Workplace representatives save the taxpayer money

The Times report today that, "Labour is funding trade union activity inside Whitehall with millions of pounds of taxpayers’ money." The truth, as ever, is more complicated. The practice has been in place for years and benefits from workplace representation across the public sector are estimated at £167 to £397 million.

The Times report today that, “Labour is funding trade union activity inside Whitehall with millions of pounds of taxpayers’ money.” In what Tim Montgomerie on Conservative Home calls “the story of the day,” the article outlines that:

“Ten departments have revealed that they employ 46 full-time and 87 part-time officials to work exclusively for the unions at taxpayers’ expense. Their salaries cost between £150,000 and £4.5 million per department. They are also given access to office space, computers and photocopiers worth an estimated £1.2 million each year.”

The truth, as ever, is more complicated. The practice has been in place for years and benefits from workplace representation across the public sector are estimated at £167 to £397 million.

Using evidence from a 2007 DTI consultation document on “Workplace representatives” and assuming that benefits are spread evenly across private and public sector organisations, which employ 35 per cent of all workplace representatives, the study shows:

  • annual benefits of £32 to 55 million from skills and training
  • fewer dismissals resulting in £63 to £125 million savings from reduced rehiring costs
  • quicker dispute resolution saving £8 to £15 million
  • reduced illnesses and injuries resulting in savings of £63 to £202 million

In addition to this, the general productivity gains associated with effective employee representation may be saving the public sector as much as £1.2bn to £3.6bn every year

Public and Commercial Services Union spokesperson Alex Flynn said:

“This is an established custom and practice which is enshrined in law and which both Labour and Conservative governments have recognised is important to the successful and efficient running of government departments. Facility time is under review but it has fallen. Indeed, there was more facility time under the Thatcher Government than there is now.”

10 Responses to “Workplace representatives save the taxpayer money”

  1. Will Straw

    Times fails to balance costs and benefits of trade unions in Whitehall http://bit.ly/alYfJ

  2. Alison McGovern

    Typical! RT @wdjstraw Times fails to balance costs and benefits of trade unions in Whitehall http://bit.ly/alYfJ

  3. Matthew Taylor

    There’s a difference between the right to facilities – that office space, computers etc. the Times refers to – and actually paying the salaries of the TU reps (which again differs from giving them paid leave to take part in activities like disciplinaries and H&S meetings).

    I’m not sure the DTI study you’re citing dealt with directly paying salary costs, as opposed to time off. Indeed, that study looked at the benefits to employers from unpaid work by reps, suggesting that it was not dealing with “employed” TU reps.

  4. josh

    Hear hear! Great article

  5. JR

    “fewer dismissals resulting in £63 to £125 million savings from reduced rehiring costs”

    Dear god. I’d never join the PCS, the union reps seem to spend most of their time protecting trouble makers and incompetents.

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