Trade Union Act 2016

30 June 2016

Its impact on industrial action

Following agreement by both Houses of Parliament on the text and detail of the Bill, the Trade Union Act finally received Royal Assent on 4th May 2016 and will impact on the way in which industrial action is organised. It will come into force on a date still to be confirmed.

The Bill was originally sponsored by Sajid Javid, the Secretary of State for Business, Innovation and skills and began its long journey through Parliament back in July 2015.

Parliament has summarised the bill as one to “make provision about industrial action, trade unions, employers’ associations and the functions of the Certification Officer.”

The key provisions of the Act are:-

  • To introduce the requirement that there is at least a 50% turnout in votes in any ballot for any industrial action.
  • To make a special provision in certain public services, including the health, education, transport, border security and fire sectors, for the introduction of an additional minimum threshold of 40% of support from all eligible members which must be met for the proposed industrial action to be classed as being legal.

Junior Government Minister, Nick Boles, suggests that the Trade Union Act will now ensure that the public are only ever disrupted by industrial action when it is supported by a reasonable proportion of union members. The Trade Union Act means that “the rights of the public to go about their lives are fairly balanced with members’ ability to strike”. He also states that the new law will also improve union practices and increase transparency by:

  • Setting a six month time limit (which can be increased to nine months if the union and employer agree) for industrial action so that mandates are always recent.
  • Requiring a clearer description of the trade dispute and the planned industrial action on the ballot paper, so that all trade union members are absolutely clear about what they are voting for
  • Creating a transparent process for trade union subscriptions that allows new members to make an active choice of paying into political funds
  • Giving more powers to the Certification Officer to ensure new and existing rules are always followed by unions
  • Reducing the burden on taxpayers by ensuring that payroll deductions for trade union subscriptions are only administered where the cost is not funded by the public and ensuring transparency and greater accountability relating to the use of public money for facility time.

He added that the government has also agreed to commission an independent review into electronic balloting within six months.

The new Trade Union Act has caused some inevitable consternation within the Trade Union movement. Its introduction is another in the growing series of laws enacted by successive Conservative governments that impact significantly on the way in which industrial action is organised.

If your business has any questions on the new Act or any live issues relating to the existing legal provisions governing industrial action, please contact us at Quest HR for advice and guidance.

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