AbstractWorkplace racism remains a serious issue despite over forty years of legislation alongside a raft of HRM policies. There remains limited research on the differences in employment experiences of British Black and Asian Minority Ethnic (BAME) staff and their white colleagues. There is a power imbalance at work as between individual employees and management, and this lack of equity has been traditionally counterbalanced by strong workplace trade unionism. In particular, we know little about the role of trade unionism on the perception of workplace equality among BAME employees. Using more than 2,580 valid responses from full‐time employees in highly unionised local councils, this study shows that BAME employees have a significantly lower evaluation than their white colleague of fair pay and equal work environment. The latter fully mediates the negative perception between BAME staff and fair pay; and furthermore, the perception of union commitment to equality strengthened their views of a management‐supported equal work environment.