The Changing Employment Relations Landscape. David Prince Chief Conciliator, Acas

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1 The Changing Employment Relations Landscape David Prince Chief Conciliator, Acas

2 The Programme Key influences Economic Political Social Legislative Collective Disputes Key Trends Key Behaviours The Negotiation Process Post Disputes what happens next? Case Study Individual Disputes Key Ingredients of Good Workplace Relations Discussions/Questions

3 Economic Improving economic prospects will put pressure on employers due to employee expectations. Real growth in wages for the first time in years with inflation expected to stay low. Continued fragmentation of the workplace driven by outsourcing. Drive for improved productivity and competitiveness following the recession. Emergence of skill shortages

4 Political New Government New Employment Relations Agenda Trade Union Bill Constraints on TUs Percentage of union members voting Ballot paper information on exact form of action proposed Extended notification period of Industrial Action Ending of Rolling Mandate for Industrial Action What happens to Employment Tribunal fees Public sector pay restraint

5 Social Flexible working arrangements and more remote functionality Potential to both share information and consult employees in new ways Stronger collective voice of employees through technology Change in the conduct of collective disputes and bargaining More diverse workforce Health and wellbeing agenda

6 Legislative Rise in individual rights Restriction on collective bargaining processes Employment Tribunal costs Collective disputes presented as Employment Tribunal claims

7 Collective Disputes Key Trends Working days lost Requests for collective conciliation Types of disputes Key Behaviours The negotiation process- a new approach? Post dispute - what happens next? Case study or improving employment relations

8 Working days lost to disputes 706,000 working days lost to disputes in 2014/15 (Apr 14 Mar 15), compared to 498,000 in 2013/14 an increase of 42%. This increase between these two year is mostly driven by large scale public sector disputes, particularly those of July Wages remain the most common dispute cause in stoppages (accounting for almost 90% of working days lost in 2014). 298,000 working days lost in the first 6 months of 2015/16 (Apr 15 Sep 15). Source ONS

9 Requests for Acas Collective Conciliation 1,371 requests for collective conciliation in 2014/15, compared to 858 in 2013/14. 87% of cases which were cleared in 2014/15 were successfully resolved. Sector of disputes Acas were involved in: 68% private sector 28% public sector 5% voluntary sector Source Acas Management Information

10 Acas collective conciliation request volumes (2000/01 to 2014/15) Source Acas Management Information

11 Dispute cause of Acas conciliated cases in 2014/15 Pay related disputes most prominent, particularly other pay issues which includes issues such as pay bonuses, job evaluation, grading arrangements and pension allowances. Source Acas Management Information

12 The Negotiation Process Traditional (Position) Information withheld / limited Rigid thinking Limited Options Mistrust Power base Win / Lose Communication battle A New Way? (Interest) Information shared Flexible thinking Creating ideas Building Trust Interest based Win / Win Communication Jointly agreed

13 Post Dispute What happens next? Relationship building Reflection on the process of the dispute What could have stopped the dispute SWOT analysis Encourage joint problem solving techniques Blueprint for improving employment relations

14 Case Study Issue Pay Dispute Numbers 800 Acas invite Management and Trade Union (Jointly) Position Pay negotiations for 2014 stalled Employment Relations environment poor Potential for damaging Industrial Action

15 Conciliation Process Traditional Positional Based Bargaining Multi-Issue, Discussion / Interests Mandate Delays Relationship Issues. Mistrust Time Pressures Dispute ten months behind anniversary date. Three Conciliation Meetings held

16 Improving Industrial Relations Workshop Diagnostic Workshop on issues surrounding the Industrial Relations environment. The Framework for Good Industrial Relations Key Relationship values to promote good industrial relations Policies / Practices / Procedures The Negotiating Process and associated training

17 Agenda for Improving Industrial Relations Review of structures and associated agreements to support the Industrial Relations process Key roles of Management and Trade Union representative The Negotiation Process to include access to Information, Dispute Resolution Procedures Training in Negotiation Skills Consultation & Communication process in Management and Business decisions.

18 The Outcomes Positive behavioural contact Respect for each other s positions Recognition of Joint Leadership roles Sharing of Information / Documentation Agreement Joint problem solving approach Communication strategy Training programme for key players

19 Individual Disputes Rise of individual rights Awareness Complexity Legally supported Trends in the individual employment disputes Early conciliation a new process Impact of Employment Tribunal The results

20 Individual Conciliation Cases 2015/16 (projected 93000) Early Conciliation 16% settled through Acas 66% do not progress to Employment Tribunal 18% go to Employment Tribunal Employment Tribunal Cases 29% settle through Acas 7% withdraw 12% determined by Employment Tribunal 52% ongoing

21 Key Ingredients of Good Workplace Relations Understanding of standards, rights, responsibilities, processes, and procedures Managers (and employee reps) trained in roles Culture Behaviours that set the standard Good dispute resolution policies/procedures

22 Discussion/questions?