26/07/2024

Why are Works Councils beneficial? 

In July 2024 we saw the election of a new Labour government. Whilst Keir Starmer has described the new Government as one of service and fully intends to engage with manufacturing, we have to anticipate that there will inevitably be a raft of significant employment law changes which, in particular, will include trade union legislation. The Labour party manifesto committed to a repeal of the 2016 Trade Union Act, the 2022 Agencies Regulations, and the 2023 Minimum Service Levels Act and also commits to making it easier for trade unions to gain recognition in the workplace. This includes a pledge to improve workplace access for unions along with proposed changes to consultation requirements. 

Employers who are not unionised therefore need to be aware that they may well be approached by a trade union seeking recognition and it is likely that the process will become easier for them to do so. Consideration needs to be given to the knock-on impact this may have on their business. Whilst many employers enjoy good working relationships with trade unions and work in partnership, there can be difficulties, which can place constraints on a business and its operation. To gain a foothold in a business a trade union has to be wanted by the workforce and we typically see this when employee relations are poor and employee engagement is limited due to poor communication. We therefore recommend considering alternative workforce communication mechanisms which may work better for your business, and which will help to develop and improve good employee relations without the need of a third party.

Make UK recommend the establishment of a company works council, which benefits both parties by improving communication and can improve employee trust in the company, potentially reducing the risk/s of challenge and enmity within the workplace. 

Works councils are employer/employee forums which involve the establishment of a joint working group consisting of management representatives and employee representatives. Companies who are unionised can also run successful forums by including both employee representatives from those areas outside of the bargaining unit as well as the elected union representatives. 

The CIPD describe the benefits of a works council as being:

  • Reinforces an employer's culture of openness and transparency and gives all employees a sense of participation in the business, which may have productivity benefits.
  • To help manage change in the future especially if restructuring or other organisational changes are envisaged.
  • They may reduce any threat of a trade union requesting recognition whether for part or all of the workforce.

How we can help

Make UK has a long-established record of aiding businesses to establish appropriate communication bodies aligned to their business and can aid in drafting an appropriate constitution along with the facilitation of the requisite training.

Our team also has a successful track record in supporting businesses in relation to both trade union recognition and de-recognition matters. We can assist with drafting and updating recognition and collective bargaining agreements, representation in any challenges concerning union recognition, including full representation before the Central Arbitration Committee, support with any requests from trade unions for collective bargaining information, and general advice on practical approaches and the level of risk in relation to union de-recognition.

In discussions with the Labour Government, the Make UK Policy team has flagged that our subscribers would value a better understanding of what is most likely to change in the short to medium term, to assist with business planning.  We have been liaising closely with Government so as to better understand its proposals and will keep Make UK subscribers up to date with any developments.

We will be discussing the latest on these proposed legislative changes in more detail in our Autumn Employment Law Updates. Click here to book. 

If you are a Make UK subscriber, you can speak to your regular adviser with any queries you may have about these various employment law proposals and to request further consultancy support. Make UK subscribers can also access guidance on a wide range of employment law topics, including template policies and drafting guidance, in the HR & Legal Resources section of our website.

If you are not a Make UK subscriber, our expert HR and legal advisers can offer guidance on a consultancy basis. For further information, contact us on 0808 168 5874 or email [email protected].