On 6 August 2024, the Government announced that the Strikes (Minimum Service Levels) Act 2023 will be repealed. The Act had only been introduced by the previous Conservative Government which enabled employers to require a minimum level of service to be provided during a strike in six specific sectors: health services; fire and rescue services; education services; transport services; decommissioning of nuclear and radioactive waste; and border security. The Labour government had always been very vocal about their opposition to this piece of legislation and the principal that it unduly restricted the right to strike. It undermined the ability for unions to negotiate and come to resolution in disputes.
Currently, in order to strike there must be a dispute and a valid secret postal ballot verified by an independent scrutineer. Only those entitled to vote in the ballot can participate and a majority voting in the ballot must vote in favour. For important public services, there is an additional requirement that at least 40 per cent of those who were entitled to vote in the ballot answered yes to the industrial action question. That 40 per cent threshold has not been repealed. It is understood that no employer sought to rely on the above. Last year when there was industrial action, there were significant votes in favour of the industrial action.
So, in effect the above change is a non-issue. It allows for the Government to meet its 100 days' commitment. The Act will be repealed through the Employment Rights Bill which will be introduced by 12 October 2024, but that Bill is a gateway to a number of other proposed changes that will take time to come into force. What is of more interest is the significant proposed changes by the Government of stronger collective bargaining rights in workplaces through trade unions. Some of the proposals, such as access to unions at the workplace, most would see as uncontroversial. The proposals' objective is to increase unionised workplaces in the UK. The last published statistics from the Department of Business and Energy and Industrial Strategy show only 23 per cent of UK employees were in a union. The Labour Government plans amount to a fundamental shift for many organisations. The proposals include lowering hurdles and thresholds for recognition, formal processes for negotiation and on a number of issues beyond pay and hours, a move to sectoral collective agreements. Arguably, the ability to strike is a significant negotiating power. The policy paper stresses that industrial relations should be based on good faith negotiating and bargaining and avoiding disputes. Nevertheless, the proposals increase the potential of industrial action and speed in which industrial action can be taken. It is unclear whether the thresholds for strike action will be reduced, although the last version of the plan refers to "high standards of engagement and participation" on balloting. Once industrial action takes place, a line is crossed that arguably damages the relationships between workers, unions, employers and the wider community.
The law on recognition, industrial action, scope and ending of negotiations is complex. There is an opportunity to simplify and clarify and have proper meaningful and respectful collective negotiation, improving terms for workers and the business. The goal must be for an increase of productivity both in rewarding jobs and business output. Employers need to be planning now for the changing landscape. Most employers are aware of what good employee relations involve, but need to assess whether they are meeting those requirements, mutual trust and appreciation, building strong healthy work cultures, high levels of integrity, advocating for employees, addressing their concerns and having defined structures for preventing and resolving disputes, improving working conditions and dealing with change and challenges including restructures. The Government has committed to fully and comprehensively consulting with businesses about proposed changes and businesses must meet the invitation of giving constructive feedback. At this stage there is a lack of detail on the proposals, gaps in acknowledging alternative successful collective mechanisms, analysis of the potential impacts and compromises as a result of the consultation. Employers need to understand the timetable of the "step changes".
Originally Published by CIPD
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