The trouble with triangulation… September 18, 2012Posted by WorldbyStorm in Economy.
Here’s a particularly mad example of how triangulation and splitting the difference can still lead to right of centre outcomes in political policy making. There’s been a lot of rhetoric about the Beecroft Report on employment law in the UK, in which the idea of ‘no-fault dismissal’ was put forward. Given that the UK has already what is acknowledged to be one of the most ‘flexible’ labour markets already some would have wondered what possible use this would have. But no, the idea that labour protections were providing a ‘disincentive’ for companies to take on staff was raised to something of a trope.
Anyhow, this from the Guardian, business secretary Vince Cable while ‘resisting pressure’ to go for the no-fault dismissal line has:
The business secretary will instead back a voluntary scheme in which employers and staff can sign settlement agreements that would allow an employee to leave a company with a good reference providing they waived their right to pursue unfair dismissal proceedings at a tribunal. The agreements will come into force next summer.
The maximum £72,000 compensation cap for unfair dismissal is to be slashed as part of a package of measures designed to remove disincentives from employers to take on new staff. The new cap may be set at the employee’s annual salary, or another lower figure.
But what sort of a disincentive is this compensation cap that businesses tremble in fear at its implementation?
[£72k is] the current maximum – though awarded in only 1% or 2% of cases a ye
And note this:
Cable’s aides were anxious not to sound triumphalist in rejecting the central plank of the Beecroft report, stressing that 80% of his recommendations had been adopted or were now subject to consultation. Tory ministers and the Institute of Directors were also content with the outcome.
No doubt. The terrain is softened up for the next onslaught – perhaps, though one hopes not if polls are to be believed, a successor single party Tory government. A solution for a problem that does not exist.