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Annie Hayes

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CBI spread fear of ‘redundancy’ reform

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Employers’ organisation the CBI are said to be ‘appalled’ at the EU’s proposals to reform redundancy laws which may mean that companies can only dismiss staff when bankrupt.

The European Commission sets out its social policy agenda for the next five years today.

Of all the 33 initiatives tabled, the CBI say that the ‘redundancy’ proposals are most ‘damaging’.

CBI Director General Sir Digby Jones commented:

“Restructuring must be seen as positive. It is a means to further growth and development. It keeps Europeans in work by enabling their companies to find ways of fighting off competition from the low cost economies of India and China.”

Diby-Jones said the proposals would strangle businesses and ‘put jobs at risk rather than protect’ them:

“Redundancy can be distressing for the individuals affected but genuine job security doesn’t come from legislation it comes from a flexible economy, quality skills and creating an environment where there are new jobs coming on stream.”

The CBI point to the UK’s favourable labour market as a benchmark:

“The UK has the most flexible labour market in Europe and one of the lowest rates of unemployment. That is no coincidence.”

Redundancy, they say is not only a result of financial crisis but can be a means of creating a more entrepreneurial culture a viewpoint they believe has been overlooked.

Other EU proposals include:

<ul

  • Further slow down restructuring at a national and European level by extending EU-wide worker consultation rules when two or more EU countries are involved.
  • Level up equality legislation in areas where the UK already has more than adequate legislation and a good track record.
  • Influence the setting of minimum wage levels across Europe, undermining domestic economic objectives.
  • Encouraging EU-wide collective bargaining

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    Annie Hayes

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