The trade union bargaining agenda 2003/04

What are the big issues?

If this year's TUC congress is anything to go by, the battle over pensions is likely to be high on the unions' bargaining agenda over the next 12 months. While there were only three motions on pay, there were nine on pensions.

Elsewhere, the national minimum wage is also likely to feature prominently, with trade unions arguing not only for further increases in the adult rate, but for this to be paid at the age of 18, rather than at 21 as is presently the case. The unions are also asking the Low Pay Commission to recommend that statutory pay protection should be extended to cover 16- and 17-year-olds, in order to "tackle age discrimination and the exploitation of young workers".

Equal pay also remains a key principle for many in the labour movement. The unions have been undoubtedly buoyed by legislation that allows anyone who believes they are being paid less than a colleague of the opposite sex doing the same job as them - or a job worth the same as theirs - to use a new equal pay questionnaire to discover how their remuneration compares. The imminent introduction of the Equal Opportunities Commission's revised Code of Practice on pay equality, which is due to come into effect on 1 December 2003, is likely to strengthen the unions' negotiating hand still further.

Then there is the hardy perennial of "fat cat" pay. This tends not to be a negotiating issue as such, but acts as a publicity gift for trade unions, who are adept at using it to draw attention to what they see as the hypocrisy of double-digit increases for directors at a time when their members are offered much smaller rises. For the trade unions, the propaganda value inherent in this strategy is heightened where this involves "golden goodbyes" for directors who have demonstrably failed. The labour movement's attitude on the issue of corporate excess is perhaps best summed up by Kevin Curran, the recently elected general secretary of the GMB: "Working people will be sickened at the level of these pay rises. Fat cat directors seem incapable of self-restraint when it comes to their own pay. The GMB believes therefore that the government should do it for them, and force bosses to accept the same pay rises that they give their workers."

The "awkward squad"

This year's TUC congress took place against what could accurately be described as a background of increasing tension between trade unions and employers. Neither are relations with the government particularly good at the moment, as shown by the lukewarm response given by delegates to Gordon Brown's TUC speech, and the continued public sniping between some prominent trade union leaders and various members of Tony Blair's administration.

Heavyweights in the labour movement, including Unison, the UK's largest trade union, have been engaged in a long-running, and sometime acrimonious, battle against key elements of Labour's programme of public service reform, notably in relation to the Private Finance Initiative and the introduction of Foundation hospitals in the NHS. This tension has led to the creation of what is known as the Public Services Forum - a body that is designed to facilitate a full and frank exchange of views between the government and the trade unions on these highly contentious issues.

While Unison is widely seen as a left-leaning union, much more has been made of the election of what has been dubbed the "awkward squad" to key leadership posts within the labour movement. For example, left-winger Derek Simpson won the election for general secretary at Amicus-AEEU, deposing Sir Ken Jackson, widely reported as being "Number 10's favourite trade unionist". The leadership battle at the TGWU was won by another left-winger, Tony Woodley, who joined other celebrated members of the squad such as Andy Gilchrist of the Fire Brigades Union (FBU); Mark Serwotka of the Public and Commercial Services Union (PCS); and Bob Crow of the National Union of Rail, Maritime and Transport Workers (RMT).

While it is undoubtedly true that the government has not been overjoyed with certain trade union election results, the situation is a little more complex than often portrayed in the media. For example, the recent contest for the leadership of the train drivers' union, ASLEF, held by left-winger and self-proclaimed "awkward squad" member Mick Rix, brought about a surprise result, with the incumbent beaten by a relatively unknown right-wing candidate, Shaun Brady. A number of reasons have been advanced for this turnaround, although union insiders have suggested it was at least partly a reaction against Rix's promotion of progressive policies, not least in relation to the equality agenda.

Elsewhere, another giant of the labour movement, the GMB, recently elected former welder Kevin Curran to succeed John Edmonds as general secretary of the 700,000-strong union. Curran was immediately labelled as a "left-winger" by much of the media, yet he was to the right of his opponent, Paul Kenny. Perhaps more importantly, his predecessor, Edmonds, is not regarded as a man of the left, but was certainly a high-profile and somewhat persistent thorn in the government's side. It is highly unlikely that Tony Blair will be sorry to see him go.

Unison

Unison, which celebrated its 10th birthday earlier this year, has compiled a comprehensive bargaining agenda covering a number of key issues affecting its one million-plus members, many of whom are in low-paid occupations. It has devised several high-profile and often successful initiatives - notably around its ongoing Positively Public campaign. This strategy is set to continue in the coming months, with the union likely to be vocal in respect of its opposition to the privatisation of public services, the fight for equality and the eradication of low pay.

Equal pay yes, low pay no

With a high proportion of female members, securing equal pay for work of equal value has been a key principle for Unison. The union has sought to uphold it by supporting legal action against employers it says are guilty of discrimination. It has been particularly successful in lodging multiple equal pay claims on behalf of groups of women whose work has been traditionally undervalued. Test cases have been identified and then pursued through the tribunal system. Earlier this year, the union launched what is believed to be Europe's largest equal pay claim on behalf of almost 1,000 local authority teaching assistants (See Largest equal value claim launched ). Further claims are believed to be in the pipeline.

However, the union's equal pay strategy is not based solely on the use of the law, but actually involves a combination of collective bargaining, legal action, campaigning, and lobbying for legislative change - a philosophy it summarises as "educate, negotiate, litigate".

Despite its undoubted successes on the equal pay front, Unison says there is still far more to be done. In particular, it will be arguing for further legislation to take account of changes such as the privatisation of public services; the fragmentation and devolution of management responsibility; and the increased use of temporary and agency staff. Such legislation, the union maintains, will need to include fairer time limits for submitting claims, and the ability to take cases on behalf of groups of workers, rather than just individuals.

Neither should the union's demand for equal pay be seen in isolation. Rather, it is just one of a number of policies designed to achieve fair treatment at work, including the eradication of low pay. On the statutory pay floor, for example, Unison argues that all workers, whatever their age, should get at least £6 an hour. It is also continuing to campaign for what it terms a "decent living wage", instead of bursaries for all nursing and midwifery students.

Pay developments in health . . .

The introduction of Agenda for Change, the blueprint for the future of NHS pay, has occupied much of Unison's time and energy over the past 12 months, and this is set to continue (See The end is in sight for NHS pay modernisation ). Earlier this year, the union's 400,000-plus health service members voted to accept a three-year pay deal worth a total of 10%. They also gave the go-ahead for the new pay system to be piloted in 12 "early implementer" sites, with a further ballot due to be held next year on the proposed roll-out to the rest of the NHS.

However, Unison's work on Agenda for Change is far from complete - it continues to liaise with other trade unions, the Department of Health and NHS employers to develop more of the job profiles that will form the basis of the new pay structure. It is also busy briefing its members on developments, and is preparing to recruit and train the large number of workplace representatives it will need if and when the new pay system is extended to cover the whole of the health service.

. . . and local government

As part of last year's local government settlement (See Public sector pay in 2002/03 ), an independent commission was established to investigate a number of pay-related issues, including what Unison regards as "the key long-term problems" of low wages, the lack of pay equality and the patchy implementation of the 1997 single-status agreement. The commission is due to report shortly, and its recommendations will provide the basis for future negotiations.

Unison secured one of its key bargaining objectives earlier this year. After 18 months of negotiations, the government agreed that people joining the staff of privatised public services in local authorities should be given the same legal rights as those transferred from the public sector, thus bringing to an end what has become known as the "two-tier" workforce in local government.

Amicus

"Pay and job security have always been the meat and drink" of the union's concerns, says Amicus, but its current bargaining agenda extends well beyond this. In particular, the union continues to play a prominent role in the debate on the future of pensions, and it is also heavily involved in the campaign against "fat cat" pay. However, it also appears likely that at least some of the union's future energy will be expended fighting job losses, notably in manufacturing and finance.

Pensions cause a stir

The "crisis in occupational pensions" is likely to loom large on Amicus' bargaining agenda in the coming months. The union is particularly concerned about the well-publicised trend for many employers to move away from final-salary schemes, which give defined benefits, in favour of cheaper alternatives, usually money-purchase schemes.

Amicus has launched what it describes as a "national action plan to defend pensions", which includes a recommendation for members to take industrial action where appropriate. This strategy was developed in response to the actions of major employers such as Rolls Royce and BAE Systems, who, the union says, have made threats to benefits and contributions after "massive black holes" were revealed in their respective funds.

The action plan, which will be circulated to the union's stewards and workplace representatives, has five key points:

According to Roger Lyons, the union's joint general secretary, "every British worker is under threat from a pensions catastrophe which will result in poverty for hundreds of thousands of working people who currently think they are going to be able to retire in comfort". Describing the current situation as a "national crisis", Lyons added that the union will be "mobilising its membership to be vigilant in every single workplace in the country."

Amicus views the action plan as the next logical phase in its campaign to get the government to beef up pensions legislation, notably to enforce consultation on pension changes and establish a fund to take over insolvent schemes.

"Fat cats" targeted

The union will continue to play a prominent part in a wider trade union campaign against "fat cat" pay, stating that it will use "every opportunity to put pressure on employers to get our members a better deal". It has formulated "five tests" that it wants to see applied before Amicus will sanction pay packages for senior executives and board members. The tests follow the introduction of new regulations that require directors' pay to be approved by the company's shareholders at an annual general meeting. They are:

Transport and General Workers' Union

The union recently elected Tony Woodley, its national automotive officer, as general secretary, succeeding Sir Bill Morris, who is retiring. On taking up his post, Woodley said that his victory was an "early warning for the government to start listening to the priorities of Labour-voting men and women, such as jobs, decent pay, good working conditions and pensions". This statement gives an unambiguous indication of the union's bargaining priorities in the coming pay round. In particular, it is likely the TGWU's leadership will be keen to improve the minimum wage, which Woodley has described as a "pittance", and to protect the pensions of the union's members.

Another major issue for the TGWU is likely to be the retention of national bargaining in the public sector. In the documentation accompanying the 2003 Budget, the chancellor indicated his desire to see an end to "institutional constraints" on wage flexibility - widely interpreted as an attack on national pay determination in key sectors such as health and local government (See The 2003 Budget ). This provoked a furious reaction from the trade unions, not least the TGWU.

During the leadership election, one of the main contenders, Jack Dromey, warned that if the government pursued this agenda, it would "inevitably" provoke industrial action as members acted "to defend their living standards". Although the then general secretary, Sir Bill Morris, disassociated himself from Dromey's remarks, Woodley is seen as further to the left than his predecessor and, should the issue resurface in the coming wage round, it seems likely that the TGWU will mount a vigorous defence of national pay bargaining.