Mandelson faces employment rights and Royal Mail battles

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http://www.theherald.co.uk/politics/new ... l_Mail.php

New Business Secretary Peter Mandelson was embroiled in controversy on two fronts last night over the future of the Royal Mail and whether planned employment rights, including family-friendly reforms, will go ahead.

He was warned that delaying rights such as the extension of flexible working in view of the economic downturn would send out a "completely wrong message" and risk hitting the UK's competitiveness after his department announced it was re-examining the costs and benefits of new regulations.

Business groups welcomed the move but unions, opposition politicians and family campaigners attacked it.

Lord Mandelson also came under fire over an interview signalling support for the partial privatisation of the Royal Mail, which was described by a Labour MP as "madness".
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The minister is expected to be questioned about both issues when he appears before MPs on the Business and Enterprise Select Committee today.

The Chartered Institute of Personnel and Development reaffirmed its support for the planned expansion of flexible working to parents of children under the age of 16 rather than six at present.

Chief executive Jackie Orme, said: "The existing right to request flexible working is a model example of light-touch regulation that has helped to change attitudes without causing difficulties for businesses."

TUC general secretary Brendan Barber said: "Postponing a simple right to request flexible working would not save a single job in the small business sector. If such a request harms the business, the owner can say no."

A Business Department spokesman said: "As well as looking at cashflow and access to finance, we are looking at the appropriateness of new regulations that are due to come into force - that includes employment regulations. We can confirm that no decisions to halt regulations have been made.

Chief Secretary to the Treasury Yvette Cooper insisted that the government would continue its support for flexible working.

Speaking on GMTV, she said: "What Peter Mandelson's been doing is looking at a whole range of ways in which we can support small businesses, help them through what are very difficult times as a result of what's going on in the global economy."

Prime Minister Gordon Brown's spokesman said that "no decisions have been taken".

Katja Hall, director of employment policy at the CBI, said: "We welcome the government's decision to look again at new employment rules such as extending the right to request flexible working."

The Institute of Directors said ministers had "finally realised" their plans would impose new regulatory burdens at time when small businesses needed all the help they could get.

Meanwhile, Lord Mandelson was warned that changing the ownership structure of the Royal Mail would lead to fresh job losses and would "not be forgiven" by Labour supporters.

He told the Financial Times that his 1998 proposal to allow private sector stakes in the state-owned postal firm would have become law if he had remained in his post as trade secretary.

Billy Hayes, general secretary of the Communication Workers Union, said: "Peter Mandelson has only just come back into government, but he should be aware that there is a clear commitment from the Labour government to keep Royal Mail in the public sector."

Labour MP John McDonnell (Hayes and Harlington) said: "In the current economic climate, throwing the Post Office to the wolves of the private sector will lead to further job losses and cuts in services on an unprecedented scale, and will not be forgiven by Labour supporters. Mandelson will be in for the fight of his life if he attempts to privatise this popular service."