Liz Truss risks igniting another row with the EU that could lead to tariffs on British exports if she tries to water down workers’ rights too much, legal experts and union leaders have said.
The new prime minister is reportedly considering a review of workers’ rights as part of a wider “bonfire” of 1,500 EU laws that she wants to remove from the UK statutes by the end of 2023.
Under the level playing field agreements in the Brexit Trade and Cooperation Agreement (TCA) sealed by Lord Frost with the EU, the UK can deviate from the bloc’s rules but not to the point of giving it a commercial advantage over its rivals. on the continent and in Ireland.
Catherine Barnard, a professor of EU law at Cambridge University and a Brexit expert, said the deal allowed for safeguards, such as tariffs, to be imposed by either side if the playing field became uneven.
“The [deal] it allows the UK to diverge from EU rules on workers’ rights, but if the divergence affects trade and investment, the EU can start the non-regression procedure against the UK,” he said.
“This involves a consultation, followed by the establishment of a special panel of experts and finally retaliation against the UK if the UK is found to be in breach. That means tariffs,” he said.
Workers’ rights, including maximum weekly hours, equal pay for men and women, holiday and rest rights, are enshrined in retained EU laws, including the Working Time Directive.
As the self-styled “Brexit delivery prime minister”, Truss’ proposed timetable for getting rid of some of the EU’s laws has been accelerated with a promise to remove all remaining EU regulations by the end of 2023.
But diverging significantly on rights would not only add strain to already strained relations with the EU, but also trigger a major row with unions.
The Trades Union Congress (TUC) has demanded assurances from the government that workers’ “hard-won” rights are not in the firing line after Jacob Rees-Mogg’s remarks.
As Brexit opportunities minister in Boris Johnson’s government, Rees-Mogg promised a bonfire of EU rules with a five-year expiry date, or sunset clause, on 1,500 pieces of EU law .
He told ministers he would reduce the burden of regulation on businesses, prompting trade unions to demand guarantees that workers’ rights would not stand between them.
TUC general secretary Frances O’Grady said: “The last thing the country and workers need is for workers’ rights to be threatened.
“Holiday pay, equal pay for women and men, safe limits on working hours and parental leave are just some of the rights supported by retained EU law. These are all essentials, not nice-to-haves.”
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The TUC has said that the UK is already lagging behind the EU on workers’ rights in areas such as the gig economy, and if EU legislation were eroded, inequalities and rights would become more difficult to rectify in the future in the United Kingdom.
“Ministers are threatening to rip up workers’ legal rights while attacking their ability to defend their working conditions through collective action,” O’Grady said.
“The Conservatives pledged to protect and improve workers’ rights. Now they seem determined to take a hammer to them.”
The UK’s commitment to International Labor Organization (ILO) rules, including the right to strike, is also referenced in the ATT.
The TUC has complained to the ILO about a new law passed by Grant Shapps, aimed at rail strikers, which allows employers to use agency workers.
If there was a negative finding by the ILO, the EU could also intervene under the ATT, said Jeff Kenner, professor of European law at the University of Nottingham.
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