Industrial Relations Journal 28:3 ISSN 0019-8692 British employers and the Social Chapter: some survey evidence David Sapsford, Geraint Johnes, Harvey Armstrong and Ronan de Kervenoael This note reports the results of a survey of firms operating in Britain concerning the impact on their costs and operations of the Social Action Programme. We find that the realised and anticipated adverse impacts of the legislation are rather limited, although both do appear to be greater for firms which are relatively large, skill intensive, and which have a substantial amount of trade with other EU countries. In parti- cular, the survey results provide little evidence to suggest that the impo- sition of a minimum wage of £3.50 per hour would have a substantial adverse impact on employment. Evidence does, however, suggest that firms which pay relatively low wages are likely to be affected more than others by the legislation. The provisions of the Social Chapter of the after election to government. True to their Maastricht Treaty (Treaty of Union, 1992) word, the in-coming Labour Government have generated considerable political debate (elected to office in May 1997) has, in one of within Britain. Prior to its recent electoral its first acts, informed Brussels that the UK defeat, the Conservative administration had will become an immediate signatory to the resolutely stuck to its decision to opt out of Social Chapter. The Conservative Party in the Social Chapter’s provisions as one of the opposition remains as resolutely against the central planks of the government’s economic Social Chapter as ever it was. policy. Whilst in opposition, the Labour Party The views of the major UK political parties chose to adopt many of the principles of the reflect widely differing opinions among stu- Social Chapter and these were carried dents of European labour markets regarding through into a manifesto commitment to sign the likely effects of this type of social legis- up to the Social Chapter as soon as possible lation. Yet surprisingly little factual evidence has been collected about the attitude of Brit- ish employers to the various dimensions of ❒ David Sapsford is Professor of Economics in the workers’ rights specified in the Social Chap- Economics Department at the University of Lancaster, ter[1]. While it is true that various employers Geraint Johnes is Senior Lecturer in the same Depart- and employers’ associations have expressed ment. Harvey Armstrong is Professor of Economic support for the Conservative Party position, Geography in the Geography Department at the Uni- versity of Sheffield, Ronan de Kervenoael is Research it is equally true that others have voiced sup- Assistant in the same Department.  Blackwell Publishers Ltd. 1997, 108 Cowley Road, Oxford OX4 1JF, UK and 350 Main St., Malden, MA 02148, USA. 236 Industrial Relations Journal