Leading business organisations have expressed serious concerns regarding the implementation of the Employment Rights Act, warning of potential significant disruption due to expanded trade union access. They are calling for greater consultation with the government and unions to ensure a balanced approach that addresses business concerns.
Key takeaways
- Seven major business lobby groups have written to the minister for employment rights, expressing fears over the impact of the Employment Rights Act.
- They are advocating for "tripartite conversations" involving businesses, unions, and the government on the Act’s implementation.
- Concerns centre on increased union access to workplaces, which businesses fear could lead to significant operational disruption.
Business groups demand consultation
In a letter addressed to Kate Dearden, the minister for employment rights, representatives from prominent groups including the British Chambers of Commerce, the CBI, and MakeUK, have voiced their apprehension. They argue that a lack of structured dialogue on the new trade union access provisions risks creating an outcome that fails to adequately consider the fundamental concerns of businesses regarding potential disruption.
The business leaders are pushing for "tripartite conversations" – a collaborative approach involving businesses, unions, and the government – to discuss the implementation of the Employment Rights Act. They point to a previous successful three-way consultation on unfair dismissal reforms as a model for finding a "practical way forward" and achieving a better balance between the interests of unions and businesses.
Concerns over union access and wider reforms
The Employment Rights Act, championed by unions and introduced by Angela Rayner, includes provisions that would allow unions weekly access to workplaces. A draft code of practice suggests this could be averaged over a month, potentially granting unions four cumulative days of access in some instances. In companies with more than 21 staff, unions would be entitled to meet and communicate directly with workers, both in person and digitally, at least once a week.
These reforms come at a challenging time for businesses, which are already grappling with rising costs, increased taxes, and sluggish economic growth. Beyond union access, the business groups also highlighted other "critical parts" of the Act, such as new rules governing the right to guaranteed hours, where further detail is yet to be decided. They stressed the importance of collaborative policy-making on these measures to ensure businesses can continue to create jobs and contribute to economic growth.
Government response
A spokesperson for the Department for Business and Trade stated that the government is "committed to working in partnership with business and unions on implementation of the Employment Rights Act, to ensure the system is fair and effective and protects the workers who need it most."
Broader economic context
The concerns raised by the business groups are set against a backdrop of wider economic challenges. Separately, Cressida Hogg, the new chairwoman of the CBI, is expected to highlight that the UK’s skills system is failing both businesses and young people, with a significant gap between the skills employers need and the available workforce. This issue, she will argue, is stifling UK growth.
