Wednesday 30 June 2010

New government, new unemployment, no New Deal?

With the new Cleggeron government, we all looked forward to renewed economic growth, efficient spending and an improvement in unemployment figures. Unluckily, since Dave and Nick decided to cut spending on everything worthwhile, it seems that even more people are at risk of losing their jobs. A leaked treasury report - publicised by The Guardian - revealed that 1.3m jobs could go by 2015, 120,000 of these from the public sector. Although the government say that experts predict a fall in unemployement and a rise in employment, many are dubious. The TUC General Secretary, Brendan Barber, warned of 80's reminiscent dole queues, widespread poverty and a widening north-south divide. There was a 7.9% drop in unemployment to 2.47m in the three months to April, and over the quarter an increase of 23,000 - less than expected. Jobseekers Allowance claims fell by 30,900 to under 1.5m, the fourth consecutive monthly decline. I don't know about you, but I find it confusing to be told that unemployment has risen whilst JSA claims have dropped - are people therefore not claiming even though they are out of work? Or are they, instead, claiming allowances such as Income Support, or Employment and Support Allowance (preciously Incapacity Benefit) due to illness or disability? More worryingly, there was an increase of 85,000 to 772,000 people who have been out of work for over 12 months - the highest since April 1997. One million young people are unemployed and struggling to even start a job or career.

Those of us who are lucky enough to remain employed are still suffering from the backlash of the credit crunch. Whilst we all hoped for house prices to drop and stabilise, they have again started to rise, even if only by 0.1% in June. This still means that the average house price in the UK is £170,111. Compared to the average salary of £25,428 (£489 per week), this is still high enough to prevent first time buyers and those on low incomes from getting mortgages. Although pay rose in the quarter to April, by 1.9%, this was still well under the retail inflation rate of 5.1%. The cost of living is rising for everyone, and it is the unemployed that are worst hit.

Speaking of unemployed, it looks like Fabio Capello might be on his way out. It's still too painful to talk about the England v Germany fiasco that was Sunday afternoon's entertainment, but suffice to say it seems likely that he will be sacked, albeit with a massive golden handshake. Perhaps one of the worst ways to be sacked, publicly... but you can't help feeling he deserves it. Other great public sackings include General Stanley McChrystal, the former staff of Lehman Brothers and Chelsea Taylor, a 16 year old waitress who was sacked via... wait for it... Facebook. How embarrassing. Still, she can always sign on and benefit from one of the government New Deal back to work schemes. Oh no, she can't, can she? Because they're all on hold pending the new government's decision about whether to carry on with them or not. Of course, it would make perfect sense to scrap such schemes, just when even more people are doomed to be put out to pasture over the coming year and years.

I was under the impression that the Tory-Lib Dem government had some cunning plans to boost the economy and drastically lower unemployement figures. So I can only hope the Cameron-Clegg marriage knows what it's doing... before we start to feel nostalgic for Gordon and his New Deals.

Wednesday 9 June 2010

Time off to watch the Footie? Work and the World Cup

The World Cup is once again in the limelight... and it doesn't feel like four years since the last one! As employees all over England begin the countdown to the excitement, employers are feeling an all-too familar sense of dread, wondering just how the footie might impact their business. According to The Chartered Management Institute, the World Cup could cost businesses an uncool £1 billion, with SMEs losing £400m of this. Ouch. They also say that 54% of employers are worried that online coverage will distract their workers, 53% fear that chatting about the matches will stop people working, and 40% suspect that sickies will be pulled to allow their employees the time to watch the beautiful game. And that's before people start chatting to their friends on Facebook or Twitter about the footie, rather than catching up with their work. According to a survey by Blue Coat Systems, 54% of workers plan to watch the World Cup AT work - even though an equal number of IT managers reckon this should be banned.

The HR Dept (www.hrdept.co.uk) are warning employers to watch out for higher levels of absence, or hangovers caused from the previous evenings celebrations - or commiserations! Last year the UK economy lost £2.5 billion on 27 million bogus sickies... even with no World Cup to encourage them! Sky News reports that 1 in 7 people plan to watch all games this year, compared with under 13% for the 2006 competition, so it seems that some of the worries are justified. HR Dept suggest introducing some sort of flexibility to minimise disruption. Asda, for example, are offering a shift swap system whereby staff can negotiate their own shift exchanges with colleagues who don't want to watch a match (who on earth wouldn't want to watch?!) Call Centre Helper are urging employers to plan ahead. Suggestions include screening matches at work, offering flexible working, encouraging people to use annual leave and using watching matches at work as an incentive. Watching the game together can, apparently, bond team members... assuming they all support the same side!

Director Magazine (www.director.co.uk) debates whether EXTRA time off should be given to footie fans during this competition. But should we really be rewarded for preferring to watch the World Cup, rather than go to work? Professor Gary Cooper of Lancaster University Management School says YES. He claims that this will keep people focused, encourage autonomy and bonding, stimulate discussions and show employees that they are trusted to work hard in recompense, rather than be micro managed. Hilary Griffin, Professional Support Lawyer at Clyde & Co., says NO. She feels that it would be unfair on non-football fans as well as those who prefer other sporting events, and that employers would be better off encouraging holiday time is taken, giving time off later as a reward, implementing a policy on internet access (perhaps some viewing if work is made up later). What a spoilsport.

Employers also have to be careful about the risks of discrimination. Why should someone be allowed time off to watch an World Cup match, for example, but not Wimbledon? If people are using holiday time just to watch England play, then those who request leave to watch other teams must also be given preference. With the World Cup being such a huge deal for us here in the UK - as well as everywhere else - it seems mean not to allow people to join in wholeheartedly with the celebrations, but at the same time is a bit impractical. It's just a good thing that most of the games are in the evenings and weekends this time round, so the office workers are only at risk of being intensely hungover rather than skiving to actually watch the matches, I suppose. Unlucky for the evening workers, then - those who cannot take annual leave to watch will have to put a cunning plan in place to get their footie fix.

Personally, I'm only in it for the obligatory beer, but have been forced by my kids to display England flags from every orifice of my house and car. I may as well bother to watch some of the footie now, I suppose - nobody wants to be left out, work or no work.