‘Cultural shift’ towards trade unions expected from UK industrial relations reform

The King welcomed the new Labour government, setting out the new legislative programme for the short to medium term, during his speech last month. This includes the introduction of the Employment Rights Bill, with the industrial relations aspects of the Bill to be introduced to parliament within the first 100 days.

Labour has set out plans which will strengthen the enforcement of workplace rights. It follows a period of unsettled industrial relations, pay disputes and workforce negotiations, with the new government hoping new legislation will create a more cooperative environment between employers and employees.  

Jonathan Coley, expert in industrial relations law, said: “Whilst this remains a laudable aim there is at the moment little detail as to how a move to a more constructive dialogue in certain cases will be encouraged or achieved”.

The government already announced on 6 August that it will abandon the previous government’s attempts to allow employers to use agency workers to cover for striking workers and repeal the Strikes (Minimum Service Levels) Act 2023.

Amongst other proposed changes in this area is significant enhancement of trade union rights. The government’s manifesto included intentions to “strengthen trade unions’ collective voice” by making statutory recognition easier, granting more rights of access to workplaces for trade unions, and ensuring employees are informed of their right to join a union. The plans also include simplification of the balloting system and the introduction of electronic and workplace ballots for any proposed industrial action. Labour has also said it will work to empower gig economy workers to organise through trade unions, as well as repealing the Trade Union Act 2016 and updating rules on blacklisting.

Coley said: “Those employers who do not currently recognise a trade union may come under renewed interest and pressure from employees who are trade union members for recognition. Now is a good time for employers to positively assess their collective engagement with their colleagues and whether organisational change is needed, such as the establishment of an employee forum.”

“It will undoubtedly be easier under any proposed changes for trade unions to stand up industrial action on shorter notice. Now maybe a time therefore for employers to ‘dust off’ their contingency planning,” he said.

The government has also proposed the introduction of sectoral collective bargaining across the economy through fair pay agreements, starting with the social care sector but then considering whether wider application is appropriate. These agreements aim to create both fairer working conditions and wages for employees.

A fair work agency is set to be established, with Labour setting out to enforce new rights, including flexible working from day one, banning zero-hour contracts, predictable working contracts, and ending fire-and-rehire practices.

Although presented to parliament within the first 100 days of the new government, the Bill will take longer to make its way through parliament. Therefore, the changes are not likely to be seen in practice before 2025.

However, it is possible that the government will push through some changes which do not require a full Act of parliament more quickly. Repealing the minimum service levels provisions around industrial action is a potential example of this, Coley said.