Time to work constructively with trade unions

For many HR professionals, engagement with trade unions is an area where experience and confidence vary widely – and possibly even wildly. Recent changes introduced through the Employment Rights Act 2025 (ERA 2025) sharpen this issue. The changes have:

• lowered thresholds for statutory trade union recognition
• introduced a new employer duty to inform workers of their right to join a union
• increased expectations around consultation and worker involvement

These changes mean that collective voice will become more prominent in day-to-day life for many organisations. Additionally, HR teams are more likely to encounter a need to work constructively with unions. At a time when many organisations face a range of pressures and challenges, the reception to this change has not been universally positive.

The practical question facing many organisations is less about whether collective third party representation is desirable. It is about whether they are equipped to engage with it effectively and proportionately, without unnecessary drain on time and resources.

A capability gap with operational consequence

Organisations often seek support with conflict because internal capability and capacity are limited. Capability and capacity that could otherwise make collective relationships a strength, not a risk.

Many HR professionals have developed their careers in organisations with little or no union presence. This is most notable in the private sector. Union density varies significantly by sector. Experience of collective engagement has become very uneven across the economy. Industrial relations capability and skills tend to be concentrated in a small number of specialists, rather than being a norm. For many, the challenge will not be about a muscle that has atrophied, but rather a muscle that has not yet been developed. But this muscle is now an important part of the function of the organisation.

CIPD research on UK industrial relations: A future with trade unions shows that 62% agree that 'the UK is entering a new, more unstable period of employee relations'. In this context, even minor employee relations issues can absorb disproportionate amounts of time and focus. Capability gaps that were once manageable now carry clearer cost and risk implications.

The CIPD Good Work Index indicates that 1 in 5 UK employees (20%) are trade union members. This varies widely by sector. There is good news here. 86% of employers with employee representative arrangements report a range of organisational benefits, including:

• offering an independent voice channel to raise concerns
• keeping the workforce well informed
• earlier identification of emerging issues

Employers with union representation are more positive about the role unions can play in organisations. 77% agree that 'working in partnership with trade unions can benefit the organisation', compared with 44% of those without. The key point is that unfamiliarity can create distrust. Overall, organisations that have experience with unions tend to have a better view of them than those with less exposure to them.

This evidence, therefore, does not suggest that collective union voice is automatically positive or negative. It points to a more pragmatic conclusion: outcomes are shaped less by the presence of trade unions, and more by how well third party representation is handled.

Where capability and working relationships are strong, collective arrangements can support predictability and clarity of operations. Where capability and confidence are weak, the same arrangements can become time-consuming, reactive and resource-intensive.

From an organisation's standpoint, constructive engagement with its recognised union(s) can pay dividends when organisational pressures are high, such as during a period of workforce transformation or intense competition. Acas's collective conciliation work, which often takes place quietly behind the scenes, consistently shows that early engagement reduces escalation. Many disputes that result in industrial action are the product of:

• late engagement
• working relationships
• a lack of trust and/or confidence in handling collective issues

Shaping the future of union relations

The next few years of workplace relations seem likely to be shaped by:

• ongoing change and volatility in the external business environment
• tighter resources
• increased scrutiny of decision making

In that context, poorly handled employee relations are likely to be a fundamental drag on organisational performance. Conversely, strong collective relationships, that are based on a model of shared goals and mutual gains, can be an enabler of performance.

The CIPD Good Work Index focus on employee voice reinforces this. Organisations with effective representative arrangements report:

• more predictable handling of organisational change
• better quality information flowing between workforce and leadership
• greater perceived fairness in decision-making processes

Employees are more likely to accept change when they trust the organisation, even if the decisions are tough. If handled effectively, union relationships can be a positive part of the change process. In practical terms, this can mean:

• faster implementation of change
• better employee engagement
• less leadership time diverted into resolution activity

There is a relatively consistent set of capabilities that help organisations engage with collective representation effectively. These range from recognising conflict as a natural part of the employment relationship and understanding the processes, to knowing how to embed a culture of joint working and trust at every management level.

These are not niche industrial relations skills. They are core organisational capabilities. They enable HR teams and leaders to handle complexity and strengthen employee engagement and performance. This is, however, a new and critical employment rights landscape for those capabilities to be deployed in. The Employment Rights Act 2025 brings the biggest test of employment relations in a generation. For HR professionals, the task is to ensure organisations are equipped to engage effectively and proportionately with the unions to ensure there is minimal disruption to its operations.