Public Sector Strikes: What Do They Mean for Small Businesses and SMEs?
Ireland has experienced significant public sector industrial action this October, with more than 300,000 public sector workers participating in a nationwide 24-hour strike on Wednesday 14 October. The industrial action forms part of an ongoing dispute concerning public sector pay and negotiations for a new public service pay agreement.
While the current dispute relates to public sector employees, the wider implications can extend to private-sector employers. For small businesses and SMEs in particular, disruption to schools, childcare arrangements and other public services can present practical workforce and employee-relations challenges.
This article considers some of the key HR considerations for private-sector employers.
How can public sector strikes affect private-sector employers?
At first glance, a public sector strike may appear to have little relevance to a private-sector business.
However, employees' personal and professional circumstances are closely connected. Where industrial action results in school closures or disruption to public services, employees may find themselves unable to rely on their usual childcare or other arrangements.
For SMEs, this can have a more immediate operational impact than it might for a larger organisation. A business with a small workforce may find that the absence or reduced availability of even one or two employees has a significant effect on service delivery and business continuity.
Employers should therefore consider both the needs of affected employees and the operational requirements of the business.
School closures and childcare responsibilities
One of the most significant consequences of the current industrial action has been disruption to schools.
For employees with children, school closures can create an immediate childcare issue, particularly where alternative arrangements cannot be made at short notice.
It is important for employers to understand that a school closure arising from industrial action does not automatically create an entitlement to paid leave.
An employee may, however, approach their employer to discuss alternative arrangements. Depending on the circumstances, these may include annual leave, temporary remote working, adjusted working hours or unpaid leave.
Employers should consider such requests on a case-by-case basis, taking account of both the employee's circumstances and the operational needs of the business.
Annual leave
An employee may request annual leave where they are unable to attend work because their normal childcare arrangements are unavailable.
Where operationally feasible, granting annual leave may provide a straightforward solution.
However, employers should continue to apply their normal annual leave procedures and should seek to ensure consistency in how similar requests are considered.
Where a request is refused because of business requirements, the employer should be able to clearly explain the operational reasons for the decision.
Remote working
For employees whose roles can be performed remotely, temporary home working may be a potential option. However, employers should distinguish between working remotely and being unavailable for work because of childcare responsibilities.
Working from home does not necessarily remove an employee's normal working obligations. If an employee is expected to remain available during working hours, attend meetings and meet agreed deadlines, these expectations should be discussed and agreed in advance.
Where temporary remote working is approved, employers should clarify:
the employee's expected working hours;
availability and communication requirements;
meeting arrangements;
expected outputs and deadlines; and
the duration of the temporary arrangement.
A clear and documented arrangement can help prevent misunderstandings and ensure that both the employee and employer understand what is expected.
Flexible working arrangements
Depending on the nature of the role, employers may also consider temporary adjustments to working hours. For example, an employee may be able to commence work earlier or finish later to accommodate childcare responsibilities, provided the arrangement does not adversely affect the business.
For SMEs, this can provide a practical means of supporting employees while maintaining continuity of operations.
Any temporary arrangement should be clearly communicated and reviewed to ensure that it remains workable for both parties.
Unpaid leave
In circumstances where other arrangements are not viable, an employer may consider agreeing a period of unpaid leave. Unpaid leave in these circumstances is not an automatic entitlement arising from the public sector strike. It would generally be a discretionary arrangement between the employer and employee.
Where such an arrangement is agreed, the employer should confirm the dates and terms in writing.
Managing multiple employee requests
The operational impact can become more significant where several employees are affected simultaneously.
For example, an SME with a small workforce may experience a substantial reduction in available staff if multiple employees have childcare difficulties on the same day.
Employers should therefore consider business continuity alongside individual requests.
Key questions may include:
Which roles are essential to the continued operation of the business?
What minimum staffing levels are required?
Can responsibilities be temporarily redistributed?
Can working hours be adjusted?
Are there alternative resources available to provide cover?
Can non-essential meetings or tasks be postponed ?
Are similar requests being considered consistently?
Advance planning will become particularly important if further industrial action takes place.
Employees unable to attend work
The consequences of industrial action may extend beyond school closures.
Employees may experience disruption to their normal arrangements and may contact their employer because they are unable to attend work as usual.
Employers should consider each situation individually and should avoid creating informal arrangements that cannot be applied consistently across the workforce.
Where a temporary exception or alternative working arrangement is agreed, it is advisable to document the agreement and clearly establish that it relates to the specific circumstances.
Employees and industrial action
The current public sector dispute does not, in itself, provide employees in private-sector businesses with an automatic right to take time away from work.
If an employee indicates that they intend to participate in industrial action, the employer should establish the circumstances before taking any action.
Industrial relations matters can be legally complex, particularly where trade union membership, collective agreements or protected industrial action are involved. Employers should therefore obtain appropriate advice before taking disciplinary or other formal action in response to an employee's participation in industrial action.
For SMEs without an internal HR function, obtaining advice at an early stage can help to ensure that decisions are handled appropriately and consistently.
Maintaining fairness across the workforce
Employers should also consider the impact of temporary flexibility on the wider workforce. For example, if one employee is permitted to reduce their hours because of childcare difficulties, other employees may need to absorb additional responsibilities.
Supporting employees during periods of disruption is important, but arrangements should be managed carefully to ensure that the additional workload does not fall disproportionately on other members of the team.
Clear communication regarding temporary changes to responsibilities, priorities and workloads can help to manage these concerns.
Communication with employees
Effective communication is particularly important for smaller businesses.
Where further industrial action is anticipated, employers should consider communicating with employees in advance and setting out the process for raising any issues.
Employees should understand:
who they should contact if they are affected;
how requests for annual leave will be managed;
whether temporary remote working may be considered;
whether alternative working hours may be available;
what expectations apply when working remotely; and
what they should do if they are unable to attend work.
Employers do not necessarily need to introduce a new policy for every individual situation. A clear, consistent and well-communicated approach will often provide a more practical solution.
Practical HR considerations for SMEs
With further strike action likely, SMEs should consider whether they are adequately prepared for potential disruption.
We recommend that employers:
1. Review existing HR policies
Consider your current policies relating to annual leave, absence, remote working, flexible working and family-related matters.
2. Communicate clearly with employees
Ensure employees know who to contact if they experience difficulties as a result of school closures or wider disruption.
3. Understand employee entitlements
Be clear about what constitutes statutory leave and what arrangements may be offered at the employer's discretion.
4. Consider reasonable flexibility
Where operationally possible, consider whether temporary flexibility could assist employees while maintaining business continuity.
5. Apply decisions consistently
Similar circumstances should be approached consistently, with appropriate records maintained where discretionary arrangements are agreed.
6. Consider the wider workforce
Assess the impact that temporary arrangements may have on colleagues, workload and service delivery.
7. Plan for further disruption
Consider in advance how the business would operate if several employees were unavailable or required temporary adjustments to their working arrangements.
What can SMEs take from the current situation?
The current public sector dispute highlights the importance of effective HR planning, even where an organisation is not directly involved in the industrial action.
Events outside the workplace can have a direct impact on employee availability, attendance and business continuity. For smaller organisations, where resources and staffing levels can be more limited, these impacts can be particularly significant.
SMEs do not necessarily need complex HR policies to manage these situations effectively. What is important is having clear processes, consistent decision-making and a willingness to consider practical solutions where appropriate.
Employers should also remember that flexibility must work both ways. Supporting employees during periods of disruption is important, but arrangements must remain sustainable for the business and fair to the wider workforce.
Need HR support?
For many small businesses, managing unexpected employee issues alongside the day-to-day demands of running the business can be challenging.
As an HR consultancy supporting small businesses and SMEs, we provide practical, commercially focused HR advice tailored to the needs and resources of smaller organisations.
If you are dealing with questions around employee absence, childcare-related requests, flexible working, industrial relations or other HR matters arising from the current disruption, professional advice can help ensure that decisions are fair, consistent and appropriate for your business.
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