As discussions around the Good Jobs Employment Rights Bill gain renewed momentum in the New Year, one term has entered into the lexicon of discussion: unintended consequences. It evokes caution but often without solid evidence to support it.
What if improving employment rights makes businesses less competitive? What if the economy falters under the weight of new regulations? What if small businesses collapse under the strain? And, ultimately, what if, in our effort to improve conditions for workers, we end up harming the very people we aim to protect? Evidence suggests otherwise.
Far from being an unpredictable gamble, the Good Jobs Bill is grounded in deliberate, evidence-based outcomes that aim to create a fairer and more sustainable economy. This oversimplified choice suggests that stronger worker protections must come at the cost of economic growth. However, this narrative overlooks a critical truth: it’s not a trade-off between business and worker well-being. In fact, the evidence supporting the positive, intended consequences of strengthening worker protections for businesses, the economy and for workers is strong.
Stronger protections for workers can create the conditions for a healthier, more productive workforce, which ultimately drives long-term prosperity for businesses and the wider economy. The Good Jobs Bill is designed to create a healthier, more productive workforce, which in turn drives long-term prosperity. Empirical research demonstrates that businesses with higher employment standards - fair pay, job security, work-life balance, and meaningful worker representation - outperform their competitors over time. These companies experience reduced absenteeism, fewer workplace disputes, greater innovation, and higher employee motivation.
Moreover, businesses already operating with fair employment practices offer a blueprint for success. Many companies exceed the baseline standards proposed by the Good Jobs Bill, investing in fair wages and stable contracts because they understand the return on investment. When businesses invest in their people, their people invest in them.
Poor job quality, unfair pay, insecure work, and lack of access to rights create significant economic problems - lower productivity, higher in-work poverty, and greater reliance on state support.
But there is more at stake. The Good Jobs Bill is about levelling the playing field for businesses that already treat their workers fairly, but it also targets unscrupulous employers who exploit workers with minimal rights, low pay, and no job security. These employers often rely on practices that undercut fair competition, pushing down standards across entire sectors. This results in insecure, poorly paid jobs with little opportunity for advancement - damaging both workers and the economy.
This bill will ensure that all businesses operate on a level playing field, rewarding those who treat their workers fairly and curbing exploitative practices that undermine competition. This creates a race to the bottom, where the conditions of employment become the item of competitiveness, harming both workers and the wider economy.
The Good Jobs Bill levels the playing field by ensuring that all employers adhere to minimum standards of decency. This protects workers from exploitation and supports businesses that invest in their workforce, fostering a healthier and more sustainable economic environment.
The argument that stronger employment protections harm competitiveness doesn’t align with the evidence. Economies that prioritise job quality and worker protections - the so-called "high road" approach - tend to achieve more sustainable and equitable growth. These economies foster higher productivity, increased innovation, and better standards of living. Conversely, the "low road" approach, which relies on cutting worker protections and wages to remain competitive, often leads to stagnation, high turnover, and poor productivity. These issues erode our economic foundation over time.
History shows that labour laws have often been key drivers of economic progress. Strong worker protections are not a barrier to growth; they are the foundation for it. Businesses that invest in fair pay, job security, and work-life balance are more competitive. They attract and retain talent, reduce turnover, and foster innovation. In contrast, businesses relying on insecure, low-paid work often struggle with high turnover, low morale, and stagnant productivity. This is the reality many businesses face, underscoring the importance of the Good Jobs Bill.
In Northern Ireland, the need for such reforms is particularly urgent. Employment rights have lagged significantly behind those in Great Britain. Moreover, in the context of persistently high rates of economic inactivity we need to be cognisant of the fact that insecure work with minimal rights often leaves workers disillusioned and disengaged. This can lead to higher rates of absenteeism, burnout, and ultimately a withdrawal from the labor market. When individuals perceive limited opportunities for fair pay, no voice, lack of clear trajectory of career progression, or job stability, they are more likely to leave the workforce altogether or avoid re-entering it.
The Good Jobs Employment Rights Bill is not about burdening businesses with unnecessary regulations. It is about establishing a baseline of fairness and decency that benefits everyone. When workers are treated with dignity, they are more engaged, productive, and loyal. When businesses invest in their workforce, they reap the rewards of higher productivity, innovation, and long-term success.
Rather than fearing unintended consequences, we should focus on the bill’s intended outcomes: stronger businesses, a healthier economy, and better livelihoods for workers. Strengthening employment rights is not a trade-off; it is a win-win for workers and businesses alike.
A version of this article was originally published in the Belfast Telegraph on 28th January 2025.