Labour market regulation and the ‘competition state’: an analysis of the implementation of the Agency Working Regulations in the UK

This article examines the changing role of the state, through an analysis of the development and implementation of the EU Temporary Agency Work Directive in the UK. The article outlines and utilizes the concept of the ‘competition state’ to help frame and comprehend the UK Government’s approach to negotiating and shaping the Directive. Using archival, secondary and primary research, the article shows how the state continues to exercise important choices nationally and internationally which, in turn, have profound implications for the operation of labour markets. The article shows how, despite a veneer of fairness, the state has developed a regulatory instrument which provides uneven protection for workers, favours the actions of employers, promotes further flexibility in the use of temporary labour contracts and, by taking advantage of compromises at the European level, creates further market-making opportunities for well-established large agencies in the sector.