Unions have accused the government of making it easier to sack
people after a minister announced that the period before large-scale
redundancies can take place is to be cut from 90 to 45 days.
Jo
Swinson, Liberal Democrat employment relations minister, also announced
plans to exclude fixed-term contracts from collective redundancy agreements when they reach the end of their "natural life". Swinson
said the changes were aimed at helping workers and businesses.
The
TUC said the measures "will not save a single job". Reducing the
consultation period gave unions less time to work with employers to find
ways to save jobs. Removing redundancy rights from fixed-term contract
staff would create more job and financial insecurity for temporary staff
and reduce their chances of redeployment.
Currently, firms must
consult with staff for a minimum of 30 days before making more than 20
staff redundant, or 90 days when 100 or more jobs are at risk. The
Department for Business, Innovation & Skills said a consultation on
the changes conducted last summer had resulted in a strong argument for
shortening the 90-day period, and moving to 45 days would still allow
full employee engagement including the statutory right to contribute to
the process.
The changes form part of the government's commitment to reviewemployment law to support business and concentrate on growth.
Swinson
said: "The process is usually completed well within the existing 90-day
minimum period, which can cause unnecessary delays for restructuring
and make it difficult for those affected to get new jobs quickly. Our
reforms will strike an appropriate balance between making sure employees
are engaged in decisions about their future and allowing employers
greater certainty and flexibility to take necessary steps to
restructure." The change is planned to be introduced from next April.
Brendan
Barber, the TUC general secretary, said: "The last thing we need is for
the government to make it easier to sack people. Unemployment has not
gone as high as many feared because employers have worked with unions to
save jobs, even if it has meant sharing round fewer hours and less
work.
"The need to consult unions has made an important
contribution to that, and also given staff, many of whom will have had
years of loyal service, time to think through their options.
"These
measures will not create a single extra job. The idea that an employer
will change their mind about taking someone on because the statutory
redundancy consultation period has been reduced from 90 to 45 days is
close to absurd.
"Removing consultation rights from fixed-term
contract staff will seriously increase job and financial insecurity for
vulnerable groups of workers, and temporary staff will lose out on
redeployment opportunities."
The University and College Union
(UCU) said plans to exclude fixed-term contracts from collective
redundancy agreements were "another damaging blow" for post-16
education, a sector with high rates of staff on fixed term contracts
that has already been hit with funding cuts and threats of job losses.
The
UCU general secretary, Sally Hunt, said the plans meant trade unions
would no longer have the legal right to be consulted about widespread
redundancies of staff who happen to be on fixed-term contracts – many
with long years of service.
Hunt said: "Casualisation in our
universities and colleges remains the unacceptable underbelly of post-16
education and these changes send a very worrying message to staff.
Employers should maintain collective consultations whether or not they
remain a legal requirement, as it is good for staff and institutions to
engage in positive dialogue.
"Jobs for early careers staff in
further and higher education are already notoriously insecure; making
the situation even worse could result in many considering different
career paths."
Business groups welcomed the plans as sending a
"strong signal" that ministers were committed to creating a flexible
labour market.
Tim Thomas – head of employment and skills at EEF,
the manufacturers' organisation – said: "By reducing the consultation
period from 90 to 45 days, the government has taken a further step to
creating a modern, consultation system based on the quality, not the
length of, the process.
"It now needs to complete the package by
introducing simpler settlement agreements and protected conversations
that provide a better base for discussing and managing change in the
workplace."
Neil Carberry, the CBI director for employment and
skills, said: "The priority for businesses is meaningful consultation. A
shorter consultation period will reduce uncertainty for staff and allow
businesses to focus on the future more quickly."