Case Number: TUR1/530(2006)

21 September 2006

 

 

CENTRAL ARBITRATION COMMITTEE

 

TRADE UNION AND LABOUR RELATIONS (CONSOLIDATION) ACT 1992

 

SCHEDULE A1 - COLLECTIVE BARGAINING: RECOGNITION

 

DECISION ON WHETHER TO ACCEPT THE APPLICATION

 

The Parties:

 

GMB

 

and

 

Pipeline Engineering

 

Introduction

 

1.         GMB (the Union) submitted an application to the CAC dated 23 August 2006 that it should be recognised for collective bargaining purposes by Pipeline Engineering (the Employer) for a bargaining unit comprising “Factory shop floor employees i.e. :- Packing/Despatch, Semi-Skilled Labourers, Welders/Platers, Casters/Turners, CNC  Machinists, Maintenance/Fitters, Fabrication/Manufacturing Chargehands, Warehouse/Stores, Quality Controller”.  The CAC gave both parties notice of receipt of the application on 24 August 2006.  The Employer submitted a response to the CAC dated 30 August 2006 which was duly copied to the Union.

 

2.         In accordance with section 263 of the Trade Union and Labour Relations (Consolidation) Act 1992 (the Act), the CAC Chairman established a Panel to deal with the case.  The Panel consisted of Mr Chris Chapman, Chairman of the Panel, and, as Members, Ms Virginia Branney and Mrs Maureen Chambers.  The Case Manager appointed to support the Panel was Sarah Kendall and for the purposes of this decision, Nigel Cookson.

 

Issues

 

3.         The Panel is required by paragraph 15 of Schedule A1 to the Act (the Schedule) to decide whether the Union’s application to the CAC is valid within the terms of paragraphs 5 to 9; is made in accordance with paragraphs 11 or 12; is admissible within the terms of paragraphs 33 to 42 of the Schedule; and therefore to be accepted.

 

The Union’s application

 

4.         In its application the Union, when asked for the date of its formal request to the Employer for recognition, gave the date of two meetings that had been held at Acas’ Newcastle office.  The Union did, however, attach to its application form a copy of a letter it had sent to the Employer on 2 August 2006 and which the Employer subsequently confirmed, in its response to the application, as being the Union’s formal request for recognition.    In its application the Union stated that there were 120 workers employed by the Employer and that 61 of these were in the proposed bargaining unit.   44 of the workers in the proposed bargaining unit were members of the Union.  As to its evidence that the majority of the workers in the bargaining unit would be likely to support recognition, the Union explained that significantly more than 50% of the bargaining unit were in membership.  When asked for the location of the bargaining unit the Union had answered “All permanently employed hourly paid, factory/shop floor employees” and it then went on to describe the bargaining unit as set out in paragraph 1 above.  However, in its request for recognition dated 2 August 2006 the Union described the bargaining unit in these terms “all permanently employed, hourly paid factory shop floor employees (excluding all salaried, agency and temporary employees and office Administration staff)”.  In its application the Union explained that it had selected the proposed bargaining unit on the basis of the strength of Union membership therein and a request from the members to seek a recognition agreement with the Employer.     

The Employer’s response

 

5.         In its response to the application dated 30 August 2006 the Employer confirmed that it had received the Union’s formal request for recognition on 2 August 2006 but that it had not replied to this letter because it had responded to an earlier request by arranging a meeting with Acas.  The Employer noted that it did not receive a copy of the application from the Union but had only received a copy from the CAC. 

 

6.         The Employer stated that it employed 139 workers and that 70 of these were in the Union’s proposed bargaining unit.  The Employer did not agree the proposed bargaining unit explaining that, as a close knit company working as a number of small business units with each containing both hourly and salaried employees, it believed that such a split involving a small proportion of the workforce as proposed by the Union, unless democratically accepted by the majority of the workforce, would be divisive and a retrograde step in improving the performance of the company.  The Employer went on to state that it was unable to comment on the Union’s estimate of its membership within the proposed bargaining unit as it had not seen the list of members and had been unable to confirm that they were employed by the company.  As to why the Employer considered that a majority of the workers were not likely to support recognition of the Union, it explained that in discussion with members of the Union there was opposition to collective bargaining but that these individuals were not prepared to express their opinion publicly for fear of reprisals. 

 

7.         The Employer did not contend that the Unions’ application failed to meet any of the other admissibility or validity criteria in the Schedule.

 

Clarification of the bargaining unit

 

8.         The Panel directed that the Case Manager obtained clarification from the Union as to why it had referred to the exceptions in the description of the proposed bargaining unit in its initial letter to the Employer dated 2 August 2006 but not within the description of the proposed bargaining unit as detailed in its application to the CAC.  The Union, in a letter dated 4 September 2006 from the Case Manager, was asked, in addition to the above, for confirmation that the two descriptions referred to the same group of workers.

 

9.         In a letter dated 6 September 2006 the Union confirmed that the two descriptions did refer to the same groups of workers.  The Union did not explain in its letter as to why it had referred to the proposed bargaining unit in differing terms.

 

Membership check and parties’ comments thereon

 

10.       To assist the determination of two of the admissibility criteria specified in the Schedule, namely, whether 10% of the workers in the proposed bargaining unit are members of the union (paragraph 36(1)(a)) and whether a majority of the workers in the proposed bargaining unit are likely to support recognition of the Union as entitled to conduct collective bargaining on behalf of the bargaining unit (paragraph 36(1)(b)), the Panel proposed a check to be undertaken by the Case Manager of the level of union membership and support for recognition within the proposed bargaining unit.  It was agreed with the parties that the Employer would supply to the Case Manager a list of the names of workers within the proposed bargaining unit, and that the Union would supply to the Case Manager a list of Union members within that unit to enable comparisons to be undertaken.  It was explicitly agreed with the parties that, to preserve confidentiality, the respective lists would not be copied to the other party. These arrangements were confirmed in a letter dated 12 September 2006 from the Case Manager to both parties.  The information from both parties was received by the CAC on 12 September 2006.  The Panel is satisfied that the checks were conducted properly and impartially and in accordance with the agreement reached with the parties. 

 

11.       The Employer provided a list showing 67 names and the Union provided a list containing 43 names and addresses.

 

12.       According to the Case Manager’s report, the number of Union members in the proposed bargaining unit was 40, a membership level of 59.7%. 

 

13.       A report of the result of the check of the level of Union membership was circulated to the Panel and the parties on 13 September 2006 and the parties’ comments duly invited.

 

14.       In a letter dated 14 September 2006 the Union expressed its satisfaction that it had passed the test under paragraph 36(1)(a) adding that its members had joined for collective bargaining purposes. 

 

15.       In a letter also dated 14 September 2006 the Employer asked that the Panel took into consideration the fact that many of the members had not appreciated what full recognition would mean on an individual basis.  In particular, a number of members had informed the Employer that they had joined the Union for benefits such as representation at disciplinary hearings and for employment advice.  These members had stated that they did not wish the Union to have full recognition as they understood collective bargaining would take away any flexibility that they currently had, but these individuals were reluctant to express this view openly.  The Employer concluded by submitting that a ballot of the workers in the bargaining unit would be a fair, democratic and reasonable way to gauge the workers’ true opinions on this matter.         

 

16.       On 18 September 2006 the CAC received a copy of a letter that the Union had written to the Employer.  This letter enclosed a copy of the application.  The Union informed the Employer that it enclosed a copy of the application form because of the point the Employer had made in its response as to not having received a copy of the application direct from the Union.  It had done so, the Union explained, in order to satisfy the statutory requirement.

 

Considerations

 

17.       In deciding whether to accept the application the Panel must decide whether the admissibility and validity provisions referred to in paragraph 3 of this decision are satisfied.  The Panel has taken into account all the evidence and argument submitted by the Employer and the Union in reaching its decision. 

18.       The Panel is satisfied that the Union made a valid request to the Employer within the terms specified in paragraphs 5 to 9 of the Schedule.  Although the Panel was initially a little uncertain about the precise delineation of the proposed bargaining unit, it was clear that the Union and the Employer both understood its range exactly and that the proposed bargaining unit had not changed between the request for recognition made by letter to the Employer from the Union on 2 August 2006 and the subsequent application for recognition to the CAC.  The Panel is also satisfied that the application is not rendered inadmissible by any of the provisions in paragraphs 33 to 35 and 37 to 42 and was made in accordance with paragraph 11 of the Schedule. 

 

19.       The remaining issue is whether the admissibility criteria set out in paragraph 36(1) of the Schedule are met.  In accordance with paragraph 36(1)(a) and (b) of the Schedule, the Panel must determine whether members of the Union constitute at least 10% of the workers in the Union’s proposed bargaining unit, and whether a majority of the workers constituting the Union’s proposed bargaining unit would be likely to favour recognition of the Union as entitled to conduct collective bargaining on behalf of the bargaining unit.

 

Paragraph 36(1)(a)

 

20.       The Panel is satisfied that the check of Union membership referred to in paragraphs 10 to 12 of this decision, which showed that 59.7% of the workers in the proposed bargaining unit were members of the Union, was properly conducted.  The Panel has therefore decided that the level of membership in the bargaining unit does constitute at least 10% of the workers in the proposed bargaining unit as required by paragraph 36(1)(a).

 

Paragraph 36(1)(b)

 

21.       The test in paragraph 36(1)(b) is whether a majority of the workers constituting the proposed bargaining unit would be likely to favour recognition of the Union as entitled to conduct collective bargaining on behalf of the bargaining unit.  The Panel is mindful that at this stage of the process it is obliged under the Schedule to assess support for recognition of the Union by deciding whether the majority are ‘likely’ to support the application and not to test ‘actual’ support for recognition.  To support its position the Union relied on the density of membership in the proposed bargaining unit which stands at 59.7%.  On the other hand, the Employer has put forward an argument that several members had privately expressed their opposition to the Union being recognised but were not prepared to publicly express this concern for fear of reprisal.  However, the Employer has not put forward any evidence in support of its claim that some members had joined the Union for reasons other than a wish to secure recognition for collective bargaining. The Employer had the opportunity to have put forward evidence of opposition to recognition at the time that the Case Manager undertook the check of Union membership and the confidentiality that was afforded the parties’ lists of names would have extended to a list of those members that did not favour recognition of the Union.  The Case Manager would then have had the opportunity of confirming whether these workers were in the proposed bargaining unit and whether or not they were members of the Union.  However, no such information was forthcoming.

 

22.       It is the Panel’s view that, in the absence of any persuasive evidence to the contrary, membership of a union can be accepted as indicative of that person’s likely support for collective bargaining by the union with the employer on matters related to terms and conditions of employment.  The Panel is therefore satisfied that, based on the level of existing membership in the proposed bargaining unit, the majority of workers would be likely to support recognition of the Union and therefore the test under paragraph 36 (1)(b) is met.

 

Decision

 

23.       The Union’s application is valid within the terms of paragraphs 5 to 9, is made in accordance with paragraph 11, and is admissible within the terms of paragraphs 33 to 42 of Schedule A1.  The application is therefore accepted.       

 

 

Panel

Mr Chris Chapman

Ms Virginia Branney

Mrs Maureen Chambers

 

21 September 2006