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Acas at centre of £37 million employment relations shake-up

ADVISORY, CONCILIATION AND ARBITRATION SERVICE News Release issued by The Government News Network on 6 February 2008

Acas responds to announcement made by Pat McFadden at Acas/CIPD conference of 6 February 2008

Acas, the employment relations specialists, were today given a huge boost with the announcement that they will receive up to an extra £37 million of funding in the shake-up to simplify the dispute resolution system.

The announcement was made at the Acas/CIPD annual conference by Pat McFadden, the Minister for Employment Relations and signals the government's recognition that Acas not only benefits businesses and employees but also the wider economy.

In response to the announcement, Acas Chair Ed Sweeney, said: "Acas provides a first-class service to employers and employees, based on impartiality, integrity and expertise. We also give the taxpayer outstanding value for money, with every pound invested in us resulting in a £16 benefit to the economy.

"This new investment will enable us to increase our effectiveness and spread the benefits of good employment relations more widely. I am delighted by this news and BERR's recognition of the unique and valuable role that we play."

The extra funding, over three years, will mean expansion for a number of services including the Acas helpline, which already answers nearly one million calls a year. Acas will also look to provide more services that encourage good employment relations and prevent disputes from happening at an early stage.

Pat McFadden said:

"The link between successful employment relations and productivity is clear. Early action can often prevent the need for tribunals, bringing enormous benefits to business and employees.

"We want to move from the current overly rigid and legalistic process to one where there is more conciliation between employers and employees.

"This new system will strike a balance between ensuring workers can protect their rights through employment tribunals while helping them to resolve disputes as early as possible."

Mr Sweeney went on to highlight a number of key challenges facing employment relations in the times ahead. He said "We are heading into an economic headwind and obviously this presents many challenges for both employers and employees. For example pay disputes in the public and private sectors still need to be resolved, while the eyes of the world will be on Britain as we build towards the 2012 Olympics. Good employment relations will be central to delivering a successful games and there will be no leeway in terms of meeting deadlines.

Mr Sweeney concluded "In both collective and individual employment relations issues, Acas has a key role to play - much of it in partnership with organisations like the CIPD. I am therefore delighted that we have been able to stage this event, bringing together the leading thinkers on employment relations in Britain today."

Notes to editors

1. Acas' aim is to improve organisations and working life through better employment relations. It provides information, advice, training and a range of services working with employers and employees to prevent or resolve problems and improve performance. It is an independent statutory body governed by a Council consisting of the Acas Chair and employer, trade union and independent members.

2. The Acas/CIPD (Chartered Institue of Personnel and Development) conference, Building successful workplaces: Employment relations in the 21st Century, was held at the QE11 conference centre in London. The keynote address was by Pat McFadden, Minister of State for Employment Relations and Postal Affairs, Department for Department for Business, Enterprise and Regulatory Reform (BERR). Other speakers included, John Philpott, CIPD chief economist and Professor John Purcell, Acas, Dame Professor Carol Black, National Director for health and Work, Sarah Myers, Group Head of Talent Resourcing and HR Services and Dr Ursula Ferriday, Group Head of Occupational Health, Sky. The conference focused on issues such as productivity and the skills agenda, boosting workforce engagement and performance and health, work and wellbeing in the workplace. The event was attended by 150 delegates.

3. This news follows a recent independent report by the National Institute of Economic and Social Research which showed that for every pound spent by Acas, over £16 is returned, generating benefits worth almost £800 million a year across UK businesses, employees and the economy. To view the full report visit http://www.acas.org.uk

*A Review of the Economic Impact of Employment Relations Services Delivered by Acas" was carried out by Pamela Meadows at the National Institute of Economic and Social Research and published in November 2007.

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