Trade Unions and Works Councils

Employer-employee relations describe the relationship between management and the workforce. A key element of this relationship is the role of trade unions and works councils as mechanisms through which employees can collectively influence workplace decisions.

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Trade Unions

Key Definition: A trade union is an organised association of workers formed to protect and further the rights and interests of its members in relation to pay, working conditions, job security and other employment matters.

The Role of Trade Unions

Trade unions perform several important functions:

Role	Description	Example
Collective bargaining	Negotiating pay and conditions on behalf of all members with the employer	The National Education Union (NEU) negotiates teachers' pay with the government
Representation	Representing individual members in grievance and disciplinary procedures	A union rep accompanies an employee to a disciplinary hearing
Improving working conditions	Campaigning for better health and safety, reasonable hours and fair treatment	Unite campaigning for improved safety in construction
Legal advice and support	Providing members with access to legal assistance on employment matters	Advising a member on an unfair dismissal claim
Training and development	Offering educational opportunities and skills training for members	USDAW providing learning representatives in retail workplaces
Political influence	Lobbying government on employment legislation and policy	The TUC campaigning for a higher national minimum wage

Trade Union Membership in the UK

Trade union membership has declined significantly since the 1970s:

Year	Approximate Membership	Context
1979	13.2 million (55% of workforce)	Peak membership — strong unions in manufacturing
1997	7.8 million	Decline following anti-union legislation in the 1980s
2010	6.5 million	Continued decline; shift to service economy
2023	6.7 million (approx. 23% of workforce)	Slight recovery; membership concentrated in the public sector

Reasons for the decline:

• Deindustrialisation — decline of heavy manufacturing where unions were strongest
• Anti-union legislation (1980s–90s) — restrictions on closed shops, secondary action, and requirements for secret ballots before strikes
• Growth of the service sector — smaller, dispersed workplaces are harder to organise
• Rise of flexible and gig economy work — temporary, part-time and self-employed workers are less likely to join unions
• Changing employer attitudes — some businesses actively discourage union membership
• Individualisation of the employment relationship — personal contracts, PRP and direct communication reduce the perceived need for collective representation

Collective Bargaining

Key Definition: Collective bargaining is the process by which trade unions negotiate with employers on behalf of their members over pay, working conditions, hours and other terms of employment.

The process typically follows these stages:

1. Preparation — both sides gather data, formulate objectives and identify priorities
2. Negotiation — formal meetings between union representatives and management
3. Agreement — a deal is reached that covers all employees in the bargaining unit
4. Implementation — the agreed terms are put into practice
5. Review — both sides monitor the agreement and plan for future negotiations

Types of Industrial Action

If negotiations fail, trade unions may take industrial action:

Type	Description	Impact
Strike	Workers withdraw their labour entirely	Most disruptive; direct loss of output and revenue
Work-to-rule	Workers do only the minimum required by their contract — no overtime, no extra effort	Slows production without formal strike action
Overtime ban	Workers refuse to work beyond their contractual hours	Reduces capacity; particularly effective in industries reliant on overtime
Go-slow	Workers deliberately reduce their pace of work	Reduces output while maintaining presence at work