Construction union UCATT have described the Government's proposals to give employees company shares in return for the removal of their employment rights as "grossly exploitative".

Under the plans announced by George Osborne at Conservative Party Conference, a new form of employment status will be created, described as employee-owners. Workers will be given shares in a company in return for surrendering their right to claim unfair dismissal, receive redundancy payments and limit maternity rights. The proposals are particularly aimed at small businesses and new companies.

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In their response to the Government’s consultation on the proposals UCATT said: "encouraging employees to sell their statutory rights for company shares, that may or may not be of any value, is grossly exploitative. The proposals will result in an insecure and unfair ‘hire and fire’ culture; losing the right to statutory redundancy payments will force families into financial difficulties; and access to training will be reduced."

Steve Murphy, General Secretary of UCATT, said: "George Osborne has got his head in the sand if he thinks that stripping workers of their employment rights will create jobs and growth. If he is serious about wanting to create jobs the Government should drop these shambolic proposals, reverse their planned cuts and provide direct investment in the economy."

(CD)