Gilman, Mark

Compulsory competitive tendering (CCT) was one of the key privatisation measures introduced into the public sector by the Conservative governments of 1979-97, coming into effect 17 years ago for "blue-collar" services and four years ago for "white-collar" services. The argument behind it was that greater competition would induce greater efficiency and hence savings in public expenditure. The Labour Government, however, believes that compulsion in itself is not the best method and should instead be replaced by a promise to provide "best value" for money.

On 3 June 1997 the Transport and General Workers' Union (TGWU) representing 9,000 British Airways ground staff and BASSA, the cabin crew union (linked to the TGWU) representing a further 9,000 employees, began balloting members over whether to take industrial action. On 9 June, they were joined by 4,500 members of the GMB general union. If the ballots support strike action, it is likely to take place in mid-July.

The European framework agreement on part-time work was formally signed on 6 June 1997 (EU9706131F [1]) by the European Trade Union Confederation (ETUC), the Union of Industrial and Employers' Confederations of Europe (UNICE) and the European Centre of Enterprises with Public Participation and of Enterprises of General Economic Interest (CEEP). The stated purpose of the agreement is to remove discrimination against part time workers, improve the quality of part-time jobs and facilitate part-time work on a voluntary basis. The European Commission will propose a Directive implementing the agreement to the Council of Ministers later this year. [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/social-partners-reach-framework-agreement-on-part-time-work

On 4 June, Padraig Flynn, the European Commissioner responsible for social affairs, employment and industrial relations, launched a consultation document on "information and consultation of workers within the national framework" (EU9706132F [1]). The document constitutes the first stage of consultation of the European-level social partners under the Maastricht social policy Agreement procedure, and could thus lead to a European-level agreement and/or Community legislation. If the Commission's proposals bear fruit, there would be minimum standards across Europe to ensure that workers enjoy rights to be informed and consulted. These rights would apply to all workers in enterprises above a certain size (50 employees has been suggested as a possible threshold). The new measure would reinforce existing requirements on national information and consultation over transfers of undertakings, collective redundancies and health and safety issues. [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/working-conditions-undefined/european-social-partners-discuss-the-social-impact-of-restructuring

Part-time workers have traditionally not been allowed into the same occupational pension schemes as full-time workers, but because there are far more women than men among part-timers the practice was challenged on the grounds of sex discrimination through the European Court of Justice (ECJ). In 1994, the ECJ ruled in a set of linked cases that the practice did amount to sex discrimination. The judgment was not welcomed by the then Conservative Government, so the Trades Union Congress (TUC) advised qualifying individuals that they should register their cases with industrial tribunals. After a number of test cases in the UK tribunals, it was ruled that part-timers who had been denied access to occupational pension schemes could not claim backdated pension rights any further back that two years prior to the ECJ's ruling - that is, 1992. After appeals were turned down, the cases are still waiting to be heard by the House of Lords.

The first of the two recently-announced mergers, which is to take effect from 1 July 1997, is between the National and Provincial Building Society Staff Association (NAPSA) and the Banking, Insurance and Finance Union (BIFU). The National and Provincial Building Society was recently taken over by the Abbey National, but NAPSA members voted to become part of BIFU rather than the Abbey National's own staff association. Despite the strong support for BIFU from NAPSA members, the company has refused to recognise the union. BIFU said that "in the merger and conversion mania which is sweeping this country there is little regard for the impact on staff. They are the casualties - that's why it is important for unions to work together". BIFU, which has 115,000 members, hope that this will be the first of many mergers which will ensure it a stronger role in the financial sector.

May 1997 saw Unilever defending its pro-European stance to shareholders, while the Confederation of British Industry (CBI) was also signalling its willingness to work with the trade unions prior to the adoption of European Union legislation.

In a previous EIRO review of the industrial relations consequences of the new Labour Government (UK9704125F [1]) it was suggested that it was unlikely that the Government would produce an all-embracing employment bill in its first term of office, and this has proved correct. However, the social partners were still relatively pleased with announcements made on measures to tackle unemployment and low pay. [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined-labour-market/the-industrial-relations-consequences-of-the-new-labour-government

A new pay award announced in April by the Agricultural Wages Board (AWB) for England and Wales after two days of talks, gives farm workers a minimum wage of GBP 4.12 per hour. The AWB is the only wages council - setting statutory minimum pay rates for a particular sector - left in the UK after the rest were abolished in 1993 (UK9703112F [1]). When the Conservative Government was originally looking at abolishing the wages councils in 1986, the proposal was delayed because employers were not in favour of them being abolished, as they at least set some minimum floor of standards with which employers could work. The case for this was made most strongly by agricultural employers, and this was why the AWB was left in place after 1993. [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/a-national-minimum-wage-who-what-and-why

An international comparison of labour disputes from 1986 to 1995 by /Labour Market Trends/ (April 1997) highlights that the UK had the fourth-lowest strike rate of the 22 member countries of the Organisation for Economic Cooperation and Development (OECD) in 1995. Only Austria, Switzerland and Germany had a lower level of strikes than the UK. The UK strike rate has been below the OECD average since 1986 and below the EU average since 1990. Between 1991 and 1995 the average rate in the UK was 24 working days lost per 1,000 workers - an 82% fall over the previous five-year period. But the UK's rise in the international "league table" of two places since 1994 took place despite an increase in the strike rate itself.