Firms would benefit from increased productivity if they consulted their workers more, the new leader of the TUC said today.

General secretary-elect Brendan Barber said a new European Directive on information and consultation rights would bring a "once in a lifetime opportunity" to modernise the workplace. The Government, which is consulting on how to implement the directive from 2005, was told it could give a powerful boost to the economy.

Mr Barber will tell a TUC conference in London today: "I put it to both Government and employers. Information and consultation is not a burden on business. This is not red tape, part of the class war, or a return to adversarial trade unionism.

"Instead, it could be a crucial ingredient in giving UK business a shot in the arm."

The directive could be used to streamline employment law but it must secure real consultation in advance of import decisions affecting workers, he will say.

Roger Lyons, joint general secretary of Amicus, said: "The UK workforce must enjoy a level playing field and the directive will help create just such rights in an era of globalisation."