Unions want in! What do I do?

W

Woodstock

Guest
Hi. I need some advice urgently but I apologize in advance for being a tad cagey. We're just a fairly unique industry in Ireland and I have obvious concerns about confidentiality. I also sincerely apologize for the length of the thread throughout which my stress levels are blatantly apparent.

Our company is around 8 years old and employs around 100 staff. We are affiliated to the construction industry but our work comes from Local authority tenders. We have work in several counties in the Midlands and up North at present but have worked all over the country as well as the North.

Our biggest client has instructed us to liaise with unions to increase our pay levels. We suspect this is a political move linked to talks the L.A.'s will be having with various unions in early November.

We have been instructed to deal specifically with one union who are in turn only interested in representing about 60% of our staff, having no interest in the others although they will happily accept their union fees each month.

We don't have an established HR department (No time to get one either) as we have never had the need before now. I am a sort of HR administrator/ general cook-and-bottle-washer supervisor and have handled all the basics so far. I am proud to say that we have minimal staff turnover and, whilst any employee would love to earn more, not one employee has specifically complained that our wages are less than industry norm. I have also never felt that we were in the same class as Irish Ferries and Gama in terms of abusing employees,and our client is making us feel at fault for apparently short paying our staff (and yet they wont commit to the rate they want paid or where they got the rate from).

Our choice is to talk to the union or lose the contract (or future contracts). Of course the additional 30% of wages they're proposing was never built into our projections when we tendered......but that's a problem for another day.

We have a fairly relaxed atmosphere and have never been the clock watching military type of company. It is also impractical to try and nail down our staff because our staff are scattered to the winds every day. Trust has to be a feature. We loosely base our hours on 10 hours of pay for 8 hours of work averaging out over the seasons with longer days in summer and shorter in winter. We also pay for lunch & rest breaks at present.

My questions are:

1. If the Union gets an increase for the staff they're concerned for, what do I do with the other staff? I have staff with the same qualifications temping in other projects and they would fall through the cracks. I also battle with the concept of support staff being left out, e.g. stores, admin, safety, etc - morally if there's a windfall I want everyone to enjoy it; financially....O.M.G; legally can I get away with increases to only a percentage of our staff?

2. The unions are wanting union membership to be a compulsory condition of employment (for all staff). I can introduce this with future employees but how do I enforce this on my current staff? Freedom of association is also surely Freedom of disassociation? Union membership is not currently in our T&C of employment although around 4% of staff have asked for (and instantly received without hesitation) union representation, and have been paying for it for the past 7 years - we've never heard a peep from their unions and they are not the same union I have to work with now.

2.a If someone refused to belong to a union, would they forfeit their right to any increase negotiated or can they subsequently campaign for equal pay for equal work and equal qualifications?

3. Obviously we have to sit down and start negotiating with this union. No one in our company is qualified to do this effectively. Can anyone refer me to an Industrial Relations Expert who would be available at short notice to give advice and possibly take part in the negotiations?

4. Please don't laugh at my considerable naivety but is there an enforceable code of conduct for unions? So far we have been subjected to threats that if we don't co-operate they'll "close us down in the morning", and that they could do this through our client's employees refusing to co-operate with our staff - in other words before they have access to our staff so this isn't even a legal strike or picket line as I understand it? Can I complain to anyone?

5. What is a Union entitled to in terms of access to property and access to records?

6. Going back to question 2, we suspect the Unions will want to enforce membership of the Construction Industries pension for all staff - how can I add this to an existing contract of employment and is membership of a private pension an acceptable excuse for an employee?

7. The union is demanding exclusivity. Our position on unions has always been to allow equal representation by any union at the request of our employees. Can the union do this?

8. If the union achieves a significant increase, the company out of financial necessity, will have to tighten up on various Administrative systems such as the recording and paying of specific times worked (as opposed to our current "10 hours regardless" approach). This will entail changes to the T&C for all employees, not just the ones represented by the Union. I know I am at risk of legal exposure but am too stressed to calculate how much and from which direction.

9. We firmly maintain that we do not belong to CIF or any ERA or JLC leaving us with the usual statutory obligations. Can a union enforce sick pay, overtime rates, extra notice, pension contributions, special rates for driving (does that include passengers?) when we don't have a statutory obligation to provide any of this (even though we'd love to if we could afford it)?

10. Are Local Authorities and semi-government organizations exempt from the statutory H.R. obligations and legislation to which private organizations have to comply?

As you can see I am completely out of my depth, and the speed that this has happened has taken us completely by surprise. I cannot speak for our MD but I have always wanted the best for our staff subject to the limits of our financial situation. I don't resent anyone's efforts to campaign for a better salary but this is a bit too much like having a gun to the head whilst being asked for the combination of a safe I know to be basically empty. I have huge fears that the company cannot afford any of this, and for the union's efforts, another Irish company may have to close with a loss of 100 jobs.

Thanks in advance for any guidance you can offer.
 
Woodstock

I think that the worst outcome for you is that you have a work force which does not want to be unionised and then you lose your biggest client anyway.

How critical is this client? I would be tempted to say "no" to them, if you can afford to do that. It seems you are in a tough position.

They are implicitly blackmailing you. If they cancel their contracts, you can let people go and blame them for cancelling the business.


Brendan
 
I would concur with Brendan
Woodstock - you seem to have successfully nurtured the type of company culture that most entities dream of. It is not in your long term (or even short term) interests to introduce unionisation at the behest of a potential client.
Given that your offering is unique, it is unlikley that the client would be able to successfully replicate the service you are tendering for, so I would call their bluff.....based on your post YOU CANNOT AFFORD TO CEDE TO THE CLIENT'S DEMANDS
Remember that it is any persons right to decide whether or not to be a member of a union, and it is any employer's right to decide to recognise a union or not, so unilaterally forcing people to join a union in your company would be madness and potentially illegal
If things deteriorate, I'm sure the media would be very interested in a story such as this, might flush out the antics of the public sector
 
Woodstock,

It appears that your workers may be construction workers for the purposes of the Construction Industry (Wages and Conditions of Employment) Registered Employment Agreement (REA). Under section 30(1) of the Inustrial Relations Act 1946, this agreement is binding on all workers of that type in the entire industry - regardless of their union affiliation or indeed your affliliation with the CIF.

Consequently, independantly of any Union activity, you are obliged to pay the minimum wage set out in that REA to workers that fall within the definition of construction workers contained in the REA. If you don't in the future (or haven't in the past) the Unions have a considerable stick to beat you with.

From experience, your case is far from unique and is indicative of a general clampdown by the Unions on perceived underpayments in the construction sector.
 
Hi Woodstock

Personally I think you should be talking to your solicitor about this. If I were in your shoes the last thing I would do would be to publish on the internet the details of the problem.
 
are you a member of IBEC or ISME?
This is the sort of thing that they should be able to help with.
I know where you are coming from; we have tendered for and won public sector contracts but been frozen out when those we deal with realise we are non-union. Our staff also do not want to be unionised but that doesn't seem to matter. On one occasion a purchasing officer in a semi-state company rang me and explained that although our tender was the best and cheapest (8% cheaper than the next guy) they were not using us as it would "cause too much s*** with the unions".
We also have a policy of not paying "cash inducements" to customers or their employees. This has severely limited our ability to work with semi-state and former semi-state companies.

I agree with the advice above; don't let yourself be blackmailed. Go and see your solicitor, make sure you are complying with all legislation, and then tell the union to get lost. If necessary get the media involved.
Personally I would close down rather than have my company blackmailed by a union (or anyone else).
 
Thanks ubiquitous. That's helpful. Look me up in the telephone book and phone me and we can chat about the wisdom of posting an anonymous thread on the internet. I am desperate to hear the opinions of as many people as possible and to get advice which is the purpose of this forum. To the rest of you thank you for your advice and your concern. I should know more in the next week.
 
Ah shucks Ubiquitous. I am sorry for being such a grump. Please forgive me. I shouldnt have responded that way. Zero sleep!!!
 
woodstock,

I would advise contacting these people who have a wealth of experience in the area and should be able to give good advice... not affiliated to them but have come across them in my line of work - contract services. www.cas.ie

Best of Luck,

[FONT=Verdana, Arial, Helvetica, sans-serif]Hopeton House
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Rathgar,
Dublin 6.
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[FONT=Verdana, Arial, Helvetica, sans-serif]Tel: 00353 1 4926133. [/FONT][FONT=Verdana, Arial, Helvetica, sans-serif]
Fax:00353 1 4926229.
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Legend - thank you so much for the referral. Looking at their website it really does sound like they're customised to handle both the problems I am having and the unique nature of our business. We'll be phoning them today. Stay well and thanks again
 
Our biggest client has instructed us to liaise with unions to increase our pay levels. We suspect this is a political move linked to talks the L.A.'s will be having with various unions in early November.
Can you just clarify if this client is a public body? What is the nature of this 'instruction' - written? email? verbal?

we have tendered for and won public sector contracts but been frozen out when those we deal with realise we are non-union. .... On one occasion a purchasing officer in a semi-state company rang me and explained that although our tender was the best and cheapest (8% cheaper than the next guy) they were not using us as it would "cause too much s*** with the unions".
We also have a policy of not paying "cash inducements" to customers or their employees. This has severely limited our ability to work with semi-state and former semi-state companies.

Public bodies have legal obligations for open & transparent procurement processes. On the assumption that union membershop was not one of the stated criteria for the contract, the purchasing officer is breaking the law if he gave the tender to the other guy for the reasons stated.

You would have several options for addressing this, the first option being a direct complaint to a director/CEO of the organisation concerned. I understand that it may well cause additional difficulties to make a complaint like this, but these kind of abuses are not going to stop.
 
Public bodies have legal obligations for open & transparent procurement processes. On the assumption that union membershop was not one of the stated criteria for the contract, the purchasing officer is breaking the law if he gave the tender to the other guy for the reasons stated.

You would have several options for addressing this, the first option being a direct complaint to a director/CEO of the organisation concerned. I understand that it may well cause additional difficulties to make a complaint like this, but these kind of abuses are not going to stop.

I agree that we should do something about it but to be honest it's not worth the costs (time) involved. I don't for a minute suggest that it is part of the culture across the public/ semi-state sector, but we have found it common enough in different areas. I don't want to name organisations or companies here as it would be unfair to do so.
I also don't think the union issue is coming from high up within the unions but it has been a very real factor on the ground. For example we provide products and services to semi-state bodies in Europe, the Middle East and Asia but have never won a tender in Ireland (from the only semi-state body that could purchase said goods and services).
Over the years I, and others with this company, have been asked directly for cash and other inducements in order to have purchase orders issued, specifications approved, etc. This has never happened in our dealings with private companies. In fact the practice of allowing gifts of wine etc to be received at Christmas has been stopped by most large companies.
 
Union Exclusivity sounds like a "Closed Shop" , this is illegal in EU.iF
1. If the Union gets an increase for the staff they're concerned for, what do I do with the other staff? I have staff with the same qualifications temping in other projects and they would fall through the cracks. I also battle with the concept of support staff being left out, e.g. stores, admin, safety, etc - morally if there's a windfall I want everyone to enjoy it; financially....O.M.G; legally can I get away with increases to only a percentage of our staff?

Ans: You can legally give staff what you want ..

2. The unions are wanting union membership to be a compulsory condition of employment (for all staff). I can introduce this with future employees but how do I enforce this on my current staff? Freedom of association is also surely Freedom of disassociation? Union membership is not currently in our T&C of employment although around 4% of staff have asked for (and instantly received without hesitation) union representation, and have been paying for it for the past 7 years - we've never heard a peep from their unions and they are not the same union I have to work with now.

Ans: Talk to BEC, I believe this is illegal.

2.a If someone refused to belong to a union, would they forfeit their right to any increase negotiated or can they subsequently campaign for equal pay for equal work and equal qualifications?

Ans: Union only negotiates for its members.

3. Obviously we have to sit down and start negotiating with this union. No one in our company is qualified to do this effectively. Can anyone refer me to an Industrial Relations Expert who would be available at short notice to give advice and possibly take part in the negotiations?

Ans: Contact IBEC.

4. Please don't laugh at my considerable naivety but is there an enforceable code of conduct for unions? So far we have been subjected to threats that if we don't co-operate they'll "close us down in the morning", and that they could do this through our client's employees refusing to co-operate with our staff - in other words before they have access to our staff so this isn't even a legal strike or picket line as I understand it? Can I complain to anyone?

Ans: No, neg. should go thru LRC, LC, and ruling is used as basis for final settlement.

5. What is a Union entitled to in terms of access to property and access to records?

Ans: They request, and your decision on access to your property / intellectual data, they have no rights.

6. Going back to question 2, we suspect the Unions will want to enforce membership of the Construction Industries pension for all staff - how can I add this to an existing contract of employment and is membership of a private pension an acceptable excuse for an employee?

Ans: Say NO, and be more concise when writing questions..

7. The union is demanding exclusivity. Our position on unions has always been to allow equal representation by any union at the request of our employees. Can the union do this?

Ans: Unions can request, your decision.

8. If the union achieves a significant increase, the company out of financial necessity, will have to tighten up on various Administrative systems such as the recording and paying of specific times worked (as opposed to our current "10 hours regardless" approach). This will entail changes to the T&C for all employees, not just the ones represented by the Union. I know I am at risk of legal exposure but am too stressed to calculate how much and from which direction.

Ans: You are taking from Peter to pay Paul, are you sure you are in business ????, Union won,t care , they rep. THEIR members.

9. We firmly maintain that we do not belong to CIF or any ERA or JLC leaving us with the usual statutory obligations. Can a union enforce sick pay, overtime rates, extra notice, pension contributions, special rates for driving (does that include passengers?) when we don't have a statutory obligation to provide any of this (even though we'd love to if we could afford it)?

Ans: If you cannot afford, get in intermediary you both trust, show them books, and they can tell Union.No Union wants to lose members jobs, they lose dues, hence bad business.

10. Are Local Authorities and semi-government organizations exempt from the statutory H.R. obligations and legislation to which private organizations have to comply?

Ans: No

As you can see I am completely out of my depth, and the speed that this has happened has taken us completely by surprise. I cannot speak for our MD but I have always wanted the best for our staff subject to the limits of our financial situation. I don't resent anyone's efforts to campaign for a better salary but this is a bit too much like having a gun to the head whilst being asked for the combination of a safe I know to be basically empty. I have huge fears that the company cannot afford any of this, and for the union's efforts, another Irish company may have to close with a loss of 100 jobs.

Thanks in advance for any guidance you can offer.
 
You should fight this tooth and nail. you have no reason not to as you seem to have nothing to lose. Your employees are happy. You were given a project to do from this organisation . Let them drop you now if they want . You know that no-one else can do the job for less as you won the tender.

You should make provision from here on though to get up to date with set industry rates for different jobs. there is nothing anyone can do (i doubt ) as long as you make a real effort to get up to speed. Maybe it is not possible on existing projects but you could factor in the cost from here on. Dont recognise the union for the moment.And get some legal advice from a solicitor who specialises in employment law. If your employees got wind that this union might put you out of business immediately then they would not be too keen on signing up.
 
You do not need to recognise Unions, the state recognises them (HP in BOI etc ...)

Think a lot of people are frightened of Unions, people cannot be forced to join, and they will not bankrupt businesses.
 
Over the years I, and others with this company, have been asked directly for cash and other inducements in order to have purchase orders issued, specifications approved, etc. This has never happened in our dealings with private companies. In fact the practice of allowing gifts of wine etc to be received at Christmas has been stopped by most large companies.

I understand the practicalities of your reluctance to get involved, but demands for cash is just crazy. This really should be reported to a director or similar.

For the record, in my public sector body, staff are banned from recieving gifts at any time. Any gifts recieved go into the kitty for an Xmas raffle.

Any tender evaluation which recommends a supplier who is not the cheapest has to be reviewed by a senior manager from a different department.
 
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