A UNITED front of unions and employers is demanding immediate government action to prevent catastrophic redundancies when the furlough scheme to protect jobs ends next month.

The call coincides with the daily number of new Covid-19 cases passing the 6,000 mark yesterday — the highest figure in four months — and follows the government imposing strict new restrictions for the next six months, with fines of up to £10,000 for people not observing the new rules.

A TUC blueprint for recovery involves helping to save jobs by providing financial support to companies with a viable future and free training in new skills to workers whose hours are cut by more than half due to the pandemic.

Workers would receive 80 per cent of their salary for the hours they were not working, including time spent in training.

And the company would receive a 70 per cent subsidy from the government, provided that it brings back every worker on the scheme for a minimum proportion of their normal working hours. 

Taxpayer support would be dependent on businesses proving that they are being affected by lockdown restrictions, employing each worker for a minimum proportion of their normal working hours, paying their fair share of tax in Britain, boosting workers’ rights and paying staff fairly, and not paying dividends while using the scheme.

Companies hit by local lockdowns would automatically qualify for help through the scheme.

TUC general secretary Frances O’Grady said: “The TUC stands ready to work with government and business to protect jobs.

“We have published detailed proposals for a new short-time working and upskilling scheme.

“With the right approach, we can stop mass unemployment scarring millions. My message to ministers is clear: let’s get around the table and fast-track a new plan.”

The TUC says that the plan mirrors measures being taken across Europe.

John Phillips, acting general secretary of general union GMB, said: “Other countries have made a head start in offering support, protection and reassurance to industries as our economy stands on the edge of the abyss.

“The Treasury has promised creative action in this extended, unprecedented period, but time is short.

“Ministers must target support for industries, support for incomes and take action to save jobs.”

The TUC has also joined forces with the Confederation of British Industry (CBI) and conciliation service Acas to issue guidance to help firms and workers deal with job losses.

A joint statement argued that alternatives often emerge from effective consultation with workers and trade unions.

“Challenges to working practices, disrupted supply chains and weakening demand are leading many employers to consider redundancy as the only survival option,” the statement said.

“Faced with making quick decisions in a fragile economic environment, it can feel as if there are no good answers. 

“No-one wants to deliver bad news, and losing people or being made redundant is traumatic, especially for workers and their families.

“We know that times are tough and that, as a last resort, employers may make redundancies, but our message is that employers should exhaust all possible alternatives before making redundancies.”

Ideas mooted to help protect jobs have included a move to part-time working, cuts to overtime, alternative roles and retraining.

“When employers, unions and employee representatives work together, solutions can often result in retaining loyal, skilled staff and help avoid the costs of redundancy, employment tribunals and recruitment when the economy recovers,” said the statement.

Chancellor Rishi Sunak is reportedly working on a new German-style scheme to avoid mass unemployment once furlough ends.

The plan would see the government and firms share the cost of topping up wages for employees who can only work part-time due to the pandemic.