Employers raise concerns about new union rights amid worries the UK is entering a more unstable period of employment relations, CIPD finds

New CIPD research shows strong employer concerns over measures in the Employment Rights Bill designed to make it easier for trade unions to take industrial action.

It’s latest report UK industrial relations: A future with trade unions is published as the Employment Rights Bill is poised to receive Royal Assent. It also comes ahead of consultations on new powers for trade unions which are still to be finalised in secondary legislation.

The CIPD’s report surveyed more than 2,000 employers. It explores the extent to which workplaces are unionised, how employers perceive the future of industrial relations and their views on key Employment Rights Bill reforms around trade union rights. It found that more than half of employers (56%) believe working in partnership with trade unions can be beneficial to organisations and 79% describe relations between managers and employees as ‘very good/good’ and just 5% as ‘poor/very poor’.

However, 62% of respondents agree that the UK is entering a new, more unstable period of employee relations, up from 53% in 2022*. Over half (54%) expect levels of industrial action to rise over the next 12 months, and more than two in three (69%) believe unions still have the power to cause major problems for the UK economy.

Looking at the specific measures outlined in the Employment Rights Bill, the CIPD’s research shows employers are particularly worried about:

• Reducing the notice period that unions must give when they intend to take industrial action, from 14 to 10 days: 40% oppose and 18% support, with opposition rising to 47% of non-unionised employers.
• Removing the current 50% turnout threshold so that a simple majority of members can vote in favour of industrial action: 35% oppose and 22% support, with opposition rising to 42% of non-unionised employers.
• Extending the expiry of mandate for industrial action from six to 12 months, so unions will have the legal right to call for industrial action that could last for a full year: 31% oppose and 18% support, with opposition rising to 38% of non-unionised employers.

Employers’ views are more mixed on the proposal to relax the statutory union recognition rules so only a simple majority of those voting in a ballot is needed to achieve trade union recognition. In all, 24% of employers oppose this measure, compared to 21% that said they supported the proposal, however three in ten (30%) non-unionised employers are against this change.

The research highlights that employers that already recognise trade unions are less likely than those that don’t to oppose any of the measures, suggesting that a lack of experience of working with trade unions may be a factor behind some employer concerns.

Rachel Suff, senior employee relations adviser for the CIPD, the professional body for HR and people development, comments:

“Our research highlights the concerns many employers have about the impact of sweeping new rights and powers for trade unions, particularly among businesses with no experience of working with trade unions. There’s a real risk that these new rights will lead to more employment relations challenges and potentially an increase in collective disputes unless the Government takes firm steps to help employers adapt and work in partnership with trade unions.”

The CIPD is calling for a new statutory code of practice — or a similar framework with real authority — to define expected standards of behaviour for effective partnership working and ensure both employers and unions are held accountable for upholding them. Equally important, it says, will be additional resources for Acas, the Central Arbitration Committee and Employment Tribunal system. It also recommends the provision of clear advice, guidance and training for both employers and trade unions to improve employment relations skills, support voluntary agreements and avoid disputes wherever possible.

Suff continues:

“It’s understandable that there are concerns about the impact the Employment Rights Bill could have on organisations, especially amongst those with no experience of working with trade unions. To get ready for the changes employers need to review their employment relations strategy and collective voice channels. Employers should also prioritise building their employee relations skills for effective partnership working among managers and their HR teams. They can also learn from examples of other businesses that have productive relationships with trade unions.”

Mike Clancy, general secretary of Prospect, comments:

“The Employment Rights Bill can lead to a more positive industrial relations landscape, with stronger working relationships between employers and unions, but it will only do so if there is a concerted effort from all parties to make this happen.

“While it is encouraging that concern about new trade unions rights among employers is currently relatively limited, and that those that already recognise unions are actually the most positive about the changes, these numbers also suggest a significant knowledge gap among employers about what the measures in the Bill could mean for them.

“This knowledge gap is both a challenge and an opportunity, and it is clear that there is still work for government, unions, and employers to do to ensure that the Bill is seen as an important step in creating a more positive industrial relations framework, including investing in the skills and institutions that underpin good industrial relations.”

Niall Mackenzie, Acas chief executive, comments:

“We agree with the CIPD call for the Government to set out its vision for employment relations. The Employment Rights Act represents a great opportunity to deliver collaborative work between employers and trade unions, and clarity about what makes good relations is essential for its success.

"When businesses, workers and unions treat each other with mutual respect as partners, we can achieve economic growth, improved productivity, fewer disputes and better working lives. At a time when workplace conflict costs UK organisations an estimated £28.5 billion each year, collaborative partnerships offer a proven path to resolving disputes before they escalate, driving economic success and building healthier workplace relations.”

Read the report