IDS Study 656, October 1998

Partnership agreements

• Examines six organisations which have concluded partnership agreements with trade unions.
• It examines how the agreement was reached and considers what this approach to employee relations means in practice.

The idea of management, employees and trade unions working together in partnership for their mutual benefit to secure the future of the business is not a new one. However, with the Labour Government supporting the concept and its compatibility with developments at the EU level, partnership has recently re-emerged on the employee relations agenda.

Replacing conflict with co-operation is the essence of the partnership approach. What makes it distinctive is the spirit in which things are done and the way decisions are reached by consensus in an atmosphere of greater trust and openness. All the parties involved – management, staff and trade unions – are committed to achieving the same goals. However, partnership does not mean that there will be agreement on everything. Ultimately, the unions maintain their independent role and still seek to achieve their own objectives, albeit in different ways.

This research concentrates on partnerships operating in a unionised context in six organisations. Although they vary in content and style, each of these employers have arrangements which they define as ‘partnerships’. Among the common themes that appear in several of these agreements are new consultation and communication arrangements, increased employee flexibility and teamworking, long-term pay deals, employment security, an emphasis on training and development and a greater focus on local problem-solving activities. Companies expect to gain from higher employee commitment to business objectives, more efficient working practices and greater stability from improved industrial relations.

Drawing on six case studies, this Study considers what partnership means in practice and in what circumstances it has been adopted. It also looks at the practical implications of setting up a partnership including how an agreement is reached.