Top firms downplay relations with unions

Top companies are downplaying their relations with staff and their unions by failing to refer to them in their annual reports, according to a survey of the FTSE 100. It also found that little reference was made to other aspects of human resource management, despite the fact that "it has become commonplace for companies to refer to their employees as their most important asset".

The study, by PIRC Ltd, which provides research on corporate governance for institutional investors, found that only 28% of the FTSE 100 report on trade union recognition even though around 70% recognise unions.

It adds: "Even leading companies which are members of the TUC's 'partnership for progress' campaign fail to make reference to their systems of employment relations". These include ICI, British Aerospace, Tesco, Prudential, National Power, Unilever and Barclays.

The study notes that, although profitability has become a question of "engaging (staff) in a social and psychological contract with the company. this value does not appear on the balance sheet."

Reporting on employment issues: a survey of FTSE 100 companies, PIRC Ltd 2000, £195; tel: 020 7247 2323 web site: www.pirc.co.uk