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Ban on employer offering inducements
[ch 5: pages 134-135]In the UK, it is unlawful for an employer to offer any worker an inducement not to join (or to join) a union, take part in union activities, or use union services, or to join a union or any particular union(s) (section 145A, TULRCA). It is also unlawful for an employer to offer a member of a trade union that is recognised or seeking recognition, an inducement to stop or prevent their terms and conditions being negotiated by a union through collective bargaining (section 145B, TULRCA). This law is of increasing importance to trade unionists, as these two examples show:
In 2006, supermarket chain Asda was ordered to pay £850,000 for offering inducements to 340 members of the GMB general union to give up collective bargaining rights. Workers at its distribution depot in Washington, Tyne and Wear were offered a 10% pay rise if they agreed to end collective bargaining at the site.
In 2014, Bromley Council was ordered to pay more than £64,000 to compensate 18 employees when it breached section 145B, TULRCA after an employment tribunal concluded that the Council offered its staff cash incentives to sign new contracts taking them out of collective bargaining agreements. £200 each was offered to workers to sign new contracts agreeing to a localised pay award in place of national and regional collective agreements. The case was brought by 18 UNISON members who did not sign the new contract, some of whom were dismissed and re-engaged on the new localised terms and conditions. Each claimant was awarded compensation of £3,600.
In future, section 145B of TULRCA could have increased significance following changes to TUPE made in January 2014. The Transfer of Undertaking (Protection of Employment) Regulations 2006 (TUPE) have been amended to make it easier for employers to change collectively bargained terms after a transfer. These changes to TUPE are explained in Chapter 12. Reps in a workplace where the employer wants to impose change following a TUPE transfer should take advice from their national union as soon as possible.
The amount of the award payable by an employer to each worker who has been offered an inducement is £3,830 (From April 2016).