Employers such as Peugeot should be obliged by law to inform staff at an early stage about potential job losses, according to a Midland MP.
Jim Cunningham (Lab Coventry South) is to present new laws to the House of Commons forcing businesses to be more transparent.
He said MPs had found it difficult to get answers out of Peugeot when they asked it to explain rumours it was planning to shed jobs.
On Sunday, the French car maker confirmed it was to axe almost a third of the workforce at its Ryton factory in Coventry.
It means 850 jobs will go, just a year after the night shift was ended at the expense of 700 workers.
The announcement was the latest blow to Midland manufacturing after Jaguar recently ended car production at its Browns Lane plant in Coventry.
The threat of job losses also continues to hang over Rover workers in Birmingham.
Mr Cunningham said staff in France or Germany would be told well in advance about potential job losses, under European regulations.
However the regulations had never been incorporated into British law, and despite months of rumours the first official word Coventry workers had about the job losses was this weekend.
The MP raised his concerns with Treasury Ministers in a Commons debate. He said: "It is strange that Peugeot employees in France know something before the labour force in Coventry and Britain.
"We should have learned lessons from the collapse of Rover. BMW told its employees what was going to happen to them, but it also told them what was going to happen to the Rover labour force."
A Peugeot spokesman said: "We have had regular meetings with trade unions and employees where we have kept them informed. We have a good relationship with the unions." n A Coventry MEP has pledged his support for workers and trade unions fighting redundancies at Peugeot's Ryton factory.
Labour's Michael Cashman said compulsory redundancies must be avoided and the long-term future of the plant secured.
He said: "I urge the management to work closely with workers and the trade unions to minimise the impact of the job losses and avoid compulsory redundancies."