Britain's new TUC chief has sought to calm City fears that new employment rights are a return to the days of industrial conflict.

Brendan Barber told bosses that information and consultation rights are not "red tape, part of the class war or a return to adversarial trade unionism".

He used his first keynote speech to hail a European directive as "exactly the right shock to the system" needed to secure trust in the workplace.

DTI employment rights minister Alan Johnson followed the speech with an assurance to bosses that the EU legislation will not be about "co-determination or joint decision making".

He warned trade unions that ministers will not allow any move that cuts across employers' right to manage.

The government is currently consulting on a Brussels directive that had been fought tooth and nail by ministers and employers.

It was Germany's decision to drop its opposition to a measure that compels bosses to inform and consult workers on a range of employment issues that forced the UK to sign up to the EU directive in March 2002.

Bosses have expressed their dismay at legislation that will give workers the right to be informed about the business's economic situation.

It will also allow staff to be consulted about employment prospects or decisions that could lead to substantial changes in organisation or contractual relations such as mergers.

Barber said that consultation is not a "class" issue.

"My challenge today is this. 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. Let us embrace this once in a life time chance to modernise the workplace."

Indicating a continuity with his modernising, pro-European predecessor, John Monks, the new TUC boss argued that the directive would deliver positive outcomes.

"It should be viewed as an opportunity to spread the high commitment personnel practices that are common in the most successful and productive firms in the UK and abroad. It could be a crucial ingredient in giving UK business a shot in the arm," he said.

Barber appealed to business and the government not to neuter the directive.

"Work with us to make it a reality. Don't try to make its impact as small as possible. If it will do good, let us see it make the maximum difference. In return let me make this clear. We recognise there is no off-the-shelf blueprint that works for everyone," he said.

"As long as UK law genuinely seeks real information and consultation as it implements EU law, then we wish to be flexible."

He also sought to assure employers that new consultation rights will not lead to new layers of bureaucracy or a legal requirement to set work's councils.

"Where independent unions already provide a voice for employees, we see no need for extra bodies. Rather than a burden on business let us see how we can use information and consultation to streamline employment law," he said.

"As long as certain minimum standards apply, let employers and elected representatives of the workforce sort out what works best for them through negotiation, rather than provide a legal straitjacket.

"The objective must be to secure real consultation in advance of important decisions being taken with a genuine desire to reach agreement."