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Tuesday, 14th September 2010

Reforming Britain’s antiquated industrial relations laws

Ed Holmes 12:03pm

The TUC Conference rumbles on with some rather blood-curdling statements about the future of industrial relations in Britain.  The RMT leader Bob Crow called for a campaign of civil disobedience and spoke of ‘confronting... the enemy’.  The PCS’ Mark Serwotka has spoken of a ‘campaign of resistance the likes of which we will not have seen in this country for decades.’  Perhaps for good measure, the TUC also took the opportunity to attack our recent report on modernising industrial relations.

The trade unions are arguing vociferously against not only the very clear necessity for reductions in public expenditure, but also any change in industrial relations procedures which are largely obsolete for the modern workplace.

One current problem is that ballots typically neither specify a particular grievance nor indicate the length and nature of industrial action.  Another is that unions devote so little of their resources to keeping membership lists accurate that they often fall foul of balloting requirements – failing to issue ballots to members entitled to them or issuing them to members not entitled.  To avoid this situation, we propose a joint audit of union membership by employers and unions – making legitimate strike action easier.

In addition, we propose a 40 percent minimum threshold of trade union members voting for a ballot to be valid – something the unions have claimed would be unprecedented.  In fact, one of the reasons we chose this figure is that it is consistent with initial balloting requirements for trade union recognition.  This would pose no problems when there is a clear wish by trade union members to strike (meaning, after all, that virtually fourth-fifths of union members could vote against or not at all for a strike to go ahead) – but it would stop a militant minority causing disproportionate damage to businesses and public services, as is presently the case.

The TUC also claim that workers are free to join any union they want.  However, quite apart from the fact that the number of unions has fallen dramatically in recent years, since the Employment Relations Act 1999 gives a single trade union statutory rights to formal recognition by an employer, it is all but impossible for another trade union to function where there is an incumbent.  This situation is reinforced by the Bridlington principles, which state that all TUC-affiliated unions are required not to recruit workers where another union has a majority and negotiating rights.  Both the law and trade union behaviour give unions monopolies on particular workplaces.  We believe that workers should have choices — choices of where to work, and choices of what unions to belong to.  Some unions may simply be too large and it may be time for competition policy to intervene.

Allowing agency staff to cover the work of striking employees would simply recognise the fact that a worker does not own their job.  In practice, employers can already employ agency staff to cover a wide range of matters around a strike.  The problem is that unions often intimidate employers with threats of legal action to stop them doing this.  This reform would clarify the situation.

Our proposals seek to reinforce the useful work that trade unions often do: helping members with training and advice, resolving workplace grievances, being an effective conduit of information between employers and employees and negotiating wages where individual negotiation would be inconvenient or expensive.  However, as we have often seen, unions can also act as an obstruction to reform, wrecking businesses and public services in an attempt to supplant the policies of elected governments with their own.  Sadly, judging by current performance, it is the latter path that certain union leaders seem determined to take.

Ed Holmes is a research fellow in Policy Exchange’s Economics Unit.

Filed under: Bob Crow (4 more articles) , Coalition (2088 more articles) , Industry (24 more articles) , Opposition (43 more articles) , Public finances (753 more articles) , Spending cuts (626 more articles) , Strikes (66 more articles) , Trade Unions (46 more articles) , UK politics (5406 more articles)

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mattghg

September 14th, 2010 12:27pm Report this comment

"However, as we have often seen, unions can also act as an obstruction to reform, wrecking businesses and public services in an attempt to supplant the policies of elected governments with their own."

Indeed. With Labour out of power the unions can no longer buy the government; instead they have to threaten it.

TomTom

September 14th, 2010 12:49pm Report this comment

I fully accord with making Union ballots wholly transparent and representative but would urge that the same be done for "Shareholder Democracy" and that votes on remuneration be made binding and not "advisory". That institutional shareholders be forced to vote openly or to lose the right to dividends.

It is time for Trades Union Members to be offered Legal Insurance Protection independent of Union Membership and that they receive Annual Reports including audited financials of their Union and the highest paid officials and perks

Dick

September 14th, 2010 12:54pm Report this comment

Another useful reform would be to make unions liable for third-party losses due to strikes. Why should everyone else be out of pocket when the dinosaurs choose not to turn up to work?

whatawaste

September 14th, 2010 1:14pm Report this comment

Why is it that when all of us have to conform to equality laws to prevent racial discrimination in all walks of life that leaders of trade Unions appear to be exempt? Is Bill Morris going to be Britain's first and last black Trade Union leader?

Perhaps the Commission for Racial Equality should investigate this exclusive club that is "hideously white".

laverda

September 14th, 2010 1:26pm Report this comment

I hope 'normal'working people contact their MP and/or No.10 website and insist the coalition government scrap the 'union modernisation fund' which labour used to circulate money (millions)from the taxpayer to themselves via the trade unions.
I wonder if anyone else has noticed how overweight and obese the majority of union leaders and delegates appear (as well as MP's.

alexsandr

September 14th, 2010 1:31pm Report this comment

just stop the modernisation fund right now. I dont know why the taxpayer has to subsidise these people.

alexsandr

September 14th, 2010 1:32pm Report this comment

and subject the closed shop arrangements to an inquiry by the competition authorities.

toontoon

September 14th, 2010 1:44pm Report this comment

Why should my employer know if I am a member of a union? By knowing if I am a member an unscrupulous employer could ensure that non union members are preferred over union members for things such as promotions.

Rosie

September 14th, 2010 2:01pm Report this comment

@Laverda - is this the same fund paid from the DfID which gave millions to unions during Labour's time (then circulated back to Labour)?And has this anything to do with the ring-fencing of the DfID's budget?

Ian Stewart

September 14th, 2010 2:07pm Report this comment

"Antiquted" Laws??? Come of it! There have been tranches of anti- Union laws since 1979, and they were not only left in place by New Labour, but also augmented.
This is just unjustified Union bashing. All these "reforms" proposed during this thread boil down to one thing - "oh how we wish the combination acts had not been repealed".
This isn't conservatism, its "Time Team" for reactionaries.

HFC

September 14th, 2010 2:12pm Report this comment

What TomTom said - union subscribers must be considered to be members as in a club or shareholders as in investors and either way must be furnished with copies of fully audited annual accounts.

Private Schultz

September 14th, 2010 2:39pm Report this comment

I agree that it is undemocratic that a strike can be called when only a minority of a union is in favour - I think I read that only 30% of the union voted in favour the last tube strike. I think it should require 51% of the total membership in favour for strike action. Or failing that, the strike should not be binding on those members who abstained or voted against. Why should a minority of one union be permitted to disrupt businesses across London?

AndyLeeds

September 14th, 2010 2:39pm Report this comment

'Both the law and trade union behaviour give unions monopolies on particular workplaces.'
Exactly. It is illiberal for a trade union to have the cover of law in preventing another organisation from establishing itself in a workplace if those employed there wish. It is anti-democratic. And many of the unions have consolidated to such an extent they are monopolies and ought to be broken up.

Maggie

September 14th, 2010 2:49pm Report this comment

I think they rant on like that every year but no-one's taken any notice for the past thirteen.

Fiona

September 14th, 2010 3:04pm Report this comment

A few observations:

"One current problem is that ballots typically neither specify a particular grievance nor indicate the length and nature of industrial action". Really? I think you'll find that lawful industrial action can only take place if there is a legitimate trade dispute - qualification is covered by S244(1) of TUL(C)RA.

"One current problem is that ballots typically neither specify a particular grievance" Yes but do you seriously think people vote "Yes" in a ballot for strike action without knowing what the grievance is?

"...nor indicate the length and nature of industrial action" All ballots are time limited to four weeks from the date of the ballot. No trade union these days, not even the RMT, would ask their members to go on strike indefinitely - they know they would never achieve a "yes" vote!

"...unions devote so little of their resources to keeping membership lists accurate" This simply isn't true. Ask your subscriptions department if their list of subscribers is anything more than a snapshot. They are constantly updated. Most subscriptions are deducted at source, by employers, and prior to any industrial action unions always seek payroll information to double check their lists. No union is unaware of the consequences of a badly out of date membership list. No union would go to all that trouble and expense only to have a ballot ruled unlawful.

"...we propose a joint audit of union membership by employers" See above. Trade unions will be delighted by this proposal, it's employers who resent these requests!

"We believe that workers should have choices ... of what unions to belong to". Fine, but bear in mind there is NO POINT joining a union which is not recognised by the employer, and you cannot force an employer to recognise a union which has less than 50% of the workforce in membership. This protects the employer! Show me an employer who would choose to negotiate with several unions when their employees can all be represented by one?

"Allowing agency staff to cover the work of striking employees would simply recognise the fact that a worker does not own their job". Agency staff, managers, other staff do already cover strike action - ask BA who trained loads of its other workers to be cabin crew. Workers know they do not "own" their JOB - it's their contract of employment which cannot be transferred to another worker without a dismissal taking place.

Before I get slated, I am not a member of a trade union, but I do know about employment matters.

As to ballot result thresholds, I doubt this will be an issue in the months to come as it is likely that the coalition's budget proposals will do more for trade union membership and engagement than they could ever have achieved themselves.

CS

September 14th, 2010 3:08pm Report this comment

Perhaps all the trade union laws passed by the Thatcher governments should be repealed on the basis that none of those governments commanded the support of 40% of the electorate.

An interesting innovation might be a Use of the English Language Act prohibiting the use of "wealth creator" to describe anyone in the private sector who was raking in cash from fat public sector contracts.

Dorothy Wilson

September 14th, 2010 3:20pm Report this comment

toontoon: That's daft. If it happened the employer would be hauled before a tribunal.

laverda

September 14th, 2010 5:21pm Report this comment

#Rosie
Yes. But I don't think it should be ring fenced as do probably millions of other taxpayers. E-mail No.10 and/or your MP and demand that it is scrapped.

barry daze

September 14th, 2010 6:25pm Report this comment

Sorry Fiona, this isn't the place for rational debate or facts. If you knew anything about unions you'd know they are hellbent on destroying this country by promoting workers' rights and safety and ensuring that your right to withdraw your labour, a fundamental human right and a hallmark of a civilised society, is protected. This is a gorrible goal, unless we get to the stage that workers have no rights then we're no better than the French. Do you think we became a world super-power by letting people work decent hours for decent pay? Of course not!

So, off with you, and take your facts and properly sourced information to a site where people listen to arguments and make rational decisions.

Ian Stewart

September 14th, 2010 7:13pm Report this comment

Agreed barry, you can prove anything with facts...

Fiona

September 14th, 2010 10:05pm Report this comment

Barry, Ian - yeah, what was I thinking? Doh!

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