48-hour week puts pub trade under pressure

by Claire Hu Plans to end Britain's opt-out of the 48-hour working week will result in many smaller managed houses converting to tenancies and others coming under huge financial pressure, a leading pub company director has warned. Julian Bradwell, Greene King Pub Company human resources director, said the trade needed to gear up for an "inevitable" scrapping of the Working Time Directive exemption, which the European Commission would consider in November. Most pub managers currently sign a voluntary opt-out of the 48-hour week. Bradwell said that, although the Government may achieve a "stay of execution", the clause would eventually go. This is despite the Department of Trade and Industry this week revealing it intends to fight to keep Britain's exemption. "We have to assume the opt-out will go, whether in 12 months or two years time," said Bradwell. "Along with increases in the national minimum wage, this will have a significant impact on pubs at the lower end of the market. "Those trading under £5,000-£6,000 will be less viable to run as managed houses. If the 48-hour week comes in we will be reviewing those houses to see if they are viable and looking at transferring them to tenancies. This is no bad thing, but the 48-hour week means it will be more difficult for lower-end houses to make profit and it's going to put the whole industry under pressure." Greene King ­ which operates 1,600 managed and leased houses ­ has, along with other pub companies including Mitchells and Butlers and Spirit Group, been working towards a 48-hour week for managers. Bob Cartwright, Mitchells and Butlers spokesman, said there was a high level of uncertainty in the trade about what would happen. He said: "The issue is still being debated at all levels. Lots of people want to retain the flexibility Britain has." A spokesman for the DTI said: "The UK's opt-out clause was always going to be reviewed. We are keen to maintain an individual's flexibility and think the system is working fairly well. If the proposal is to scrap it we would resist, but we would be happy to look at how we could improve it." l Britain was among countries which last week blocked European Commission plans to give temporary workers the same rights as permanent staff.