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The Engineering Employers' Federation is urging the Government to introduce the Acas arbitration scheme soon after reporting a record number of employment tribunal claims in 2000.
The findings reveal that the number of employment tribunal claims handled by the EEF rose by 17.5 per cent in 2000 to 3,255.
Only 6 per cent of claims submitted by applicants were upheld at tribunal, with 70 per cent of claims settled or withdrawn before reaching a hearing, said the EEF. It pointed to the fact that almost one-fifth of cases were withdrawn, suggesting a large number of weak claims.
The EEF, which represents nearly 6,000 engineering companies, said the figures prove that increasing litigation is weighing down business.
Peter Martin, EEF's director of employment policy, said, "These figures back the complaints from business that the avalanche of employment legislation of the last few years has fuelled an ever-increasing culture of litigation."
He added, "Employers are now facing the problem of defending more and more cases at a time when their companies are already under great pressure."
Martin urged the DTI to implement the Acas arbitration scheme, launched last December. If the scheme is approved, it should be operational by spring 2000. The scheme aims to cut down on the number of cases going to tribunal by offering the option of confidential and binding arbitration.
He said, "We are keen supporters of the scheme. But we want the DTI to broaden it to take on more cases. The weakness of the Acas scheme is that it only deals with unfair dismissal cases."
The EEF also called for measures to revise existing application forms for employment tribunals so that both applicant and employer can set out their defence of claims.
Other findings from the EEF survey show that disability bias claims increased by 40 per cent in 2000, although only 6 per cent were successful at tribunal.
By Karen Higginbottom
