§ 55. Dr. M. S. Millerasked the Secretary of State for Employment if he intends to introduce legislation requiring transitional companies to consult his Department and the relevant trades unions before making any decisions on factory closures or redundancies.
§ Mr. GummerNo. Under sections 99 and 100 of the Employment Protection Act 1975, companies are already required to notify my Department and to consult with recognised trade unions in advance about all proposed group redundancies, including those involving factory closures. This legislation applies equally to national and to multinational companies operating in this country. There are also international guidelines, notably the Employment and Industrial Relations Guidelines, which form part of the OECD's Declaration on International Investment and Multinational Enterprises. These recommend that, in considering changes in their operations which would have major effects on the livelihood of their employees, enterprises should provide reasonable notice 89W to employee representatives and to Governments, and should co-operate with both to mitigate as far as possible any adverse effects. The United Kingdom have commended these guidelines to companies.