The hidden danger in skipping union negotiations? £4.8 million in damages.
Section 145B of the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA) is more than just legal fine print – it’s a serious compliance issue with major financial consequences.
This provision protects collective bargaining by prohibiting employers from making direct offers to union members if the main purpose is to bypass agreed negotiation processes (known as the “prohibited result”).
Here’s how expensive it can get:
| Kostal UK Ltd v Dunkley & Others | Ineos Infrastructure Grangemouth v Jones & Others | Jiwanji & Others v East Coast Main Line Co Ltd |
| Kostal made direct pay offers during union negotiations with Unite. | Ineos implemented a pay award directly after rejecting union proposals. Result: Breach confirmed. | Employer made offers to staff before concluding negotiations with RMT. |
| Damages: £3,800 per offer, per employee. Total awarded: £425,000+ | Damages: Not disclosed, but case reaffirms employer risk when bypassing talks. | Damages: £3,840 per employee. Total awarded: ~£4.8 million |
Key Takeaways for Employers:
- Exhaust all collective bargaining steps;
- Document negotiations and motives carefully;
- Don’t treat Section 145B lightly; and
- Seek legal advice before going direct.
Section 145B isn’t an obscure footnote – it’s a sharp legal boundary. Crossing it, even with good intentions, can cost employers dearly.