Taylor Report on Employment – where now?

 We (OK, a few of us) were on tenterhooks waiting for the publication of the Taylor Report into employment practices in the UK, but will it make things clearer or further muddy the waters?

Uber, Deliveroo and Pimlico Plumbers have all been answering legal questions about the legitimacy of a business model that sees them, and other companies, claiming the people work for them are self-employed, so they don’t have to pay Employers’ National Insurance, pension, holidays, sick leave, etc., as their competitors do.  At the outset, Taylor commented that there were areas into which he wasn’t tasked to delve (tax & National Insurance, for example), so it hasn’t, perhaps, been the free and open review that had been called for by many.

There are, however, several aspects that are unlikely to go down well with factions of the Conservative government.  Speaking in May, Taylor said:

“As we encourage people to vote . . . to inform themselves of issues, to volunteer in their community, is it defensible to say that for eight or more hours a day they should accept being ignored, denied information, treated as mere cogs in a machine?”

That could easily be interpreted as a call to reverse moves by the Cameron Government to apply cumulative restrictions to the ability of trade unions to provide that voice.  It could also be that Theresa May’s surprise decision to announce in November:

“…we will shortly publish our plans to reform corporate governance, including … proposals to ensure the voice of employees is heard in the boardroom.” 

might actually come to fruition, though there has been precious little mention of the radical reforms of employment law mentioned in the run-up to the general election.

However, it also suggests that implementation of the Information and Consultation of Employees Regulations 2004 (ICER) hasn’t had the impact that it could and should have had.  Certainly, many trade union activists viewed ICER with suspicion, partly because merely informing and consulting can achieve relatively little without scope for negotiation. Similarly, some employers saw it as a way to prevent unions from getting access to their workplace.  However, those opinions have been changing over time, as demonstrated by the TUC’s “Democracy in the Workplace” report from 2014.  There is considerable evidence that employers that actively engage with their staff are more successful than those that don’t:

“Happy and productive people equals growth” (ACAS)

Many were calling for a simplification of the categories, preventing confusion over whether people are employees, workers or self-employed: instead, Taylor seems to be recommending that a further category is introduced, that of “Dependent Contractor”, something more than self-employed, clearly less than a worker, but that is presumably intended to level the playing field.

Quite how the Government will react to the findings is, frankly, anyone’s guess, especially with the level of distraction coming from Brexit, May’s increasingly slender majority, rumoured challenges for the Tory leadership (and, hence, the job of Prime Minister) and Labour apparently surging ahead of the Conservatives for the first time since the General Election, it’ll be a real surprise if they turn to this as a matter of urgency.  But it is the response of Government to these findings that will determine whether or not they make a positive difference for employers and those they employ.

Instead, attention will again be drawn to Uber’s fortunes in the Employment Appeals Tribunal in September.

From where I’m sitting, one answer is in the hands of every employer; improve your working relationship with your staff and, in turn, make the business more productive and more profitable.  That’s an area where I would certainly like to help.

I’d be interested to know your thoughts on the issues raised in this article, so please leave a comment or, if you’d like to discuss anything more directly, please contact me at malcolm@strathesk.co.uk or give me a call on 07736068787.

Trade Unions face big new fines

Trade Unions face big new fines

“The number of working days lost are at historically low levels when looking at the long-run monthly time series back to the 1930s.”

Sneaking past the radar, under cover of Brexit, the Government is running a number of consultations, including ones around the Trade Union Act 2016 and Corporate Governance. The Corporate Governance review deadline has passed, so the gathered information is now being collated and interpreted, but other elements are still in play. The consultation that caught my eye was consultation on the Certification Officer’s enforcement powers. This will introduce significantly tighter rules on the election for senior positions, vetting of candidates and the management of political funds, with unions facing fines of up to £20,000 if they breach those rules.

As is often the case, there’s a stick for when things go wrong, but no carrot to encourage a more positive approach to be deployed. The consultation in process doesn’t seem to be leveling the playing field so much as presenting another set of hurdles for unions to jump in order to be effective in representing the voices of their members.

Only last November Theresa May stated “…we will shortly publish our plans to reform corporate governance, including … proposals to ensure the voice of employees is heard in the boardroom.” at the CBI Conference. She backtracked pretty quickly, and the concept that staff have a valid (essential?) voice in the successful governance of businesses and charities was diluted in the document that was published, but it was still there. There is, therefore, an opportunity for employers to provide a channel for that voice.

And all of this comes at a time when strikes are at close to their recorded low – to quote from the Office of National Statistics report UK Labour Market: Mar 2017:

“The number of working days lost are at historically low levels when looking at the long-run monthly time series back to the 1930s.”

Yet, while CEOs across the land still proclaim their staff to be their biggest asset, most still decline to draw on staff knowledge of the business, the problems it faces and many possible solutions.

I’d be interested to know your thoughts on this subject, so please leave a comment, but if you’d like to discuss this topic more directly please contact me at malcolm@strathesk.co.uk or give me a call on 07736068787.

Lidl v GMB – what’s going on?

food-healthy-vegetables-potatoesLast weekend there were news articles about Lidl’s decision to appeal against the ruling that they should recognise GMB union at their Bridgend depot – but why?

The story is reported on the GMB website, which handily also includes Lidl’s statement on the issue.

A significant majority of staff at Lidl’s Bridgend depot indicated that they wanted to be represented by a trade union in negotiations with the company. Lidl’s response was to reject the request for recognition that came from GMB. This was referred to the Central Arbitration Committee, the body that decides the outcome in such situations, who ruled that the union should be recognised. Lidl’s response has been lukewarm, with reports suggesting they are now going to appeal to the Court of Appeal against the CAC decision.

Setting aside the specifics of Lidl and GMB, the question then arises – why are so many employers hostile to unions?

Workplaces that have a union present have significantly better H&S records than those that don’t, they can access all sorts of training for their staff (union reps and members can access training through their union or STUC and TUC education programmes, as well as wider education through UnionLearn projects, etc.) that they would otherwise have to pay for. Being a representative is also a great way for staff to be exposed to responsibility and authority that would never occur in their day job, so there’s a good chance to see what they can do.

Aside from that, it helps meet obligations under the Information & Consultation of Employees Regulations that may otherwise be both problematic and ineffective.

So, with so much to gain, what is it that makes employers so reluctant to engage with trade unions?

Interestingly, around 70% of FTSE 100 companies recognise unions, so it can’t be THAT damaging to the bottom line.

History is a big factor – many, many employers (and workers) still view the union movement as a behemoth from the 1970s. But unions have changed, forced to evolve and adapt initially by legal changes through the 80s and early 90s, latterly by a drive to become more effective at representing their members in the rapidly changing world of employment. Before the last government decided to raise the hurdles for workers to take legal industrial action, it had already become a rare event – 2015 was the second lowest annual total for working days lost through strike action since records began in 1891 (the lowest was 2005).

There are costs – rates of pay in unionised workplaces are higher, and ensuring your workforce is safe and healthy takes investment, but more competitive pay also means they are more likely to attract better candidates when they advertise jobs, and it’s a good thing that people go home after work as healthy as they were when they started, so there are swings to those roundabouts.

I have long been a believer that the objectives of any workforce largely align with those of their employer – success for the company is in everyone’s interests. Hence my work to help and encourage employers to find the most effective way to interact with their employees to improve the company for whom everyone is working. Given the insights they have into the various levels and structures of your business, staff represent a valuable resource from which to better inform your next big decision. That doesn’t change because the staff want to be represented by a union.

However many people you employ, if you’d like help in improving the way you interact with your staff, whether or not there are unions involved, please get in touch – it could be the start of a new future for your company.  If you’d like to know more about the services offered by Strathesk Resolutions, please e-mail contact@strathesk.co.uk or call Malcolm on 07736068787.

What Can Strathesk Resolutions Do For You?

Approaching Bass Rock from the south

Strathesk Resolutions specialises in helping businesses to identify, resolve and, ideally, avoid individual or collective problems with their staff through targeted analysis, mediation, training, coaching and mentoring.

We draw on years of experience working collaboratively and constructively to achieve the right outcome to complex industrial relations situations.  We deliver straightforward advice, training and solutions that encourage and develop relationships based on understanding, cooperation and trust.

Our open and honest approach ensures fairness to all sides whilst guaranteeing the needs of both the individual and the organisation are properly considered. Having worked with Trade Unions for years we understand the need for clear and concise communication, whilst influencing and negotiating in an expert manner.

You can expect us to thoroughly explore your problems, ensuring that we properly understand the problem before we start working towards a solution.  We will also keep an open line of communication to ensure that you are fully aware and involved in developing approaches.