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.
But 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 has hit out; arguing cutting back these consultation rights would be "detrimental for employers, employees and the wider economy".
A TUC survey of workplace reps revealed that more than a third (36%) of employers were willing to agree to longer consultation periods than the statutory minimum, often willing to consult for 90 days or more when far fewer than 100 redundancies were planned.
The TUC believes any reduction in the 90 days minimum consultation period will send a signal to employers that they need not prioritise exploring ways of saving jobs. This could, it claims, lead to increased unemployment and more reliance on the welfare benefits, and would also have a detrimental impact on local economies and communities - particularly those areas of the UK where unemployment is already high and where there are limited job vacancies.
The TUC argues there is now a case for strengthening collective redundancy consultation arrangements. For example, the recent experience of former Woolworths staff illustrates the unfair outcomes which can result from the 20 employee threshold for redundancy consultation.
TUC General Secretary Brendan Barber said: "Genuine consultation between unions and employers is vital in a redundancy process, regardless of how many people are at risk of losing their jobs. 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.
"As a result of the recession and government spending cuts, unemployment is now running at more than 2.6 million and tens of thousands of jobs will continue to be lost in the public sector this year. Rather than cutting back on consultation rights, now is the time for ministers to strengthen collective redundancy arrangements and protect working people and employers."
