The GPMU has welcomed European legislation that will force companies to consult employees before any decisions on redundancies or closures are taken.


The government will follow the European Commissions directive, which it opposed initially with Germany, Ireland and Denmark.


But member states are yet to agree on what punitive measures would face companies failing to consult.


Firms with 150 workers or more must have formal consultation procedures in place in 2004, those with more than 100 employees in 2006, and companies with 50 or more workers in 2008.


A GPMU spokesman said: "Weve lobbied very hard, but are a bit disappointed that itll take seven years to come in. Most companies recognise the advantages of consulting employees good employers have nothing to fear."


Chris Patefield, BPIF South Eastern region director, said: "Wed encourage any company to consult employees, but many have their own culture that works for them. Obviously, wed be concerned if that working relationship were tampered with. As an industry, were generally very good at consultations anyway.


"Its not yet decided if companies would have any decisions reversed or nullified if they didnt comply," he added. "Wed certainly be opposed to that."


The Confederation of British Industry (CBI) said it was "deeply disappointed" by the decision.


Deputy director general John Cridland said: "Of course companies want to consult staff. But it is unnecessary for thousands of businesses in different countries to do so in a prescribed way."


Story by John Davies