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IoD: 'Free' policy changes would bolster economic growth

7th February 2011

The government could boost economic growth without cost to the taxpayer by implementing a number of policy changes, one industry body has argued.

A new report by the Institute of Directors (IoD) claimed that scrapping national collective bargaining in the NHS and the education sector and leaving trade unions able to negotiate only on a local level would increase overall productivity.

The study also calls for the right to request time off for training and flexible working to be shelved, claiming that this results in unnecessary red tape for employers and fails to offer many benefits to staff.

Other recommendations in the report include setting a minimum deposit of GBP 500 for workers wishing to raise a tribunal, targeting regional growth in the areas more likely to see return on investment and releasing some green belt land for building projects.

Miles Templeman, director general of the IoD, commented: "Many of the measures we have proposed today are long overdue and would improve the UK's infrastructure and the functioning of its labour market."

However, the suggestions were not well-received by some. Brendan Barber, general secretary of the Trades Union Congress, claimed that many of the recommendations would 'make life easy for directors', while damaging the rights of the workforce.
 

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