May news in brief

26st May 2009

All the latest stories from the world of work

Government, CBI and TUC agree that reps add value in the workplace

This month the Department for Business, Enterprise and Regulatory Reform launched the ‘Reps in Action’ report with the support of the TUC and CBI, giving vital support to the role of union reps in the workplace. The report argues that modern union representatives can add value to business, helping to create greener and better trained workforces. 

"Reps are the face of unions in workplaces up and down the country, but their success stories can go unreported." Said Business Secretary, Lord Mandelson.

"I hope employers and trade unions alike will use these examples to develop their own approach and deliver help that could be invaluable to both businesses and workers."

The report draws together case studies from organisations including BT, the British Museum, G4S and NPower to show how reps can contribute to better workplace practices.

Brendan Barber, General Secretary of the TUC acknowledged the significance of the report; "This joint publication reveals the positive contribution that union reps can make in the workplace. In these tough times Britain's businesses need as much support as possible. Union reps can be a vital resource not only for unions and their members, but also for the companies and organisations that employ them."

To download the report, visit http://www.berr.gov.uk/whatwedo/employment/trade-union-rights/facilities-and-facility-time/index.html

Engagement is new priority during recession

A recent survey showed that organisations were measuring engagement as a sign of reward strategy success. As pressure increases on companies to raise performance to survive the recession, leaders are increasingly orientating HR strategies to generate greater engagement.

According to the survey from Next Reward Practices, 57 per cent of the 763 employers polled said that they would be prioritising engagement over the next 2 to 3 years.

"The global downturn has prompted organisations worldwide to shift to an increased focus on how to engage and motivate employees," said Colin Evans, UK head of reward services at Hay Group, which undertook the research with US HR consultancy WorldatWork.

"When times are tough, employers are looking for ways to improve engagement," he added. "It's essential they remember the motivational power of intangible rewards, the role of the line manager in establishing a great work climate, and the importance of communicating effectively with employees."

The survey also found that:

• 44% of respondents plan to use reward to foster a culture of creativity and innovation.
• 67% said they'd make line managers more responsible for managing the 'pay for performance' relationship between employer and employee.
• 60% said they'd focus more on non-financial rewards such as career and development opportunities.

Pay freezes hit 1/3 of firms

Research undertaken by IDS showed that 1/3 of firms in its April survey agreed freezes in their pay settlements.

Although the survey revealed that so far in 2009 a substantial number of organisations were also paying increases of 3 to 4 per cent, it also showed that other employers were forced to find creative solutions to cut costs and keep staff.

Some firms were freezing pay for higher paid groups but not others, increasing holiday entitlements to aid retention, continuing with bonuses and boosting pay for lower paid groups.

Ken Mulkearn, Editor of IDS Pay Report, said: “A significant proportion of companies are continuing to pay increases, mainly in the 3 to 4 per cent bracket. And the tale is largely one of contrasting sectoral fortunes, with most of the freezes concentrated in engineering and among firms which provide key industrial inputs, such as chemicals manufacturers. By contrast, other sectors, like food manufacturing, pharmaceuticals and retail, have seen fewer freezes.”

Companies such as BT have announced that there will be no pay rise for their staff this year, while others, particularly in the hard hit manufacturing sector, have implemented pay cuts in a bid to retain staff through the downturn.

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