The government’s announcement that it is to review the dispute resolution process has been welcomed by the TUC and the CBI – albeit for different reasons.
TUC General Secretary Brendan Barber said: “The TUC is committed to the principle that all employers should have in place dispute resolution procedures and we welcome the DTI review.
“The current procedures are excessively complicated and limit access to justice especially for employees who don’t belong to a trade union and who can be without support when things go wrong at work.”
Meanwhile, the CBI’s deputy director general Mark Cridland said: “We welcome this fundamental review of the system which is still not working two years on from the last attempt to improve it.
“Employers lack faith in the system – with firms seeing tribunals as too adversarial and costly – and many prefer just to settle claims, even when they are advised they can win.
“The statutory discipline and grievance procedures have not improved dispute resolution – rather they have added to red tape and have elevated process over the merit of a case.
“The Government must now address the real concerns of employers to restore confidence and ensure that the system works effectively for both business and employees.”
A CBI report, ‘Restoring Faith in Employment Tribunals’, published in September 2005, revealed some serious concerns with the system, including 100 per cent of firms with fewer than 50 staff settling every claim despite advice they would win almost half the cases, and 26 per cent of all firms doing so even if they felt the claims lacked merit.
Almost half (45 per cent) of employers believed the system is ineffective and 50 per cent reported a rise in weak and vexatious claims in the previous 12 months despite the reforms. Three-quarters encountered extra red tape because of the new reforms and 26 per cent said the overall system is too costly.
