1997-2001
581
A break with the past?
John Gennard
Strathclyde Business School, Glasgow, UK
Keywords Employee relations, Policy, Central government, Labour market, Standards,
United Kingdom
Abstract Outlines the new individual and collective rights established for all employees by the
first Blair Labour Government. It then discusses the rationale for these developments, namely
competitive advantage on the basis of labour market flexibility combined with minimum labour
standards and security of employment for employees, the promotion of a partnership, as opposed
to adversial, relationship between employers and employees at the workplace and the need to build
a political consensus for a legal framework surrounding the UK employee relations system. The
article concludes by assessing whether these developments represent a break and/or continuation
relative to other twentieth century UK governments.
This article divides into three parts. The first outlines the main employee relations
public policy initiatives of the first Blair Government of 1997 to 2001. The second
discusses the strategy/philosophy underpinning these developments. The third
assesses the extent to which they represent a departure from the employee
relations policy stances of previous twentieth century governments.
Union recognition
The main innovation in collective rights was the introduction of a statutory
union recognition and de-recognition procedures (for details see Wood and
Godard, 1999). Two methods of statutory recognition of trade unions by
employers, who employ at least 21 workers, for collective bargaining over pay,
working time and holidays were introduced. One is where the union can show a
majority of the employees in the proposed bargaining unit are its members. In
such situations, the Central Arbitration Committee (CAC) must declare the
union recognised for collective bargaining. There are, however, even in such
conditions, circumstances in which the CAC must arrange for a ballot. These
include, for example, if it is satisfied a ballot would be in the interests of good
industrial relations or it has evidence a significant number of the members do Public policy
not want the union to conduct collective bargaining on their behalf. The second developments,
method involves a right to recognition where a majority of those voting in a 1997-2001
ballot are in favour and the total yes vote is equal to at least 40 per cent of the
total workforce within the bargaining unit. Broadly similar procedures are
contained in the Act for resolving issues where an employer seeks to de-
recognise a union because they believe the majority of employees in the 585
bargaining unit no longer support recognition.
Industrial disputes
The 1999 Act simplifies the rules and procedures relating to industrial action
ballots to make clear that although the union's notice of intended industrial
action to the employer should still identify the group or category of employees
covered, it need not give names. Some protection is also given by the Act to
employees against dismissal for participating in lawful industrial action. The
dismissal of employees participating in a lawful industrial dispute within the
first eight weeks of such a dispute is now an automatic unfair dismissal. If an
employee is still taking action after the eight week period and the employer has
refused to take ``reasonable'' procedural steps to resolve the dispute, any
dismissal would still be regarded as unfair if the employer has not followed an
appropriate procedure for resolving the dispute.
Other measures
The first Blair Labour Government also introduced other important changes.
The Employment Rights Disputes (Resolution) Act (1998) streamlined
Employment Tribunal procedures and empowered the Advisory, Conciliation
and Arbitration Service (ACAS) to devise a voluntary alternative to the
employment tribunal for the resolution of unfair dismissal disputes (ACAS,
2001). The Public Interest Disclosure Act (Hobby, 1998) provides protection
from dismissal or victimisation for employees who raise concerns at the
workplace about any wrong-doing of their employer. It covers disclosures
relating to criminal offences, breaches of the law and health, safety and
environmental matters.
Two other significant employee relations initiatives of the first Blair
Government were the restoration of trade union recognition and representation
at GCHQ (see Gennard, 1998 for details) and the ending of the requirement under
the 1993 Trade Union Reform and Employment Rights Act that employers
obtain authorisation every three years from individual union members who
wished to continue having their union subscription deducted from their pay.
Now employers need only obtain written consent from employees to begin
payroll deduction of their union subscriptions. In September 1997, the Blair
Government, in its role as an employer, signed a collective agreement which
gives the Public Services, Tax and Commerce Union sole recognition rights for
collective bargaining, organisation and representation at GCHQ. Staff also had
their unfair dismissal rights re-established.
Employee Rationale for the public policy developments (1997-2001)
Relations The first Blair Government justified the employment law framework created
24,6 by its employee relations public policy developments on three major grounds.
First, the framework was consistent with a flexible and efficient labour market
in which enterprise could thrive, companies can grow, wealth can be created
and in employees be treated fairly. Second, it would create an environment in
586 which the notion of conflict between employers and employees would be
replaced with the promotion of partnership at the workplace. Third, the
framework constitutes an ``industrial relations settlement'' for the 1997-2001
Parliament and contribute to drawing a line under the issue of employment law
which had been a political football over the past 40 years.
If the first Blair government public policy developments are examined in detail,
one sees some continuity with 1979-1997 Conservative Governments' approach
and the 1918-1979 approach. There is continuity with the Conservative
governments' policies in that, apart from the protection from dismissal for the
first eight weeks of those participating in a lawful trade dispute, the restrictive
legal framework established by those governments surrounding industrial
disputes continue unchanged. There is also continuation with the free market
approach in that the 1999 Act contains provisions whereby a trade union can
be de-recognised by an employer and in that provision of the 1993 Act whereby
employers are permitted to discriminate against trade union members who
support collective bargaining by paying them less than workers agreeing to
work in future on individual contracts. The trade union recognition procedure
and the right of individuals to be accompanied in grievance and discipline
hearings by a trade union official regardless of whether a trade union is
recognised at the individual's workplace are supportive of the past approach of
encouragement of the development of voluntary collective bargaining. The
union recognition provisions try, above all, to edge the parties into voluntary
collective agreements which grant recognition to trade unions without
resorting to legal sanctions which exist as a final resort. This is consistent with
the prominent public policy stance of the 1918-1979 period.
Some of the 1997-2001 Blair Government public policy employee relations
developments, however, represent a break with the stance of previous UK
governments. An important departure from the past is the underpinning of the
acceptance of the need for a flexible labour market by the construction of a
framework of individual rights and entitlements. The Blair Government has for
example established for the first time the principle of universal rights to
employee representation common elsewhere in Western Europe. Some of the
new individual rights of employees will be realised through trade unions but it Public policy
is a matter of individual choice of the individual as to how they will obtain developments,
these rights. Developments in the sphere of collective rights also took a new 1997-2001
direction in that UK employees acquired new rights to representation in
multinational companies for the purposes of information and consultation.
Although it can be argued that the employee relations public policy
developments contain developments in new directions as well as continuity 593
with the Conservative Governments de-regulation programme, there are also
elements which are not easy to explain. This is particularly the case with its
attitude to the EU Commission's draft Information and Consultation Directive
designed to establish in all member states the requirement for all companies/
enterprises over a certain size to establish for machinery information giving
and consultation with employees. The Blair Government opposed this draft
Directive on the grounds that the matter is best left to member states and that it
feared employers lose the flexibility to decide for themselves the most
appropriate information and consultation arrangements for their organisation.
Given the decline in trade union membership in the UK and the first Blair
Government's desire to establish partnership relationships at the workplace
between employers and employees, the logical position would have been to be
supportive of the draft directive. Information and consultation is an essential
part of a partnership arrangement between employers and employees.
The public policy approaches to employee relations based on the support for,
and the encouragement of, collective bargaining (1918-1979) and the
Conservative Governments' (1979-1997) de-regulation approach were all well
defined and coherent models. The first Blair Governments' public policy
developments, however, do not represent a coherent approach. They contain
some links with the past and some important departures. It has oscillated
between de-regulation and re-regulation. It measures are ad hoc and some
would say they are based on popularism and opportunism. They certainly,
when taken together, do not represent a coherent ``third way'' public policy
approach to employee relations. If anything they represent an inconsistency.
On the one hand, it justifies its approach on the basis of high productivity and
the need to build a strong economy and for business to be unhindered
bureaucratic restrictions. On the other hand, it recognises that employers have
responsibilities too and thus emphasises the need for them to treat employees
fairly and decently. At times, the first Blair Government succeeded
simultaneously upsetting the TUC and the CBI, particularly over the
implementation of the Working Time Directive.
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