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British firms could face ethnic minority quotas
New government proposals to improve ethnic minority employment will mandate that businesses bidding for public contracts must meet specific racial quotas amongst their staff to be successful, media reports have suggested. Downing Street has authorised new pilot schemes approved by an ethnic minority task force comprised of seven government departments, which will require companies vying to win lucrative government contracts to provide details of the number of black and Asian workers they employ.
These figures would then be compared to the proportion of ethnic minorities living near the business’ offices and would factor into the government department’s decision making on a winning bid. However, business leaders have criticised the potential move as contradictory to the government’s own pledge to reduce red tape burdens.
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“The way to address high unemployment in some ethnic communities is not race quotas but by equipping workers with the skills businesses need,” said Sally Low, director of policy and external affairs for the British Chambers of Commerce (BCC).
“Individuals should be employed based on no other criteria than their ability to do the job and whether they have significant merit compared to all other applicants.”
She warned that the process of tendering for public contracts, particularly for smaller businesses, is difficult enough already, and further restrictions such as these could dissuade businesses with a competitive service from pitching for government work.
Low also questioned whether the rules would apply UK firms’ rivals in Europe, as contracts worth a certain amount must be open to all companies in the EU.
“These proposals simply don't seem to have been thought-through; nor are they applicable to vast swathes of business and industry given the exemptions for rural and construction businesses,” she said. “If enacted, these they could lead to an uneven playing field and will do nothing to encourage many companies to compete for government work.”
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