A WARNING that Yorkshire businesses would lose their competitive edge if EU policy-makers were to abolish the UK's opt-out from the 48-hour maximum working week has been issued by the Institute of Directors (IoD).

In a survey, 76 per cent of IoD members responding said it would be impossible to run their businesses as efficiently if the opt-out was removed. Ninety per cent of respondents said the opt-out must remain in place.

The survey results are included in the IoD's response to the European Commission's review of the Working Time Directive, which took effect in the UK in 1998.

Henis Kaye, deputy chairman of the IoD in Yorkshire, said: "Britain's flexible approach to working time gives our businesses a vital competitive edge.

"The opt-out cuts both ways: employees who choose not to exercise it retain their right to work no more than an average 48-hour week, but many value the freedom to work more than 48 hours - and to be paid more for doing so.

"Competitiveness would be badly undermined if the British opt-out was scrapped or restricted."

The survey shows that many IoD members are open-minded about possible reform of the 'reference period' - the 17-week term used to measure average weekly working hours.

A total of 65 per cent of respondents either had no objection to the prospect of a longer reference period or expressed no preference either way. However, 77 per cent said that the opt-out must be retained even if the reference period was extended to 12 months.

Updated: 11:51 Thursday, April 08, 2004