October 28, 2025

Trade Union Negotiation in the workplace

Posted in Employment, Employment

A good working relationship with a Trade Union in your organisation can make life a lot easier for your business, but it can take time and commitment to build that relationship.  As you might expect, there are also likely to be a few challenges along the way.  It is important to understand some of the basics of Trade Union law:

How does a Trade Union become recognised in a business?

It can be recognised by either a voluntary agreement with an employer, or through the statutory recognition process if an employer does not voluntarily accept recognition.  Most agreements are voluntary and are known as ‘recognition agreements’.  If you do not already have a recognised Trade Union in place, you will not have to negotiate with them.

What is a ‘collective agreement’?

This is another term to describe a recognition agreement.  It normally sets out what issues an employer will negotiate with a union about.  Most agreements are non-contractual and not legally binding which seems strange for a formal process.  If you recognise a trade union and have a collective bargaining agreement in place, you cannot simply ignore it because it is not legally binding.  The union will be able to take action through its members if you refuse to engage with them.

What is ‘collective bargaining’?

The process through which an employer negotiates with a trade union about changes to the employment terms and conditions of a group of employees (the ‘bargaining unit’).  It is possible that the bargaining unit will have both union and non-union members.  The most common issues which are negotiated under collective bargaining include pay, holiday and working hours.  It is important to understand the extent of what issues are open for negotiation.

Can voluntary recognition be withdrawn?

Yes, if the recognition agreement is not legally binding (which most will not be).  That can lead to a trade union making an application for compulsory recognition through a statutory process.  Sometimes, it is better to have a voluntary agreement in place to avoid escalating issues with the union and having certain terms of recognition forced on your organisation by law.

Do employees have employment rights if they are a union member?

Yes.  These include the right not to be refused employment for being (or not being) a union member (known as backlisting), subjecting someone to a detriment for being a trade union member (the definition of ‘detriment’ is wide), and being dismissed on the grounds of trade union membership.  These rights apply whether an employer recognises an employee’s trade union in the workplace or not.

How do I negotiate with the union?

Once a business recognises a trade union, a good relationship with the local and regional officials can significantly help staffing changes in the workplace.  Open and quick communication is often key.  Some of the issues to think about when negotiating with a trade union include:

  • Understand the legal framework: ensure those who are negotiating are familiar with the legal position.
  • Clarify bargaining scope: establish the recognition status of the union, and understand which matters are subject to collective bargaining (e.g., pay, hours, holidays) and which are outside the scope of negotiations.
  • Gather information and set objectives: compile relevant data such as current terms and conditions, industry benchmarks, financial performance, and the impact of proposed changes. Clearly define your objectives, what you realistically aim to achieve, and identify any non-negotiable “red lines”.
  • Develop your strategy: create a negotiation plan, considering your opening position, potential concessions, and a fall-back position in case negotiations stall.
  • Build a strong negotiation team: select representatives with good communication and problem-solving skills, and ensure your team understands its role and responsibilities.
  • Maintain open and honest dialogue: build trust by fostering transparent and respectful communication with the union representatives and employees.
  • Listen actively and with empathy: understand all concerns and perspectives. Ask open-ended questions, paraphrase to confirm understanding, and summarize key messages.
  • Communicate clearly and concisely: avoid jargon where possible.
  • Be assertive and respectful whilst seeking common ground:  explore options that create value for both parties.
  • Provide information proactively: share relevant information (e.g., pay structure, financial data) in advance to facilitate the bargaining process, while adhering to the Acas Code of Practice on disclosure of information.
  • Address concerns promptly: initiate open conversations and collaboratively work towards resolving any issues that may threaten to derail negotiations.
  • Bargain in good faith: the law expects genuine intent to reach an agreement, so avoid stalling or misleading tactics.
  • Be willing to compromise and make concessions.
  • Don’t be afraid to take a break if discussions become heated or unproductive.
  • Document everything.
  • Once agreement has been reached, draft it carefully and consider taking specialist legal advice on the draft.
  • Remember that reaching a mutually agreed-upon solution is always preferable to imposing a solution, as the latter can damage long-term relationships.

In an article earlier this year, we looked at what employers must know about the Employment Rights Bill published 10 October 2024 and what they can do to prepare – in which we cover a variety of new trade union rights and the implications they have. You can view the article here: The Employment Rights Bill – what employers must know, and what they can do to prepare.

 

 

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