The Law Trumps Soundbites

The Law Trumps Soundbites

There’s been a lot of noise over the last few weeks, mainly as a result of actions of the new American president, about Diversity, Equality and Inclusion (DEI) programmes within business. It’s been compounded by some American business leaders talking about the need for more “masculine energy” in business (whatever that term means).

Even though the cultural and business contexts of the UK and the US are different, this hasn’t stopped much chatter amongst business commentators here about the future of DEI. So it’s probably worth going over what the situation is here, especially from the perspective of small business.

Firstly, outside of some public sector organisations and some very large corporates – often subsidiaries of US companies –  very few companies in the UK have DEI programmes in the US style.

What we do have in the UK though is the Equality Act 2010.  This hasn’t changed, isn’t going to change in the next 5 years at least, and sets down the basis under which all UK businesses have to act.

This Act makes it explicit that you cannot discriminate on the basis of a one of 9 “protected characteristics” (with some very limited exceptions). Every single person in the UK possesses at least two of these protected characteristics (most have more) so it covers everyone.

Discrimination can result in unlimited fines – and unlike most aspects of employment law, claims can be made against individuals as well as businesses.

Discrimination applies equally to so-called ‘positive discrimination’ – for example deliberately favouring a female candidate in preference to a man (because you think your business needs more female staff) is as forbidden as the reverse. In fact there have been recent employment tribunal cases that have reaffirmed this.

What the law does allow – on an entirely voluntary basis – is ‘positive action’.  You might for example run an engineering company where all your engineers are of a certain age group and you are struggling to find younger candidates interested in the job. Positive action might be running taster days for young engineers, or attending careers fairs aimed at school leavers or recent graduates. It doesn’t mean that a younger person is going to get the job ahead of an older person, simply that you are creating opportunities for younger people to meet your requirements. Which, if you are struggling for staff, is a business benefit. Some larger companies might run training schemes targeted specifically at under-represented groups – again this is perfectly permissible. None of this is new – firms have been doing this since the 1980s.

Regardless of your own views on DEI, or what you have read on social media or heard on the news, the situation in the UK hasn’t changed. There is no such thing as a ‘diversity hire’ in the UK, nor can you start advertising for ‘young men’ or rejecting candidates because of their race or religion.

HR’s Donald Trump moment?

There has been a view for many years that the UK is governed by what has been termed the “Good chaps” theory of government – that there are certain unwritten rules and conventions that are understood by all parties and which everyone works within, even if there is profound disagreement on the issue at hand. Some commentators argue that this has disappeared in recent years as certain politicians have wilfully disregarded these understandings in order to gain a particular advantage or objective. (It was also in evidence in the Donald Trump years in the US, where Trump would say or do things that shocked people, not necessarily by their intent or outcome but the fact that he said or did them at all)

The world of work in the UK had a similar Trump type moment yesterday when P&O Ferries announced via Zoom that they were sacking 800 UK crew immediately and intended to replace them with cheaper foreign staff via an agency. Much of the shock and anger from politicians, HR professionals and others was not so much around the decision (other companies in the past have announced far bigger changes or lay-offs) but the fact that they did so in a way in which broke all the unwritten rules of employment relations in the UK. Even if they can legally do something in a particular way, most companies would approach a decision like this with an understanding of how they would be expected to behave.

P&O are not the first company to break these norms – in fact it has always gone on, even in the days when trade unions were stronger. But they are a high profile well-established ‘household’ name and consequently the expectation would be that they would do things ‘properly’.

An example of Donald Trump breaking the political norms by making personal comments about rival John McCain

What P&O have also done is shown how weak UK employment law is in protecting employees from an employer determined to behave in this manner. They will have factored in not only the cost of 800 potential unfair dismissal claims (all of which they are likely to lose) but also the fact that it will take 18 months -2 years before a tribunal hearing takes place (and even then they could refuse to pay, meaning individuals would have to take further legal action to enforce their claims). By which time many  ex-employees will have given up and the news story will have died down.

So what is to be done? More, and/or stronger employment law is the cry from certain sections. But as has been pointed out when there is a call for the UK to have a written constitution to resolve the reliance on ‘good chaps’, this wouldn’t solve all the problems – and would take time to go through parliament.

A better solutions, in my view,  would be for existing laws to be more easily applied – not only by tribunals being made faster and their judgments more easily enforced, but by the use of a properly funded statutory body similar to the Health and Safety Executive) with powers to hold bad employers to account. We already have a pretty impotent “Director of Labour Market Enforcement” within the Civil Service so the basic structure is there.

But also, HR professionals need to stop living in their unitarist utopia and accept that there is a need to recognise that employees often want different outcomes from their employment relationship. And so we need to be more open to negotiation , compromise and the role of trade unions or other employee representatives. That means going back to the ‘good chaps’ theory of employee relations, that there are unwritten rules that we all follow. P&O may be a particularly egregious example but they are in many respects the ‘tip of the iceberg’ for modern HR and business practices.

Doing the Deal

Recently, I’ve been attempting to read “The Art of the Deal”, published in the 1980s by a New York businessman called Donald Trump (wonder whatever happened to him?).  While it doesn’t contain any dramatic new insights into deal-making, it shows that the author does understand that to be successful in business, it is necessary to negotiate.

When the book was published, most HR professionals would have seen this as a core skill. Negotiating with staff, whether via unions or not, was a day to day occurrence and something that was an integral part of the job. HR people understood that the interests of employers and staff were not always aligned and that there needed to be an element of give and take on both sides. Hardline confrontational tactics might be used on occasion, but normally only if a red-line had been crossed (or if there were some hidden agenda at play).

These days, negotiation skills are very much a lost art. “Employee Relations” means, to many HR people, the ‘nuisance’ of dealing with an individual grievance or a disciplinary matter. If workers aren’t completely sold on the company’s mission, it’s due to a failure of our employee engagement initiatives and we need to redouble our efforts to get our happiness scores up.

The problem of course is that when a serious dispute occurs, HR professionals have no idea how to deal with it. Managers at Southern Rail decided that the best way to resolve their dispute was to troll their staff on social media in an attempt to bulldoze their position through. After a prolonged period of deadlock, the junior doctors dispute was only resolved when the arbitration service ACAS helped both parties to negotiate a deal (unfortunately, attitudes had become so entrenched by that point that the deal was later rejected, despite being recommended by the union).

So here are my “Negotiation 101” tips for any HR practitioner – before you even start a negotiation.

·         Understand that the other party has different objectives to you. What may seem a ‘logical’ argument to you may cut no ice with them

·         Be clear about what items in the negotiation are tradeable and what are not (your ideal, realistic and fall-back positions). You can’t have your cake and eat it!

·         Anticipate what the other party may want, and the arguments they may use – and then develop counter-proposals

·         Aim for a win-win – something which allows the other party show they have gained something for concessions they may have to make.

And when you get there, listen. Half the skill of a negotiation is understanding when the other party might be willing to discuss a tradeable item.

It may be a little more time-consuming than the current approach of what “management says goes” but it will be far more effective. Just ask Donald…