Ministers are being urged not to scrap furlough and instead build a permanent subsidy scheme to protect workers from future Covid waves, a recession or the transition to a green economy.
Plans drawn up by the TUC call for the Government to emulate other rich countries, such as Germany and Japan, and back a generous wage subsidy scheme to shield workers from major changes.
Under the revised scheme for UK crises, workers who qualify would see 80% of their wages guaranteed by the state and anyone working less than 90% would be offered the chance to retrain.
Firms hoping to access the scheme would also have to show a dip in demand and be paying corporation tax in the UK and
Chancellor Rishi Sunak reckons the furlough scheme he announced in March 2020 - which is due to end in September - saved two million jobs during the pandemic.
But Frances O’Grady, TUC general secretary, believes he should adapt the scheme as the country aims to hit its net zero carbon targets.
She said: “Furlough has been a lifeline for millions of working people during the pandemic. Now is the time for the government to build on the success of furlough with a short-time working scheme – not throw away its good work.”
She added: “The pandemic shows how an unexpected economic shock can wreak havoc on jobs and livelihoods with little warning.
“In a changing and unpredictable world – as we battle climate change and new technologies emerge – a permanent short-time working scheme would help make our labour market more resilient and protect jobs and livelihoods.
“Too often in the past, periods of economic and industrial change have been badly mismanaged – increasing inequalities and leaving working people and whole communities abandoned. Just look at what happened to mining communities.”
