2. The role of trade unions
The role of employer associations
The process of collective bargaining
The different types of industrial action
How conflicts can be resolved
3.
4.
5.
6. A Trade Union is a group of workers who
have joined together to ensure their interests
are protected
7. SHOP STEWARD
For an annual fee that
pays for the employment
of union officials, they
will represent the views
of those in the union to
achieve their aims.
8. Advantages
◦ Strength in Numbers
◦ Improved Conditions of
Employment
◦ Improved Workplace
Environment
◦ Improved Benefits
◦ Improved Job Satisfaction
◦ Advice & Financial Support
◦ Further Benefits
◦ Employment where there is a
closed shop
9. Trade Unions seek to
◦ Put forward views to the
media
◦ Influence government
decisions
◦ Improve communication
between workers &
management
10. A craft union is a trade union which
represents a particular type of skilled worker.
11. A general union is a trade union which
represents workers from a variety of trades in
the industry. They are often un-skilled but
also semi-skilled workers.
12. An industrial union is a trade union which
represents all types of workers in a particular
industry
13. A white-collar union is a trade union which
represents non-manual workers.
14. Closed shop is where all the employees have
to be a member of a particular union.
15. A Single-Union Agreement is where a firm
deals with only one particular union.
16. Advantages for employees
◦ Discussions clearer
◦ Greater power
◦ No disagreements between unions
◦ Better working relationship
◦ Disputes solved quickly
17. Advantages for employers
◦ Only one union to negotiate with
◦ Better working relationship
◦ Disputes resolved more quickly
◦ Easier to agree to changes
◦ Better relationships
18. President
National Executive
Head Office
Regional offices Regional offices Regional offices Regional offices
Branch Branch Branch Branch Branch Branch Branch Branch
Individual Members
19. Employer Associations
Employer Federations
Trade Associations
Business join together to
form a association or
federation
Subscription Fee
Benefits
20. Advantages
◦ Representation of Members
◦ Offer Advice
◦ Pressure Group
◦ Sharing good practice
◦ Bulk-Buying
21. Act as pressure groups
Represent business interests
Linked to economic
environment
Government Control & Provide
Taxation
Rules & Regulations
Economic Policies
Infrastructure
22. Collective bargaining
is negotiations
between one or more
trade unions and one
or more employees
(or employee
associations) on pay
or working conditions
23. Rising Inflation
Difficult to recruit
qualified workers
Maintaining pay
differentials
Changes in the
workplace
24.
25. This is taken by trade unions to decrease or
halt production
26. Strike Action
◦ A Token Strike
Short Stoppage
◦ A Selective Strike
Few selected workers walk
out
◦ An All Out Strike
All union members stop
work
27. Picketing
◦ Support strike
◦ Stand outside
workplace
◦ Try to persuade other
workers not to go to
work
◦ May halt production
all together
◦ Gain publicity
◦ Company gets bad
publicity
◦ Applies pressure
28. Work to Rule
◦ Strictly, Rigidly follow
rules/regulations
◦ Work often slows
◦ Workers paid normally
◦ Nothing wrong
29. Go Slow
◦ Similar to “work to rule”
◦ Workers do jobs more
slowly
◦ Deliberately take longer to
complete tasks
30. Non-Cooperation
◦ Workers refuse to
have anything to do
with new working
practices that they do
not approve of
31. Over-time Ban
◦ Normal working hours
carried out only
◦ No additional work time
is done
◦ Damaging to the
company
32. Loss of Loss of
Output Income/Profit
For Employers
Cash Flow
Poor Customers maybe
Problems
Reputation lost to other firms
as orders not
delivered
33. Loss of Threat of job
Wages losses
For Employees
34. Find
Alternative May cost more
Supplier for product
For the Firm’s Customers
Deliveries not May not be
Shortage of
made able to
Product
produce
goods
35. Workers have Lower Income
less money means less
to spend tax collection
For the Economy
Bad reputation Striking firm
Exports lost
from not may have to lay
Less
delivering on time off workers –
products
Incomes fall,
being
unemployment
produced -
imports rises
36. Strikes are damaging for both employers and
employees
These agreements usually involve an
“independent ARBITRATOR”
38. Poor Wage Rates
Poor conditions of
employment
Poor working
conditions
39. Rigid/Authoritarian
Management
Restricted flow of
information
Frustration
40. Rapid/Poorly Planned
Change
Employees
downgraded or
moved without
consultation
41. Rapid/Poorly Planned
Change
Employees
downgraded or
moved without
consultation
42. Lack of involvement
in decision-making
Employees feel less
important
Employees feel
bored, alienated and
uncared for
43. Decrease in market
share
Job security issues
44.
45.
46. This occurs
when
employees
contribute and
are involved in
the decision
making in the
business
47. Worker Directors
◦ appointed representative
◦ usually do not attend board
meetings
Works Council
◦ Representatives of workforce
meet
◦ Discuss management
proposals
◦ Feedback on ideas and
comments
◦ Issues may include;
Health and Safety
Introduction of New Machinery
48. Quality Circles
◦ Used by many companies
(especially Japan)
◦ Encourage continuous
development
◦ Team Working
◦ Discussions on improvement on
how things are carried out or how
the product is assembled
◦ Improved feeling of importance
and motivation of employees
results
49. Democratic Styles of Leadership
◦ delegation
Hinweis der Redaktion
Sole trader Very few employees Employee problems usually solved by talking to the business ownerLarger Businesses More difficult to discuss issues with a manager/owners of a businessScenarioYou are head of HR with 500 employees all have different skills, scientist to cleaner How do you agree on their wages? If a pay rise is imminent, how much and who would get the most? Will the pay rise be across the board and at the same rate?Easier for managers if workers get together and are represented by a TRADE UNION Saves time for HR No need for each individual to agree to pay, for example
ScenarioYou are head of HR with 500 employees all have different skills, scientist to cleaner How do you agree on their wages? If a pay rise is imminent, how much and who would get the most? Will the pay rise be across the board and at the same rate?Easier for managers if workers get together and are represented by a TRADE UNION Saves time for HR No need for each individual to agree to pay, for example
Easier for managers if workers get together and are represented by a TRADE UNION Saves time for HR No need for each individual to agree to pay, for example
Employees generally have the same interests improving pay, working conditions being treated fairly given proper trainingA union is there to help employees to achieve improvements in different aspects of their employmentIs a type of pressure groupUnions can be founf all over the world in countries such as the US, AUS, UK, Papua New Guinea, etc
Strength in NumbersImproved Conditions of EmploymentImproved Workplace Environment Health and Safety, Noise, HeatingImproved Benefits sick, retired, redundanciesImproved Job Satisfaction Engaged trainingAdvice & Financial Support If unfairly dismissed or made redundant, asked to do something that is not in their job descriptionFurther Benefits discounts, provisions for sporting facilities or clubsEmployment where there is a closed shop
Office staff, managers, and professional people
Becoming popular as employees are trained to do several jobs multi-skilledEmployees now more flexible used in different stages of productionSometimes it is difficult to determine which union to join
President / General SecretaryWork for and paid full time by the trade union Work from the headquartersIf union is large, there will be full-time officials working by district/regionSupport and help member branchesBranches Each work site Each has a union representative Representatives elected democratically
Representation of Members Work on behalf of their membersOffer AdviceEmployment Law, effects of trade agreements, health and safety regulations, taxation lawsPressure Group greater strength due to large numbers put arguments to govt when changes are requested one business maybe ignored, but many cannot beSharing good practiceShare ideas, help each other, usually when not in direct competition May share research facilities, as it can be expensiveBulk-buyingAble to gain from discounts, economies of scale
Government Control economy inflation law & order health education
As discussed before, it is not feasible or economic to deal with each worker/staff member separately. Therefore agreements are made between representatives of different interested groups, management & workforce collective bargainingCollective Bargaining Aim – arrive at a mutually acceptable agreementCan be at a local or national level
Can be at a local or national levelTrade unions argue for a wage increase for one/more reasons Rising Inflation Difficult to recruit qualified workers Maintaining pay differentials Changes in the workplace
Productivity Agreements Derived from an increase workers’ productivity more output being produced Workers argue for their fair share Acts as a motivator for workers to work harder Therefore managers sometimes link increases in pay with increases in productivity
Strike ActionA Token StrikeShort Stoppage half day, one day, even an hour want to indicate the strength of feeling about the claim E.g. workers at the car factory stop producing car from 9:00am to 14:00pm causing no output rate in the companyA Selective StrikeFew selected workers walk out chosen by trade union in order to cause the most damaging disruption to the workplace E.g. trade union told the managers of the car company not to work so the workers will be unattended causing a big mess in the company.An All Out StrikeAll union members stop work they leave the workplace until the dispute/claim is settled Workers maybe paid when on strike from trade union’s strike fund“Unofficial Strike” or “Wild-Cat Strike” strike pay will not be paidIf trade union wants to call for a strike, ballot papers will be sent round to vote if they should strike or not. Majority follows
E.g. There may be several checks that should be made to a delivery lorry before it goes out on delivery.All these checks may take a long time ad therefore some checks will normally not be carried out every time the lorry goes out.
E.g. A new administration procedure may involve the workers filling in more paperwork. They would refuse to fill in the forms
Independent ARBITRATOR acts as a judge, who hears both sides of the argument (what the pay rise should be) then an mutual agreement is made. Just like a trade union and employer negotiate.
Dismiss Workers Drastic action Leave the business in a mess Unable to produce product Not able to satisfy ordersLock Workers Out Known as “lock-out” Prevent workers from entering the work site that want to return Useful if workers are “working to rule” or are on “go slow” Employer will save on wagesPay Freeze Used in disagreements over work practices E.g. when new machinery is introduced
Until workers receive a fair wage, conflicts continue to existFair wage varies from country to country (minimum wage requirements), developed & developing countries vary greatlyUnion membership on the increaseBalance between rich and poor, a more equal society
Consultation Views need to be expressed openly and freely Do not have to always do what the employees wants, and to be in disagreement on a final decision is fine Consultation is different from collective bargaining / negotiation they do not normally seek the formal agreement of employees they simply ask for their views, these may/may not be taken into consideration to come to a final decision
TUC – Trade Union Congress Members include full time workers, admin, economists, solicitors Made up representatives from all unions More powerful than one union Aims are to; Act as a pressure group Represent trade union views in general Influence employer associations Influence govt policyCBI – Confederation of British Industry Represents many UK industriesAims are to’ act as a pressure group represents employers tries to influence govt decisionsACAS– Advisory, Counciliation, and Arbitration Service Independent organisation Financed by the govt role is to try and improve industrial relations provides services for free is impartial (does not take sides) both sides must agree on ACAS rulingsThe service providesadvice and info on all areas of employment (employer/employee)conciliation to find a middle ground where both parties agreeArbitration if discussions have reach a deadlock, and no settlement is near independent group listens to both sides propose a fair settlement both sides must agree & accept arbitrators findings