Market Digest

More than half of employers predict increased workforce unrest and strikes as a result of the recession, according to exclusive research by Personnel Today magazine and law firm Eversheds.

The poll of 783 HR professionals across all sectors, found that 52% feared their organisations would suffer from strikes or other workplace disruption as employees increasingly felt the pressure of a tough economic climate.

More private firms than public sector organisations claimed industrial action was on the cards, perhaps a recognition that redundancies or restructuring are on the horizon, and likely to prompt conflict with trade unions or staff. Workers are also struggling with the cost of living leading to demands for bigger pay rises that employers simply cannot afford.

Pay tops the list of likely areas of disagreement, followed by rows over flexible working, organisational change, working hours, redundancies and pensions.

More than one million days were lost to strike action in 2007, the first time it has been that high for several years. More recently, the government’s desire to keep a tight grip on public sector wages has exacerbated this trend with an increase in pay strikes during 2008.

More than half of respondents say they are either ‘very’ or ‘fairly’ concerned’ about the impact of industrial action on their organisation. The biggest impact would be damage to employee relations (cited by 30% of respondents), loss of customers and money (25%), impact on employer brand (16%), and the need to close offices or other locations (15%).

Mike Berry, deputy editor at Personnel Today, said: “The results of the survey indicate there are challenging times ahead for employers. With Prime Minister Gordon Brown admitting for the first time that the UK is likely to suffer a recession, employers need to be prepared for what this means for their workforce and how to best tackle those problems. 2009 could be an extremely tough year for HR professionals in both the private and public sectors.”

Martin Warren, head of the HR Group at Eversheds, said: “Industrial action, whether threatened or real, leads to disrupted services, lost profits, bad PR and low staff morale. At times like these, employers need a labour relations strategy that enables the organisation to engage positively and meaningfully with its employees on its own terms, rather than adopting a reactive stance to threats of unrest.”

Notes

• 783 HR professionals across all sectors were surveyed online in October.

• Eversheds is one of the largest full service law firms in the world, acting for the public and private sector. It has 40 offices across the UK, Europe, Middle East, Africa and Asia

• Personnel Today is published by Reed Business Information (RBI), a division of Reed Business and a member of Reed Elsevier, the world’s leading publisher and information provider.

• RBI publishes over 100 market leading publications, directories, electronic products, online services, industry conferences and awards.

• For a full listing of our portfolio see RBI’s web site http://www.reedbusiness.co.uk

Source: Personnel Today