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Law sees workers consulted on jobs
Page 13
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• Larger companies will be obliged to consult staff on all management decisions affecting employment when new works council legislation comes into force.
Under the proposals, launched by the Department for Trade and Industry last week, works councils will be consultative bodies set up within companies where managers and staff can exchange views on issues relating to employment.
Under the plans, all companies with more than 150 staff must adopt consultation procedures In 2005, while those with 100 or more must comply by 2007, and those with 50 or more by 2008. Firms found to be in breach of the rules would face fines of up to £75,000.
According to Road Haul* Association employment specialist Ruth Pott, the proposals mean employers will have to consult staff before they make changes that could affect their jobs.
"It may undermine peoples' prerogative to manage their businesses, but it's not coming In for a long time and a lot of companies will remain exempt." she adds.