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19 March 2013

How the coalition sneaked through a law making it easier to sack workers

While all eyes were on press regulation, MPs quietly voted to halve the consultation period for redundancies from 90 days to 45.

By George Eaton

While the Commons noisily debated press regulation, MPs elsewhere in the House quietly signed away workers’ rights. On a delegated legislation committee (a backdoor means of sneaking through contentious amendments), nine Conservatives and two Liberal Democrats voted to reduce the consultation period for collective redundancies from 90 days to 45. 

At present, employers planning to make 100 or more redundancies are legally required to consult with trade unions and other employee representatives for this period to help minimise the impact and seek alternatives to job losses. Unite cites the example of Jaguar Land Rover, which proposed making over 1,000 staff redundant in 2009 but later avoided any job losses after identifying £70m of savings during the consultation.

The reduction to 45 days, based on a proposal in the infamous Beecroft report, means fewer companies will now adopt this enlightened approach. As John McDonnell, one of the seven Labour MPs who voted against the measure (only 18 MPs can sit on the committee), noted: “We know that the reduction to 45 days means that the opportunity for consultation is hopeless. It will not happen and will be meaningless. There will not be the time for the employees to work with the employers to look at alternative plans for that company.” 

The Labour leadership is also opposed to the measure. Shadow minister for employment rights Ian Murray said: “Collective redundancies are, or course, one of the most dramatic forms of job loss. That is why the current legislation on collective redundancy is so vital; it allows for particular care to the process of achieving business restructuring, ensuring that employees are involved as much as possible in the decision-making and if job losses are necessary then all employees and their representatives are closely involved.”

The change will now come into force on 6 April but you will search in vain for a mention of yesterday’s vote in today’s papers. 

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