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launch of Government consultation on

information and consultation

July 2003

how information and consultation will work in practice

Background

The full detail of how information and consultation will work in practice will depend on the outcome of the consultation exercise launched today and the Government’s response to it. However a basic framework agreed by the TUC and CBI is included in today’s document, and the final proposals will build on this. They must also comply with the EU Directive.

Scope and timescale

The proposals will apply to undertakings that employ more than 50. They will be phased in and will cover undertakings with more than 150 staff by 2005, 100 staff by 2007, and 50 staff by 2008.

The trigger

Information and consultation arrangements only need to be introduced if staff request them. The trigger will be a request made by 10 per cent of employees or 2,500 whichever is the smaller. A minimum of 15 staff will be needed in the smallest workplaces affected. This request can be made anonymously to the CAC. An employer can also seek to negotiate an agreement.

Are new arrangements needed?

What happens next will depend on whether there is an existing agreement.

• in workplaces where there is no existing agreement providing for information and consultation the employer must try to reach agreement with workforce reps on how to apply I&C

• in workplaces where the employer claims that an existing arrangement already exists the CAC will adjudicate if this is disputed. If the CAC finds that a genuine agreement is not in place then the employer must try to reach agreement with workforce reps on how to apply I&C

• in workplaces where the CAC agrees an existing agreement is in place that has been backed by employees (for example though a union recognition agreement), the employer may hold a ballot of the workforce is held. If 40 per cent or more endorse the request then the employer must try to reach agreement with workforce reps on how to apply I&C. If fewer than 40 per cent back the request the pre-existing arrangement continues. This will protect genuine agreements between unions and employers.

A negotiated agreement

The employer must try to reach agreement with genuine employee representatives within six months. They must cover all the workforce in the undertaking and be approved by either all the employee representatives, half the workforce, or half of those voting in a ballot.

If negotiations fail

If a negotiated solution cannot be secured then the employer must introduce arrangements within six months based of a default procedure. This will require the election of employee representatives and a statutory minimum agenda of items that the reps must be informed and consulted about.

If employers fail to implement I&C

Complaints of non-compliance are made to the CAC - the body that already deals with statutory recognition. They can order the employer to start the process by arranging for election of reps. They can levy fines of up to £75,000 where there is a failure to inform or consult.

Press release (600 words) issued 7 Jul 2003