Trade Unions: Legal Changes
The maximum damages that can be awarded against trade unions for unlawful action have been increased with effect from the 21st July 2022. The Trade Union and Labour Relations (Consolidation) Act 1992) was amended to increase the limits to the following:-
- For trade unions with less than 5000 members, an increase from £10,000.00 to £40,000.00
- An increase from £50,000.00 to £200,000.00 for trade unions with 5,000 to 24,999 members
- For trade unions with 25,000 to 99,999 members, an increase from £125,000.00 to £500,000.00
- An increase from £250,000.00 to £1,000,000 for trade unions with 100,000 members or more
Furthermore, as we highlighted in a previous article, under regulation 7 of the Conduct of Employment Agencies and Employment Businesses Regulations 2003, employers were unable to recruit agency workers to conduct “duties normally performed by a worker who is taking part in a strike or other industrial action." However, regulation 7 has now been revoked with effect from the 21st July 2022 via the The Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2022.
The UK Government also intends to repeal provisions within the The Trade Union (Wales) Act 2017 to allow agency workers to carry out the duties of staff on strike in Wales as well.
The trade union, UNISON, has announced that it will be seeking a judicial review of the decision to revoke regulation 7. The general secretary of UNISON, Christina McAnea, stated: "Sending agency staff into disputes to break strikes will only fan the flames and make it harder for employers and unions to reach agreement. Ministers have been spooked by the sympathy people ​are showing for workers fighting for fair wages."
McAnea added: "The Government's cynical solution is to ride a coach and horses through employment law, risking the safety of staff and the public by parachuting in agency workers who won't know the ropes. Strikes are only ever a last resort, and often the only avenue left to employees in the face of hostile employers. Changing the law to make it harder for workers to win disputes is both reckless and unlawful. If ministers won't back down, we'll take the Government to court to prove it."
The Government's decision to revoke regulation 7 comes in the wake of a number of strikes organised this summer by trade unions (referred to as "the summer of discontent"), including a 3 day strike by around 40,000 rail workers employed by Network Rail and 13 train operators, who are members of the National Union of Rail, Maritime and Transport Workers (RMT), who went on strike on the 21st, 23rd, and 25th June 2022. That strike, like most of the others, was over pay and the cost of living crisis.
Another Record Fall In Real Wages
The latest statistics from the Office for National Statistics (ONS) show that the value of real wages is continuing to fall. They show that average pay in the 3 months to June 2022 increased by 5.1%, inclusive of bonuses, and by 4.7%, exclusive of bonuses. However, this has been more than offset by the increase in inflation. Inclusive of bonuses, real wages fell by 2.5%, whilst exclusive of bonuses, there was a record fall in real wages of 3.0%. Moreover, it was the 6th month in a row in which there has been a fall in the real value of regular pay (i.e. pay exclusive of bonuses).
The ongoing decline in real wages is expected to continue throughout the rest of the year, as inflation continues to rise. As measured by the Consumer Prices Index (CPI), inflation increased again in the 12 months to July 2022, reaching 10.1%. This is up 0.7% from the 9.4% registered in June 2022.Â
The Bank of England are now forecasting that inflation will reach 13% by October. In increasing interest rates by 0.5% to 1.75%, Andrew Bailey, the governor of the Bank of England stated: "If we don’t act now to prevent inflation becoming persistent, the consequences later will be worse, and will require larger increases in interest rates."
