Cheap goods at what cost? How the EU Road Package can address ‘unfair payments’ to truck drivers

© Copyright David Dixon and licensed for reuse under this Creative Commons Licence.

Peter Turnbull, profile photo

Professor Peter Turnbull, School of Economics, Finance & Management, University of Bristol

As you drive home at night, do you ever pause to think about the many trucks parked in lay-bys at the side of the road? You might be only a few miles from home, but the driver’s home could be thousands of miles away. Imagine if the truck door was the front door to your home, the truck cabin both your office and your bedroom. If this sounds far-fetched, then spare a thought for the thousands of East European truck drivers who work for weeks on end, sometimes months, in Western European countries, driving, eating and sleeping in their cab.

A survey of around 1,000 East European road haulage drivers published by the European Transport Workers’ Federation (ETF) in 2013 found that the majority (60%) spent between 3-12 weeks away from home, 80% cooked and ate their own food in the lorry, 95% took their breaks and rest periods (including the weekly rest of 45 hours) in their lorries (contrary to EU working time regulations), 60% were paid by driven kilometres (despite EU Regulation 561/2006, Art.10 forbidding payments per kilometre schemes that have a negative impact on road safety), approximately 80% of the interviewed drivers stated that fatigue was a problem but they would not report it as they were afraid lose their job. A more recent 2015 study of 225 Bulgarian, Romanian and Macedonian drivers working in Denmark found that the average time working and living in their lorry away from home was 7 weeks (88% slept in their lorry most nights), pay was just €1,100 to €1,900 per month (16% were paid on the basis of kilometres driven), drivers reported regular breaches of the rules on working time and 13% stated that their employer exerted pressure on them to break the rules on driving and resting times. Continue reading

“Buy Brexit”? Using “cultural fit” as evaluation criteria breaches EU and UK public procurement law

Dr Albert Sanchez Graells, Senior Lecturer in Law, University of Bristol Law School

On March 1, 2017, The Guardian  reported that the UK’s Department for International Trade had tendered contracts where they expected that tech companies should have the right ‘cultural fit’ if they wanted to be hired. This was interpreted in the news report as a clear mechanism whereby “Firms bidding for government contracts [were] asked if they back Brexit“. It is indeed a worrying requirement due to the clear risk of unfettered discretion and ensuing discrimination that such ‘cultural fit’ requirement creates. In my opinion, the requirement runs contrary to both EU and UK public procurement rules (and this was later echoed by the follow-up coverage story by The Guardian as well: “Trade department may have broken EU rules with ‘pro-Brexit’ contract criteria”).

In this post, I develop the reasons for the assessment that such a ‘Buy Brexit’ requirement is illegal (which I previously published in my personal blog and the specialised EU Law Analysis blog). I will try to keep this post as jargon free as possible and limit the technical details of my legal assessment as much as possible. However, this is a rather technical area of economic law, so some technicalities will be unavoidable. Continue reading

Industrial strategy: some lessons from the past

Dr Hugh Pemberton
Reader in Contemporary British History, University of Bristol, Department of History

Industrial strategy is back on the government’s agenda, with a promise to produce a ‘match fit’ economy that ‘works for everyone’ and is able to thrive after Brexit. As yet, however, there is little sign of the promised broadly-based and coherent industrial strategy emerging. In crafting it, explains Hugh Pemberton, its architects may profitably look back to the 1960s for some pointers.

For nearly a century, governments have tried to shape Britain’s industrial and commercial landscape. Yet, whilst they often wanted to raise industry’s efficiency and competitiveness, historically there was little consensus on how best to do it. And, whilst ‘industrial policy’ and ‘regional policy’ were often in evidence, the crafting of a broader ‘industrial strategy’ was a rarer event. Continue reading

What is the point of Business?

Businesses are, in some respects, like cement. They are an integral part of the society we inhabit, and yet for the most part invisible to us as tangible entities. We give them little thought, but our lives would be very different were we to wake up to a world without either.

David Hunter, Charity & Social Enterprise Department (Bates Wells Braithwaite LLP) and Knowledge Exchange Fellow (University of Bristol Law School)

David Hunter, Consultant, Charity & Social Enterprise Department (Bates Wells Braithwaite LLP) and Knowledge Exchange Fellow (University of Bristol Law School)

Ms Nina Boeger, Senior Lecturer in Law and Director of the Centre for Law and Enterprise (University of Bristol Law School).

Nina Boeger, Senior Lecturer in Law and Director of the Centre for Law and Enterprise (University of Bristol Law School).

In April 2016, the UK government did invite us to think about the nature of business though as part of what it called a Mission-led Business Review. It set up an Advisory Panel and ran a public consultation and, seven months on, the Panel has reported back to the government with its recommendations. The timing is interesting, with the review commencing when David Cameron was still Prime Minister, before the UK’s Referendum on EU membership and the US election, but the publication of the Panel’s findings coming when those events have demonstrated a clear sense of public discontent with the status quo.

What was the Review about, what is a ‘mission-led business’ and what are the likely responses to and impact of the Panel’s findings?

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Culture in the banking regulators: the need for challenge

Dr Holly Powley, Lecturer in Law, University of Bristol Law School

Dr Holly Powley, Lecturer in Law, University of Bristol Law School

In the aftermath of the financial crisis, a debate has been raging about the culture of financial services institutions – both in terms of how individuals working with financial institutions conduct themselves, but also on attitudes towards risk-taking within these institutions.

Given that banks are now considered to provide consumers with a service that is essential to the operation of the modern economy, this is an important debate. However, those tasked with regulating and supervising the banking sector haven’t escaped this scrutiny either.

If the UK is to avoid a future financial crisis of the magnitude experienced between 2007 and 2009, there also needs to be a culture change within the institutions tasked with overseeing the UK’s financial services sector.

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How mathematics can fight the abuse of big data algorithms

Prof Alan Champneys,  Professor of Applied Non-linear Mathematics, University of Bristol

Prof Alan Champneys, Professor of Applied Non-linear Mathematics, University of Bristol

“Is maths creating an unfair society?” That seems to be the question on many people’s lips. The rise of big data and the use of algorithms by organisations has left many blaming mathematics for modern society’s ills – refusing people cheap insurance, giving false credit ratings, or even deciding who to interview for a job.

We have been here before. Following the banking crisis of 2008, some argued that it was a mathematical formula that felled Wall Street. The theory goes that the same model that was used to price sub-prime mortgages was used for years to price life assurance policies. Once it was established that dying soon after a loved one (yes, of a broken heart) was a statistical probability, a formula was developed to work out what the increased risk levels were.

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The Bristol City Office – what’s it all about?

Tessa Coombes - PhD student in Social Policy, University of Bristol

Tessa Coombes – PhD student in Social Policy, University of Bristol

Last Thursday saw the launch of the Bristol City Office, an idea that has been six years in the making. It’s an idea that seeks to address some of the challenges faced by the public sector, with ever decreasing budgets and reducing powers. It’s about partnership and collaborative governance, bringing organisations, individuals and budgets together to tackle the issues that we have failed to tackle before, where collaboration and joint working are essential, alongside the willingness to be creative and innovative. But why will this approach work when other attempts have failed and how is this different?

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Putting Britain First: The Sino-UK ‘Golden Era’ with Theresa May Characteristics

Dr Winnie King, Teaching Fellow, School of Sociology, Politics and International Studies

Dr Winnie King, Teaching Fellow, School of Sociology, Politics and International Studies, University of Bristol

“The golden era of British-Chinese relations will continue,” Prime Minister Theresa May stated September 2nd on her way to the G20 in Hangzhou, China. Will it however, be the 24 carat of the days of Cameron and Osborne? Or have delays linked to Hinkley Point irrevocably tarnished the gleam of relations?

If President Xi Jinping’s statement during the G20 Summit is any indication, he is willing to ‘show patience,’ giving Mrs. May time to frame and launch her vision of British foreign policy and economic relations.

As one who seems to keeps her cards close to her chest, the question is what shape will this come in?

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Shaping the corporate landscape: it’s high time for corporate reform

Nina Boeger, Senior Lecturer in Law, University of Bristol

Nina Boeger, Senior Lecturer in Law, University of Bristol

Mistrust in corporate governance and multi-national companies has rarely run deeper than today. In extreme cases of misconduct, corporate bosses might be called in to answer questions about their own exploitative conduct vis-a-vis their businesses, as we have seen recently in the public interrogation of Sir Phillip Green, former “owner” of the now defunct BHS.

But generally, it has become ever clearer that while corporations carry responsibility for many of our current global problems, from rising social inequality to looming ecological disaster, they are rarely held fully accountable for their misdemeanours and recklessness.

Our corporate governance system has so far failed to impose effective limits on the rent-seeking of financial investors and the excess of corporate managers at the expense of the wider workforce and the exploitation of our communities and the environment. Instead, profit maximisation for shareholders, and handsome remuneration packages for company directors even when they manage their company against the long-term interests of employees, consumers and the wider communities that businesses are meant to serve, continue to dominate the order of the day.

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Brexit and Worker Rights

Prof Michael Ford QC, Professor of Law, University of Bristol Law School

Professor Michael Ford QC, Professor of Law, University of Bristol Law School

It is now pretty well-known that most of the employment rights in the UK are guaranteed by EU law—the principal exceptions are unfair dismissal and the national minimum wage —as I explained in a recent advice for the TUC. UK legislation on race discrimination, sex discrimination, equal pay and disability discrimination may have pre-dated EU Directives in these areas, but EU law led to protection against other forms of discrimination, such as detrimental treatment owing to age, sexual orientation and religion and belief. Over the years EU law has greatly supplemented or overwritten the domestic regime, almost always in favour of workers’ rights – removing limits on damages, recognising that pregnancy discrimination did not need a comparator, changing rules on the burden of proof, allowing equal pay claims for work of equal value, protecting against harassment and post-employment victimisation. I could go on.

Now extending far beyond discrimination, the EU-guaranteed rights include almost all the working time protections, including paid annual leave and limits on working hours; the protection of agency, fixed-term and part-time workers; rights on the transfers of an undertaking (extremely significant in a world dominated by out-sourcing); many rights to information and collective consultation; the most important health and safety regulations; the right to a written statement of terms of employment; protections in insolvency derived from the EU Insolvency Directive, which led to important extensions to the state guarantee of pension benefits and protection of other claims where the employer is insolvent (no doubt to be in play in relation to British Home Stores); and EU data protection law, the driving force behind the Information Commissioner’s Employment Practices Code, providing some controls over the monitoring and surveillance of workers.

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