Thought leadership | Improving employment relations skills key to success of trade union reforms

The measures can provide an opportunity for employers and trade unions to work together constructively to boost employee voice in workplaces, supporting innovation and effective change management, for example, as organisations seek to adapt to and use AI and other forms of new technology.

However, the changes to make it easier for unions to achieve recognition, access workplaces for organising purposes and to take industrial action also presents challenges for both employers and trade unions that must be addressed if they are to drive positive change.

ERB concerns higher among employers with no trade union representation 

Many employers have little experience of working with trade unions and lack the necessary employment relations skills to do so effectively and constructively. Similarly, some trade unions and union representatives may lack recent experience of engaging with employers in some sectors and may need support if they are to build genuine partnerships working with new businesses. 

We all want to see the ERB lead to improvements in working relations, rather than to more collective disputes and industrial action. But that means being clear-eyed about challenges and the steps needed to address them.  

New CIPD research shows that it is the employers who don’t currently work with trade unions that are most concerned about the new rights being introduced in the ERB (Figure 1). Encouragingly for the government, our research finds that where employers already recognise trade unions they are generally more positive about the changes. For example, four in 10 employers with no trade union representation oppose plans to remove the 50% turnout threshold for industrial action, with just 15% supporting this change. In contrast, 34% of employers that already have trade unions representation support this reform, with less than a quarter opposing. 

Figure 1: Whether employers support or oppose measures to strengthen trade unions in the ERB 

^{Source: Labour Market Outlook – Spring 2025 survey} 

These findings from the CIPD’s Labour Market Outlook – Spring 2025 survey of 2,000 organisations, suggest that for many employers, concerns are likely to be due to a fear of the unknown, and a lack of experience, employment relations skills and know-how on working with unions effectively. This will particularly be the case for smaller businesses who will have limited HR or other specialist resources internally to help them.  

This is why the CIPD and Prospect have been making the case to the government to complement its legislative changes with steps to promote and support the development of effective employment relations skills in workplaces across the UK. 

New guidance and code of practice on employment relations needed 

Our new policy paper, Working together to make work pay, calls for the development of new guidance and potentially a statutory code of practice on employment relations. This would help provide an anchor point for the government’s four principles set out in its modern industrial relations framework of collaboration, accountability, proportionately, and balancing the interests of workers, businesses and the wider public.  

A statutory code or official guidance could help establish clear standards describing expected behaviours. This is identified by employers as the most important factor in developing effective working relationships between senior management and employee representatives, according to CIPD research (Figure 2).  

As well as clarity over the standards and behaviours expected on the part of both the employer and trade unions, managers and trade union representatives are also likely to need support to develop the necessary people and consultation skills. These are identified as important for building effective working relationships between senior managers and employee representatives by 90% of employers. 

Figure 2: Factors of most importance for effective working between senior managers and employee representatives 

^{Note: Does not add to 100% due to ‘Don’t know’ responses}

^{Source: Labour Market Outlook - Spring 2025 survey} 

To support organisations and trade unions in the development of these skills, we have highlighted to the government the need for more resources for Acas, which has the expertise to deliver joint training to managers and trade unions to build this employment relations capability. A strengthened Acas would also help wider efforts to support employers – particularly small and medium-sized enterprises – to comply with the many wider changes to legislation being introduced by the ERB.  

We’ve also suggested that a partnership fund should be established which sector bodies could draw on to build their ability to improve collective employment relations between trade unions at an industry or sector level.  

Working for mutual benefit 

Improving partnership working between employers and trade unions will be crucial if the UK is to tackle the many challenges it faces such as addressing skills shortages and the need to boost skills development, technology adoption and workplace productivity.  

However, the forthcoming changes to legislation to strengthen trade unions recognition and representation, in themselves, won’t be sufficient to improve employment relations and working practices.  

This will require a more sustained ambition to ensure the new rights for trade unions – and workers more widely – are supported by a proactive campaign to promote good employment relations. It will also need effective institutions to support good practice, and guidance to help organisations to implement effective partnership working, as well as provision for business support and training. 

This can help ensure that future employment relations in the UK are characterised by employers and trade unions working together productively for mutual benefit rather than reverting to a conflict model that is not in the long-term interests of either businesses or workers.