Margaret Thatcher was renowned for breaking the unions – in 1979 the UK lost 29.5 million working days to strike action. In 2015 this had fallen to just 170,000. But fast forward to 2022 and this figure had swelled again to 2.5 million – as you may be well aware from the news at the time, or personal experience.
The previous Conservative administration sought to limit the power of the trade unions further, and now the current Labour government are busy repealing all that they did. So where do SME employers stand today?
While many may associate trade union action with large employers and the public sector, the fact is that, should your staff choose to be represented by a trade union, as an SME employer you are subject to the same legal obligations as bigger organisations. And all employees have a legal right to join a trade union.
When you should recognise a trade union
“Recognition” is a formal term in managing trade unions. It means there is an official relationship between a union and an employer, normally bound by a written agreement determining the scope. Where you refuse to recognise it, but a union believes it has a legal right to represent some or all of your workers, then it can apply for statutory recognition.
Even if there is not a recognised trade union in place, your employees still have a legal right to be accompanied by a trade union representative in certain scenarios if they are a member and the rep is certified, for instance during a disciplinary hearing.
Collective bargaining
Collective bargaining is when a union can negotiate with you on behalf of its members. In fact, whatever outcomes are reached will apply to all connected staff not just those who are unionised – say a pay rise or a health and safety measure.
The areas in which a recognised trade union may enter collective bargaining are:
- Collective redundancies
- Transfers of business ownership and TUPE
- Some changes to pensions schemes
- Health and safety
Working effectively with trade unions
Many SMEs will never find themselves in the circumstances of having to work with trade unions (although Labour reforms will increase the likelihood). However, if you do, here are some tips:
- Approach all dealings positively. Although when in the news, the employer/trade union relationship seems to be defined by conflict, it is in everyone’s interests to find a workable way forward and have a successful company.
- Ensure you are well informed on what the law says. There are procedures to follow, and limits which restrain both what you and they can do.
- Take what they say seriously and with an open mind – they may be an effective two-way channel for communicating important matters like health and safety and employee retention.
What will change under Labour?
In their manifesto, Labour promised to give more power to trade unions, and following their election victory and the King’s Speech, the wheels have been set in motion. Legislation still has to pass through parliament, but it looks like the 2016 Trade Union Act will be repealed relaxing stringent controls on how unions could call for industrial action. They also intend to make it much easier for a trade union to be recognised, proposing to reduce the threshold from 40% of all staff voting to join, to a simple majority of those staff who make the effort to vote.
Help from the HR Dept
If you find yourself having to engage with unions, we can help. We can be by your side to represent your cause and ensure you follow the correct processes, taking away some of the mental workload. Get in touch as soon as possible.
