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Short working subsidy 'could help firms invest in skills'

Government intervention could help to safeguard the livelihoods of thousands of workers in high-risk industries across the UK, it has been claimed.

A spokesperson for the Federation of Small Businesses (FSB) said that plans to introduce alternatives to redundancy packages and job shedding could help stabilise industry in the UK and allow businesses to maintain investment in their staff and their skills.

He commented: "A short time working subsidy provided by the government would help avoid redundancies and help employers retain and invest in skills to prepare for the future."

According to a recent report by CBI and Siemens, the government would be well advised to set up an alternative to redundancy scheme which could help employees hold on to their jobs during the economic downturn.

BT recently implemented a scheme whereby it offered some its employees a year off work in exchange for 75 per cent pay as there is currently not enough business for the company to maintain a full staff complement.