Worker consultation framework agreed
The Government announced today that it has agreed a framework for implementing the European Directive on employment law that will see employees being consulted on management decisions affecting their future.
Trade and Industry Secretary, Patricia Hewitt announced that the framework has been agreed with the Confederation of British Industry (CBI) and the TUC that will see workers consulted on changes in work organisation or contractual relations, including redundancies and transfers economic prospects for their industry.
Ms Hewitt announced that the new rules would take effect on companies with more than 150 employees in 2005, those with 100 or more in 2007, and those with 50 or more in 2008.
Ms Hewitt stated, ‘I want these changes to lead to a “no surprises” culture at work where employers and employees discuss common ground and find solutions to mutual problems. I want to see an end to the climate where people only hear about job losses from the media, over their breakfasts.’
Digby Jones, CBI Director General argued that the Government had managed to keep the good parts of a ‘poor piece’ of EU legislation. He claimed that the Government has protected good consultation and has avoided over rigid rules that would damage businesses competitiveness.
TUC General Secretary, Brendan Barber, added, ‘Information and consultation rights are good for both employees and business. These proposals are all about building trust, respect and partnership in the workplace, a crucial ingredient in closing the UK’s productivity gap.’
The new rules will enable staff to request information and consultation arrangements from their employer with a petition from 10% of the workforce if an agreement is not already in place.
Firms that flout the new rules could face a fine of up to £75,000 depending on the size of the firm. Enforcement of the provisions will be by a range of bodies such as the Central Arbitration Committee, Employment Tribunals and the civil courts.
