The 1982 Employment Act added to first in that it continued the attack on the closed shop. Whereas the 1980 act required a ballot for any new closed shop, the 1982 act extended the ballot requirement to existing closed shops where there had not been a secret ballot in the preceding five years. It also made void any term in a contract which required a person to use only union labour. It also made unions liable for unlawful acts. After the introduction of these two laws the trade unions found themselves in a much weaker position especially in terms of industrial action. Also the parts concerning the employee’s welfare promoted the idea of individualism and encouraged employees to talk with their employer rather than use trade unions. Trade unions had to be cautious in the roles that they played as there were now liable for any unlawful acts.
The next main piece of legislation that Thatcher introduced which directly affected Trade Unions was The Trade Union Act 1984. This had 3 main purposes. The first was to provide for secret ballots for the election of union executive committees, and so all voting members of union executive committees had to be directly elected at least once every five years. The second purpose was to provide for a secret ballot before a union organised industrial action, and the third purpose was to provide secret ballots for union political funds. This restricted union spending on ‘political objects’ and also gave employees and members of trade unions more power over industrial action.
There was another amendment to the Employment Act in 1988. This act contained a number of provisions the most important of which include making it unlawful to enforce post-entry closed shop. It also outlined that it was unfair to discipline members who refused to participate in industrial action after a ballot. All ballots now had to be postal and the union elections were extended. Members were also given the right to inspect the union’s books and the Commissioner for the Rights of Trade Union Members ( CROTUM) was established. This gave the members even more rights, and the amendments to this act in 1989 and 1990 added to these rights.
These two amendments included provisions such as any restrictions on the employment of women and young people were lifted. This meant the traditional ‘male’ trade union workforce was beginning to change and individualism promoted. There was a growing influence on arming the individual as well as the employer against union power. Unofficial strikers according to this act could be sacked, protecting the employer, and time off for union representatives was limited.
The legislation that Thatcher brought about was a response to the events of the 80’s and 90’s. Many would argue that the 1990 and 1993 acts were produced in very different circumstances from their predecessors of 1980 and 1982. The emphasis moved more towards industrial relations and employee’s rights. British unions became the most regulated independent institutions in the world.
Whilst many believed the legal ‘attack’ would cease after 1990, John Major’s government demonstrated continuity with the 1993 Trade Union Reform and Employment Rights Act. The major points in this act included an employee’s right to join a trade union of choice. Also seven days notice was required for industrial action, the wages council was abolished and employers were allowed to offer inducements for non-union contracts. Citizens also had the right to sue if damaged by industrial action.
The conservative legislation consists of these 7 major acts as well as important legislation dealing with specific issues such as the 1986 Sex Discrimination act and the 1986 Wages Act. The overall thrust of the legislation is to support individualism, employee protection and employer rights. All of this collectively can be seen as leading to the decline in trade union density. In 1979 there were 13.2 million trade union members and 12 million were in unions affiliated to the TUC. By 1992 membership had fallen to less than 9 million of which only 7.3 million were now in the TUC unions. (Source: TUC). These are overall figures but union membership varies enormously by industry and the type of jobs that people do. However it is important to mention that there has been a small increase in recent years, however there is little to suggest that this will ever reach the levels the unions enjoyed in the 70’s.
In 1997, Tony Blair came into power when the labour government was elected. Labour has not introduced as many laws as the conservatives and so there is not a great deal of change in legislation, and there was no attempt to re-instate any of the parts that the conservatives abolished. However they did introduce the minimum wage and the 1999 Employment Relations Act to support the existing laws and through these acts they attempted to restore some of the rights which workers lost.
The minimum wage was designed to ensure that employees were being treated fairly and were receiving appropriate remuneration. This was again a step towards individualism and ensuring employees rights at work. The 1999 Employment Relations act has apart from minimum wage, been the only major act to come about from the Labour Government. It was important as for the first time it gave the legal right of recognition for trade unions. It was part of a plan to promote partnership at work (which was the main theme of the Act), it is a requirement on employers to recognise a trade union where the majority of the workforce want a union to bargain collectively on their behalf. This could be on a vast range of issues such as pay, holiday, pensions etc.
If an agreement cannot be met, it can then be referred to the CAC (Central Arbituary Committee) and they make the judgement. If the employers refuse to enter into talks with the union then it may face a fine, however it is under no obligation to agree and make amendments.
This may be seen as the first positive law for trade unions. Although during the review both union and employer representatives have lobbied for changes to the statutory recognition procedure, there is a general acceptance of the success of the process. In his address to the 2002 TUC Congress, Bill Morris, member of the TUC’s
General Council with lead responsibility for employment law, said:
“Today, I can report that the new Trade Union recognition scheme has been a success story … But, success in industrial relations is never judged only by law. More importantly, each year has seen a major growth in the number of voluntary agreements signed. This year saw a 300 per cent increase on last year. Few of these would have been reached if it were not for the legislation. Tens of thousands of new workers can now turn to their union for help and support at work.”
(Source: BBC Website)
The Government announced on 11th July 2002 a review of the Employment Relations Act 1999. The review largely concentrated on the statutory recognition provisions where there is a requirement on employers to recognise a trade union where the majority of the workforce want a union to bargain collectively on their behalf.
The two main acts bought about by Labour were influenced by the EU. The European Union has passed a number of directives which aim to improve employment rights in all European countries. This has had an influence both on the running of businesses and trade union activity. An example of these directives would be the European Works council directive which require employers to set up information and consultation structures for involving the workforce (Europa). The working time directive is another where an employee must receive four weeks paid holiday per year and a maximum working week of 48 hrs with an opt out for those who want to. Aside from politics and legislation, there are also a number of factors which have led to developments and changes in industrial relations over the last twenty years. A dramatic fall in the number of jobs in manufacturing industries, where union membership was traditionally high, is likely to be one of the key reasons that there has been a decline in union membership since the 70’s.
Today many look for employers to reward them as individuals. They look for pay rises to reflect their own ability not a group or sector. Trade unions struggle with this as their whole existence is based around collectivism. Also there has been a huge change in social and cultural expectations over the last two decades which have inevitably affected trade unions and their members. Women’s employment rates have risen to men’s and the wage inequality has risen this has led to a huge change in the type of people (traditionally men) who have become members of trade unions. As there are many different types of people, the unions have to represent many different needs. This has meant that unions have had to stray away from the traditional view of bargaining only for pay, and begin to look to other areas of concern to employees such as holiday, or health and safety.
Although a rise in unemployment was a factor in the 1980’s – 1996, there are other reasons that suggest unions will never totally recover their numbers they had in the 70’s. Unions are in a weaker position due to social change. HRM (human resource management) which has grown in the last decade, forces firms to focus more on employees and their interests. HRM has become so important that firms cannot afford to ignore it. Unions find it harder to represent employees, when the firm is constantly evaluating its employees needs and ensuring that they are working in a safe and happy environment. Unions have begun to broaden the issues with which they will bargain on, on behalf of employees. HRM has led to employers being in a stronger position and with new strategies such as pay reviews, PDR’s there is for some employees little need for them to belong to a union.
However some professions do still have a high number of union members, these are usually found in the public service such as teaching and NHS where pay is often an ongoing issue.
Having studied the decline in trade union membership it is important to remember that Trade union membership is still quite high and many people are employed in workplaces where unions are recognised by management for negotiating pay and conditions of employment. In 1995 an estimated 47% or 10.2 million of all employees reported that they worked in these workplaces. (Source: TUC)
There is also evidence that the decline in union membership is beginning to slow up. The TUC has launched a major recruitment drive called "New Unionism - Organising for Growth" and many unions are stepping up their efforts to recruit in new industries and jobs. More and more people are turning to trade unions because they want the protection they can provide.
References:
Basset, p. Strike free: New Industrial Relations in Britain, Macmillan 1986.
Bibliography:
Edwards, p. Industrial Relations theory & practice in Britain, Blackwell 1995
Kessler, S et al, Contemporary British Industrial Relations, Macmillan 1995
Mcillroy, J. Trade Unions in Britain Today, 2nd ed. 1995
