Winners & Losers

As always, what’s good for one group is not necessarily a good thing for another. The government is looking again at their proposals to extend paid maternity leave to try and reduce regulation for employers. The review is led by Lord Mandelson after taking account of business leaders’ concerns. A government spokesman has said that, "He is not opposed to it: he just wants to look at it afresh. There has been no final decision on this yet." "It is right that we look closely at the costs to employers and the timing of new regulations. But we have a strong commitment to fairness and we will continue to help people get through this recession in a fair way."

However, the government review does not go so far as the proposal to increase rights for flexible working.

The 2 sides of the argument are as follows:

For the Employers: The British Chambers of Commerce, Director General, David Frost said, "It is right that we look closely at the costs to employers and the timing of new regulations," said a spokesman. "But we have a strong commitment to fairness and we will continue to help people get through this recession in a fair way." "The cumulative cost of regulation on business now stands at £66bn. A moratorium on harmful extra legislation would be good news in difficult times." The Institute of Directors said the extension of paid maternity leave from nine months to 12 months could load £600m of costs on to companies already struggling during the downturn.

For the Employees: Brendan Barber, general secretary of the Trades Union Congress, said there would be a backlash if ministers backtracked on new rights for working mothers expected to come into force in April next year.

Harriet Harman, the equalities minister is keen to go ahead with a number of policies that could impose red tape and costs on companies. Jon Cruddas, her backbench ally, said there would be "deep unease across the party" if such "progressive" policies were abandoned because of the economic downturn.

Lord Mandelson told a meeting of the economic development ministerial committee last week that he wants to identify which legislation is unnecessary in the current economic climate and so could be put on hold or axed. For example, the government may rule out proposed equality law which would have imposed equal pay audits on companies. They may also do away with the allowing councils to ban alcohol promotions.

What’s your view? - do post your comments.