6. Voluntary Redundancy: A Preliminary Investigation

Voluntary redundancy (VR) has become a widespread phenomenon in British industrial relations. Combined with redundancy payments it has removed obstacles to industrial restructuring. Traditionally it has been classed as compulsory or voluntary. This obscures the complexity of redundancy and provides no guidelines for analysis. A conceptual development is needed which will enable an investigation of the full range of variables attached to the redundancy process. Characteristics of VR are outlined and its advantages and disadvantages to employers, employees, trade unions and the public interest. For society, VR encourages job losses at a time when more, rather than less, employment is needed. It also encourages increased productivity through flexible working and job demanning. A trade‐off between these competing policies is possible. At present VR presents itself as a form of alliance between employees and employers pursuing mutually consistent private interests. This tension between private interests and wider public interest is obvious. A recognition that redundancies ought to be put to a test of the public good is required.