2. How not to legislate on conflict resolution, and how to find a better way Rita Donaghy Acas Council Chair

3. Context: Radical changes to employment relations over 25 years 1980s – trade union laws decline in trade union membership density 1979 55% 2006 28% (17% private sector 58% public sector) 1990s - individual legal rights European Union Directives

4. Individual conflicts at work Application by individual worker to Employment Tribunal Acas conciliator intercedes prior to hearing Use of Acas Helpline Conciliation saves 66% of hearing days.

5. Was there a problem? Early 2000’s – sharp rise in Employment Tribunal numbers New Statutory Rights Decline in Union Recognition Litigiousness Increased costs to employer and employee

6. 2004: Formal procedures Organisations were required by the 2002 Employment Act to introduce formal grievance and disciplinary procedures. “Three Step Procedure” – for discipline and grievance issues Failed good intentions

7. Employment Tribunal Applications (per annum) Source: Employment tribunal Service Annual Reports

8. Gibbons Review March 2007 The problems with the 2002 Act were subject to formal review in 2007. The 3 step process ‘exacerbates and accelerates disputes Creates expectation of tribunal hearing, not resolution. Often impractical Drives users to early legal advice and associated costs’

9. Gibbons’ recommendations – resolving disputes early. Repeal statutory procedures Clear, simple, non-prescriptive guidelines on grievances, discipline, dismissal. Incentives to comply with guidelines Challenge employers and employee organisations to promote early dispute resolution in the workplace.

10. Building Better Practice “We find that in many cases where there is a potential conflict managers don’t engage early enough in a conversation with the individual or individuals involved – they shy away from sitting down and getting people to sort it out” (West Midlands Police) Use of internal mediation, Acas trained.

11. Fair treatment at work “One of the things we have learned is that, if you really want to get a good resolution, you do it front end when it’s easier to encourage compromise” (Fife Council) Fair treatment at work policy setting out expectations of both employees and managers. ‘Fair treatment advisers’ – trained internal advisers called in by line manager. Greater use of flexible working.

12. The government response 2007/8 The Employment Simplification Bill Implementation of the outcome of the Gibbons review of workplace dispute resolution. Details yet to be published. In force late 2008 or Spring 2009.

13. Challenges and Opportunities for ACAS. Focus on mediation services Training mediators – Acas Certificate in Internal Workplace Mediation Expand training services especially for managers on handling ‘the difficult conversation’. Need for further resources to cope with surge in ET applications Doubts expressed in some quarters about Acas as a public sector monopoly. Who else can provide mediation/conciliation services of proven quality?