Indicator 3.3
Issue: Core labour standards and employee representation
Indicator: UK company employee representation
This indicator looks at systems of employee representation, recognising different systems due to company structure and form of ownership. It asks for information on trade union recognition agreements and the scope of these agreements. It also asks for information on alternative systems of employee representation which offer mechanisms for consultation and dialogue with supermarket staff over pay and conditions. How companies communicate their policies on labour rights and procedures and check and remedy non-compliance are also taken into account.
A statutory right to trade union recognition has been in force in the UK since 6 June 2000, which means that supermarkets cannot ignore or ‘derecognise’ a trade union that most of its employees support. Some of the supermarkets were already working with the unions to improve industrial relations through social partnership programmes, and the new trade union recognition legislation has resulted in many new recognition agreements. Both supermarkets and unions have favoured a voluntary route in order to deal with the issue amicably.
Trade union recognition is not always a simple yes or no answer. Where there is union recognition it can be limited to disciplinary and grievance procedures whereas others cover full national pay bargaining. In addition, low levels of union membership can mean that achieving constructive dialogue with supermarkets is a live and difficult debate.
Recognition is key to negotiating good conditions on a number of fronts. As supermarkets have extended their opening hours, staff are required to cover a very wide and complex range of shift patterns and often to work variable hours. At the same time, competition between students in search of part-time work, and older staff with an interest in established pay rates and working time patterns, inevitably make the latter feel insecure and vulnerable to change.
The same issues apply to people employed by the large UK suppliers, such as major food processing firms, breweries and soft drinks manufacturers. Union bargaining rights are a sign that the employer does have a systematic dialogue with the workforce over pay, employment contract, working time patterns and disciplinary procedures. Two significant national recognition agreements with Robert Wiseman Dairies and St. Meryn Food Group – among Tesco’s principal suppliers - were both agreed with USDAW (Union for Shop, Distributive and Allied Workers).[12]
Some supermarket companies rely on employee representation through
staff forums or works councils. These forums offer the opportunity for
consultation with staff, but do not necessarily offer the independence
from the company that union membership brings. The question remains
over whether staff ‘don’t want to belong to trade
unions’ or whether staff do not feel encouraged to join them
without the appropriate procedures in place. However, it should be
recognised that alternative structures may in some cases be effective
in ensuring employees’ rights, depending on company structure and
form of ownership.
What can supermarkets do?
The Partnership Programmes have improved industrial relations as is demonstrated by the USDAW/ Tesco partnership:
USDAW (Union of Shop, Distributive and Allied Workers) has over 200,000 members in supermarkets. There are 100,000 members in Tesco with others in Sainsburys, Safeway, the Co-op, Morrisons and Somerfield.
In 1998 Tesco signed a partnership agreement with USDAW covering all 100,000 staff working in the company’s 600 retail stores, The agreement has, in turn, encouraged some of Tesco’s largest suppliers in the food and drink manufacturing sector to sign deals with their employees now that legislation has come into force. The legislation has also resulted in an increase in overall levels of union membership as union recognition has been negotiated at company level
USDAW’s Partnership Agreement with Tesco has shared goals and includes staff forums to improve communication, with elected and trained representatives to take employees views. Pay and conditions are reviewed separately with USDAW.
Positive and constructive engagement with unions representing staff is vital to ensure fair wages and conditions. Similarly, if supermarkets can freely choose their suppliers – as is the case in the UK – they can require them to meet certain labour standards that are part of overall company policy.
The same applies where companies have other systems of employee representation. The realisation of labour standards is a common goal and can be best achieved through collective effort and as an integral part of corporate culture.
In addition, the implementation of the new EU directive on Information
and Consultation (by March 2005) gives employees in the UK new rights
to information and consultation. It gives employees “a right to
be informed about the companies’ economic situation, informed and
consulted about employment prospects, and informed and consulted about
decisions likely to lead to substantial changes in work organisation or
contractual relations, including redundancies and transfers…
This will normally be done via employee representatives.”
(DTI)
How this indicator is measured
How companies communicate their policies on labour rights and procedures and check and remedy non-compliance, together with the structures in place for consultation with staff over pay and conditions are included in the measurement and scoring.
This indicator looks at systems of employee representation, recognising
different systems due to company structure and form of ownership. It
applies to UK supermarket employees only and it asks for information on
trade union recognition agreements and the scope of these agreements.
It also asks for information on alternative systems of employee
representation which offer mechanisms for consultation and negotiation
with supermarket staff over pay and conditions.
Additional data on the scope of recognition deals and on collective
bargaining agreements will be obtained from the unions.
12 IDS Report 836, July 2001