Legal Eagle: Employment Relations
Legal Eagle / 30 January 2012
Changes to the existing framework could see far-reaching fall-out across all industry sectors.
Amanda Jones, a partner and head of the employment department of Maclay Murray & Spens LLP, looks at the unprecedented challenges to employment relations.
Against warnings of disruption to public services on a level not seen since the general strike in 1926, the Government appears determined to press on with reform of public sector pensions.
As a result of the looming disruption, the CBI has been pressing for changes which would make it harder for unions to strike, arguing that in recent ballots there has not been widespread support for strikes.
Under the CBI’s proposals, 40% of all eligible union members would need to vote yes to strike action.
Unions have cried foul as most other ballots in the UK do not require this level of backing. In addition, some say the existing statutory balloting requirements are too complex.
The CBI has proposed other measures which would force unions to keep better records of their members, provide members with information about both sides of the debate and ensure they have a proper understanding of the implications of action.
Where a strike goes ahead, employers are faced with a damage limitation exercise. Usually, striking employees do not get paid, but this ‘saving’ may be little comfort where business grinds to a halt.
Where a strike goes ahead, employers are faced with a damage limitation exercise.
Amanda Jones, a partner and head of the employment department of Maclay Murray & Spens LLP
Employers can consider whether there are any non-contractual benefits they can withdraw, like discretionary bonuses, company sick pay or extra time off.
Such measures are likely to be highly emotive, as was clearly visible when British Airways removed cut-price travel priviledges from striking employees.
To make the best of a bad situation and ensure key clients or customers are looked after, employers should try to use existing employees from other parts of the business to shore up affected areas.
Use of agency workers, either to cover the striking employees or the work of other employees who are drafted in as cover, must be avoided as it is a criminal offence for the agency to supply the worker and the employer may be liable for aiding and abetting this offence.
As long as employers avoid using an agency or other employment business, they can bring in temporary employees direct. Employers are also permitted to temporarily outsource affected business functions to a third party contractor.
While the current tension is focused on the public sector, any changes to the existing framework could see far-reaching fall-out across all industry sectors. The impact could be significant and employers should ensure they understand the implications and plan for potential disruption.