register / login
The Chartered Institute of Personnel and Development
 
 
 
Go to
Sitemap    
Subjects   
Search for
 
 
 
 

Unions at crossroads as downturn redefines role

From CIPD's People Management magazine.

Unions must choose between confrontational or collaborative approach

26 June 2009

The recession is set to be a defining moment for the future role of unions, as they must decide whether to take a confrontational or a collaborative stance, experts have warned.

Amid forecasts of looming public spending cuts, CIPD chief economist John Philpott has predicted a “guerrilla war” of union-led industrial action in the public sector. He said: “The coming era of public-sector austerity might witness not only large-scale job cuts but also an ongoing workplace ‘guerrilla war’, marked by waves of major strikes and regular bouts of unrest.”

Showdowns with unions are also looming in the transport and energy sectors, as oil refineries staged walkouts, London Underground staff went on strike and British Airways asked staff to accept pay cuts.

Jenni Myles, director of HR and engagement at security firm G4S, said the recession “created an opportunity for unions to reverse the decline in their importance” and that union leaders faced a choice. “They can come out fighting, resurrecting the collective hostility of previous decades and building on the public’s loss of faith in business leaders and politicians; or they can look forward, identifying radical answers to reductions in profit and job security and helping shape value-adding solutions for business and people,” she said.

Myles said there was evidence in the private sector of the latter approach, with agreements on short-time working, pensions and pay reductions. “While a few public-sector unions continue to promote a political rather than pragmatic response to the recession, the experience of G4S is that unions are focusing on the most important thing we have in common – our employees.”

A recent report from Incomes Data Services suggested that employers had learnt the lessons of “slash and burn” policies during previous recessions, which had led to resentment among employees. “By contrast, there is a consensus that this time the approach needs to be more collaborative and collectivist,” the report said.

Gillian Hibberd, HR director at Buckinghamshire County Council and president of the Public Sector People Managers’ Association, said that Philpott’s bleak scenario for the public sector was “unlikely”.

“Of course, union priorities are to protect jobs and prevent losses, but they are doing this through employer discussions. They have been making proactive approaches to employers about how we can work together. They realise there will be changes, but they are being proactive, pragmatic and realistic in their approach,” she said.

Peter Harwood, Acas chief conciliator, added: “In these challenging times it has never been more important for employers to engage with their trade unions in early, open and constructive dialogue about the pressures they face.”