Getting the Basics Right – Trade Unions and Employee Relations

The new Employment Rights Bill sees the biggest shake up of workers and Trade Union rights in a generation, effectively reversing the restrictions of the Trade Union Act 2016 introduced by the previous government on the process for Trade Union recognition and strike action.

The bill of course still has to go through the parliamentary process and there will be opportunity for lobbying from employers, unions and others representative groups given the significance of the changes proposed. Whilst some of the detail may change, the key reforms are outlined below.

These reforms are not unexpected and unlike some other parts of the new Employment Rights Bill, there are suggestions they could be implemented as early as 2025. Employers that are not currently unionised should be prepared for these changes and those who are unionised will need to revisit their current arrangements in light of the new legislation.

What are the key changes?

• All employees will be entitled to a written statement of their right to join a Trade Union.

• Unions can request access to any workplace and if refused they can challenge the re-fusal. Once they have access, they can meet, recruit, organise, represent workers and facilitate collective bargaining.

• Currently union recognition is often agreed voluntarily between employers and unions but if an employer does not agree voluntarily the union will likely trigger a statutory recognition process. In the new legislation that process is simplified, the requirement for 10 per cent of workers to be members of the Trade Union stays the same for the time being but may reduce to 2%. A ballot of the majority voting in favour will be enough for recognition.

• Industrial action ballots now require a simple majority support to go ahead

• Other favourable amendments include right for reasonable time off for union equality representatives, union deductions and payments to political funds are simplified, the current 14 day notice period of industrial action to the employer is reduced to 7 days and there is the right not to be subjected to detriment on grounds of industrial action.

According to UK official statistics, in May this year, the proportion of UK employees who were Trade Union members was 22.4%, that figure represents one of the lowest union membership rates on record. As and when these reforms are in place, we are likely to see membership increase and along with it, union recognition.

Whilst many employers with union representation have very positive working relationships with unions, other employers may prefer to maintain a union free working environment and the best way to safeguard that is good employee relations.

Employee relations covers many things, but at a basic level it is the relationship between an employer and its employees. When that relationship is positive, employees will feel valued and respected, there is likely to be good interaction between employers and employees prob-ably at an individual level but also collectively. There may well be a sense of community and all these things together are likely to lead to an increase in employee engagement, retention, employee satisfaction, good teamwork and high levels of motivation and morale. This all adds to the stability of a business which is essential for continuous growth.

On our Gravitate HR theme of ‘getting the basics right’ here are some ways to achieve this:

Prioritise Communication – Communication can make or break a good relationship as we all know. Communication should be consistent and clear, employees should be kept informed, understand company goals, objectives, values and policies. It goes without saying that com-munication must go both ways, when employees have a voice, feel heard and see their feed-back being implemented they are likely to be engaged, productive and happy.

Attractive Terms and Conditions of Employment – There are many reasons employees choose to work for an employer. Good pay and benefits are important, along with holidays, hours of work and how those hours are worked. Additional favourable terms may be hybrid and flexible working options which can be just as important as is giving priority to the health, safety and wellbeing of your employees.

Company culture – Having a shared set of workplace beliefs, values, attitudes and behav-iours is crucial to every successful organisation. Everyone at every level should have a clear understanding of the part they play in bringing the company culture to life. Culture influences everything from your daily processes to your top-level strategic decisions, leaving its mark on your brand identity, employee engagement, retention rates, and more.

Effective managers – Employees don’t leave their jobs, they leave their bosses. Good man-agers listen, they ask questions, give feedback, motivate and create a positive environment. They are flexible, adaptable and uphold the company values. Ensure your managers have the right skills to be valuable in their role.

Clear Policies and Procedures – These should support fairness and consistency across an organisation. They will set expectations and guidelines about behaviours and attitudes and give information about employee rights across a number of different aspects of employment. They are important for managing the workforce, addressing any areas of conflict and getting things done. Policies and procedures should be reviewed regularly to ensure they reflect changes both organisationally and legislatively.

Employee Engagement Survey – Giving employees a voice, demonstrates the employer is listening and is interested, it allows employees to share honest feedback about what it’s really like to work at the company. The results of an employee survey can give an employer important insights into many of the topics details above and through all stages of the employee lifecycle highlighting issues that need to be addressed. Ultimately this will allow an employer to create an action plan and be proactive in driving meaningful change. Conducting surveys annually means an employer can benchmark its own data over time to measure the impact of initiatives. We work closely with several clients each year conducting people and culture reviews to aid their strategy planning into the following year.

Without employees, an organisation cannot function and an employer with good employee relations is likely to achieve long term success. We can support your organisation on any of the areas detailed above. We will work with you to review your handbooks and contracts, benchmark salaries and benefits, carry out, analyse and report back on employee engagement surveys or ESG audits.

We can work with you to set up training workshops for managers to ensure they have the skills to perform effectively.

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