6.5 Improving Employer-employee relations Flashcards
Methods of employee representation:
- Trade union
- Collective bargaining
- Trade union wage premium
- Works council
define trade union:
An organisation of workers established to protect and improve the economic position and working conditions for its members
define collective bargaining:
Negotiations between management and employees representatives, often trade unions
Process: where workers’ representatives meet with the employers to discuss and negotiate employment-related issues.
- Issues are normally pay, working conditions or contractual issues.
define trade union wage premium:
% difference in average gross hourly earning of union members compared with non-unions
define work councils:
Forum within a business where workers and management meet to discuss issues
Why could involving employees in decision making benefit a business?
- It aids communication
- It helps when implementing change
- It helps motivate the workforce
- It helps the workforce understand the objectives of the business
- It should ultimately improve competitiveness
what are the 3 forms of employee representation?
- Trade unions
- Work councils
- Other forms similar to work councils but not trade unions I.E: factory/office committees or staff associations
Features of Trade unions:
- main function: to negotiate on behalf of the workforce and represent them if there are issues.
- are organized and professional associations with trained legal expertise and advisor for all possible workplace issues
- negotiations can take the form of collective bargaining.
- they can also represent employees at disputes or at industrial tribunals.
What are the objectives of trade unions?
- Maximising pay
- Achieving safe and secure working conditions
- Attaining job security
- Participate and influence decisions in the workplace
- Social objectives such as lobbying for higher social security benefits, improved employment legislation and improved quality provisions by the national health service
How trade unions achieve these objectives
- Protecting members over issues such as discrimination, unfair dismissal and health and safety matters
- Negotiate using collective bargaining
- Provide legal advice, insurance, education, training and financial advice
Trade union benefits to employers?
- Valuable communication link between senior management and workforce – cutting down on the chain of command issues
- Collective bargaining reduces the time spent negotiating with individuals and is seen as a fairer option
- Strong unions can make management more accountable
Features of Works councils:
- A forum within a business where workers and management meet to discuss working conditions, pay and training.
- Employee representatives to the works council are elected by the workforce.
- Works councils are common when no trade union exists and are more common in Europe.
- However, works councils are purely consultative – management do not have to take their recommendations.
- They are also a way of having employee participation – consulting on change – without allowing the workforce a proper place at the negotiating table.
define Arbitration:
Procedure for the settling of a dispute, under which the parties agree to be bound by the decision of a third party
define Industrial dispute:
Disagreement between an employee and its employees, usually represented by a trade union, some aspect of the terms and conditions of employment
define Industrial action:
Employees take measures to halt or slow production. They could strike, ‘work to rule’ or have an overtime ban.
define Conciliation:
Method of resolving individual or collective disputes in which a neutral third party encourages the continuation of negotiations
influences of employee representation in decision making:
- Leadership and management style (hard or soft approach)
- Overall or corporate objectives of the business: Market share - lower costs
- History, ownership and culture
- Nature of work and employees hired
- Employment legislation
How to manage and improve employer-employee communication and relations (technology)
- Social media
- Intranets
- Video conferencing/calls
How to manage and improve employer-employee communication and relations (appreciation)
- Appreciating the nature of effective communication - Ensuring two-way communication
- Using the appropriate style of management - Mayo and seeing the impact of the hawthorne effect, Maslow’s hierarchy considered
- Adapting organisational structure - greater autonomy, delegation and empowerment
Effective communication as a way of dealing with industrial disputes
- Avoiding industrial disputes
- Resolving industrial disputes
Avoiding industrial disputes:
- No strike and single union agreements: Employees agree not to strike for a period of time in exchange for better pay of working conditions - they will agree to go to arbitration in the case of any disputes meaning employees are not left vulnerable. Employees may also to be represented by one union strengthening the trade union
- ACAS (Advisory, conciliation and arbitration service)
Abitriations - 3 types:
- Non-binding arbitration involved a neutral third party making an award to settle a dispute that the parties concerned can accept or not
- Binding arbitration means the parties have to accept the third parties decision
- Pendulum arbitration is a binding for but the arbitrator (third party) must decide entirely for one side or the other. There is not option to reach a compromise
Resolving industrial disputes:
- Conciliation: A third party encourages the continuation of negotiations and postponement (at least) of any form of industrial action. They do not make any judgements and is sometimes called mediation
- Employment tribunal: Informal courts where disputes over unfair dismissal take place. Compromise of 3 people; A legally trained chairperson, one employer representative and one employee representative. Most employee dispute are settled in tribunals, although fees were introduced for employees taking a dispute to a tribunal in 2013 which has “reduced” the number of cases
features of Employers:
- The business may lose revenue from selling its products if the dispute results in industrial action
- May lose future sales if business is then perceived as unreliable
- Relationship with employees may be damaged long-term, causing issues with engagement and productivity
- Business may be regarded as a more risky investment, therefore may struggle to raise finance or pay higher interest
- Businesses image may be damaged both from the perspective of customers and future employees
features of employees:
- May lose pay if industrial action take place in the form of a strike
- May weaken employers finances putting employees future job security at risk
- Financially weakened employers may not be able to afford training for employees, denying them the chance at improving skills and knowledge
- The employers may respond by replacing employees in the future with machinery or capital intensive production methods
Benefits of good industrial relations (employers)
- Develop strong employer brand
- Promote employee engagement
- Improve corporate image
- Strengthening competitiveness
Benefits of good industrial relations (employees)
- Financial - don’t lose money due to disputes and business financially stronger so may pay more
- Job security - businesses less likely to use machinery or move overseas
- Possibility of greater participation in decision making
