Insider Media Limited

Industrial disputes are in danger of “stifling Britain's economic recovery”, according to a study by law firm DLA Piper. The Economics of Employee Relations report found that 69 per cent of Midland employers were concerned about industrial action, and 85 per cent anticipated trouble in coming months.

The study of more than 500 senior UK decision makers revealed that 71 per cent of those in the Midlands wanted a change in legislation to bring in a minimum threshold in strike ballots. Respondents said that at least 40 per cent of those eligible to vote should back the call instead of the simple majority currently required.

Fifty-three per cent of Midland business leaders said they favour government intervention to prevent strikes in the transport and communications industries.

Two-thirds of the UK’s business leaders predict that industrial action by public sector workers will have a detrimental impact on their business. Nearly a quarter of UK large employers with more than 250 employees see public sector disputes as a significant threat.

Nick Jew, head of employment in the Birmingham office of DLA Piper, said: "As the threat of a double dip recession remains, it is worrying that industrial unrest is on the rise and potentially could thwart economic recovery.

“In a volatile economy, employers face multiple risks and challenges, making it imperative to focus resources and attention on employee relations to protect and nurture performance and profits.”