Clause 9 - Employer's notice to end bargaining arrangements
Employment Relations Bill
3:00 pm
Mr Jonathan Djanogly (Huntingdon, Conservative)
Clause 9 is a series of new provisions that tighten the existing ratchet in favour of the unions, generally against the interests of the company. Amendment No. 35 is a small proposed change. I am not sure whether the Minister has yet found the information that I requested this morning dealing with sizes of companies compared with the number of applications. [Interruption.]. I am pleased to see that he has, which is marvellous. I do not have time to study it on my feet but I shall do so later because I am sure that it will be mentioned again.
If a significant company has a significant human resources department, it will be used to dealing with the unions. It will be used to and well advised on union procedures. In that case, five days might be adequate. However, for smaller companies, such as that mentioned by my hon. Friend the Member for North-West Norfolk, which have 21 staff, five days is a very short time in which to comply with the procedure, and will effectively block their rights to organised derecognition.
We must return to the basic principle that, if a company has fewer than 21 employees, it does not have to have recognition. This amendment would adapt that principle. We shall come on to the three-year rule, but we are talking here about five days to make notification after the 13-week period. An average small company, without a human resources department or knowledge of union law, will probably be massively disadvantaged and outgunned by the union's huge administrative and legal representation. The provision acts as a block to companies putting derecognition in place if staff numbers drop below 21. Fourteen days would go a little way—not very far, as it is a modest proposal—towards addressing that imbalance.