to reform healthcare into the far superior models elsewhere in Europe with better health outcomes? What are they going to do about the shambles that is SEN provision in UK schools and lack of any suitable provision for children with different needs? What's their strategic plan for exports given their inexplicable refusal to rejoin the SM and CU and that the UK cannot fund itself without plugging the self-inflicted trade deficit? How do they intend to address the UK state pension and public sector pension ponzi schemes that cannot be sustained, like Australia did successfully decades ago? How do they plan to increase the UK birth rate given the importing immigrants will be nigh on impossible in 30yrs time given birth rates are dropping off a cliff everywhere outside sub-Saharan Africa?

These are the questions that need to be answered. Their only answer so far is tumbleweed accompanied by attempted distractions with trivial things that will make not one bit of difference to the UK's long-term prospects.

This is a good summary of a lot of the big issues.

I might add, how to fix a civil service that prides itself on protection over productivity.

Maurepas · 15/10/2024 14:26

Employers are also workers so they need ''rights'' too!

WestwardHo1 · 15/10/2024 14:23

The economy was in an entirely different place in 1999.

It didn't thrive simply because Tony Blair introduced the NMW.

And it has been pointed out by plenty of others that while in essence being a laudable policy, the actual effect it has had is to keep wages artificially low, while they are topped up by the government with taxpayers' money.

BaconMassive · 15/10/2024 14:17

I was skeptical but so far I'm pleased.
Economy doesn't seem to be crashing.
Some rights given back to the workers.
Saving taxpayer money on the great fuel giveaway to already affluent pensioners.
All good, get it all sorted as quickly as possible.

Cyclebabble · 15/10/2024 14:16

We do not yet know what this Government will come up with. It appears to be hinting at NI increases and some pension changes. Notably to the inheritance position and tax free lump sums. These would be unwelcome in frankness and it does feel like every year I pay a bit more and get a little bit less (sometimes a lot yes). However, some way to go before you reach the Liz Truss economic madness levels.

ByMerryKoala · 15/10/2024 14:16

TeamPolin · 15/10/2024 14:06

I'm having flashbacks to the 90s when everyone said this would happen with the introduction of the minimum wage. It didn't.

Was literally just coming on to say this. Reinforcing worker's rights is no bad thing.

The economy was growing much faster in 1999 when minimum wage legislation kicked in though, wasn't it?

IDontHateRainbows · 15/10/2024 14:13

TeamPolin · 15/10/2024 14:06

I'm having flashbacks to the 90s when everyone said this would happen with the introduction of the minimum wage. It didn't.

Was literally just coming on to say this. Reinforcing worker's rights is no bad thing.

That'll be why so many salaries on 'the next rung up' have stagnated then, and by way of example, my husband who is a trained experienced graphic designer, is only on 25k per year.

WestwardHo1 · 15/10/2024 14:08

ExtraOnions · 15/10/2024 11:58

Decent employers won’t be worried about Workers rights

This is simplistic garbage.

If you were to think even a tiny bit about it, imagine what someone on the very first day of their job announcing they were pregnant would do to a tiny business employing four skilled, hard to find workers (including the employer who works twice as hard as any of the people s/he employs). Or someone calling in on their fourth day of work announcing they had been signed off with anxiety.

TeamPolin · 15/10/2024 14:06

I'm having flashbacks to the 90s when everyone said this would happen with the introduction of the minimum wage. It didn't.

Was literally just coming on to say this. Reinforcing worker's rights is no bad thing.

Llttledrummergirl · 15/10/2024 14:06

Pmsl! The hyperbole is strong with this one.

Workers rights are incredibly important, that Labour are restoring what the Tories stole away is a good thing.

I seem to recall the economy broke not so long ago and everyone's mortgages and fuel costs rose as result

Copernicus321 · 15/10/2024 14:05

This country is a shadow of its former self, a disaster. For much of my life the Conservatives have formed the ruling Government pursuing their neocon agenda. I agreed with much of it to begin with, many people who grew up during the 70's did. However, I now realise all too late, that neocon is based on knowing the cost of everything and the value of nothing.

BitOutOfPractice · 15/10/2024 14:04

The Tories said exactly this when Labour introduced the minimum wage. It didn’t.

nor of the reasons I vote labour is to improve the lot of workers. And I say that as an employer.

Beekeepingmum · 15/10/2024 14:03

I suppose we can compare whether they crash the economy worse than the last lot who had to reverse all the policies and change the leadership. I doubt the consequences will be that bad.

Tekphobebruvva · 15/10/2024 13:59

ExtraOnions · 15/10/2024 11:45

I remember that when the Minimum Wage was going to cause a load of business to go bust (it didn’t)

Workers should have rights, and should be protected. They should also be paid a proper wage - why do we, as taxpayers, need to pay benefits to people who work full time, so Tesco etc can pay their shareholders more ?

Too long we have been led by Capitalism .. and where had it got us .. low wages, low skill, high cost of living, huge amount of money being paid from the public purse to fund high payouts for shareholders, recession, broken public services, polluted rivers

The current system isn’t working, so quite right we should try sometime else. The first responsibility of any government should be the people.

What system other than capitalism do you recommend? Given that it’s been the most successful and people have benefited immensely from it.

ByMerryKoala · 15/10/2024 13:57

I would love to be wrong about where all this is heading.

80smonster · 15/10/2024 13:55

Maybe, too early to call it.

SunriseMonsters · 15/10/2024 13:54

@WestwardHo1 indeed. 50% of GDP is generated by SMEs.

Surely it isn't much to ask that we have a Business Minister who is a successful entrepreneur, a Health Minister who is a qualified doctor, and Education Minister who has been a teacher, a Chancellor who has actually run a large company that operates internationally across international borders, a Minister for Equalities who actually has a disability or a close relative with one so has some comprehension of their brief, a scientist (who has actually developed technologies to market) to run the Ministry for Science, Research and Innovation etc? Some people with experience in change management and running businesses and other organisations who understand how to actually implement things that work, with the Civil Service there to provide the technical policy work and law, as they do for every Government.

The much maligned "technocrats" would be far preferable to this utter nonsense that gets spouted whichever colour of idiot is elected here.

FrostFlowers2025 · 15/10/2024 13:48

Yabu.

Just that.