CBI Slams Proposed Changes To European Redundancy Laws

by Robin Pilgrim, LawAndTax-News.com, London

15 February 2005

Following the release on Thursday of the European Commission's social policy agenda for the next five years, the Confederation of British Industry has slammed EC plans to consult on reforming European redundancy laws.

Expressing concern that the Commission may seek to resurrect proposals which would mean firms could only make redundancies when they are on the verge of bankruptcy, CBI director general, Sir Digby Jones argued that:

"Markets, technologies and global competition change more quickly than ever. Companies have to be able to adapt quickly or go under. 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."

He went on to add that:

"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."

In a statement, the CBI stressed that restructuring does not occur just as a result of financial crisis.

"It can, for example, be a means of creating a more entrepreneurial culture by reducing management or incorporating new technologies. It is specific to the company and not suited to one-size-fits all legislation," the industry body observed.

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