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The government has published the interim Fair Work Charter for Offshore Wind (“FWC”), which requires signatories to allow greater trade union workplace involvement (irrespective of whether they currently recognise a trade union).
Offshore wind developers who wish to access Clean Industry Bonus (“CIB”) funding need to prepare for potentially unprecedented levels of engagement and cooperation with trade unions.
Signing up to the FWC will be mandatory for any applicants for CIB funding in allocation round 8 of the Contracts for Difference scheme. Developers who do not sign up to the FWC will not qualify for CIB funding.
The implications of the FWC will be most significant in non-unionised workplaces, where employers who may have historically had very limited involvement with trade unions will need to prepare for significantly increased levels of trade union activity.
Compliance with the FWC will be monitored and enforced by the Department for Energy Security and Net Zero. The FWC governance framework is in the process of being finalised and we understand that this will be published in due course. The current intention is that trade unions will be able to complain about breaches of the FWC to a nominated party. Where a complaint is upheld, that could result in a developer being removed as a signatory to the FWC and forfeiting CIB funding. Not only does this carry clear financial consequences, it's possible that trade unions may also use this considerable power as leverage in wider trade union disputes.
Required engagement with trade unions under the FWC may also serve as a precursor for employers who do not currently recognise a trade union facing formal requests for union recognition.
The FWC goes even further than the significant changes to trade union access rights introduced by the Employment Rights Act 2025. One of the stated intentions of the FWC is to encourage a level of workplace cooperation between employers and trade unions which exceeds statutory minimum requirements.
Signatories to the FWC will be required to negotiate and sign one or more voluntary access agreements with a trade union, allowing unions “reasonable and meaningful” physical access to the workplace during paid working hours to speak with workers for agreed purposes.
An access agreement will not amount to a recognition agreement and so will not authorise a trade union to conduct collective bargaining on behalf of the workforce about matters such as pay, working hours, and holidays.
The frequency of access must at least meet the minimum requirements in the Employment Rights Act 2025. Given the intent of the FWC, trade unions will likely be able to insist that access agreements at the very least cover the broad range of activities to which the right of access will apply under the Employment Rights Act 2025.
Any non-compliance with the terms of a negotiated access agreement is likely to give trade unions a basis for complaining about a breach of the FWC. Signatory employers will need to tread very carefully to ensure that what is agreed is practically workable and not unduly burdensome. Otherwise, CIB funding may be at risk.
Our advice is that signatory employers should be proactive and produce the first drafts of access agreements. Our employment team are well placed to advise on the content of access agreements.
Among other things, the FWC also means that signatory employers will have to:
- Share information with trade unions about matters such as workplace locations, workforce numbers, and shift patterns
- Involve trade unions in inductions for new staff
- Issue joint staff communications with trade unions to advise staff of the right to join a trade union
- Take a proactive role in supporting trade union access throughout the supply chain by providing trade unions with information about contractors and supply-chain companies
- Facilitate trade union introductions and engagement across the breadth of the supply chain in respect of CIB funded projects
Signatory employers should devise effective workforce engagement and communication strategies to manage increased union influence within the workplace, and to ensure that contractual arrangements with contractors and subcontractors facilitate compliance with the supply chain requirements of the FWC.
For many employers, even those who currently recognise a trade union, the FWC represents a significant shift from the status quo. The essential initial step is negotiating access agreements which have sufficient flexibility from the employer's perspective to avoid undue business interruption and a potential costly breach of the FWC.
A more comprehensive version of the FWC is intended to have long-term application to future Contracts for Difference allocation rounds. The interim FWC may well be expanded in due course, and there are indications that its scope will be extended to onshore wind developments too.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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