The REC was ‘disappointingly ineffective’ in representing the IT sector in negotiations with the DTI over the Employment Agencies Act Regulations before publication of the draft proposals in February, according to Bernard Innes, MD of IT recruiter Executive Recruitment Service (ERS).

‘I do not believe there was adequate discussion with members in the technical division of the REC before the draft Regulations were issued in February,’ Innes said. As far back as August 1999, Innes sent a letter to Christine Little, chief executive of what was then FRES, expressing his ‘great concern’ at the lack of consideration of the IT sector with respect to discussions with the DTI.

According to Innes, the REC concentrated on the temp-to-perm issue at the expense of the temp-to-temp and temp-to-third party regulations. ‘It could be a problem that Tim Nicholson doesn’t have an adequate understanding of the IT sector with respect to these issues,’ he said. ‘Maybe they did not think it necessary to consider the effect of this regulation on IT recruiters, because they do not comprise the majority of their membership.’

When the REC technical division met in February, following publication of the draft proposals, Innes mentioned that if IT recruiters’ views were not adequately represented by the REC, then it was possible that some IT companies might leave the industry body. However, ‘at this time I haven’t heard of anyone doing so,’ he added.

ERS has issued the REC with documentation demonstrating that the average cost of placing an IT contractor is higher than that of placing a permanent employee.

‘Had the REC consulted technical recruiters before February, I believe they would have taken the pro-active approach that they are now doing,’ said Innes. ‘Whether the DTI will listen at this stage, we don’t know.’