Election 2015, Day 3: Zero hours and bosses’ letter fire up campaign

BUSINESS stayed at the top of the pre-election agenda  with Labour leader Ed Miliband pledging to end the “epidemic” of zero-hours contracts which he claimed were undermining family life.

Miliband said a Labour government would give workers rights to a regular contract after 12 weeks of working hours.

Meanwhile, both and Labour and the Conservatives traded blows over the letter written to the Telegraph signed by 100 business leaders – including Deeside-based Iceland chief Malcolm Walker, Alex Baldock,  CEO at Shop Direct at Liverpool, and Matt Moulding, of The Hut Group in Northwich – endorsing what the coalition government had done since 2010.

Miliband said: “There is no greater symbol of an economy that doesn’t work than zero-hours contracts.

“In our first year of government, Labour will pass a law which says if you’re working regular hours, you’ll get a regular contract, a legal right that would apply after 12 weeks,” he said.

“If it’s not good enough for us, it’s not good enough for you. It’’s not good enough for Britain.”

The Conservatives have claimed such a move would put jobs at risk, but Mr Miliband insisted it would “absolutely not”.

Conservative sources said nearly 40% of those on zero-hours contracts already worked full time while the Lib Dems said the proposals went “too far”.

Mr Miliband’s plan was also criticised by employers’ groups.

“Of course action should be taken to tackle abuses, but demonising flexible contracts is playing with the jobs that many firms and many workers value and need,” said CBI director-general John Cridland.

The jousting over zero hours contracts followed a backlash from the letter which appeared on the front page of the Telegraph.

Conservatives called it an “unprecedented” move by the business community while Labour dismissed it as “nothing new”.

The letter, also signed by BP chief executive Bob Dudley, Prudential boss Tidjane Thiam and Nick Robertson, chief executive of ASOS, backed cuts in corporation tax from 21% to 20% and other measures, saying the government had been good for business since 2010.

The business leaders, who signed the letter in a personal capacity, say that the present government had supported investment and job creation.

“We believe a change in course will threaten jobs and deter investment. This would send a negative message about Britain and put the recovery at risk,” the letter said.

However, about 20 of the signatories are thought to be long-standing Conservative supporters.

The newspaper said five signatories had previously supported Labour – entrepreneur Duncan Bannatyne,  hotelier Surinder Arora, chairman of Dixons Carphone and Talk Talk Sir Charles Dunstone, theatrical producer Sir Cameron Mackintosh and businessman Moni Varma.

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