Case Study: Industrial Relations

A large financial services organisation in the UK approached us to tackle ongoing industrial relations issues. Their relationship with the unions had deteriorated over several years and, typically, the annual pay negotiations caused the most concern. They were time-consuming (which put a huge strain on internal resource and productivity); they were never completed according to schedule; and employees always received their pay increase several months too late causing tension and upset among the employee base.

In addition, cost-cutting measures were creating further problems between local managers and union representatives. The executive team decided something had to be done.

Initially, our consultants had three meetings with senior management to learn more about the organisation and how it operated. Next, we spent a half-day with the executive board to review their long-term plans and, crucially, how industrial relations and the unions fitted in with these plans. We quickly dismissed the suggestion of de-recognising the unions and all agreed it was vital that we work with the unions and the employees in a collaborative way.

From the workshop with the executive board, we were able to make the following recommendations:

1. A thorough review of all agreements held with the unions, to simplify and improve what existed. We redrafted some agreements to reflect best practice, and we produced a negotiating strategy for union discussions.
2. A training programme for junior/middle management in employee relations and industrial relations. We also debriefed them on the changes made to the union agreements (see point 1).
3. External training (likely to have greater impact) for the local union representatives on the organisation's objectives and the importance of everyone working together.
4. A new internal communications approach. The current communications were not winning the hearts and minds of employees: a more effective method of delivering important messages was needed, and every employee had to be given a genuine opportunity to express their views and concerns.

The union agreements were re-negotiated without any significant problems and pay negotiations ceased to be a real issue, with agreements being reached on schedule and pay increases passed onto employees immediately.

Managers felt more empowered to make decisions concerning employee relations and engagement, and felt more comfortable in their union relationships.

The employee attitude survey reflected a positive change in internal communications, which has continued to improve.