UPDATED: CEOs of some of Britain’s largest companies met the UK government yesterday to discuss its controversial Make Work Pay scheme.

Proposed measures include ending “exploitative” zero hour contracts, giving workers the “right to switch off” and the prospect of a four-day work week.  

McDonald’s CEO Alistair Macrow, Nish Kankiwala of John Lewis, Simon Roberts of Sainsbury’s and Allison Kirkby of BT Group were all due to attend.

The bosses met Deputy Prime Minister Angela Rayner and Business Secretary Jonathan Reynolds for a breakfast conference yesterday morning.

One of the CEOs who attended the breakfast meeting told The Times: "It was a very important discussion, but light on detail. Quite a few CEOs talked about the pace of change and the cost implications of that.

“CEOs left the meeting very positive. While there was a lack of detail, it was a good, positive process.”

Another source told The Times the meeting had been "friendly" and Rayner and Reynolds stressed that they wanted to work with business on the reforms.

Rayner and Reynolds reportedly gave a “good impression of listening” and being “open to challenge”.

What Make Work Pay means for CEOs

Make Work Pay was a key component of Labour’s manifesto in the general election and is being overseen by Rayner. The party has not specified any details of the scheme since gaining power.

The manifesto says Labour “will end ‘one sided’ flexibility and ensure all jobs provide a baseline level of security and predictability” as well as “ensuring everyone has the right to have a contract that reflects the number of hours they regularly work, based on a twelve week reference period”.  

In its manifesto, Labour said it would implement the Make Work Pay plans “within 100 days of entering government”.   

The government said yesterday's meeting would be an opportunity for ministers to set out the ambition for the Employment Rights Bill and wider Make Work Pay programme. 

During the meeting, ministers were expected to update businesses on the progress made so far, along with what to expect over the coming months.

Ms Rayner said: “This government is pro-worker and pro-business, and we are committed to working with our brilliant businesses across the country to create a stronger, growing economy and to raise living standards as a result.

“We will work with all partners as we shape our plan to make work pay, so we get the win-win of greater productivity and a fairer working environment for staff.”

The new measures also include making flexible working “the default” for workers who want it, as well as making the publication of ethnicity and disability pay gaps mandatory for employers with more than 250 staff. 

The manifesto says: “Requiring large companies to report on their ethnicity and disability pay gaps is a common-sense way to begin the process of tackling these glaring inequalities.”

The Institute of Directors told The Times that employer confidence had fallen and discussions on employment reform were partly to blame.

Anna Leach, its chief economist, told The Times: “The news flow in recent weeks on employment rights and autumn tax rises has dented confidence in the environment for business in the UK.”

As part of the overhaul of workers rights, the government is also planning to set up a new Fair Work Agency (FWA) that will be given the power to issue fines “in the low thousands” and bring prosecutions to businesses that do not conform with reformed workers rights laws. 

The Department for Business and Trade said: “The Fair Work Agency … will be bringing together existing bodies into a single agency to better support businesses and individuals.”

Extra costs for businesses

The Financial Times reported that some employers are concerned about so many measures being introduced simultaneously.

Michael Stull, managing director of Manpower UK at ManpowerGroup, told The Times that changes to workers’ rights could end up adding extra cost and risk for businesses, which could discourage them from expanding.

He told The Times that his recruiters have seen a slowdown in hiring as employers “wait to see how some of [Labour’s plans] play out”.

Mr Reynolds said today: “The central driving force behind our plan to Make Work Pay is to deliver growth. Our bill will modernise the world of work to create a better supported workforce, which will boost productivity and in turn create the right conditions for businesses to grow.

“The UK currently has one of the least protected labour markets compared to our international partners. It’s time to work together to deliver meaningful reforms that will transform the world of work for the benefit of businesses and workers.”