06.06.12
Manufacturers condemn ‘no-fault dismissal’ proposal
The trade body representing manufacturers has called on the Government to ignore calls for ‘no-fault dismissal’.
Their position is in line with that held by business secretary Vince Cable, who has said the idea would create uncertainty for workers, leading to less spending and worse economic performance.
The idea was the most controversial element in the report for the Government by Adrian Beecroft, a Conservative donor.
But the EEF manufacturers group, in its submission to the consultation, said there is “little support” even among industry employers for the proposal.
Its chief executive Terry Scuoler said: “The Government is right to focus on making our labour market more flexible, but the case for no-fault dismissal is far from proven. We've found little support from industry for introducing no-fault dismissal, its benefits look pretty limited and we've seen no evidence that it would increase recruitment.
“The Government now needs to take a hard look at whether the claims for its benefits are real and at the risk of damaging employment relations.”
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