The CBI’s director general
has hit out at “damaging myths” about the consultation rules governing closures
of company plants.
Digby Jones claimed that
multinational companies do not close down British plants simply because of UK
“It’s naïve to believe that one-off
redundancy costs are the main reason for closing one factory over another.
Firms have many other long-termed issues to consider like skilled labour,
productivity, taxes and exchange rates,” he said.
He argued that companies do offer
“In reality, firms must discuss
timing and implementation of redundancies plus the decision behind them.
Failure to consult leads to stiff penalties,” said Jones at a dinner in
The CBI is participating in a government
review of UK redundancy law, alongside the TUC. But in his speech, Jones urged
ministers to resist pressure to adopt the European directive on information and