ERB to introduce significant changes to relationship between staff, employers and trade unions

Union recognition

The ERB changes mean establishing and recognising unions will become much easier among workforces. This will mean that even organisations that currently don’t have recognised trade unions need to be thinking about the potential risk of recognition requests and staying abreast of changes to trade union legislation.

Under the current legislation, at least 10% of the members in a bargaining unit must be part of a union before it can apply to the Central Arbitration Committee (CAC) for statutory recognition. However, the ERB will potentially significantly lower this, opening the door for the government to pass further legislation which would make the membership requirement just 2%.

Unions would also no longer need to demonstrate they would win a recognition ballot or show that there is majority support within the workforce to apply for union recognition.

Recognition ballots have also been simplified. Previously a majority vote was needed, and 40% of all members in the bargaining unit needed to be in the union, for it to be carried. The ERB removes the latter requirement, making the voting process for balloting for recognition much simpler.

This means a union will be able to gain recognition through ballot by a simple majority.

The Code of Practice of the CAC - whose rules govern trade union recognition – is also set to be reviewed to restrict unfair practices, such as pressuring employees to vote in a particular way, and to prevent employers from trying to disrupt the voting process.

The CAC will also have the power to issue fines against companies for failing to comply with an access agreement by unions, which will put the onus on employers to recognise trade unions or risk punitive action.

Timeline for potential implementation

• 2025: changes to recognition thresholds will happen when the Bill is passed
• 2025: consultation on Code of Practice changes
• 2026: implementation of Code of Practice changes

Getting ready

We asked our clients on a recent webinar how many were anticipating new requests for recognition (32% of all our clients in attendance) and therefore how they are preparing for changes in workforce engagement:

• 14% of them said they had started a new employee forum to improve engagement;
• 16% said they already had an existing forum which they were now strengthening;
• 36% said they were actively reviewing relationships with trade unions ahead of the ERB

Establishing new employee forums and strengthening existing forums is likely to be the best approach to improving workforce relations and thus attempting to prevent union applications for recognition. With almost a third of employers expecting new union recognition requests, it’s time for those potentially impacted to begin preparing for the future.

What you need to do

The ERB changes introduce a much simpler process for workforces to seek union recognition – and may well invigorate requests for recognition that had not previously been a priority.

The resetting of union/employer relations means organisations will need to refresh their engagement strategies, particularly to maintain an effective channel of communication with employees, and vice versa.

Building a portfolio of workplace satisfaction evidence, within existing employee voice structures, may deter union pressure – or, if recognition is voted on, ensure a good relationship with the new representatives going forward.