General Council Report 2002: Chapter 4

General Council Report 2002

• partnership at work
• 4.1 Introduction
• 4.2 Developments in partnership at work
• 4.3 Current activities
• 4.4 Client case study: Severn Trent Water
• 4.5 Sector by Sector Review
• 4.6 Plans for growth, long term strategy
• 4.7 Developments in partnership at work
• 4.8 Current activities
• 4.9 Client case study: Severn Trent Water
• 4.10 Sector by Sector Review
• 4.11 Plans for growth, long term strategy

partnership at work

4.1 Introduction

The General Council have promoted partnership at work as an important approach to industrial relations for some time. The aim is to encourage unions and employers to develop effective working relationships that will deliver jobs; improvements to members; and economic benefits for employers.

The General Council believe the development of a greater partnership agenda will extend union influence at a corporate level over an organisation’s policy and strategy, and increase the involvement of reps and members at a local level in the implementation of business decisions.

The TUC Partnership Institute was launched on 17 January 2001. Its aim is to help business and unions achieve improved industrial relations and develop progressive relationships. The institute delivers training and consultancy to organisations and unions seeking to foster a partnership approach.

The institute is based on the principle that both unions and management benefit from partnership. Unions gain from greater job security and more involvement in decision-making. This can lead to a better quality of working life and more investment in skills and training. For management, with less time spent on grievances, there will be staff that are more committed, with a much higher morale. Partnership at work can deliver hard business benefits by lower labour turnover, lower absenteeism, better internal performance, higher sales and profits, greater employee commitment and a greater willingness to innovate.

The Partnership Institute is determined to ensure that partnership will become the cornerstone of modern industrial relations. This involves working strictly to the six main principles approved by the General Council and Congress:

· Shared commitment to the success of the enterprise

· Recognition of legitimate interests

· Commitment to employment security

· Focus on the quality of working life

· Openness

· Value through mutual gain.

An Advisory Board oversees the work of the Partnership Institute. Current members of the Board are:

Chair

Professor William Brown CBE, Cambridge University

Members

Bob Abberley Head of Health, UNISON

Jon Allen Assistant General Secretary,

TSSA

Bill Connor General Secretary, USDAW

John Edmonds General Secretary, GMB

Andrew Foster Director of Human

Resources, NHS Executive

Paul Gates General Secretary, KFAT

Lesley James Vice President, Chartered

Institute of Personnel and

Development

Eugene van HR Director,

Jaarsveldt British Bakeries Ltd

Mike Kinski Transaction Director,

Nomura International plc

Michael Leahy General Secretary,

ISTC

Mavis McDonald CB Permanent Secretary,

Office of the

Deputy Prime Minister

John Monks General Secretary,

Trades Union

Congress

Professor Peter Nolan Leeds University

Business School

Margaret Prosser obe Deputy General

Secretary, T&G

Steve Scott Head of Research,

Amicus

Professor Keith Sisson University of Warwick

Ruth Spellman Chief Executive,

Investors in People UK

Ed Sweeney General Secretary,

UNIFI

Jenny Thurston Deputy General

Secretary, Prospect

4.2 Developments in partnership at work

In December the TUC published Partnership Works, a report arguing that strong unions can make a unique contribution to the success of the organisations their members work for, and that doing this makes their members’ jobs more secure and fulfilling.

The report highlighted the following facts:

· In 2000, a British study of pharmaceutical companies found that consultation with the workers only took place where the company recognised trade unions.

· A 1999 study of 25 European multinationals found that attempts to cut out unions and rely on direct participation alone led to less employee involvement and poorer productivity.

· In the 1990s, a large cross-Europe study concluded that, 'far from being a barrier to progress, it seems, employee representatives are the agents of change.'

· In the United States, an important 1999 study found that direct participation has a larger effect on productivity in unionised establishments.

It said, recent British surveys go even further, and indicate not just that unions can help build partnership, but that strong unions are the key. Where unions are strong, effective and supported by management, trust in that management is either higher than, or at least as high as in non-unionised workplaces.

Information and consultation

The General Council believe that the Information and Consultation Directive (see chapter one) has the potential to become the institutional foundation for partnership. Employers will be required to provide information to, and consult their employees’ representatives. For unions, the Directive creates new opportunities to raise concerns about business strategy and work organisation, and to take information and consultation rights and develop them into positive co-determination. Over the coming year the General Council will consider how best to take advantage of this opportunity, including the organisational and other implications for unions. These decisions will influence the Institute’s work programme.

4.3 Current activities

First anniversary of the TUC Partnership Institute

On 24 June 2002, the Prime Minister hosted reception at 10 Downing Street to mark the first anniversary of the Partnership Institute. Guests included Partnership Institute clients, the General Council, potential clients of the institute, the Advisory Board, as well as Members of the Cabinet. In his speech, the Prime Minister spoke of the proven links between partnership and productivity and praised the Partnership Institute for spreading the positive message of partnership.

Training courses

The Institute has launched a workshop programme, open to all interested parties, beginning with a partnership workshop for Primary Care Trusts. Further PCT workshops are planned for late September and October.

Public engagements

Attending appropriate conferences and exhibitions has also raised the profile of the Partnership Institute. Linda Kelly director of the institute has fulfilled a number of prominent speaking engagements at conferences including UNISON, the International Labour Organisation (ILO) and the Defence Aviation and Repair Agency (DARA) in order to promote the institute. In addition, the institute exhibited at the NHS Confederation earlier in the year; this was extremely valuable not only in terms of new contacts made, but in the number of positive enquiries about the work of the Partnership Institute.

4.4 Client case study: Severn Trent Water

It is important that the Partnership Institute work is relevant to the needs of organisations. The case study below highlights how the involvement of the Partnership Institute has contributed to important changes in consultation and negotiation at Severn Trent Water.

Background

Severn Trent Water is the world’s fourth largest privately owned water company, serving over eight million people across the UK from the Bristol Channel to the Humber, and from mid-Wales to the East Midlands. The company provides around two billion litres of drinking water each day. It also treats around 2.7 billion litres of waste water and sewage each day.

Severn Trent Water adopted a set of negotiating arrangements in 1995, based on ‘single table’ bargaining. The company believes these arrangements have allowed the development of excellent industrial relations and successful change management. A major change within Severn Trent Water has been a restructuring process, during which it was recognised there was a need to realign negotiation and consultation arrangements.

Four new business forums have been established. These are: Sewage Treatment and Water Supply; Networks; Customer Relations, Sales and Competition and Marketing; and Business Support, Professional, Technical and Engineering. Representatives from each business forum will serve on a company forum, looking at issues and concerns for Severn Trent Water as a whole. The business forums are supported by local level mechanisms to address, resolve or escalate unresolved issues upwards as necessary.

Furthermore, both the company and its unions wished to create a modern partnership approach to negotiation and consultation.

Partnership principles

The partnership principles developed by Severn Trent Water include: success of the enterprise; business focus; respect for legitimate interests; participation culture; equality of knowledge and opportunity - communication, development and sharing information.

Agreed behaviours include: acting professionally; approaching issues in a practical, workable way; using appropriate language; respecting others’ points of view; recognising legitimate interests; making contributions constructively;

appreciating others’ objectives; taking responsibility for outcomes; encouraging supportive behaviour.

Workshops

Four workshops have been held at Severn Trent Water, in each of the new business units, on the theme of ‘Exploring Partnerships’. Some work had already been undertaken, developing the new business units and, as background, these workshops reviewed this work and looked at the implications of the restructuring for Severn Trent Water. The workshops then undertook a team building exercise in order to promote joint management-union problem solving, and SWOT analyses looking at the strengths, weaknesses, opportunities and threats of a partnership approach at Severn Trent Water. These exercises demonstrated tangible gains from partnership working, along with real issues, which would need to be addressed in order to make partnership working a success. Group work was undertaken, looking at the work of the local forums, specific operational issues and long-term issues to be addressed in each of the four new business units. A Training Needs Analysis (TNA) identified the skills needed by participants to move forward on a partnership basis. Timescales for work leading up to the first meeting of each business unit were agreed.

Building on the achievements of the initial workshops, plans have been jointly developed to ensure all areas identified by the TNA are delivered including workshops on: communication skills, negotiation and influencing, leadership skills, understanding conflict and recognising legitimate interests.

4.5 Sector by Sector Review

The private sector

In the last year the number of private sector clients has grown considerably. In addition to attracting new business, the Partnership Institute has also deepened existing client relations. British Bakeries, a project involving five separate unions (BFAWU, Amicus, USDAW, GMB and T&G) is an example. The main aim of the project with British Bakeries is to develop a greater understanding of the concept of partnership and how it applies to British Bakeries at the local level as well as strategically. The key success factor is that British Bakeries has fully committed itself to partnership working, and this has been demonstrated by the setting up of Partnership Forums at each site, and the commitment to an organisation-wide rollout programme that is currently underway.

The public sector

The Partnership Institute is involved in a range of initiatives across the health service and local government.

At University Hospital Birmingham (UHB) the Partnership Institute has been working with both the employer and unions to create a workplace partnership agreement. This initial project has now resulted in 20 days training and consultancy to enable UHB and the unions to make joint problem-solving a reality.

The Partnership Institute is working with a number of Primary Care Trusts and is continuing to work with the Scottish NHS Executive at a strategic level.

In local government, a major five-stage project is being developed and delivered with Walsall Metropolitan Borough Council to review their current industrial relations structure and the processes of consultation and negotiation with the council between management and recognised unions.

The Partnership Institute has recently begun working with the Scottish Prison Service to roll out partnership training across 15 sites; this work was won following a very successful workshop facilitated by the Partnership Institute earlier in the year.

Voluntary and non-profit sector

In the voluntary sector some major initiatives are under way. The most prominent of these is a comprehensive programme of consultancy and development that supports the partnership agreement between NCH(formerly National Children Homes), UNISON and Amicus. Following a successful DTI Partnership Fund bid, this project will eventually reach all NCH regions.

The Partnership Institute has also more recently begun work with the National Maritime Museum on partnership as a precursor to a new recognition agreement, and looks forward to developing more work in this sector.

4.6 Plans for growth, long term strategy

The long-term aim of the Partnership Institute is to become synonymous with the concept of union/employer partnership.

The Partnership Institute is developing a consolidated project consultation cycle, whereby all clients follow a circle of training and development, project monitoring and finally evaluation before the cycle can begin again.

In marketing terms, the Partnership Institute has ambitious plans for growth by targeting areas including health, local government finance and corporate organisations where the Institute has a proven track record. This will be achieved through a comprehensive integrated marketing strategy including media campaigns, networking and client contact. It is the aim of Partnership Institute marketing to place customer care at the core of the strategic plan. Increased presence at exhibitions and conferences is planned over the coming year, as are public engagements and national workshops organised by the Institute.

The Institute is also seeking to develop strategic alliances with key organisations including the Department of Trade and Industry and the Confederation of British Industry.

The over-riding strategy for the next three years is to maintain and develop the capacity of the Institute to deliver and to respond to the increasing demand for partnership agreements. The Institute needs to develop robust arguments for partnership, make diagnostic tools more comprehensive and applicable across a range of organisations and finally develop its training materials to the highest possible standard.

The Partnership Institute is on the way to its meet financial targets for 2002, and is projecting a turnover of half a million pounds for 2003.

The General Council have promoted partnership at work as an important approach to industrial relations for some time. The aim is to encourage unions and employers to develop effective working relationships that will deliver jobs; improvements to members; and economic benefits for employers.

The General Council believe the development of a greater partnership agenda will extend union influence at a corporate level over an organisation’s policy and strategy, and increase the involvement of reps and members at a local level in the implementation of business decisions.

The TUC Partnership Institute was launched on 17 January 2001. Its aim is to help business and unions achieve improved industrial relations and develop progressive relationships. The institute delivers training and consultancy to organisations and unions seeking to foster a partnership approach.

The institute is based on the principle that both unions and management benefit from partnership. Unions gain from greater job security and more involvement in decision-making. This can lead to a better quality of working life and more investment in skills and training. For management, with less time spent on grievances, there will be staff that are more committed, with a much higher morale. Partnership at work can deliver hard business benefits by lower labour turnover, lower absenteeism, better internal performance, higher sales and profits, greater employee commitment and a greater willingness to innovate.

The Partnership Institute is determined to ensure that partnership will become the cornerstone of modern industrial relations. This involves working strictly to the six main principles approved by the General Council and Congress:

· Shared commitment to the success of the enterprise

· Recognition of legitimate interests

· Commitment to employment security

· Focus on the quality of working life

· Openness

· Value through mutual gain.

An Advisory Board oversees the work of the Partnership Institute. Current members of the Board are:

Chair

Professor William Brown CBE, Cambridge University

Members

Bob Abberley Head of Health, UNISON

Jon Allen Assistant General Secretary, TSSA

Bill Connor General Secretary, USDAW

John Edmonds General Secretary, GMB

Andrew Foster Director of Human Resources, NHS Executive

Paul Gates General Secretary, KFAT

Lesley James Vice President, Chartered Institute of Personnel and

Development

Eugene van HR Director,

Jaarsveldt British Bakeries Ltd

Mike Kinski Transaction Director, Nomura International plc

Michael Leahy General Secretary, ISTC

Mavis McDonald CB Permanent Secretary, Office of the Deputy Prime Minister

John Monks General Secretary, Trades Union Congress

Professor Peter Nolan Leeds University Business School

Margaret Prosser obe Deputy General Secretary, T&G

Steve Scott Head of Research, Amicus

Professor Keith Sisson University of Warwick

Ruth Spellman Chief Executive, Investors in People UK

Ed Sweeney General Secretary, UNIFI

Jenny Thurston Deputy General Secretary, Prospect

4.7 Developments in partnership at work

In December the TUC published Partnership Works, a report arguing that strong unions can make a unique contribution to the success of the organisations their members work for, and that doing this makes their members’ jobs more secure and fulfilling.

The report highlighted the following facts:

· In 2000, a British study of pharmaceutical companies found that consultation with the workers only took place where the company recognised trade unions.

· A 1999 study of 25 European multinationals found that attempts to cut out unions and rely on direct participation alone led to less employee involvement and poorer productivity.

· In the 1990s, a large cross-Europe study concluded that, 'far from being a barrier to progress, it seems, employee representatives are the agents of change.'

· In the United States, an important 1999 study found that direct participation has a larger effect on productivity in unionised establishments.

It said, recent British surveys go even further, and indicate not just that unions can help build partnership, but that strong unions are the key. Where unions are strong, effective and supported by management, trust in that management is either higher than, or at least as high as in non-unionised workplaces.

Information and consultation

The General Council believe that the Information and Consultation Directive (see chapter one) has the potential to become the institutional foundation for partnership. Employers will be required to provide information to, and consult their employees’ representatives. For unions, the Directive creates new opportunities to raise concerns about business strategy and work organisation, and to take information and consultation rights and develop them into positive co-determination. Over the coming year the General Council will consider how best to take advantage of this opportunity, including the organisational and other implications for unions. These decisions will influence the Institute’s work programme.

4.8 Current activities

First anniversary of the TUC Partnership Institute

On 24 June 2002, the Prime Minister hosted reception at 10 Downing Street to mark the first anniversary of the Partnership Institute. Guests included Partnership Institute clients, the General Council, potential clients of the institute, the Advisory Board, as well as Members of the Cabinet. In his speech, the Prime Minister spoke of the proven links between partnership and productivity and praised the Partnership Institute for spreading the positive message of partnership.

Training courses

The Institute has launched a workshop programme, open to all interested parties, beginning with a partnership workshop for Primary Care Trusts. Further PCT workshops are planned for late September and October.

Public engagements

Attending appropriate conferences and exhibitions has also raised the profile of the Partnership Institute. Linda Kelly director of the institute has fulfilled a number of prominent speaking engagements at conferences including UNISON, the International Labour Organisation (ILO) and the Defence Aviation and Repair Agency (DARA) in order to promote the institute. In addition, the institute exhibited at the NHS Confederation earlier in the year; this was extremely valuable not only in terms of new contacts made, but in the number of positive enquiries about the work of the Partnership Institute.

4.9 Client case study: Severn Trent Water

It is important that the Partnership Institute work is relevant to the needs of organisations. The case study below highlights how the involvement of the Partnership Institute has contributed to important changes in consultation and negotiation at Severn Trent Water.

Background

Severn Trent Water is the world’s fourth largest privately owned water company, serving over eight million people across the UK from the Bristol Channel to the Humber, and from mid-Wales to the East Midlands. The company provides around two billion litres of drinking water each day. It also treats around 2.7 billion litres of waste water and sewage each day.

Severn Trent Water adopted a set of negotiating arrangements in 1995, based on ‘single table’ bargaining. The company believes these arrangements have allowed the development of excellent industrial relations and successful change management. A major change within Severn Trent Water has been a restructuring process, during which it was recognised there was a need to realign negotiation and consultation arrangements.

Four new business forums have been established. These are: Sewage Treatment and Water Supply; Networks; Customer Relations, Sales and Competition and Marketing; and Business Support, Professional, Technical and Engineering. Representatives from each business forum will serve on a company forum, looking at issues and concerns for Severn Trent Water as a whole. The business forums are supported by local level mechanisms to address, resolve or escalate unresolved issues upwards as necessary.

Furthermore, both the company and its unions wished to create a modern partnership approach to negotiation and consultation.

Partnership principles

The partnership principles developed by Severn Trent Water include: success of the enterprise; business focus; respect for legitimate interests; participation culture; equality of knowledge and opportunity - communication, development and sharing information.

Agreed behaviours include: acting professionally; approaching issues in a practical, workable way; using appropriate language; respecting others’ points of view; recognising legitimate interests; making contributions constructively;

appreciating others’ objectives; taking responsibility for outcomes; encouraging supportive behaviour.

Workshops

Four workshops have been held at Severn Trent Water, in each of the new business units, on the theme of ‘Exploring Partnerships’. Some work had already been undertaken, developing the new business units and, as background, these workshops reviewed this work and looked at the implications of the restructuring for Severn Trent Water. The workshops then undertook a team building exercise in order to promote joint management-union problem solving, and SWOT analyses looking at the strengths, weaknesses, opportunities and threats of a partnership approach at Severn Trent Water. These exercises demonstrated tangible gains from partnership working, along with real issues, which would need to be addressed in order to make partnership working a success. Group work was undertaken, looking at the work of the local forums, specific operational issues and long-term issues to be addressed in each of the four new business units. A Training Needs Analysis (TNA) identified the skills needed by participants to move forward on a partnership basis. Timescales for work leading up to the first meeting of each business unit were agreed.

Building on the achievements of the initial workshops, plans have been jointly developed to ensure all areas identified by the TNA are delivered including workshops on: communication skills, negotiation and influencing, leadership skills, understanding conflict and recognising legitimate interests.

4.10 Sector by Sector Review

The private sector

In the last year the number of private sector clients has grown considerably. In addition to attracting new business, the Partnership Institute has also deepened existing client relations. British Bakeries, a project involving five separate unions (BFAWU, Amicus, USDAW, GMB and T&G) is an example. The main aim of the project with British Bakeries is to develop a greater understanding of the concept of partnership and how it applies to British Bakeries at the local level as well as strategically. The key success factor is that British Bakeries has fully committed itself to partnership working, and this has been demonstrated by the setting up of Partnership Forums at each site, and the commitment to an organisation-wide rollout programme that is currently underway.

The public sector

The Partnership Institute is involved in a range of initiatives across the health service and local government.

At University Hospital Birmingham (UHB) the Partnership Institute has been working with both the employer and unions to create a workplace partnership agreement. This initial project has now resulted in 20 days training and consultancy to enable UHB and the unions to make joint problem-solving a reality.

The Partnership Institute is working with a number of Primary Care Trusts and is continuing to work with the Scottish NHS Executive at a strategic level.

In local government, a major five-stage project is being developed and delivered with Walsall Metropolitan Borough Council to review their current industrial relations structure and the processes of consultation and negotiation with the council between management and recognised unions.

The Partnership Institute has recently begun working with the Scottish Prison Service to roll out partnership training across 15 sites; this work was won following a very successful workshop facilitated by the Partnership Institute earlier in the year.

Voluntary and non-profit sector

In the voluntary sector some major initiatives are under way. The most prominent of these is a comprehensive programme of consultancy and development that supports the partnership agreement between NCH(formerly National Children Homes), UNISON and Amicus. Following a successful DTI Partnership Fund bid, this project will eventually reach all NCH regions.

The Partnership Institute has also more recently begun work with the National Maritime Museum on partnership as a precursor to a new recognition agreement, and looks forward to developing more work in this sector.

4.11 Plans for growth, long term strategy

The long-term aim of the Partnership Institute is to become synonymous with the concept of union/employer partnership.

The Partnership Institute is developing a consolidated project consultation cycle, whereby all clients follow a circle of training and development, project monitoring and finally evaluation before the cycle can begin again.

In marketing terms, the Partnership Institute has ambitious plans for growth by targeting areas including health, local government finance and corporate organisations where the Institute has a proven track record. This will be achieved through a comprehensive integrated marketing strategy including media campaigns, networking and client contact. It is the aim of Partnership Institute marketing to place customer care at the core of the strategic plan. Increased presence at exhibitions and conferences is planned over the coming year, as are public engagements and national workshops organised by the Institute.

The Institute is also seeking to develop strategic alliances with key organisations including the Department of Trade and Industry and the Confederation of British Industry.

The over-riding strategy for the next three years is to maintain and develop the capacity of the Institute to deliver and to respond to the increasing demand for partnership agreements. The Institute needs to develop robust arguments for partnership, make diagnostic tools more comprehensive and applicable across a range of organisations and finally develop its training materials to the highest possible standard.

The Partnership Institute is on the way to its meet financial targets for 2002, and is projecting a turnover of half a million pounds for 2003.