An insider's view on industrial disputes

[TrueBlueTerrier]

http://news.bbc.co.uk/1/hi/business/8506126.stm" onclick="window.open(this.href);return false;

For anyone worried about industrial unrest rearing its head this year, the words of Bob Crow, the RMT union's leader, will provide little comfort: 2010 will be a "year of action", he says.

London Underground maintenance workers at the RMT have already started a series of 24-hour strikes in a row over rosters and the outsourcing of work.

But one man who will be hoping perhaps more than most that this does not start a wave of strike action is Peter Harwood, chief conciliator at Acas.

Acas, or the Advisory, Conciliation and Arbitration Service, is the "third party" you hear about who often steps in to help try to resolve disputes over employment relations.

The organisation, which is funded by the Department for Business, Innovation and Skills but is independent from the government, says it deals with 1,000 cases a year.

'Sense of unfairness'

Although it claims to resolve about 85-90% of these disputes successfully, Mr Harwood admits that there are potential tensions in the year ahead.

"In the private sector, companies are talking about pay freezes but trade unions have been talking about deferred pay rises," he says. "I think there might be some tensions there, particularly if inflation picks up in the middle of the year."

The other issue in the private sector is pension schemes. While many companies have closed their final-salary pension schemes to new members, several, including IBM and Fujitsu, are now closing them to existing members.

But there is also the possibility of unrest in the public sector.

"We know there's going to have to be a tightening of belts all round," Mr Harwood says. "What will make that worse is it'll be against a backdrop of potentially rising inflation but also the private sector coming out of recession, being able to pay better wages.

"You could get a sense of unfairness if you get private sector pay deals at 3 or 4% and the public sector kept at 0 or 1%."

And the trouble with public sector disputes is that they are "less solvable", particularly when it comes to pay.

The productivity argument often used by unions and which can help negotiations move forward - we'll be more productive, we'll make you more money, therefore you'll be more profitable and can afford to pay us more - does not apply here.

Royal Mail resolution?

The recession cannot be blamed for the two most recent and highly publicised industrial disputes, though.

The last couple of months of 2009 were blighted by postal strikes at the Royal Mail and the possibility of a 12-day strike by British Airways cabin crew over Christmas.

"With both BA and Royal Mail, I don't think these are recession things," says Mr Harwood. "They need to modernise. Sometimes change needs to happen."

Although the BA strike was blocked by a High Court injunction - following irregularities in the original ballot of members of the Unite union - a second ballot is now taking place and the threat of strike action still hangs over the airline like a dark cloud.

Talks are continuing between the Royal Mail and the Communication Workers Union. The TUC helped broker an initial agreement between the two sides, but Acas was still closely involved and Mr Harwood believes a long-term deal could soon be reached.

"There's quite a substantial agreement in principle. We've just got another few days to go to try and crack it," he says. "There's still a gap between the two parties but we're making progress and hopeful of getting a resolution."

But despite Acas' seemingly high success rate, there's one conflict that still plays on Mr Harwood's mind: the miners' dispute of the 1980s.

"We actually brokered a potential deal which the pit deputies accepted, but the NUM [National Union of Mineworkers] didn't. That was very frustrating for the organisation," he reflects.

Negotiating process

It is not always a straightforward task getting two sides, often at complete loggerheads, to sit down and attempt to work things out.

"I haven't got any magic solutions to these things," he says. "It will only settle if people want to settle."

The vast majority of the time, Acas seeks to work as a conciliator - where the two parties locked in the dispute retain the power to resolve issues themselves - rather than as an arbitrator, where its decision is final.

"Conciliation is done by Acas officials. Arbitrations are done by a panel of people that we recruit and train," Mr Harwood explains. "These tend to be retired academics, people like that."

Both parties will be invited to Acas' offices, where each side will be given a room. After talking to the two sides in their separate rooms, he will bring them together in a main meeting room.

"Each side tell me the story so far from their perspective, you get a feel for how people are reacting. I'm not uncomfortable with there being a little heat generated just to see what the strength of feeling is on various issues," he says.

He admits that sometimes people can get a little aggressive, but adds that generally they are well-behaved. "We don't have bouncers on hand," he laughs.

And he often finds himself accused of taking sides, but says it is part and parcel of the job.

"You're probably doing your job right if both parties say that to you.

"What I say to people is: 'My job isn't just to sit and listen to what you say, but challenge where you are and make you think things through.'"