Information and Consultation Directive

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Information and Consultation Directive

• Diploma in Public Communication -
• Internal Communication
• Paul Massie
• 21 April 2004

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Introduction

• Current awareness
• Background and timescales
• The benefits
• What the Directive means for organisations
• Next steps

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Current awareness
Less than one year to go

• but business is simply not prepared!
• ICA research
• 85 know little or nothing about the regulations
• 88 are partly prepared or not prepared at all
• Involvement and Participation Association (IPA)
  research
• 90 know directive will have an impact
• 25 have plans in place to deal with the directive

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Background

• Adopted by the European Parliament Feb 2002
• Government led consultations in the UK in July
  2002 and July 2003
• Two documents published by the DTI
• High performance workplaces the role of employee
  involvement in a modern economy (2002)
• High performance workplaces informing and
  consulting employees (2003)
• Law in the UK on 23 March 2005

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Who does it apply to?

• Employees in undertakings or establishments
• within the Community
• Undertaking means a public or private
  undertaking carrying out an economic activity,
  whether or not operating for gain
• Establishment means a unit of business where an
  economic activity is carried out on an ongoing
  basis with human and material resources

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Implementation
Phased implementation

• March 2005 for undertakings with 150 employees or
  more
• March 2007 for undertakings with 100 - 149
  employees
• March 2008 for undertakings with 50 - 99 employees

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What is the I C Directive?

• What it isnt
• A prescriptive blue print
• Specific about what arrangements should be made
• Precise about issues for information and
  consultation

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What is the I C Directive?

• What it is
• A recognition of the right to information and
  consultation
• A general framework which sets out minimum
  standards
• A requirement on employers to
• Inform about recent and probable developments in
  activities and economic situation
• Inform and consult about decisions likely to lead
  to substantial changes in work organisation or
  contractual relationships
• Inform and consult about employment prospects

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Why is the UK adopting it?

• The business case
• Essential for creating high performance
  workplaces
• Builds a culture of trust, co-operation, mutual
  respect and innovation
• Improved employee satisfaction
• Improved decision making and change management

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What does it mean in practice?

• Increases the range of topics to inform and
  consult on
• Extends information and consultation rights
• Informing and consultation to be through employee
  representatives
• Representation of the whole workforce, not just
  union members

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What are the options?

• Achieve a valid agreement with employees before
  23 March 2005
• Do nothing and see what happens!
• Wait for a request from the workforce
• Rely on existing agreements

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Failure to agree

• Statutory implementation
• 75,000 fine

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How should organisations prepare

• Audit their industrial relations environment
• Verify what workforce agreements are already in
  place
• Review management decision making processes

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Opportunity for Internal Communicators

• Drive employee involvement, participation and
  dialogue
• Review existing two-way channels
• Closer partnership with HR

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Next steps

• DTI and ACAS draft guidance early summer 2004
• Lay Regulations during 2004 after Employee
  Relations Bill gets Royal Assent
• Regulations come into force in March 2005

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Sources of information

• DTI
• http//www.dti.gov.uk/er/consultation/proposal.htm
  
• ACAS
• www.acas.org.uk
• TUC
• www.tuc.org.uk
• Chartered Institute of Personnel and Development
• www.cipd.co.uk

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Are you ready?