The International Labor Organization predict that the economic downturn will lead to 50 million workers being unemployed globally by the end of 2009. This week BMW fell under heavy criticism from union leaders after axing the jobs of 850 agency workers, following on from an additional 300 temporary job cuts last December at its Mini factory.

Reports of BMW giving one hour of notice and agency workers facing a struggle to find alternative employment saw Tony Woodley, joint general secretary of Unite, comment “Sacking an entire shift like this and targeting agency workers who have no rights to redundancy pay, is blatant opportunism on BMW’s part and nothing short of scandalous.”

The case again raises the tension between businesses and trade unions regarding the rights of agency workers. Businesses require a flexible workforce, the ability to terminate positions when faced with falling demand and the necessity of cutting costs to survive. Flexibility also brings benefits to workers who are able to work short or no notice period, have control over their work life and a way of getting a foot in the door.

Yet, in some cases agency workers can be engaged for much longer periods, even years, without being offered a permanent position within the company they already work for. Union leaders have put great pressure on the government to put a stop to the use of agency workers as a reliable, but disposable workforce, by affording them certain employment rights.

In May Impactt commented on a new deal between businesses and trade unions that would give agency and temporary workers employment parity with permanent workers after 12 weeks. However debate has stalled in the EU Parliament due to opposition against the continued use of an opt-out of the Working Time Directive. Impactt continues to support this measure which would prevent companies hiring temporary labour in the long term without giving them the associated benefits that a contract of employment provides.

By Joanna Buckley