The future for collective voice – brought to you by the Employment Rights Bill?

Labour's Plan to Make Work Pay made it clear that strengthening collective voice in workforce matters would be a core objective if it came to power with partnership working across employers, unions and government at the heart of the strategy. This ambition was developed in the consultation on creating a modern framework for industrial relations, issued in November 2024, where it was explained that the government wanted to establish a ‘modern, positive industrial relations framework’ built around four key principles – collaboration, proportionality, accountability and balance of interests between workers, business and the wider public. 

There is no doubt that reforms contained in the Employment Rights Bill (which at the time of writing is in Parliamentary ‘ping pong’ with the House of Lords standing firm on a number of its amendments) will necessarily increase the role of collective voice for many employers. Those employers who proactively reflect on what this really means for their organisation and what adjustments might be needed, will be best positioned to reap the gains. 

What’s changing? 

Increased collective redundancy consultation

Sitting alongside the existing ‘at one establishment’ trigger, the Bill will introduce a second trigger for collective redundancy consultation based on a threshold number of redundancies across a business (as opposed to at a single establishment). Whilst details of where the threshold will be set will be dealt with in secondary legislation, the likelihood is that more businesses will need to consult collectively with employee representatives or trade unions more often as a result. 

Employee protections when changing terms of employment

New technology, growth ambitions or efficiency measures – there are myriad reasons why a business may need to change an employee’s terms and conditions of employment. Employers will often collectively consult in these circumstances regardless of any legal obligation to do so. Whilst reaching an agreement with employees to any variations in terms is always best practice, additional protections for employees where an employer seeks to vary terms will place the ability to reach an agreement at the heart of the process. 

Reforms to trade union recognition and industrial action 

The reforms, which offer trade unions a new right to access an employer’s workplace to engage with workers, coupled with lower thresholds for recognition, mean some employers may find themselves navigating trade union recognition for the first time.  Furthermore, changes to industrial action provisions will also make it easier for trade unions to call strike action with strike mandates lasting longer. Employers who may, up to now, have had no experience of working with trade unions may find they have no choice. 

From compliance to strategic advantage? 

Any one of these reforms would offer a persuasive case for an employer to review their overarching strategy to employee engagement and collective voice. Taken as a package, however, these reforms mean a review should now become a priority. Big questions will need to be addressed and (in some cases) approaches may need to be revised. 

However, those employers that invest in building and maintaining constructive, collaborative relationships with trade unions and/or employee representative bodies are likely to see value in return. Creating an environment based on mutual trust should reduce the instances of conflict and so help organisations introduce change more smoothly. Employees are also likely to be more engaged and motivated. 

Ultimately, employers who take the time now to consider their employee engagement architecture in the round to identify what may need to be reshaped should be better placed to adapt to this changing industrial relations landscape.

 For detailed information on each of these reforms please refer to our Employer's handbook to the Employment Rights Bill and beyond - Burges Salmon