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BT job cull shows downside of flexible staffing, but what about the upside?
Posted Nov 17, 2008
Last week's announcement of large scale job losses at BT has highlighted the particular vulnerability of agency temps and self-employed contract workers at times of economic recession.
However, John Philpott, Chief Economist at the Chartered Institute of Personnel and Development (CIPD) says this reality should not be used to question the merit of the UK's flexible labour market.
Dr Philpott said:
"CIPD evidence indicates that at times of trouble, employers will first cut temporary and contract staff so as to avoid the greater cost and difficulty of making permanent staff redundant. This is why so far in the current economic downturn redundancies have only been the tip of the iceberg of total job losses.
"While this makes agency temps and contract workers more vulnerable at such times, one should not forget that most people who work on this basis want to do so and are often best able to seek out opportunities when the going gets tough. And contract staff will also be first in line to be hired when the economy eventually recovers since employers will at first be reluctant to recruit people on permanent contracts..."
Professional Contractors Group
John Brazier, MD PCG said of the jobs cull:
"BT's announcement is not good news for any contractor who may be affected by the cuts. However, when you choose to go freelance you opt for the benefits, such as being your own boss, making more money and having the freedom and variety, as well as the pitfalls which include less security and less certainty. It doesn't suit everyone. However, the Government could be doing even more to help freelancers weather the economic storm."
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