Now bosses must 'consult' workers

British employees are to be given major new rights to take issue with decisions made by management.

The Government is to implement a European Union directive which will force bosses to "consult" workers' councils on any issue affecting jobs.

Company chiefs must speak to employees in advance on a range of issues including big job losses and even takeovers.

The rights will be strongest when it comes to redundancies and other "decisions likely to lead to substantial changes in work organisation and contractual relations".

In such cases, discussions must take place "with a view to reaching agreement".

The moves, which were being outlined by Tony Blair today, will in two years' time bring Britain into line with the rest of the EU, and were welcomed by union leaders.

Many employers, however, warned that the new rules would handicap companies.

Ruth Lea of the Institute of Directors claimed the red tape "will make it much harder for businesses to be competitive and flexible".