Unions are talking tough as the recession bites and jobs disappear. Are we seeing a new generation of militant trade bodies, asks James Ball


Postal workers, led by a Communication Workers Union boss who has declared himself "stronger than Scargill", stepped up their campaign of industrial action this week. The striking posties are a symptom of a recent surge in militancy among unions, and Royal Mail is far from the only business facing upheaval in the run-up to the crucial Christmas period.

Several fmcg stalwarts are locked in disputes with Unite some over pay, others over jobs and both Cadbury and Diageo face strike ballots in the next few weeks. Chicken firm 2 Sisters has gone as far as accusing Unite of "bullying". But are opportunist management or militant unions to blame for these breakdowns in relations?

There is little doubt many grocery companies are looking to restrict pay or cut jobs in the downturn. FDF human resources director Angela Coleshill says earnings growth in UK manufacturing is "extremely muted" at 1.4%, and is often less.

"Many members have reported pay freezes, while other pay review settlements have been agreed at between 1% and 2.4%," she says. Some companies will be looking to reward staff for the loyalty they have shown over the past year, but Coleshill warns that stringent pay settlements may be necessary to reduce job losses and prevent production moving overseas.

"The challenge will be to keep manufacturing and jobs in the UK," she stresses. "Anything that undermines our competitive position is going to be a problem for UK jobs."

Jennie Formby, Unite's national officer, says the union understands the tough circumstances and is happy to discuss efficiencies and even job losses. What Unite won't stand for, however, is companies taking advantage of hard times. "A few food and drink companies can only be described as opportunistic," she says. "Some are increasing profits, holding market share and still cutting workers' terms and wages, cutting jobs and even closing sites."

Formby is quick to cite Diageo, which this week warned workers they would only receive statutory redundancy payments if they continued to oppose restructuring plans involving 900 job losses through the axing of its Kilmarnock plant in Scotland. "Just half the workers at Kilmarnock would have been made redundant under our alternative restructuring plan, bringing significant efficiency and changes to working packages. We want companies to be competitive but want to keep sites open."

Unite, Formby continues, is "particularly angry" about Kilmarnock. "Closing that historic site will condemn hundreds of people to long-term unemployment. Diageo owes something to the communities it grew up in," she explains.

Diageo rejects Unite's charge that it was taking advantage of the downturn, and said restructuring was necessary to secure the company's long-term future in Scotland. It has also pledged to work with local authorities to regenerate communities such as Kilmarnock.

Despite this, Formby rejects accusations Unite is too quick to go on the attack, and is also keen to set the record straight with those who accuse unions of initiating the high-profile row. It was begun, she claims, by Scottish politicians, both local and national, and the union only took the dispute into the public domain when it believed all other options had been exhausted. But she makes no apologies for the union's forthright approach.

"Of course we're going to try and use the media if we have to, we'll do whatever we can in our members' interests if we don't get anywhere talking directly to companies. With Cadbury, our shop stewards tried to talk at a local level, then we tried larger-scale negotiations, and only when those went nowhere did we start a public row."Companies 'difficult to stop'Challenged as to whether high-profile campaigns make any difference ence to members both Cadbury and Diageo have stuck to their guns Formby says most of Unite's work involves "bloody difficult" negotiations and compromises, which achieve small victories. "In most agreements, neither party is ecstatic, but that's how it works. In the big rows, companies hold all the aces. They are very difficult to stop."

While Unite is seen by some as combative, the 383,000-strong Usdaw union takes a more collaborative approach. "One thing I've learned is conflict genuinely has to be a last resort, not the first," says general secretary John Hannett. "We're seen by progressive employers as a union willing to work with business. That means we can work with the BRC and other organisations on campaigns promoting work in retail, parental rights and benefits, and even issues such as business rates. It's better to talk to successful businesses about how to share the benefits than to negotiate settlements with unsuccessful ones."

But this approach has left Usdaw open to the charge it's grown too close to business an accusation Hannett rejects. "We're no sweetheart union. Unions can't cherrypick issues and still claim they are a force for good. If we have to call for strikes, we will. We're no different from any other union in that."

Look at its record on securing redundancy payments, says Hannett. His organisation typically secures redundancy payouts of 2% to 2.5% of salary compared with a 1% average. But the difference between Usdaw and other unions is that it believes "it's better to be critical inside a relationship, not outside".

Good communication is keyMost employers love to preach a doctrine of collaboration and common sense rather than outright war and Usdaw's approach has proved popular among several leading retailers, including Tesco and Sainsbury's,

An executive at a large food company that has recently overseen a redundancy programme without significant dispute and therefore prefers to stay anonymous says companies can avert union activism with effective communication. "We have had tensions with Unite, especially where facilities are closing, but we deal with union officials on a local level and have generally managed to resolve negotiations in a way that satisfies both parties," the exec says. "National salary agreements cause problems as different parts of a business might have wildly different performances. It's simpler to handle things at local level. As to cutting jobs, it's important to communicate. We held town-hall meetings, even for relatively small updates."

But with unemployment expected to continue rising for at least the next 12 months, transparency is not always going to pacify the unions, especially those with a new-found militancy in the teeth of recession. Outdated sites and drives for efficiency mean some conflicts will be unavoidable.

2 Sisters blasts Unite for ‘bullying’ tactics (24/10/09)
Strike action may harm workforces, warns FDF (17/10/09)
Strike action looming in Cadbury wages dispute (5/9/09)

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