Working with trade unions as an employer

Trade unions act as representatives of employees and are present across several industries in the UK.  

As an employer you may find yourself working alongside a trade union to ensure the wellbeing and fair working conditions of staff. In this guide we cover the ‘need to know’ information for employers when dealing with trade unions.  

The presence of trade unions in the UK  

According to government data from between 1995 – 2024, the following industries have the greatest trade union presence (as of 2024): 

• Education sector (45.0%)  

• Public administration and defence (42.3%) 

• Human health and social work (36.5%) 

• Transportation and storage (34.8%) 

• Electricity, Gas, Steam and Air Conditioning Supply (72.1%) 

• Water Supply, Sewerage, Waste Management and Remediation (53.5%) 

Larger workplaces of 50 or more staff tend to have a greater trade union presence. And it is much more common for public sector business employees to join trade unions. Typically, due to the historical relevance but also for the protection of a public service such as healthcare or education.  

What is a trade union?  

Essentially a trade union, also known as a bargaining unit, is a type of organisation made up of workers who share a collective mindset towards their working conditions, pay, and employment contracts.  

Their main role is to negotiate with employers to secure better working conditions and contracts for workers. This covers areas of employment such as: 

• Pay  

• Holiday allowances  

• Benefits  

• Working conditions  

A trade union may also represent individual workers when raising grievances, handling disciplinary proceedings or at employment tribunals.  

Engaging with trade unions as an employer 

If you have acknowledged a trade union as a representative for your employees, they become a crucial stakeholder in your organisation. Not only do they advocate for your workforce but also require you to provide them with timely information and consultation prior to significant changes in the workplace. 

In fact, you have legal responsibilities when interacting with trade unions.   

To stay compliant, you must: 

• Keep the trade union informed to allow for collective bargaining 

• Notify and consult the union regarding major workplace changes 

• Allow trade union members in your workplace leave for related activities  

• Not discriminate against employees based on their trade union membership status  

Informing and consulting with unions 

Employers are required to inform and consult with a recognized trade union about various aspects of the business, including: 

• Redundancies 

• Transfers of business ownership 

• Changes to pension schemes  

• Concerns related to health and safety  

Businesses who do not inform trade unions of such matters are breaking the law. And the consequences of doing so may result in financial repercussions or claims from employees.  

Collective bargaining 

You will need to collaborate with unions to negotiate changes to your employees’ terms and conditions. This process is known as ‘collective bargaining’. Collective bargaining encompasses the terms and conditions of workers within a specified ‘bargaining unit’. This may include all employees in a workplace or just specific groups of workers, such as technicians. 

It is your responsibility, along with the union, to determine which terms and conditions are included, typically covering aspects like pay, holiday, and working hours. 

Achieving a collective agreement or collective bargaining agreement (CBA) with the trade union signifies that a consensus has been reached regarding changes or adjustments to working conditions.  

Strike action  

Often when people think about trade unions they are reminded of times when they missed a train, or their package was delayed in transit due to a strike.  

What is important to remember though; strike action is not something that trade unions take lightly. This is usually the last resort. After negotiations and bargaining with employers have broken down.  

Strike action can have detrimental effects on a business, but it doesn’t have to occur.  

If a recognised trade union is attempting to resolve a labour dispute on behalf of your workers, the first step is to hold discussions, to address concerns and reach an agreement.  

While you can try to prevent strike action, it does, of course, happen and is completely legal in the UK. Though there are very strict procedures that must be followed.  

Updates from the Employment Rights Bill  

As part of the upcoming implementation of the Employment Rights Bill, some big changes will come into effect. Changing certain aspects of how trade unions operate. Including changes to current strike action legislation.  

As soon as the Bill is passed, there will be an immediate repeal of the Strikes (Minimum Service Levels) Act 2023, as well as the majority of the Trade Union Act 2016. In doing so, the Employment Rights Bill intends to improves relationships with trade unions with extra dismissal protections for taking strike action planned.

Other changes include:  

• Simplifying trade union recognition process and electronic and workplace balloting to strengthen democracy and participation in the workplace. – Taking effect in April 2026 

• New rights and protections for trade union representatives, including stronger rights to access the workplace for collective bargaining purposes. – October 2026  

After the announcement of these changes, the general secretary of the TUC, Paul Nowak said:  

“Decent employers don’t need to wait for the law to change. They should be working with staff and unions right now to introduce these changes as quickly as possible.”  

Can trade unions benefit a business?  

Despite what you may believe, recognising and working with a trade union can benefit a business.  

Though often associated with strike action and disruption to public services, collaborating to bring about positive change can improve a business’ reputation.  

Not only ensuring the workplace is safe, enjoyable and fair for staff, but working with trade unions places importance on key issues for workers.  

From helping to reduce conflict to improving communication and emphasising the needs and wants of employees, the business may benefit from: 

• Greater working conditions  

• Better employee wellbeing  

• Higher staff retention rates  

• Improved team morale and productivity  

• Sustainable growth for the business  

• Cost savings in various areas of the business (such as hiring and retention)  

• Builds trust between employer and employees  

Allowing for open dialogue of workplace concerns, employees may feel more willing to express their needs and wants. Which can be a good thing. Rather than staying silent or looking for a new job elsewhere. Fixing issues they have with the workplace, increases their desire to stick around and loyalty to the company.  

Get expert employment law advice when dealing with trade unions  

To ensure you’re doing the right thing when it comes to dealing with trade unions, call our expert employment advisors.  

With BrightAdvice, you gain 24/7 access to expert HR and employment law professionals. Ready to take your calls whenever you need them.