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Consultation cuts 'could increase unemployment'

Proposed cuts to redundancy consultations run the risk of damaging workplace morale and increasing the rate of unemployment, the Trades Union Congress (TUC) has warned.

Firms in a position whereby they are making between 20 and 99 employees redundant have to allow for a consultation period of at least 30 days, which is extended to 90 days for 100 or more members of staff.

However, the government is currently considering reducing the 90-day cap in order to make it cheaper and easier for companies to lay off a large proportion off their workforce.

"Genuine consultation between unions and employers is vital in a redundancy process, regardless of how many people are at risk of losing their jobs," remarked TUC general secretary Brendan Barber, adding this should be increased in the wake of high unemployment.

Indeed, the latest figures from the Office for National Statistics reveal 2.67 million people are out of work - higher than at any other time since 1995.ADNFCR-1898-ID-801296915-ADNFCR

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