Both sides of industry today urged the government to introduce a temporary short-time working scheme to help people losing pay during the current recession.

Both sides of industry today urged the government to introduce a temporary short-time working scheme to help people losing pay during the current recession.

The TUC, British Chambers of Commerce, Engineering Employers Federation and Federation of Small Businesses joined forces to argue that workers losing earnings through cuts in pay and hours should receive compensation.

The Chancellor should use next week's Budget to bring forward measures aimed at keeping workers in employment as well as helping firms stay in business, said the submission.

The groups maintained similar arrangements were in place across the Euro- pean Union, including Germany.

Brendan Barber, general secretary of the TUC, said: "UK unemployment is already over two million and is spiralling fast. Introducing a temporary short-time working scheme would help businesses stem the flow of job losses.

"Such agreements provide a quick and effective way to cut costs for struggling businesses and give hard-pressed employees vital financial help.

BCC director-general David Frost said: "It is absolutely crucial that our economy's skills base is protected during the downturn. The loss of skills, especially in manufacturing, will only act to stifle growth in the long-term.

"Successful initiatives from previous recessions should be revisited and applied to the present climate - a short-time working scheme is one of them."

EEF chief executive Gilbert Toppin said: "In the current economic climate it is vital that we give temporary support to help companies hold on skilled workers who could otherwise be lost to the sector."

Alan Tyrell of the FSB added: "A short-time working scheme is something that would be of immense help to smaller employers in the UK during these difficult times."