Cut redundancy consultations and risk increasing unemployment, warns TUC

Reducing consultation rights during collective redundancy exercises could cost jobs, damage workforce morale and increase unemployment, the Trades Union Congress (TUC) warns today (Monday).

Currently, where employers are proposing to make between 20 and 99 employees redundant, they must allow for at least 30 days consultation with unions or workplace representatives before any job cuts can take effect. Where 100 or more jobs are at risk the consultation period must last for at least 90 days.

“Genuine consultation between unions and employers is vital in a redundancy process, regardless of how many people are at risk of losing their jobs,” said TUC chief Brenden Barber. “Working together, unions and bosses can decrease the number of job losses, avoid compulsory redundancies and ensure that the redundancy process is fair. They can also retain skilled staff and maintain morale amongst remaining staff.”

The government is considering whether the 90-day consultation period should be reduced to make it easier, quicker and cheaper for employers to lay off staff. The TUC argues that cutting back these consultation rights would be detrimental for employers, employees and the wider economy.

Genuine consultation and effective negotiations between unions and employers can deliver genuine benefits, says the TUC, by lowering job losses, avoiding compulsory redundancies, and assisting employers to retain skilled staff. The process helps to ensure restructuring exercises are transparent and fair.

via Cut redundancy consultations and risk increasing unemployment, warns TUC.