Information and consultation: Pathways to recognition?

Introduction

I'm delighted to be here today to speak on the subject of information

and consultation. As many of you know, I&C is a subject that I feel
very strongly about, and I am pleased to be able to share my
thoughts with you.

May I begin by paying tribute to the excellent work of Unions 21. You
continue to play a key role in promoting debate on modern trade
unionism. The DTI and Unions 21 have in the past joined forces to
promote partnership. For example, we have worked wit the IPA
(Involvement and Participation Association) on the Moving Partnership On project. I'm sure this
productive relationship will continue.

You asked me here today to provide the Government's latest thinking on I & C and our thoughts
on the approach that unions should be taking.

The long term vision

The Government has always had high ambitions for the Information and Consultation regulations.

It is an opportunity

- to significantly improve the way we work;

- to empower employees to contribute even more to the businesses they work for; and

- it is an opportunity for unions to demonstrate their value to both employees and employers.

Employees deserve to know about the decisions that will have a significant impact on them and
their livelihoods. They also need to be involved in those decisions. This process goes wider than
just taking of those decisions. The consultative process also signifies that employees are valued
and respected.

A company's people are the key to its success. So it follows that the way a company treats its
people is fundamental to that success.

Our vision is to see organisations, employees and unions realising the benefits of genuinely
involving staff. This means consistently applying "best practice" - not just going through the
motions. Only then will a real culture change be achieved.

What is taking place now?

The IC Regulations have now been in force for approximately 5 months. Some of the speakers
here today: Sarah Veale - TUC, Keith Sisson - Acas and David Yeandle - EEF all played an
important part in developing the regulations, and I'm grateful to them.

These important Regulations gave employees the entitlement to be informed and consulted on an
on-going basis about matters that affect them. The Government was keenly aware that I&C would
be new to many companies, and we worked hard to raise awareness in the run up to April 2005.

I am delighted that the TUC has also been working hard to promote I&C. I know that they have put
in place a comprehensive training programme for union representatives and officers. And there
are many good examples of unions and employers working together to produce I&C agreements.

A recent example is the agreement reached between Northern Foods and a number of unions,
including USDAQ, TGWU, GMB and AMICUS. The aim of that agreement is to enable employees
to get a better understanding of the issues faced by the company and enable dialogue on those
issues. The agreement states that it will "strengthen existing practices…especially those involving
the representation of employees by trade unions".

Acas has also played a vital role in implementation. John Taylor recently informed me that Acas
has carried out over 700 "healthchecks" for businesses. And their on-line training package is being
widely used.

The public sector Code of Practice governing I&C in civil service departments is now in place.
Organisations such as the Employers Organisation for Local Government, and NHS Employers
are also spreading the message to their members.

Employers organisations, such as the EEF, tell us that many firms drew up I&C agreements in the
run up to April, and that some are continuing to draw up agreements or to review their
communication structures.

These are important achievements.

We are going in the right direction. The Regulations are beginning to make a difference.

What are the challenges?

But that said, no one would claim that the new culture we seek has yet been created. As with
every major change, it is to be expected there will be doubters. Some will naturally be cautious
when faced with what could be a revolutionary change. Some will sit quietly, watching to see how
others react.

So, as Acas's recent discussion paper on the I&C Regulations has concluded , "it would take
some courage…to suggest that consultation's time has come in many workplaces".

For unions, I recognise there are mixed views on whether I&C is a threat or an opportunity. In
other words, some unions remain fearful that I&C can undermine the traditional collective
bargaining role.

Equally, some companies may simply be "going through the motions". Some may see the
consultation process in terms of communication by the employer to the workforce, and not as a
genuine dialogue between the employer and the workforce.

What the Government will do

The Government will do what it can to allay these concerns. We must continue to explain and
promote the Regulations. Compliance with the Regulations is important, but we must look beyond
that. We must strive for "best practice" to become "common practice".

We are committed to being a champion for information and consultation in the workplace. We will
promote employee involvement as a concept that brings real rewards for employees and
businesses. We will continue to assemble case studies, and hold them up as exemplars of what
can be achieved and how problems can be overcome.

We will endeavour to change perceptions and turn ideas into action. The DTI will conduct
research over the coming months to investigate the nature and extent of I&C in larger firms. We
want to understand whether employers have really got the message. We want to know what works
well for them, and what may deter or prevent them from establishing a true dialogue.

We will then use that research as a basis for promotional campaign next year, encouraging
employers to do more to build effective consultative arrangements.

What can unions do?

Unions also have a crucial role to play in all of this. I want to encourage unions to take the
opportunity presented by the I&C legislation. It is an opportunity to work with employers
constructively and build up trust through co-operation. An opportunity to carve out a new role for
themselves and demonstrate their value.

Unions should not feel threatened by it. It does not dilute collective bargaining - but complements
it. Ever since I can remember, unions have clamoured to widen their dialogue with employers.
This at last is an opportunity to do so.

Nor should it undermine the status of union representatives if they sit down with non-union
representatives. Rather, it demonstrates their inclusiveness and professionalism.

As most of you will know, the Union Modernisation Fund recently opened for bids. The Fund aims
to help unions to modernise themselves and meet the challenges of a modern economy and
changing labour markets.

We see I&C as an integral part of this picture. Collaborative working is part of modern, high
performance workplaces. That is why we have encouraged applications that equip union officers
and representatives for their role under the new legislation. I'd like unions to look at how they can
use the Fund for this purpose.

Conclusion

We have come a long way in realising the potential of I&C, but there is still much more we can
achieve. We all have much to do. But I believe we also have much to gain in truly transforming our
work cultures.