LRD guides and handbook June 2016

Law at Work 2016

Chapter 11

Who should be consulted 


[ch 11: pages 376-378]

Where there is a recognised union for the bargaining unit in which redundancies are proposed, it must be consulted. This is regardless of whether the employees at risk of redundancy are union members.


Unions are only entitled to be consulted on behalf of the group of employees in a bargaining unit for which they have recognition rights. “Bargaining unit” is the name of the group of workers over which recognition rights have been agreed or granted, either by agreement with the employer or by a formal application to the Central Arbitration Committee for statutory recognition (see Chapter 5: Recognition). 


Where a redundancy exercise affects employees in the bargaining unit and also employees for whom the union does not have representation rights, the employees outside the bargaining unit must be allowed to elect their own “appropriate representatives” (see below). However, there is nothing to stop a trade union member standing for election to represent these employees, as long as their own job is at risk of redundancy and they are one of the employees outside the bargaining unit. 


Where there is more than one union, consultation must be with all recognised unions, even if members of one union will not be affected (Governing Body NI Hotel and Catering College v NATFHE [1995] IRLR 83).


Where there is no recognised union, the appropriate representatives can be either:


• existing representatives of affected employees appointed or elected generally for consultation and information purposes (i.e. a standing representative body or staff association); or


• employee representatives elected by affected employees solely for the purpose of redundancy consultation.


An existing representative body, such as a staff association, can only be an appropriate representative if it is authorised to represent the interests of all the employees at risk of redundancy it purports to represent. Otherwise, the employer will be liable for a protective award. It is the employer’s responsibility to prove that the standing representative body has that authority.


An existing representative body can only be an “appropriate representative” if it has the right under its constitution to negotiate on behalf of employees at risk of redundancy. Mere consultation is not enough. This is because collective consultation can only be genuine if it is “with a view to reaching agreement” (section 188(2), TULRCA). A representative body that lacks the power and authority to negotiate on behalf of affected employees cannot consult “with a view to reaching agreement”. The ECJ has confirmed that to be effective, collective consultation must be “tantamount to a negotiation” (Junk v Kuhnel C-188/03 [2005] IRLR 310). 


This is an important point for union members who want to challenge the right of an existing non-union staff body to represent employees in a redundancy situation. These issues were explored in the following case, supported successfully by public services union UNISON:


An employer used an existing “joint consultative committee” made up of elected, appointed and “co-opted” workers to carry out collective consultation on behalf of employees at risk of redundancy. The committee’s constitution prevented it carrying out negotiation. The EAT ruled that the committee, which it described as a passive body whose job it was to receive and transfer information and views between the employer and employees, could not be an “appropriate representative body” for the purposes of collective consultation. The obligation to consult collectively had been breached, triggering liability for a protective award. 


Kelly v The Hesley Group Limited [2013] UKEAT/0339/12/ZT


www.bailii.org/uk/cases/UKEAT/2013/0339_12_1904.html

If there is no recognised union or existing non-union representative body, the employer must organise elections for representatives, following a mandatory procedure set out in TULRCA. All employees at risk of redundancy must be invited to elect employee representatives “long enough before the time when the consultation is required”. The election process must comply with rules in section 188A, TULRCA.


If the number of candidates putting themselves forward for election precisely matches the number of representatives required, no ballot is needed (Phillips v Xtera Communications Limited [2011] UKEAT/0244/DM). 


If an employer invites affected employees to elect representatives in good faith and with enough time and they do not do this, the employer must provide the statutory information instead direct to each affected employee. 


Employee representatives and candidates for election are protected against unfair dismissal and detrimental treatment for taking on the role.