The landscape of industrial relations in the UK is undergoing significant shifts, prompting a re-evaluation of collaborative practices between employers and trade unions. Social Partnership gained a statutory footing in Wales in 2023, and places a requirement on public bodies to engage early and collaboratively with union representatives, treating unions as a strategic partner in their decision-making processes.
Social Partnership (SP) is not new. IPA laid the early foundations for the approach in 1992 and has been a leading voice in the conversation since.
However, the new spotlight placed partnership approaches in Wales – along with incoming employment rights legislation in the UK – should prompt employers to re-evaluate their trade union relationships and consider whether and how to invest in a more collaborative approach.
Here are the top five takeaways from the Welsh Social Partnership Conference which took place in Cardiff on 2 July, highlighting what the rest of the UK can learn from ‘The Welsh Way.’
1. Partnership working transcends sectoral boundaries
The Welsh government has ambitions to extend Social Partnership practices across all sectors, not just those legally required to adopt them. This inclusive approach aims to foster collaborative relationships universally, enhancing fair work and well-being across the board and shining a spotlight on employers’ role in delivering on this agenda.
In her keynote address, Sarah Murphy, the Minister for Social Partnership flagged the effectiveness of the Welsh Retail Forum which has adopted SP:
“I believe that the ‘Welsh way’ should be characterised by shared ownership of problems and a shared commitment to joint solutions. It’s a model that transcends barriers.”
Even if the prospect of a fully-fledged partnership feels remote for some, UK employers would be wise to consider early and carefully how best to work with trade unions given new legislation this parliament is likely to strengthen their presences in workplaces across the country.
2. Social Partnership serves a bigger purpose
The Welsh context is particular in that the legislation mandates a three-way partnership between the government, unions and employers. The purpose of this is to systematise the involvement of key stakeholders across business and the public sector in securing the wellbeing of future generations – an approach that is garnering growing interest at the European Commission.
There is a compelling case for all organisations – whether bound by legislation or not – to build a partnership approach to help them deliver on their corporate social responsibility goals and improve engagement. The private sector panel flagged that many purpose-driven businesses aligned with the Good Business Charter or B Corp status may well be embodying some of these practices without necessarily applying the moniker of social partnership.
3. Implementation should be realistic and phased
Marie Daly, Chief Customer and Culture Officer at Transport for Wales (TfW), provided insights into the practicalities of implementing SP effectively. She stressed the importance of realistic goal-setting and phased implementation, with specific targets set at (for example) Year 1, Year 3 and Year 6. Along with strong sponsorship from leadership, day-to-day support from HR colleagues is vital. Establishing appropriate meeting structures and addressing residual issues beforehand are critical for sustainable SP initiatives.
4. Proactive and Informed Trade Unions
Jess Turner, leader of UNISON Wales, highlighted the need for trade unions to be proactive and well-informed in the SP process. For some representatives, SP marks a radical shift in approach and may prompt questions around how it fits with other union business such as collective bargaining.
This calls for unions to review their training offer to reps in the context of their broader strategic position in relation to social partnership, as well as joining forces with employers to build mutual understanding around process boundaries.
5. Tangible benefits
There were several speakers who referred to a ‘leap of faith’ being required to embark on social partnership. Tangible benefits can take time to realise, but the impact of those benefits far outweighs the risk of defaulting to adversarial negotiating positions.
Javid Jamil, Interim People Director at Transport for Wales, referred to the ‘system view’ that unions have that makes their insight so valuable in a partnership context – they are uniquely positioned to advise not only on the knock-on effects of change, but also propose solutions based on their proximity to the front-line, in a timely fashion. In the TfW context, this resulted in no strike action during 2023, in stark contrast with the UK-wide picture.
The private sector panel highlighted that Covid-19 rapidly forged partnerships across trade unions, employee representative and employers that have had a lasting legacy and proved their worth in their ability to respond to drastic change. By working closely with employers, TUC officials were able to help mitigate the worst effects of lockdowns on jobs and businesses.
These examples demonstrate that effective SP practices can be implemented under a variety frameworks and still achieve significant benefits. What matters is what the outcomes they deliver. While there are common principles that underpin social partnership, there is no one-size-fits-all methodology. IPA works with employers and unions to deepen their understanding of the approach, unpack the challenges and identify a partnership model that works for them.
Case Study – Coleg Gwent
As part of a broader programme of investment by Welsh government in social partnership, IPA has been involved in the establishment of a range of social partnerships in the Welsh public sector, most recently in Further Education.
IPA supported a nine-month pilot of social partnership at Coleg Gwent in 2023, working closely with senior management and representatives through briefings, workshops, steering groups and tailored guidance to develop a shared understanding of partnership working. The Welsh Social Partnership Assessment Tool was used to evaluate impact, as well as focus groups to understand the effectiveness of communications during the lifecycle of the pilot.
Key outcomes included improved perceptions of partnership and earlier involvement in consultations resulting in cost-saving measures that mitigated redundancies.
John James, UCU Social Partnership Rep, and Jo Duggan, Director of HR and presenting for Coleg Gwent at the conference, emphasised the importance of having a third party guide them successfully through the pilot and advised others to consider their support needs ahead of embarking on social partnership.
Some of the key learnings shared at the conference included the importance of allocating adequate facilities time for representatives – Coleg Gwent appointed 8 additional SP reps, dispersing the workload and increasing social partnership representation. While it is recognised that finding facilities time for SP reps can be challenging when budgets are under strain, the gains to be made pay back the investment by an order of magnitude.
More information on Social Partnership in Welsh Further Education can be found here.
Conclusion
Of the four nations, Wales is leading the way in embedding social partnership as the norm and the accepted means by which fair work, sustainable business and wellbeing across the nation can be achieved.
While the UK Labour government’s approach to strengthening union presence in the workplace may have a different emphasis, the legislative agenda signals a new era in employment relations that can mutually serve the interests of employees and workers. By learning from the principles and ethos of ‘The Welsh Way,’ UK organisations can adapt these best practices to amplify employee voice, increase engagement and be collectively future-focused, acknowledging that complex challenges require joint solutions.
Lucy O’Melia, IPA Head of Learning and Development Services