Information and consultation at work: the changing workplace

Section 1 of the Personnel Today Management Resources one stop guide on information and consultation at work. Other sections.

The workplace of today is a very different place from that of 20, or even 10, years ago. European employment law has given UK employees enhanced rights in a wide range of areas: discrimination, working time, data protection and business transfers to name a few.

Workplace thinking has changed too. It would be strange to describe the employment relationship as one of master and servant as was done in the distant past. These days phrases such as 'a business' most valuable asset', 'stakeholders in the business' and 'a partnership' are bandied about when discussing employees. The language may be different, but have working practices changed?

Undoubtedly, there is a shift in how things are done in workplaces, especially within large organisations. Nowhere is this more apparent than in the area of information and consultation. Driven by European legislation, working practices are starting to become more inclusive in the way employers inform and consult on issues that affect employees. It is common practice for some employers to canvass the views of their workforce on various issues or to gain feedback via focus groups or other similar forums.

Many employers, however, are highly suspicious of these 'inclusive' ways of working, especially where it involves including a trade union in the process. This may be a legacy of the often adversarial relationships between employers and trade unions in the past. This has tended to colour the reaction of some employers to inclusive working practices, and, in particular, to the current proposals to introduce a general framework on informing and consulting employees.

For other employers, information sharing and consultation are simply counter-cultural. The UK and Ireland are the only EC members without a general framework requiring employers to consult with employees on issues affecting the employer's business, and for many UK employers, employee inclusion is still an alien concept.

Employee involvement in the UK has historically been facilitated through collective bargaining with trade unions. Indeed, trade unions have played a very influential role in the development of employers' relations with their employees. While union membership has been in decline for some years, there are recent signs of a resurgence. Statistics show that in autumn 2001, 7.6 million of those in employment in the UK were union members - an increase of 178,000 since 1997 (see the DTI's analysis of data from the autumn 2001 Labour Force Survey, dated July 2002).

The introduction of legislation requiring compulsory recognition of trade unions in certain circumstances has undoubtedly played a part in the resurgence in union membership. The Government's review of the Employment Relations Act 1999 (ERA) shows that while only 52 formal applications resulted in statutory trade union recognition, there has been a huge rise in the number of voluntary recognition agreements reached.

TUC surveys have recorded 1,000 new instances of voluntary recognition since 1998, with more than three times the number of agreements reached in 2000/2001 (the year in which compulsory recognition legislation came into force) than in 1999/2000 (see the DTI Review of the ERA updated on the internet on 8 April 2003).

There are a number of specific requirements obliging employers to inform and consult with employees on a range of issues including collective redundancies, health and safety issues and business transfers.

Some multinational employers are also affected by the requirements relating to European Works Councils (EWCs). These requirements are contained in different pieces of legislation, and it can often be difficult for employers to work out which requirements apply to a particular exercise. The TUPE and redundancy requirements can both apply to the same situation (see Section 5 ), and are sometimes confused by employers in relation to the consultation timescales that are applicable.

By March 2005, the UK will be required to implement the EC directive on informing and consulting employees. This will establish a right to minimum standards for communication with employee representatives on a range of general work issues, such as the employer's financial situation and/or proposed structural changes that might impact on employees (the introduction of so-called National Works Councils).

It would be helpful if the introduction of a new general framework resulted in some simplification of the range of requirements applying to an employer to inform and consult with employees.

The indications are that the new requirements will not duplicate consultation for employers where there are existing obligations to consult on redundancies or business transfers. This is good news for employers.

Although some employers approach the issue of employee consultation with suspicion, there is general agreement that involving employees can help improve productivity. This is certainly the view of the Government, set out in detail in its recent discussion paper on high performance work places (see DTI report High Performance Work Places, dated July 2002). It is also something on which (unusually) the CBI and TUC agree, the joint CBI/TUC submission to the Productivity Initiative stating:

"Research evidence . . . suggests that new forms of work organisation, effective management, leadership, a culture that encourages innovation, employee involvement and employee development tailored to organisational needs are all necessary conditions for adaptable, high performance workplaces. Commitment to equal opportunities and managing diversity are also key issues. A central feature in the mix is the adoption of an inclusive management style that encourages workers at all levels of the organisation to contribute. Management leadership and employee involvement are complementary features of the high performance/high commitment model."(See the UK Productivity Challenge, CBI/TUC submission to the Productivity Initiative, October 2001).

The challenge for employers will be to design and implement arrangements that work for their organisation but which will also be compliant with the growing range of legislation requiring employers to inform and consult with employees.

The aim of this guide is to provide HR practitioners with an overview of the current requirements to inform and consult with employee representatives and to outline the new requirements that will apply once the EC directive on informing and consulting employees comes into force in 2005.

The guide includes practical examples and case studies to help provide practitioners with a route through what is an increasingly complex area of the law.