It has been reported that Harrods has told its employees that it will consider using agency staff to cover shifts during industrial action if a strike over wages goes ahead.
Before the industrial action ballot by Unite took place, the luxury department retailer sent a letter to employees operating in engineering, store services, maintenance, and security stating the business was “no longer restricted from engaging temporary workers should any industrial action take place now or in the future.”
The action under consideration by Harrods comes after the Government brought into law changes to the Conduct of Employment Agencies and Employment Business Regulations last month.
What are the changes to the current laws that now allow employers to fill staffing gaps caused by strike action?
On 11 July, the draft Conduct of Employment Agencies and Employment Business (Amendment) Regulations 2022 were laid before Parliament, this was then approved by 289 votes to 202. The updated laws came into force on 21 July 2022.
The revised legislation allows employers to replace staff who are on strike with “temporary, skilled” agency workers to ensure shifts are covered. The Government has said that the reforms will “help ensure crucial public services and people’s daily lives remain uninterrupted by staff strikes”. The change in law will apply to all sectors.
Business Secretary, Kwasi Kwarteng, commented on the reforms:
“In light of militant trade union action threatening to bring vital public services to a standstill, we have moved at speed to repeal these burdensome, 1970s – style restrictions.
“From today, businesses exposed to disruption caused by strike action will be able to tap into skilled, temporary workers to provide the services that allow honest, hardworking people to get on with their lives. That’s good news for our society and for our economy.”
The Government added that whilst this action will provide employers with more flexibility, organisations will still have to abide by general health and safety requirements that keep workers and the public safe. Further, employers will be solely responsible for hiring agency staff and ensuring that they have the required skill set and/or qualifications to carry out the role they are filling.
However, the reforms have received negative responses from opposition bodies, such as the TUC and Recruitment and Employment Confederation, who have both argued that involving agency workers in disputes could cause issues in industrial relations and, despite what the Government has stated, could put the safety of workers and the public at risk.
Why are employees of Harrods going on strike?
Unite members at Harrods have rejected a 5% pay increase. The strike commenced on 11 August and will end on 1 September.
Sharon Graham, Unite General Secretary, said:
“It comes as no surprise that Harrods – known for catering to the supremely well off – could be the first employer Unite has come across to threaten low-paid staff with the recent Government legislation designed to break strikes.
Harrod’s attempts to use this new legislation to bully our members doesn’t change a thing. Unite is prepared for all eventualities and our members at Harrods will receive the full backing of the union in their fight for a fair pay rise.”
However, a spokesperson for Harrods argues how essential it is for staff to be on-site at all times and that it is vital for customer service and colleague safety.
“We already work with agency colleagues within Harrods to ensure that we have consistent and high-quality service available to all customers, particularly in busy periods.
While we are able to engage temporary workers if industrial action occurs, this is certainly not our preferred course of action. That is why we are urging Unite to work with us to resolve this matter as swiftly as possible.”
Should I take advantage of the revised agency staff reforms during periods of strike action?
In light of the recent reforms, if you are considering using agency staff to fill the temporary void left by striking workers it is imperative that you hire temporary staff with the appropriate skills and experience to provide effective cover.
Using agency staff could risk damaging the culture and perception of your business by the outside world and your current employees. It could lead to workers seeking other employment opportunities as they may feel undervalued and unappreciated. It could also impact your ability to fill any job vacancies now and in the future.
How can we help?
For further information or advice concerning the subjects discussed in this article, please contact a member of our expert Employment Law team in Derby, Leicester, or Nottingham on 0800 024 1976 or via our online form.
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