C3 Jobs, the recession and redundancy rights

Composite of motion 3 and amendment, and motion 4

Congress is deeply concerned at the substantial job losses being suffered by workers in the UK and the consequential affects this will have in the short and medium term for workers, their families and industry. Congress congratulates those workers fighting to keep their jobs, including those taking action such as the occupation of workplaces in order to raise awareness and stop closures.

Congress recognises the hardship inflicted by redundancies announced in the last 12 months, such as the 30,000 redundancies at Woolworths resulting from the collapse of the business.

The Woolworths situation highlights the inadequacy of the current legal duty on administrators to consult with employees and their trade union representatives in insolvency situations.

Administrators are currently under little obligation to try to save the business or open serious discussions with employees to identify possible alternatives to closure, sell off and redundancies.

Congress believes that administrators should be under a greater legal responsibility to engage in meaningful consultation with employees and their trade union representatives to seek alternatives to closures and redundancies.

Congress further notes that the current recession has once again demonstrated the absence of a level playing field when it comes to safeguarding jobs in the UK. The cost of making a UK worker redundant falls far short of that in most EU competitor countries.

Congress believes that the experience of the last 12 months highlights the need for improvements to Statutory Redundancy Pay. Congress welcomes this year’s increase in the amount of an employee’s weekly earnings that counts towards Statutory Redundancy Pay. However, Congress is disappointed that the promised review of statutory redundancy pay in the lifetime of this Parliament has still to be implemented and at best will only raise the maximum weekly wage level to £380, which falls far short of the average earnings in the UK. Congress resolves to seek further increases in this limit.

Congress also seeks a reduction in the two-year qualifying period for Statutory Redundancy Pay. Workers should be entitled to Statutory Redundancy Pay from day one of their employment but even a reduction in the qualifying period to one year would benefit thousands of workers.

Congress further seeks an increase in the maximum number of years of employment that are taken into account for Statutory Redundancy Pay.

Congress also is disappointed that nothing has been done to assist employers and employees in their efforts to maintain skills and avoid redundancy through reduced working hours and temporary lay-offs. A temporary short-time working compensation scheme has been proven to work in Wales and should be applied across the UK.

Congress resolves to lobby the Government and campaign for the above improvements to statutory redundancy and consultation rights. Congress calls upon the Government to:

i)        review its current plans for statutory redundancy pay and to support the proposals contained in the Private Member’s Bill currently being considered in Parliament which would raise the maximum weekly pay to the equivalent of average earnings and maintain such a link in the future

ii)      introduce a temporary short-term working compensation scheme to ensure essential skills are not lost to the economy.

Mover:  Unite
Seconder:  Union of Shop, Distributive and Allied Workers

Supporter:  Transport Salaried Staffs’ Association