Businesses and unions must work together to help boost growth says Prospect and CIPD

Businesses and unions need to improve their employment relations skills if they are to work together effectively and support efforts to grow the economy, says Prospect and CIPD, the professional body for HR and people development, in a new joint report.

Ahead of Wednesday’s spending review, the report ‘Working Together to Make Work Pay’ sets out recommendations for how Government can work with businesses and unions to help implement the biggest change to workers’ rights in a generation through the Employment Rights Bill (ERB), including calling for the funds needed to make these reforms work in practice in workplaces up and down the country.

Prospect and CIPD are calling for Government to provide additional resources for Acas, the Central Arbitration Committee, and more support to improve industrial relations in key sectors in the spending review.

The report is published as new CIPD research shows that employers that don’t currently work with trade unions are most opposed to the new rights being introduced by the ERB, which will make it easier for trade unions to achieve recognition, access workplaces and take industrial action.

In contrast, where employers already recognise trade unions, they are generally more supportive of the proposed changes.

The report also calls on the government to introduce a statutory code of practice on employment relations to support partnership working between trade unions and employers.

Key areas the report highlights for action include:

• Government taking a lead promoting the business case for partnership and setting out best practice.
• Government working with stakeholders on a plan to raise the relevant industrial relations skills and understanding of HR professionals, line managers, trade union reps and negotiators, and the wider workforce and business community.
• Strengthening the ability of sector bodies to drive collective employer action, to improve partnership working at an industry level.  A CIPD survey of more than 2,000 employers finds that over four in ten employers (42%) with no trade union representation oppose plans in the ERB to change rules around industrial action turnout thresholds, with just 15% supporting this change. In contrast, 34% of employers that already have trade union representation back the reforms, with less than a quarter (24%) opposing.

These findings suggest many of employers’ concerns are likely due to a fear of the unknown and a lack of experience and employment relations skills, rather than the reality of working with unions.

Mike Clancy, General Secretary, Prospect, said:

“This report makes clear that both business and workers must work together as the changes in the Employment Rights Bill become a reality.

“Workers have a vested interest in their employers’ success and proper dialogue can work in everyone’s favour, and result in a more engaged and productive workforce. But more than a decade of declining trust and an adversarial approach to industrial relations means that vital employment relations skills have been lost.

“The Government must work with unions and business to provide a framework around which partnership can be built, as well as investing in labour market institutions like ACAS that can help support this.”

Peter Cheese, Chief Executive of the CIPD, said:

“Proposed changes to legislation which will make it easier for unions to achieve recognition and to take industrial action will undoubtedly give unions more presence and voice in the workplace. Consequently, it’s vital that alongside these changes, effective guidance and support is provided to help employers and trade unions develop collaborative working practices that can deliver positive outcomes for both business and workers.

“It’s not surprising that many employers with little experience of working with trade unions are fearful of the possible impact of some of the changes being introduced in the Employment Rights Bill. Skills and capabilities of managing employment relations of this kind on all sides have diminished over the years. It’s important this is recognised as a risk and that support and training should be provided.

“This is why we need the government to work with employers and trade unions on a proactive campaign to promote good industrial relations. This needs to be supported by effective guidance, learning from successful existing social partnerships between unions and organisations, together clarity on the legislative changes and responsibilities on all sides to ensure positive outcomes for employers and employees.”