Employers urged to prepare for post-recession conflict

A new discussion paper – Riding out the storm: managing conflict in a recession and beyond – from conciliation body, Acas, is predicting how workplace conflicts could evolve as the UK emerges from the recession.  

With employers and employees still facing a continued period of uncertainty, the discussion paper reviews the impact the current recession has had on employment relations and considers how workplace conflicts could be triggered by new and different touch points in the future. It also discusses how conflicts might manifest themselves in new ways.

The report predicts that pensions are likely to become even more of a hotspot for employment relations in the private and public sector.  Although it is not something appearing on the collective bargaining agenda at the moment, this may well change, according to Acas, as companies seek to close schemes to existing, as well as new, members.

It also highlights the emergence of forms of collective action, such as wildcat strikes, which during this recession have been characterised by the use of technology such as emails, text messaging and social networking sites which enable demonstrators to organise rapidly amongst the workforce and the local community.

The report says that another worrying trend to result from the recession is the growth of more hidden manifestations of conflict, including bullying and harassment, stress, loss of trust, and lower levels of engagement. It warns that these symptoms often escape official statistics because they are not expressed through the official channels of strike action, Employment Tribunals or even formal grievances.

Acas advises that this type of discontent can 'fester' in the workplace, ultimately causing costs to employers in the form of higher absence rates, increased turnover and diverted management time, and that there can also be serious implications for the health and wellbeing of employees if these problems are not effectively dealt with.

According to the report, 2010 could be ‘catch up time’ for those areas of the private sector that remain highly unionised. It says that although this recession has been characterised by a rise in concessionary bargaining between employers, unions and employees, negotiations are becoming much tougher with employees looking to recoup the pay losses they have suffered in the past year.

Commenting on the discussion paper, Peter Harwood, Acas Chief Conciliator, said:

“As the private sector deals with the impact of the recession on its workforce, the public sector is also preparing for significant cuts. It is essential that employers, managers, and trade union representatives improve communication and engagement, so that potential issues that may cause conflict are aired and listened to and early action taken.”