human resource management policy in

Transcription

1 Liberalisation, pay and conditions and human resource management policy in the UK LES SYSTÈMES ALLEMAND ET FRANÇAIS DE RELATIONS SOCIALES FACE À LA DÉRÉGULATION EUROPÉENNE DES SERVICES D INTÉRÊT GÉNÉRAL Maison Heinrich Heine, Cité Internationale Universitaire de Paris les 21 et 22 juin 2010

2 From nationalisation to privatisation Post-war years extensive nationalisation Seen as rational approach in key industries (electricity, coal) and need to deliver improved and universal service (health) End of fragmented local provision and focus on better employment conditions Growth of both public sector employment and public sector trade unionism i National, sectoral agreements covering public sector

3 Economic crisis i and political i l change 1970s crisis hits Conservative then Labour government, with public spending crisis and major public sector industrial action against Labour government in 1978 Sale of British Petroleum shares by Labour government Thatcher wins election in 1979 with key ideas around rolling back state and curbing power of trade unions but privatisation specifically is not significant element of manifesto although

4 Selling state assets and privatising services Two elements of privatisation and liberalisation Sale of nationalised industries Introducing competition into provision of services to public authorities Abolition of Fair Wages clause in local government (no national minimum wage) - part of wider regulation of labour market and laws to restrict ti ttrade union activity it Conservative-controlled local authorities contracting-out refuse collection, street cleaning, building cleaning and catering

5 Policy toughens and list of sell-offs grows Government encouragement of competitive tendering NHS circular of 1983 and then compulsion local government 1987 focus still on range of basic, labour-intensive services British Telecom (1984) was first major privatisation involving massive marketing campaign, free shares for employees and discounted shares for public following smaller sales of shares in BP, British Aerospace, Amersham International Privatisation without liberalisation - BT and British Gas (1986) initially retain monopoly positions but face price regulation

6 Industrial relations in privatised industries Break up of national bargaining to company level (electricity, rail, water) similar trend in civil il service (departmental t and agency level l bargaining) i and private sector Increased use of personal contracts especially for managerial employees Some major pay reform (rail) and introduction of performance pay However, initially monopoly position of industries and strength of trade unions meant it was possible to maintain relatively good pay and employment conditions Significant job cuts often with generous (early retirement) provisions (eg % cut in electricity sector jobs)

7 Industrial relations in privatised industries Some decline in trade union organisation but still higher than rest of private sector eg electricity down from 67% to 49% but compares to 17% in private sector as a whole Trade union organisation in BT has managed even to organise agency workers and negotiate agreement on use of agency workers, health and safety etc. Rail industry union has worked hard to co-ordinate bargaining and trend after privatisation was to create clearer salary structure and move away from complicated system of low basic pay topped up by allowances Higher differentials as directors and top managers benefit from higher pay as well as share option schemes

8 Contracting-out and competitive tendering Sharper impact on pay and working conditions Workers transferred to private companies on lower pay rates, less annual leave entitlement, worse pensions often also without negotiated collective agreements Competitive tendering also put pressure on public sector (local authorities and health service employers) to keep pay low in order to compete with private sector Fragmentation of services has been challenge for trade unoins large local branch may have to deal with 50+ employers

9 Labour more of the same and a little bit different No major changes on trade union law National minimum wage introduced in 1999 Compulsory competitive tendering replaced with Best Value system aimed to focus more on quality in contracts Big boost to private finance initiative (public private partnerships) that was started under Conservatives many major construction projects incorporating delivery of range of facilities management services

10 Labour more of the ff same and a little bit different Attempt to address low pay in health service through Agenda for Change agreement in 2005 covering private contractors Response to spread of two-(multi-)tier workforce through various national agreements in public sector Initiatives to provide greater protection to employees affected by PFI retained employment in NHS

11 2010. National agreements still in effect in health service, local government unions pushing for national bargaining/pay framework in civil service and rail Some decentralisation of bargaining down to local level reversed in electricity industry Prospect of substantial jobs cuts, pay freeze, more outsourcing Collapse of defined benefit system in private sector puts public sector pensions in sharper focus Recent reaction to high-paid civil servants reflects widening of public sector pay gap