Britain's food supply chain is calculating what damage the vote by the European Parliament (EP) to end Britain's opt-out from the EU's 1993 Working Time Directive will cause to the sector.

The Food and Drink Federation (FDF), which represents food and drink manufacturers, was particularly disappointed by the EP vote (421 for and 273 against), given its earlier calls for a retention of the opt out.

Coming at a time when the sector faces a very tough business environment, the FDF fears the decision to end the UK's opt out from the 48h maximum working week would remove a vital part of Britain's labour market flexibility. The FDF believes it will make life even more difficult for companies, especially in meeting seasonal fluctuations in demand and for projects requiring short periods of high intensity work.

As well as reducing the sector's flexibility, the FDF fears that removing the opt-out would take away a source of "competitive advantage" and make the UK less attractive to investors.

Angela Coleshill, FDF human resources director, said: "This is very disappointing news for our members. We will want to consult on next steps and consider implications for the future.

"It is a mistake to end the opt-out during a downturn when people might need to work extra hours to earn extra money."