Tribunal changes could cause a 'barrage' of union-backed claims
6 May 2003 - The TUC warns the government that planned changes to Employment Tribunal procedures risk an increase in Tribunal claims.
TUC research out today shows that unions are resolving more disputes without resorting to Tribunals but changes being introduced over the next 18 months could reverse this trend. ‘Focus on Employment Tribunals’, the latest in the TUC trade union trends series, records a 30% reduction in trade union backed Employment Tribunal applications over the last two years, against a corresponding 7% rise in the total number of applications.
Almost half the 4,419 union claims reported were for unfair dismissal and the TUC fears that government plans designed to reduce such claims will lead to more employment rights litigation and weaker employment rights standards. The Employment Act 2002 will introduce an obligation on all employers to use a rudimentary three-step procedure for discipline or grievance issues. This could destroy any decent standards employees can currently rely on, as their company will have no legal duty to adhere to anything above these minimal procedures. The TUC believes the compulsory standard should instead be set at the level of the comprehensive and widely respected code of Disciplinary and Grievance Procedures.
Brendan Barber, TUC General Secretary Elect, said:
'Trade unions are winning for members without resorting to Tribunals. But if talking fails and a case is strong, unions will meet the litigation costs and are likely to win. If a financial award is made, it is likely to be far more than the employee would have won without union backing.
'The system is working so the government should take great care not to destroy decent disciplinary procedures. Union members will not give up the high standards they have fought hard for and may have to test the confusing new law with a barrage of claims and appeals.
'Rather than reverse unions’ success in reducing Tribunal claims while strengthening rights, the government should act to give more employees the benefit of union representation at work.'
The TUC research estimated that unions won over £18 million a year for members in Employment Tribunal claims. There were significant increases in the average awards for race discrimination cases, up 60% on last year to £13,205, and equal pay cases, which at £13,875 was eight times higher than last year and was the highest average award. The average awards for race discrimination, unfair dismissal and disability discrimination in trade union cases are estimated at more than double those in Tribunals in general.
Unions also continue to win substantial settlements and improvements for members in workplaces by registering multiple claims on an issue. The highest award was the record-breaking £500,000 won by Unifi for staff transferred from Abbeylife to Allied Dunbar, part of Lloyds TSB, who had not been properly consulted over their transfer under TUPE.
Further ‘Focus on Employment Tribunals’ findings:
* three-quarters of unions only submitted cases or appeals on a lawyer’s recommendation and unions reported that 95 per cent of cases were won or settled. Eighty-one per cent of union cases that went to Tribunal were won.
* the significant increase in claims for protective awards from (from 1% to 11%) and redundancy claims (from 7% to 15%) suggests that companies are increasingly failing to consult on job losses through redundancy and reorganisation.
Employee Relations
