APSCo calls on CBI to introduce code of conduct on fair payment terms
14 July 2014
The head of the Association of Professional Staffing Companies (APSCo) has called on the CBI to introduce a code of conduct on fair payment terms throughout the recruitment supply chain.
Mon 14 July 2014 | By Gurjit Degun, Supply ManagementThe head of the Association of Professional Staffing Companies (APSCo) has called on the CBI to introduce a code of conduct on fair payment terms throughout the recruitment supply chain.
“I think [CBI] are in a uniquely strong position to have a code of conduct for your members, big or small, about what is appropriate,” said APSCo chief executive Ann Swain.
“There’s been a huge loss of understanding [regarding] what appropriate behaviour is and I actually think the CBI, in the strong position that they’re in, could set a precedent for guidelines about what’s appropriate for their members.”
Tom Thackray, CBI’s senior policy adviser, said that it would be possible “in principle”.
“I think that the difficulty is that different sectors have different levels of appropriateness so we would rely very much on our members to guide us on what is appropriate in their sector,” he said.
Regarding what can be done to ensure fair and transparent payment terms throughout the recruitment supply chain more widely, Philip King, CEO at the Institute for Credit Management, said that there were a number of issues.
“We need more transparency, we need legislation and it needs to be used effectively, we need good practice, and we need some good credit management skills because sometimes it’s the supplier that gets it wrong and doesn’t use the right invoice number or send it to the right place.”
Richard Herring, managing director and senior vice president for Europe and Asia at staffing solutions firm Volt, called for suppliers not to work with companies with unfair payment terms. “I think fundamentally what we are talking about is commercial relationships,” he said.
“The reality is if the end client absolutely refuses to take an assignment then what do you do about it – don’t work with them. It’s the commercial reality. Why are we working with any parties that have a really poor credit rating or you cannot get any assurances from them?”
This story first appeared in supplymanagement.com
“I think [CBI] are in a uniquely strong position to have a code of conduct for your members, big or small, about what is appropriate,” said APSCo chief executive Ann Swain.
“There’s been a huge loss of understanding [regarding] what appropriate behaviour is and I actually think the CBI, in the strong position that they’re in, could set a precedent for guidelines about what’s appropriate for their members.”
Tom Thackray, CBI’s senior policy adviser, said that it would be possible “in principle”.
“I think that the difficulty is that different sectors have different levels of appropriateness so we would rely very much on our members to guide us on what is appropriate in their sector,” he said.
Regarding what can be done to ensure fair and transparent payment terms throughout the recruitment supply chain more widely, Philip King, CEO at the Institute for Credit Management, said that there were a number of issues.
“We need more transparency, we need legislation and it needs to be used effectively, we need good practice, and we need some good credit management skills because sometimes it’s the supplier that gets it wrong and doesn’t use the right invoice number or send it to the right place.”
Richard Herring, managing director and senior vice president for Europe and Asia at staffing solutions firm Volt, called for suppliers not to work with companies with unfair payment terms. “I think fundamentally what we are talking about is commercial relationships,” he said.
“The reality is if the end client absolutely refuses to take an assignment then what do you do about it – don’t work with them. It’s the commercial reality. Why are we working with any parties that have a really poor credit rating or you cannot get any assurances from them?”
This story first appeared in supplymanagement.com
