Workers to get consultation on employment decisions

Draft legislation published by the UK government today sets out plans to force employers to consult with staff over management changes relating to employment.

The draft legislation has been welcomed by both the Confederation of British Industry (CBI) and trade unions who have conducted extensive talks with the Government in the run-up to drafting the legislation.

The new plans mean employees have the chance to be informed and consulted on management decisions affecting their future. These could include employment prospects, changes in work organisation or contractual relations - including redundancies and transfers - and economic prospects for their industry.

Announcing the framework consultation, Trade and Industry Secretary, Patricia Hewitt, said: "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.

"We have reached this agreement with the CBI and TUC through constructive dialogue and discussion. It's exactly the spirit in which we all want new rules on information and consultation to operate in workplaces across Britain."

Under the framework proposals based on the European Directive on employment law, companies with more than 150 staff will have to put in place consultation procedures by 2005, but those with smaller numbers more than 100 employees will have until 2007, and those employing 50 more will have until 2008 to implement the consultation process.

CBI Director General, Digby Jones, said: "The Government has made sense of a poor piece of EU legislation. It has protected good consultation, which matters so much to employers and employees. It has also avoided overly rigid rules and damaging one-size-fits-all solutions."

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."

(SP)