Latest Euro rule is threat to more jobs

By Christina Golding

NEW rights for part-time workers will mean job losses in catering, because increased benefits will cost employers too much, the British Hospitality Association (BHA) has warned.

Employers have two years to ensure that their part-time workers receive the same benefits as full-time staff, following the signing of a European directive by the Government last week.

The hospitality industry is increasingly reliant on part-timers. A recent BHA study of the contract catering sector showed a 21% increase in part-time workers last year.

The directive says that part-timers are to be offered equal benefits, such as pension schemes, bonuses, training and promotion opportunities, where these are available to full-time staff.

Ian McCartney, minister of state at the Department of Trade and Industry, said that the agreement would make jobs more attractive and promote flexibility.

But the BHA says the new law, coupled with the impending minimum wage, is likely to put a long-term cost burden on the hospitality industry which could lead to job losses.

"Socially it seems fair. But it is yet another increase in cost, which we deplore," said Jeremy Logie, chief executive of the BHA. "At the moment the industry can absorb the shocks, but the moment trade turns down, we must be fearful of employment prospects."