MINISTERS were told not to listen to tired arguments from vested interests today after Britain’s biggest business groups wrote to the government lobbying for changes to the Employment Rights Bill.

The legislation promises to crack down on zero-hours contracts, provide sick pay for all workers and repeal the Tories’ draconian Minimum Service Levels Act. 

But in an open letter, the British Chambers of Commerce, Confederation of British Industry, Institute of Directors, Federation of Small Businesses and Make UK claimed the Bill will “have deeply damaging implications for the government’s priority growth mission.”

The groups argued the legislation would “guarantee continued conflict” by empowering trade unions, rather than whichever party “is behaving reasonably.”

Changes to statutory recognition and strike ballot turnout thresholds upend “confidence that union representatives speak on behalf of staff” it said.

Employees would be protected from unfair dismissal from day one under the Bill. 

But the letter argued this would discourage firms from hiring, “particularly those at the margins of the labour market,” due to fears of expensive tribunal claims.

Workers on zero or low-hour contracts who regularly work would also be offered guaranteed hours.

But business leaders complained this would create “unnecessary administrative costs.”

They called on the peers to “scrutinise and improve” the Bill and make it “pro-business and pro-worker.”

TUC general secretary Paul Nowak said: “The same discredited arguments we are hearing against the Bill were used against the introduction of the minimum wage.

“They were wrong then and they are wrong now. 

“Surveys have shown that these reforms are actually very popular with business managers. 

“They see the potential for these changes to help improve productivity. That makes it a win-win for employers and their staff.”

GMB national secretary Andy Prendergast said: “Ministers can’t listen to the same old vested interests making the same old tired arguments.

“The CBI and their ilk have opposed every advance in workers’ rights, from a minimum wage to equal pay for women.

“These are the voices for a status quo that has delivered nothing but decades of stagnation for working people.”

General Federation of Trade Unions (GFTU) general secretary Gawain Little said: “The Employment Rights Bill, whilst welcome, is already watered down from the original New Deal for Working People – which committed the Labour Party to introduce sectoral collective bargaining arrangements for each sector of the economy and bring the law on industrial action into line with the UK’s international obligations.

“The only reason for further watering down would be for dodgy employers to force exploitative zero-hours contracts onto marginalised workers or for unscrupulous bosses to use fire and rehire to smash workers terms and conditions.

“What we need is the original New Deal for Workers implemented in full, starting with the measures contained in this current Bill.”

A government spokesperson said the Bill represents “the biggest upgrade to workers’ rights in a generation.

“We’ve consulted extensively with business on our proposals, and we will engage on the implementation of legislation to ensure it works for employers and workers alike.”

NEU general secretary Daniel Kebede said the Employment Rights Bill was a “good and important step forward on workers’ rights,” as the union passed a motion on defending members’ rights at its conference in Harrogate yesterday.

“For too long, our members have faced poor treatment at work and the means of enforcing those rights have become increasingly protracted,” he said.

“It remains the case that after decades of attacks on trade unions, UK workers remain shackled by some of the most restrictive trade union legislation in Europe. 

“The government should repeal the Conservatives’ anti-union legislation at the earliest opportunity, as part of its plan to make work pay.”