New unionism in telecoms

• Aims of session

• To look at structural changes in the sector in Europe since the 1980s taking British Telecom as an example

• To identify impact on employees and unions in the sector

Connect in 2004 – diversity & flexibility

• The union for professionals in communications – born 1 January 2000

• Members in dozens of companies

• Diverse skills and job types

• Recognised by major and minor players

• No single model of representation – collective and individual

Connect in 2004 – diversity & flexibility

• Focus on employment and employability• Career support services for members• Opus2, Careers advice, training• Flexible structure – branches, networks• Member centred – Helpdesk, web site

market research• Focus on organising – dedicated

resource

Society of Telecom Executives

• Members in two employers• Collective bargaining of terms and conditions

– a single product• Stable engineering-based membership of

company lifers promoted into management • “a member is a member is a member”• Product driven – internally focussed• Strict hierarchical structure

Society of Telecom Executives

• Strong workplace organisation

• Few full time officers

• Acceptance by employers – facilities and agreements

• 80% membership

• Automatic recruitment

• “The good old days”

From STE to Connect

• The union has been reinvented over the past five years

• From a collective bargaining agent for a large group of members with common interests

• To a flexible resource to support members’ careers throughout their working lives

From STE to Connect

• Why change

• The mismatch between the STE model and the world our members and potential members work in

The revolution in telecoms

• Drivers to change• Privatisation and liberalisation• Convergence• Globalisation – reduced role of national

governments• Political climate in UK – Thatcherism and anti

union laws• Have created a new type of company and a

new type of worker

The revolution in telecoms

• Power of city and financial institutions

• Changing business models – mergers and acquisitions

• New management styles and cultures – “non union companies”

• Terms & conditions under attack from market comparisons

The revolution in telecoms

• Some key consequences

• 1984 - 40K managers and professionals in 2 companies 80% organised

• 2004 over 900 licensed telecoms operators

• 2004 100K managers and professionals <25% organised

The revolution in telecoms

• Downsizing

• Skills replacement

• Bureaucratic to organic “commitment-based” structure

• Outsourcing and fragmentation

• Trading units

• Global strategy – costs/losses

The revolution in telecoms

• Unstable workforces• Engineering out; sales/CS and IT in• Contractors• Direct entry• Young, highly qualified, mobile, confident,

career orientated, little company loyalty• Breakdown of traditional workplace –

distanced networked labour

The revolution in telecoms

• Decline of collective bargaining• Philosophies not agreements• Individualisation - PRP to individual contracts,

no common standards• Flexible reward systems• Pay out; compensation and benefits in• Direct communications• Role of line manager

The revolution in telecoms

• Employee attitudes to towards trade unions• Few traditions of unionism• Schooled in individualism• Suspicious of collective bargaining• Not for winners• Exception not norm• Based on conflict model• Accept harsh reality of workplace

The revolution in telecoms

• Impact on union - crisis

• 45% membership decline between 1990 and 1997

Changing the union 1997 onwards• Election of a labour government – better

climate for unions, but still harsh• Formal CTU programme – emphasis on

planning, objectives, measures• From process to output• Driven from top of union• Reversed membership decline – three

years’ growth

Changing the union 1997 onwards• New negotiating agenda

• Less focus on pay

• Challenge of negotiating PRP

• Work/life balance

• Diversity and equal opportunities

• Training and skills

• Protecting outsourced workers

Changing the union 1997 onwards• New form of relationship with employers

based on account management

• Single point of control

• Simpler and more effective communications

• More rigorous internal union management

Changing the union 1997 onwards• Organising young people

• Highly qualified, mobile, career orientated, schooled in individualism

• Suspicious of collective bargaining, few traditions of unionism

• “Workplace is a jungle”

Changing the union 1997 onwards• Our approach based on • Market research• Specialist organisers• Flexible structure• Small world network• Their own agenda• In 1997 5% joined union, 2004 50% join

The future of the industry

• Recession and uncertainty• Incumbent operators under attack and

shrinking• New entrants in crisis• Industry parameters will get more

blurred• Organisation of work – increasing

flexibility

The future of Connect

• CTU ensured our survival

• Not yet out of the woods, but a strong basis for growth

• International union activity vital in a global, dynamic industry where the role of national governments is limited