volume 56 number 2
2006 Autumn Edition
federation news
FEDERATION NEWS GFTU/IER
The Institute of Employment Rights 50-54 Mount Pleasant Liverpool L3 5SD
General Federation of Trade Unions Central House Upper Woburn Place London WC1H 0NY 020 7387 2578 (24hrs) fax 020 7383 0820 email gftuhq@gftu.org.uk www.gftu.org.uk
email office@ier.org.uk www.ier.org.uk
The Institute of Employment Rights was launched in 1989. As a labour law ‘think tank’, supported by the trade union movement, its purpose is to provide research, ideas and detailed argument. In 1994 the Institute was granted charitable status. The results of the work of the Institute are published in papers and booklets and developed at conferences and seminars. Our aim is to provide the tools of analysis and debate for the trade union movement in the area of labour law.
The General Federation of Trade Unions was founded in 1899. It provides services and benefits, mainly in the fields of education and research, to affiliated unions. The education work of the Federation is administered through an Educational Trust, which was established in 1971. Federation News is a series of short articles in the subject areas of labour law, labour economics and industrial relations, which are of interest to industrial relations practitioners and students.
We welcome the submission of articles for consideration for publication in future editions. Please send articles to the Institute of Employment Rights at the above address or electronically to cad@ier.org.uk. The views expressed in Federation News do not represent the collective views of the Institute of Employment Rights or of the GFTU, but only the views of the authors. The responsibility of the Institute and the GFTU is limited to approving this publication as worthy of consideration within the labour movement.
Editor Michael Bradley Executive Editors for this edition Keith Ewing and Carolyn Jones Advisory Editorial Board John Bell Stephen Cavalier Bill Dewhurst Rosie Eagleson Keith Ewing John Fray Dan Gallin John Hendy Judith Jackson Carolyn Jones Aileen McColgan Roger Mumby-Croft Doug Nicholls Roger Seifert Dave Spooner Roger Welch Frank Wilkinson David Tarren ISSN 0014 9411
VOLUME 56 NUMBER 2 AUTUMN 2006
Contents Editorial
Carolyn Jones/Keith Ewing
2
From the Trade Disputes Act to a Trade Union Freedom Bill
Keith Ewing
4
Economic comparisons 1906 – 2006
Frank Wilkinson and Simon Deakin
6
A Trade Union Freedom Bill and the economy
Jon Cruddas, MP
9
Why the unions want a TUFB
Tony Woodley
12
New Rights for a new economy
Dave Prentis
14
Union rights are human rights
Bob Crow
16
Ballots: addressing the problems
Billy Hayes
18
Tilting the balance of power
Mark Serwotka
20
International Rights and Obligations
Derek Simpson
22
Contents of a proposed Bill
John Hendy, QC
24
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FEDERATION NEWS GFTU/IER
Editorial: Carolyn Jones / Keith Ewing The Campaign for a Trade Union Freedom Bill
their role in the economy.
To celebrate the centenary of the introduction of the Trade Disputes Act 1906, this edition of Federation News is dedicated to the 2006 campaign for a new Trade Union Freedom Bill. In the articles that follow, six general secretaries of unions representing nearly 4 million workers, outline why they believe restrictive trade union laws should be replaced by positive trade union freedoms.
Pursuing the economic theme, Jon Cruddas MP then assess the extent to which the current political spin on the state of the labour market reflects economic reality. According to Jon, the architects of the new labour strategy have created an image of a classless society built on a new knowledge economy which has no place for organised labour or government regulation. As the author points out, the problem with this analysis is the lack of empirical evidence. In reality, our “hour glass” economy has a limited knowledge economy at one end, and an expanding service related secondary market at the other. Our so-called classless society has in effect been built on an increased demand for low waged work. And our low waged work is increasingly provided by migrant labour – the cornerstone of government economic policy. Inevitably policy tensions arise between the rhetoric of government and the economic reality of the labour market. As the author concludes, if the government is to reconnect with the majority of workers then the regulations and rights touched on in the Trade Union Freedom Bill must move centre stage.
To place the discussion in context, Keith Ewing begins by welcoming the legal freedoms introduced by the 1906 Act – the right to strike, to support others in action and to picket. However, he acknowledges the limitations of the Act, in particular the system of immunities. He notes the ease with which the judiciary first undermined and then removed many of those immunities, and ends by asking what we can learn from the 1906 Act in developing a new legal settlement to combat the sharp practices of gloabalisation.. He points out that employers large and small have rights. These rights are the source of great power. Trade unions should also have rights – rights to organise, to bargain, and to strike. The following two articles then pursue economic themes. The first looks at the economic impact of the 1906 Act. Simon Deakin and Frank Wilkinson point out that laws which grant unions the right to organise and to take action in defence of terms and conditions have a positive impact on union membership which in turn helps to reduce inequalities in employment. Between 1905 and 1914, trade union membership doubled and doubled again by 1920 – mainly amongst women and into low paid occupations – an impossible achievement without the freedoms granted by the 1906 Act. During those periods, pay differentials between high and low skilled occupations more than halved. In contrast, between 1979 and 1989, the pay gap widened from 85% to 146% and by 2000 had widened further to 163%. According to the authors, what is needed is an enduring institutional settlement for trade unions which puts beyond dispute
2
The following articles look at why individual unions believe a Trade Union Freedom Bill is needed. Tony Woodley begins by reminding us of the issues surrounding Gate Gourmet – the dispute that triggered the campaign for a Bill. But he points out that Gate Gourmet simply crystallised demands which had been brewing for some time. And these demands stem from problems associated with changes in the labour market and the unchecked march of globalisation. Dave Prentis then takes up the theme, seeing the Bill as a necessary response to the economy of the 21st century and the organising challenges it poses to unions. With public services heavily penetrated by multi-national capital, workers need collective union rights if existing individual rights are to be effective. Unions need less bureaucracy, fewer restrictions, and more freedom to respond on behalf of their members. Speaking on behalf of a smaller union, Bob Crow then
VOLUME 56 NUMBER 2 AUTUMN 2006
outlines some of the iniquities in his union’s experience with the anti trade union laws. While unions are prevented from taking solidarity action, bosses can undertake secondary action by bringing in managers from subsidiaries to do striking workers’ jobs. While union members can vote overwhelmingly for strike action, single employers can frustrate the action by winning an injunction due to a minor technical error. And while unions are forced to maintain complex membership records, employers can quietly transfer members to a new company invented for the purpose of invalidating a ballot, and thus delaying a strike. According to Bob, the Trade Union Freedom Bill is an idea whose time is long overdue. In his article, Billy Hayes focuses on the problems associated with the complexities of the current balloting provisions. Not only are the provisions unfair in that no similar provisions apply to company directors or MPs, but they are also very costly in terms of union time and money. Nor are the current arrangements productive. They divert attention away from negotiating a settlement. Mark Serwotka provides further examples of the restrictive nature of current balloting provisions.
Focusing specifically on problems associated with identifying the appropriate employer in an increasingly fragmented civil service, Mark notes that the time devoted to the legal details could be better spent in negotiations and supporting members In the concluding trade union article, Derek Simpson welcomes the Bill as a small step in the direction of complying with international standards and questions why such a modest proposal should prompt a Labour Party Briefing against the Bill. After comparing the Bill’s proposals with the government’s counteracting arguments, he concludes by quoting Ghandi, predicting that this is a battle we can win. Finally, John Hendy QC looks at the legal detail of the Bill, summarising its six main proposals. As he says, the proposed Bill is ‘modest, moderate and mild’. It would not restore the UK to compliance with its international obligations, nor would it address key violations of trade union freedoms. It would however mark a significant stride in the right direction. Carolyn Jones Director, IER
Keith Ewing President, IER
3
federation news
Bob Crow is General Secretary of the National Union of Rail, Maritime and Transport Workers (RMT). He is also Chairman of the United Campaign for the Repeal of Anti Trade Union Laws Jon Cruddas MP is Labour Member for Dagenham, London
Simon Deakin is Robert Monks Professor of Corporate Governance at the University of Cambridge and an Executive Committee member of the Institute of Employment Rights Keith Ewing is Professor of Public Law at King始s College London and President of the Institute of Employment Rights
Billy Hayes is General Secretary of the Communication Workers Union (CWU) and an Executive Committee member of the Institute of Employment Rights
John Hendy, QC is Head of Old Square Chambers and Chairman of the Institute of Employment Rights. He is also Joint National Secretary of the United Campaign for the Repeal of Anti Trade Union Laws and a Vice President of the International Centre for Trade Union Rights Carolyn Jones is the Director of the Institute of Employment
Rights
Dave Prentis is General Secretary of UNISON and a Vice President of the Institute of Employment Rights
Mark Serwotka is General Secretary of Public and Commercial Services Union (PCS) and an Executive Committee member of the Institute of Employment Rights
Derek Simpson is General Secretary of Amicus Published by the GFTU Educational Trust Central House Upper Woburn Place London WC1H 0HY in association with The Institute of Employment Rights The People始s Centre 50-54 Mount Pleasant Liverpool L3 5SD
Designed by Creativity Jones Produced by IER Printed by Upstream Cover photo by Stefano Cagnoni (reportdigital.co.uk) TUC Mayday march through Central London. 2006 Price 拢8 to IER subscribers and members (拢30 others)
Tony Woodley is General Secretary of T&G and a Vice President of the Institute of Employment Rights
Frank Wilkinson is a visiting Professor at Birkbeck College and an Executive Committee member of the Institute of Employment Rights