Just because staff are unionised doesn’t mean that industrial action always has to result in a strike. Paul Golden outlines ways that businesses can respond to alleviate workforce tensions.
These figures might suggest that unions have become less influential. But while union membership has more than halved over the past 40 years, Frank Villeneuve-Smith, a director of transport social enterprise HCT Group, reckons trade unions have a vital role to play in advising employers that are proposing changes to work practices and helping nip potential issues in the bud.
“In some cases, an employee may feel more comfortable approaching their union representative rather than company management if they have a concern, which is clearly preferable to allowing issues to fester and gives the employer an opportunity to resolve issues they might otherwise have been unaware of,” he says. Of course, the relationship between company and union also depends on the union officials involved. Villeneuve-Smith acknowledges that while some see themselves as partners in taking the business forward, others can be confrontational. The latter approach, he says, is rare.
However, David Evans, a member of the workplace mediators panel at In Place of Strife, says that employees expressing a desire to join a union is normally a sign that employee communication has failed and that the level of engagement with the workforce is not high enough. This creates a gap that a union will want to exploit. “It’s quite expensive to belong to a union, so it has to be seen to be achieving more for its membership than would otherwise be the case,” he adds.
In the private sector, where employees feel they are not being treated fairly and have been alienated from their employer, they will usually quit rather than attempt to come together to take industrial action. The company therefore loses the investment it has made in that employee.
Avoiding 'them and us'
One of the weaknesses of the union
movement is how it advocates for its
members as a priority. This can be an
issue where some types of employee are
more likely to be union members than
others. In the case of HCT Group, for
example, drivers are heavily unionised
whereas passenger assistants are much
less likely to be members of a union.
“When this happens, the union can
prioritise the issues facing their members,
rather than the workforce as a whole,”
says Villeneuve-Smith. “This is not an
argument against union recognition,
but it is something businesses need to
be aware of.”
Despite its healthy relationship with
unions, HCT Group has had situations
where it has become adversarial and
where simple economics has made it
impossible for both sides to get what they
want, resulting in strike action.
The most notable example of this came
in 2009 when Unite called a one-day
strike at subsidiary company CT Plus
following its rejection of a pay increase.
“The most important thing to
remember when industrial action
happens is that we will still be colleagues
once the action is over,” says Villeneuve-Smith. “We prevented entrenching a
‘them and us’ situation by avoiding emotive language. This was even more
important as not all staff supported strike
action and wanted to work, which we
facilitated.”
The company communicated the fact
that only around one in four employees
voted in favour of strike action and
pointed out that the union had rejected a
pay increase of 2.25%, which it described
as a generous offer when compared with
the pay awards most Londoners had been
receiving.
“As a result, when the dispute was
resolved, there was no lingering
resentment between us, or colleagues who
had different views on the union’s decision
to call the strike,” he adds.
The most important thing to remember when industrial action happens is that we will still be colleagues once the action is over
The comms perspective
Wrixon says advising one client to open up communications directly with its workforce shifted the negotiating position in less than two weeks and effected an agreement within three weeks as the workers had no idea what had been turned down by the union on their behalf.
Companies will also lose valuable time and money by not setting initial boundaries, she continues: “Unions and their representatives (whose time is being paid for by the union) won’t mind that a whole day might be set aside when decisions may only be made in the final 10 minutes. A day’s negotiation involving the financial director, head of HR and their wider teams will potentially cost the company thousands of pounds, so allocate a three-hour maximum negotiation period with pre-agreed breaks."
Finally, Wrixon recommends companies familiarise themselves with picket law. “It is not acceptable for employees to be intimidated or for property to be trespassed on,” she concludes.
When the mediation is undertaken by someone from within the organisation, there can be a perception that they are not independent
Ways out of dispute
The number of employment tribunal claims lodged rose by more than 25% in the 12 months to July. While the 2017 removal of the fee required to lodge an employment tribunal claim was undoubtedly a factor in this increase, it also suggests that dispute resolution processes such as mediation are not being fully explored.
Mike Talbot, founder and CEO of UK
Mediation, explains that companies
have the option of either training internal
staff in mediation or (in the case of
smaller businesses, which Talbot defines
as those with fewer than 500 employees)
engaging external experts.
“The three most important factors in
the process are voluntariness,
confidentiality and impartiality,” he says.
“When the mediation is undertaken by
someone from within the organisation
there can be a perception on the
employee side that they are not
independent and a concern that the
process will not remain confidential, a
concern that is sometimes justified.”
The latest biennial mediation audit
published by the Centre for Effective
Dispute Resolution in July 2018 found that
the number of commercial mediations
being performed had increased by 20%
since 2016. The aggregate settlement
rate was 89% (up from 86% in 2016) with
74% of cases achieving settlement on the
day of mediation.
“The disputes we get involved in tend to
relate to management style or allegations
of bullying, harassment, unfair treatment
or discrimination rather than financial
issues,” adds Talbot. “Where the dispute
relates to pay rates or terms and
conditions, for example, the company will
usually require conciliation services.”
The main difference between
conciliation and mediation is that a conciliator will usually present a non-binding settlement proposal; whereas the
role of the mediator is to help the parties
reach an accord by mutual agreement –
leaving the formulation and proposal of
any settlement up to the parties involved
in the dispute.
However, in some cases parties expect
the mediator to make a judgement,
which suggests there is still a degree of
misunderstanding among employers
as to how mediation works.
The Advisory, Conciliation and
Arbitration Service (Acas) code of practice
does not explicitly recommend mediation,
but it stresses the need to try to resolve
issues locally. A tribunal will ask
what internal steps have been taken to
resolve a dispute.
Employers can be penalised where it is
found that they have made no effort to find a solution prior to reaching the
tribunal stage, with an uplift of up to 25%
on any award they pay to a successful
claimant. Likewise, a claimant that has
been offered informal, in-house remedies
and is found to have unreasonably turned
them down can have their award reduced
by up to 25%.
“In my experience, most issues can be
resolved before the tribunal stage,” adds
Talbot. “Part of the job is to help people
back down from an unreasonable position
or get out of a corner they have painted
themselves into with dignity, which we do
by talking to both sides individually as
well as collectively.
“These situations arise where common
sense has been abandoned or where each
side has incorrectly inferred the other
side’s motives.”
Felicity Steadman is a dispute resolution
professional who has worked as an
independent mediator since 1989. She
observes that the benefits of good
employee relations include higher
productivity and quality; fewer absences,
complaints, grievances and disciplinary
infringements; and a reduction in
industrial action and employment
tribunal claims.
“Management should be trained to
conduct difficult conversations,
participative meetings and fair processes,”
adds Steadman. “When a concern is raised
they should pick it up immediately and
follow the appropriate policy and procedure, giving feedback on the
outcome as soon as possible – there is
nothing worse than a festering grievance.”
Stopping disengagement
“One of the key factors in positive employee relations is how staff are treated by their line manager,” he adds. “When disputes arise, we often find that if a line manager had simply apologised for their actions or taken remedial action months earlier, the subsequent breakdown in trust would not have occurred.”
Happy employees are more productive, do their best to meet expectations and help a company grow, which translates into more revenue and satisfied customers notes Jane Gilham, head of human resources at mechanical engineering firm Xtrac.
“We encourage open expression of opinions and concerns and recognise the importance of feelings,” she says. “Actively listening to what people are saying is critical. We strive to resolve issues informally and where appropriate will investigate matters thoroughly with clear disciplinary and grievance procedures.”
Stafford Industrial Supplies circulates a monthly feedback form which is actioned at a staff meeting where the points raised and potential solutions are discussed, explains managing director Paul Walters.
“This could be something as simple as introducing a bin-emptying rota or as complicated as an individual not doing their duties correctly and disciplinary action being taken,” he says. “We have very low staff absenteeism rates, although being a small business gives us the opportunity to talk openly as we are working so closely together.”
Best brew
At Adnams, the CEO conducts regular briefings and question and answer sessions with groups of employees from all parts of the business. The company also has an employee forum with elected representatives from around the organisation to pick up issues that normal reporting channels may miss.
“Points raised with the CEO or at the forum become formal action points that employees can review and see resolved,” adds Pugh. “We use Workplace (a Facebook-linked system) to facilitate staff communication and it seems to work really well. Managers and staff freely post messages and we have never had any need for censorship.”
Useful resources
The government website has an extensive section on employment with information on rights and obligations of employers and employees.
Citizens Advice offers guidance on a range of workers’ rights, which although written from an employee perspective can also be helpful to employers wishing to understand potential areas of conflict.
The Chartered Institute of Personnel and Development provides information on employment law issues at work from recruitment and terms and conditions through to redundancy.
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Update History
- 12 Nov 2019 (12: 00 AM GMT)
- First published
- 09 Jan 2023 (12: 00 AM GMT)
- Page updated with Further reading section, adding related articles and eBook chapters on easing workforce tensions and dealing with disputes. These additional resources provide fresh insights, case studies and perspectives on this topic. Please note that the original article from 2019 has not undergone any review or updates.