Essex businesses would lose their competitive edge if EU policy-makers were to abolish the UK's opt-out from the 48-hour maximum working week, claims the head of the county's Institute of Directors.

Nicholas Cook, the institute's Essex branch chairman believes that the loss of the working time opt-out would seriously hit Essex firms.

"The current flexible approach to working time gives our businesses a vital competitive edge," he said.

"The opt-out cuts both ways: employees who choose not to exercise it retain their right to work no more than an average 48-hour week, but many value the freedom to work more than 48 hours and to be paid more for doing so.

"Competitiveness would be badly undermined if the opt-out were scrapped or restricted.

"The survey shows that many IoD members are open-minded about possible reform of the 'reference period' - the 17-week term used to measure average weekly working hours.

A total of 65 per cent of respondents either had no objection to the prospect of a longer reference period or expressed no preference either way.

However, 77 per cent said that the opt-out must be retained even if the reference period were extended to 12 months.

In a survey of IoD members, 76 per cent of respondents said it would be impossible to run their businesses as efficiently if the opt-out were removed.

Published Thursday April 8, 2004

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