Non-union employer sets up joint committee on outsourcing

In May 2008, a leading non-union company, O2 Ireland, and the Communication Workers Union agreed to establish a joint consultative committee to inform and consult on the outsourcing of the company’s technology department. The joint committee stops short of full trade union recognition in the company; the trade union, however, sees it as a significant development in such a major non-union company.

In 2007, it was announced that the mobile phone company, O2 Ireland, would outsource 450 staff in two different phases. The outsourcing process is expected to be completed by the end of 2008. The first phase will involve 230 staff moving to the multinational computer technology and consulting company IBM, while the second phase will involve 220 staff from its network division. The latter workers will be moved to the communications service provider BT Ireland when the deal between the two companies is completed. After the outsourcing move, involving a total of 450 staff from the O2 Technology Department, employment at O2 Ireland will be reduced to 1,200 workers. The Transfer of Undertakings, Protection of Employment Regulations (TUPE) legislation will apply in this case.

CWU seeking union recognition

Following O2’s outsourcing decision, the Communication Workers Union (CWU), which represents many workers in Ireland’s telecommunications industry, stated that it had recorded a significant increase in union membership. In light of this, the trade union has attempted to engage O2 Ireland’s management in discussions on trade union representation and recognition.

To this end, CWU intensified its efforts to engage with O2’s management with the aim of implementing an existing international framework agreement on ‘Recognition of fundamental human rights in the community and the workplace’. Referred to as the UNI–Telefónica Code of conduct, the agreement was signed by O2’s parent company Telefónica and the global telecommunications trade union Union Network International (UNI). CWU claims that this agreement guarantees the right to collective bargaining for all Telefónica staff and its subsidiaries (see also Eurofound’s Telefónica case study on codes of conduct and international framework agreements).

CWU had threatened industrial action over the issue. This threat may have influenced O2’s management decision to set up a joint consultative committee with CWU, together with the fact that O2’s parent Telefónica had signed the global framework agreement with UNI.

A form of trade union recognition

The collective agreement between O2 Ireland and CWU on setting up a joint consultative committee dealing with the implications of outsourcing constitutes a significant development, in the sense that O2’s management was previously unwilling to engage with the trade union. The trade union has described the joint consultative committee as an important breakthrough in developing a positive working relationship with O2.

Furthermore, according to the weekly subscription magazine Industrial Relations News (IRN), O2’s Human Resources (HR) Director, Theresa Murray, confirmed that the company set up such a committee for ‘the purposes of consultation about outsourcing’. Ms Murray added that the joint consultative committee would work in conjunction with O2’s existing Employee Forum which is a representative body for non-unionised staff. The HR Director neither confirmed nor denied that the unionised joint consultative committee would be a longer-term relationship – in other words, extend beyond specifically dealing with outsourcing

The joint consultative committee constitutes a form of trade union recognition. It provides for a consultative process concerning outsourcing, whereby members’ issues and concerns are channelled and represented through the trade union committee in conjunction with a CWU national officer in discussions with O2 management – management representatives comprise the O2’s HR Director and any other manager deemed necessary. The joint consultative committee meets at least on a monthly basis and/or when deemed necessary. Paid time-off for training is available to help representatives engage in the committee.

Telefónica Code of conduct

Nonetheless, CWU eventually wants to develop full trade union recognition in the company for collective bargaining purposes. The trade union bases its claim on the fact that O2 Ireland parent company Telefónica has signed a Code of conduct under which the right to collective bargaining and freedom of association are espoused. A section in the code suggests that:

UNI and Telefónica affirm their support for fundamental human rights in the workplace … In that respect the company agrees to comply with the ILO conventions on freedom of association and trade union rights, to recognise the right to organise and the right of trade unions to represent and negotiate on behalf of workers.

Regarding freedom of association and the right to collective bargaining, the Telefónica Code of conduct states that:

Where UNI affiliates represent the workers employed in companies owned by Telefónica – and its subsidiaries – the company shall recognise the right of unions to represent said workers in: a) Collective bargaining. (ILO Convention 98) – On their part unions will agree to negotiate in good faith, are aware of the necessity to find the best practices which guarantee the development of the companies and their viability, which eventually is the best guarantee of the employment of for the workers. b) Any procedures for settlement of disputes. c) Negotiations and consultations in all matters affecting jobs and training. d) Where no trade union exists, the company shall adopt a neutral view aimed at not preventing the trade union from setting up. It shall also respect the right of trade unions to organise employees.

Tony Dobbins, IRN Publishing