Industrial Unrest and Employee Demands - Cooper Parry Comments

Added : 6th July 2008

Lynn Williams

Lynn Williams

The recent high profile industrial action by workers at the Grangemouth oil refinery highlights the effect that key groups of workers can have when negotiations between employers and their employees do not reach agreement. 

This industrial action follows on from a number of other prominent recent employment disputes.  Network Rail maintenance workers walked out for 30 hours over harmonisation of jobs and conditions and teachers voted on a campaign of industrial action over pay, workload and class sizes.  More locally, Northern Food employees at their Fenland Foods factory in Grantham protested about the imminent closure of the site following a Company decision to mothball the factory.  It is also reported that Kent Police Federation Chairman, Ian Pointon, believes that the decision of the High Court in respect of backdating a pay increase could force officers to "seek the right to take industrial action" currently outlawed by an Act of Parliament.

The industrial action relating to the oil workers resulted in a pay settlement of 14% over two years, a deal that is significantly above inflation.  This decision resulted in a warning from the Business Secretary, John Hutton saying "there needs to be discipline in public and private sector pay if we are to keep inflation under control."

Lynn Williams, Human Resources Consultant with Regional Business Advisers Cooper Parry, asks the question "In this time of the credit crunch, economic uncertainty and households tightening their belts due to the higher cost of living, how can employers of smaller organisations protect themselves from similar industrial unrest and potential employee demands for above inflation pay increases?"   

With 30 years of experience gained within Human Resources, Lynn remembers only too well the turbulent days of strikes, stoppages and communication breakdown between employer and employees.  Lynn says "Over the last two decades, I have experienced major cultural changes taking place to improve the relationship between employer and employee, including reviewing and amending terms and conditions of employment.  This has involved working in partnership with trade union and employee representatives to avoid causing any potential disruption to the business." Lynn explained further that: "These days firms are much leaner and more efficient than during the turbulent 80’s so the large level of jobs cuts and factory closures that we experienced then are not necessarily the most cost effective strategy to adopt today, therefore, I have worked with organisations to identify alternative effective strategies."  

According to the CBI, the UK economic growth for 2009 is slowing to its lowest level since 1992.  With the continued decline of the property market, rising interest rates and record levels of loan defaults, Lynn recognises that it is not surprising that employers and employees alike are concerned as to the uncertainty of the future. "At Cooper Parry, we understand that it is difficult to sustain harmonious working relationships in a challenging economic climate but it is essential to do so for the benefit of your business."


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