Read the full policy brief (pdf) - CBI

negotiation and allow disputes to develop intostrikes.The partnership approach demonstrated duringthe recession across the private sector shouldnot, however, make us complacent. The publicsector was until 2009 largely immune from payfreezes and other testing changes in response totougher conditions. The previous governmenttended to back away from difficult employeerelations issues, such as reform of public sectorpension schemes.The new government has started to change that,for example by implementing a two-year payfreeze across the public sector as part ofrecognising the extent of the budgetarychallenge. But many unions seem reluctant toface up to this reality. At the 2010 TUC Congress,union leaders called for nationwide actionagainst spending and headcount cuts, with someeven urging a campaign of civil disobedience inprotest at the government’s essential work oftackling the deficit. This is particularly concerningfor the most vulnerable members of society, whodepend on reliable public services. It alsothreatens the hard-won reputation of the UK as agreat place to invest and create jobs.‘The growing risk of industrialaction makes it all the moretimely to update the legalframework.’Nonetheless, the growing risk of industrial actionmakes it all the more timely to update the legalframework. Moreover, recently there have beena number of high profile strikes which havecaused significant disruption to the generalpublic and businesses. Some of these disputeshave raised questions about both the conduct ofcollective bargaining in the workplace of 2010and the appropriateness of aspects of labour lawrelating to trade unions.The regulatory framework around industrialaction was largely shaped in the 1980s. Just aslife in the workplace doesn’t stand still, theframework of industrial relations law too needsto be modernised.The CBI has developed a package of proposedreforms. Building on the proposals we releasedin June, the ideas below are not exhaustive: theyare intended to be a constructive, reasonablepackage which would bring the law up to dateand ensure a fairer balance. They have beendeveloped in consultation with CBI members inthe light of their experience of industrial actionand key legal judgements since the last revisionof industrial relations law under the previousgovernment.Industrial action is not inevitable: if public sectoremployers, employees and unions adopt thepositive approach we have seen in most of theprivate sector in response to economicpressures, necessary change can be achievedconstructively through discussion andnegotiation. This means managers must addressissues in the workplace head on and make thecase for change, rather than shy away from