Umbrella Companies | Public sector strike action could affect umbrella company contractors

Public sector strike action could affect umbrella company contractors

Freelancers, contractors and small business owners may want to make preparations so that they are not affected by public sector strikes.

On the 30th June, various unions with public sector members are planning strike action to protest against government cutbacks, salary freezes and pension reforms. One of the largest unions involved in this action is the Public and Commercial Services Union, which has a membership of 250,000 civil servants.

The unions hope that the government and the TUC can reach agreement before the end of June; otherwise three quarters of a million public servants will be involved in industrial action. A strike on such a grand scale could have a disastrous effect on businesses. Previous strike action by HMRC staff has not amounted to much more than extended lunch breaks. This new action however is expected to be lengthier and therefore more disruptive.

It’s not only HMRC that will be affected. Teachers could walk out leading to school closures, and transport and services will also be affected.

Andrew Cave from the FSB has warned that strike action could be counter-productive if staff cannot get transport to work and firms are unable to make deliveries.

David Frost believes industrial action will have an impact on confidence and could deter much needed inward investment.

The business secretary, Vince Cable, has pleaded with the unions not to organise mass strike action over the coming months but the TUC dismisses concerns that the strike will impact businesses. According to the TUC, the biggest effect will be people not getting to work on time.

Nevertheless, work-at-home contractors will no doubt be glad that it will not affect their ability to work!

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