Business continuity during strikes – what you need to know when hiring agency staff

The natural outcome of persistent inflation is persistent industrial relations dispute. Each week it seems there’s a new walkout, go-slow, or ballot in yet another key sector, and as a result, industrial relations is back on the political agenda.

Last month, the government removed the ban on businesses using temporary worker agency staff to cover for striking staff.

The CBI has supported this reform for several years. It brings agency staff into line with the rules that apply across the rest of the labour market, where it has always been possible to hire temporary staff directly to provide cover during strikes.

Agency staff can support your business during strikes – here’s what to consider

The relaxation of the ban could help your business to continue to operate during strike action. This is clearly welcome, but you should think carefully before hiring agency staff to mitigate strike action:

• Check if there really are appropriate, qualified agency staff that can work for you. Tight labour market conditions and skills shortages extend across the economy.
• Engage with agencies (many actually opposed the lifting of restrictions) in advance to ensure that they are willing to provide staff
• Assess if this route for business continuity could harm the dispute further, or future relations with trade unions (many also opposed lifting of the restrictions)
• Consider any safety risk – public and workforce safety should never be compromised during strike action – and agency staff will be less familiar with your business, and perform their work during a period of high tension.

The government could introduce further measures to mitigate disruption from strikes

The relaxation on using temporary staff is not the only policy measure intended to mitigate the impact of strikes that the government – and the leadership candidates – are considering.

A pledge within the 2019 Conservative Party manifesto to introduce minimum-service-level (MSL) requirements (where a percentage of staff are legally obliged to work) has received renewed attention, though it’s still unclear if this will be sector-specific or across ‘critical infrastructure’ or ‘key public services’. Liz Truss has pledged to introduce this measure within 30-days of government.

Truss is also reportedly considering raising the voting participation threshold for valid strike ballots and is looking at whether limits should be placed on the number of strikes that can take place within a 6-month period. Rishi Sunak has so far been quieter on his intentions for union reform but will nevertheless likely continue the government’s stance on industrial relations policy if – as expected – strike action continues into the winter.

What makes good Industrial Relations (IR)?

Industrial Relations (IR) must strike a fair balance between the interests of employees and trade unions on the one hand and employers, customers and the general public on the other. IR should also be a workable system that can support a productive, growing economy where good work thrives.

For individual businesses, focus your attention on fair and viable negotiations – where good dialogue between your firm and trade unions or employees is key.

Find out more

Read the key takeaways from the CBI’s recent industrial relations (IR) summit on how your business can navigate wage pressures.

The CBI want to understand and support your business relationship with trade unions – speak to Laurence to discuss ongoing IR challenges and the impact of increased IR activity on your business.

Visit our Managing the Increasing Cost of Doing Business page to learn more about how your business can navigate the ongoing high cost, high inflation environment.

For the latest CBI Economics intelligence on the economic outlook and how it could affect your business, visit our economic and political intelligence hub.