The Confederation of British Industry (CBI) has rejected claims from the Trades Union Congress (TUC)that a proposed EU directive would improve consultation over redundancies.

John Cridland, Deputy Director-General, said, "Companies need and want to consult staff over redundancies. What's more, they have to under British law or they face stiff penalties.

"The proposed EU directive on information and consultation would not improve redundancy consultation but it could artificially strengthen the role of trade unions. It offers unions influence over a range of day-to-day management decisions, not just redundancies."

He added that CBI opposition to the EU directive was "non negotiable" because different countries have different traditions and practices. "This is not a matter for the EU", he said.

"It is absurd to claim that thousands of businesses across Europe should all handle dialogue with staff in exactly the same way. It would duplicate existing UK requirements and cut across existing workplace arrangements."

Mr Cridland also rejected speculation that the coalition of four countries blocking the directive is on the verge of collapse. He added that the CBI was not complacent about current UK redundancy law, pointing out that the organisation is contributing to a government review alongside the TUC