Employer concerns are growing over measures in the Employment Rights Bill that will expand trade union powers, with many warning the UK is entering a more unstable period of employment relations, new research from the Chartered Institute of Personnel and Development (CIPD) has found.
The CIPD, the professional body for HR and people development, said its findings, released today, showed employers broadly value good workplace relations but are uneasy about proposed legislative changes designed to make it easier for unions to take industrial action.
The research comes as the Employment Rights Bill approaches Royal Assent and ahead of further consultations on secondary legislation detailing new union powers.
Worries about a more volatile landscape
The CIPD’s report, UK industrial relations: A future with trade unions, surveyed more than 2,000 employers. While 79 percent of respondents described relations between managers and employees as “very good” or “good”, and just 5 percent rated them “poor” or “very poor”, more than six in 10 (62 percent) believed the UK was entering a new and more unstable period of employee relations. That proportion was up from 53 percent in 2022.
Over half of employers (54 percent) expected industrial action to increase in the next year, and 69 percent said unions still had the power to cause major disruption to the UK economy.
Rachel Suff, senior employee relations adviser at the CIPD, said the findings reflected growing anxiety about the implications of the forthcoming reforms, particularly among businesses without union experience.
“Our research highlights the concerns many employers have about the impact of sweeping new rights and powers for trade unions, particularly among businesses with no experience of working with trade unions,” she said.
“There’s a real risk that these new rights will lead to more employment relations challenges and potentially an increase in collective disputes unless the Government takes firm steps to help employers adapt and work in partnership with trade unions.”
Divided opinions on union reforms
Employers were divided on several key proposals within the Bill. Forty percent opposed reducing the notice period for industrial action from 14 to 10 days, while 18 percent supported the change. Opposition rose to 47 percent among non-unionised employers.
Removing the current 50 percent turnout threshold for industrial action ballots, allowing a simple majority of members to vote in favour, was opposed by 35 percent and supported by 22 percent, with stronger resistance among employers with no recognised union presence.
Extending the expiry of an industrial action mandate from six to 12 months was opposed by 31 percent of employers and supported by 18 percent, while relaxing union recognition rules to require only a simple majority of those voting drew a mixed response. Twenty-four percent opposed this change and 21 percent supported it, but three in ten non-unionised employers said they were against it.
The CIPD said employers that already recognised trade unions were less likely to oppose the measures, suggesting that direct experience of partnership working helped reduce apprehension.
Call for clearer guidance and support
The organisation urged the government to outline a clear vision for employment relations policy, with a focus on partnership rather than confrontation. It recommended the creation of a statutory code of practice, or an equivalent framework with binding authority, to define expected standards of behaviour for employers and unions.
The CIPD also called for more resources for Acas, the Central Arbitration Committee and Employment Tribunal system, alongside targeted training and guidance for both employers and unions. These steps, it said, would help improve employment relations skills and prevent disputes.
Suff said employers should not wait for the legislation to pass before reviewing their workplace relations approach.
“It’s understandable that there are concerns about the impact the Employment Rights Bill could have on organisations, especially amongst those with no experience of working with trade unions,” she said.
“To get ready for the changes employers need to review their employment relations strategy and collective voice channels. Employers should also prioritise building their employee relations skills for effective partnership working among managers and their HR teams. They can also learn from examples of other businesses that have productive relationships with trade unions.”
Union perspective
Mike Clancy, general secretary of Prospect, which represents professionals and specialists in the public and private sectors, said the Bill had the potential to improve the industrial relations landscape if implemented carefully.
“The Employment Rights Bill can lead to a more positive industrial relations landscape, with stronger working relationships between employers and unions, but it will only do so if there is a concerted effort from all parties to make this happen,” he said.
He added that while concern among employers was relatively limited, the findings pointed to a knowledge gap. “While it’s encouraging that concern about new trade unions rights among employers is currently relatively limited, and that those that already recognise unions are actually the most positive about the changes, these numbers also suggest a significant knowledge gap among employers about what the measures in the Bill could mean for them.
“This knowledge gap is both a challenge and an opportunity, and it is clear that there is still work for government, unions, and employers to do to ensure that the Bill is seen as an important step in creating a more positive industrial relations framework, including investing in the skills and institutions that underpin good industrial relations.”
The CIPD said its research showed that while most employers support constructive dialogue with unions, the government must provide practical measures to strengthen partnership working and avoid a return to more adversarial industrial relations.
