GMB, one of the UK’s largest trade unions, is urging the government to favour businesses that recognise trade unions when awarding public contracts.
The call comes after revelations that Amazon secured £1 billion in government contracts despite allegations of “union-busting” practices.
At the Labour Party conference today, GMB will push for companies that recognise trade unions and allow unions to engage with their workers on recognition to receive preferential treatment in public procurement processes.
This follows a narrowly missed vote at Amazon’s Coventry distribution centre in July, where workers came within 28 votes of becoming the first site outside the US to compel Amazon to negotiate union terms. GMB is now mounting a legal challenge against Amazon, accusing the company of pressuring employees to revoke their union membership, making it harder to reach the threshold for union recognition. Amazon has denied the claims.
Most of the £1.04 billion in contracts awarded to Amazon last year were for cloud services, according to data from Tussell, analysed by GMB. Gary Smith, GMB’s general secretary, stated that if Amazon is to continue receiving such lucrative government contracts, it must start treating its workers with respect, which includes fair pay and better working conditions.
The Labour government has pledged to simplify union recognition procedures and give workers more rights, aiming to create a more balanced power dynamic between employers and unions. Current rules prevent unions from reapplying for statutory recognition for three years if they fail to meet the required vote threshold.
Amazon responded by saying that employees have always had the choice to join or not join a union and that direct engagement with workers is a key part of the company’s culture.
Jamie Young
Jamie is a seasoned business journalist and Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops to stay at the forefront of emerging trends.
When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs, sharing their wealth of knowledge to inspire the next generation of business leaders.
