Employer - Employee relations - consulatations and trade unions

Question 1

trade unions

Answer 1

organisation of workers who join together to further their own interests

they seek to protect and improve the interests of its members

does this by negotiating with employERS on pay and conditions at work

union members pay a subscription - monthly

entitled to all srts of assistance, support and benefits:
- free legal advice on redundancy/ harassment/ dismissal/ pensions/
travel agency services/ insurance (no work related issues)

based on the ‘UNITY IN NUMBERS’ idea

Question 2

why do trade unions exist

Answer 2

• get the best wages and benefits for members
• prevent the loss of members jobs
• gain a safe working conditions
• ensure entitlement to welfare benefits if members become ill, unemployed or retire
• provide othe rservices that members may require

Question 3

functions of trade unions

Answer 3

• negotiating with employer on behalf of the members
  (collective bargaining) = process of the union negotiating wth the employer to pass something through
• represent members in cases of discrimination and dismissal
• provide other benefits i.e. legal advice, cheap insurance and credit card services

ACT AS A PRESSURE GROUP

Question 4

trade union facts

Answer 4

30 years ago - half the workforce was unionised
now - less than 6 million employees belong to a union

50% - public sectors
15% - private sectors

growth of zero hour contracts, part time working and self employed people, decline in heavy industries
has contibuted to this

lack of young manual male workers in unions

Question 5

managers and unions

Answer 5

not always harmony between the 2 people

Trade Union Congress (TUC) promoting a partnership where:
employers and trade unions work togetherto achieve common goals i.e. fairness and competitiveness

to help achieve this:
- urges businesses to recognise unions (collective bargaining) = can increase costs in ST but benefits in the LT

Question 6

industrial democracy

Answer 6

where employees are given the right to elect representatives who will be DIRECTLY INVOLVED IN THE DECISION MAKING process at work

• can be done using union representatives
• collective bargaining already established and union already recognised and meeting timings, pay issues and personnel already established THEN it will involve more consultation and participation in the decision making

Question 7

‘no strike’ deals

Answer 7

where a union gives up the right to strike

some are in favour of this = might encourage a business to recognise a union when it would otherwise not
some are against it = undermines a very basic trade union principle

Question 8

no strike deals

employee advantages

Answer 8

regular communication
a system of employee participation and consultation
managers committing to regular workforce training

seek agreement to go to some form of dispute being resolved if theres a dispute

Question 9

no strike deals

manager advantages

Answer 9

employees cannot withdraw their labour
should be at work unless ill/on holiday

if employees cannot strike than it cannot guarantee good employer/employee relations

Question 10

work to rule

Answer 10

employees do exactly what is stated in their contract and no more

no ‘goodwill’ towards the employer

Question 11

work councils

Answer 11

a formal meeting of managers and employees to discuss pay, working conditions, grievances, negotiate issues on changes in working practices

deals with the management of these ^^^^

Question 12

employee relations

Answer 12

refers to a company’s efforts to manage relationships between employers and employees

good relations:

• staff retention
• high productivity
• good motivation
• low absenteeism

bad relations:

• industrial action
• high labour turnover
• low productivity
• staff absences

Question 13

benefits of industrial democracy

Answer 13

• increased levels of motivation
  ^^^^^ if they feel their view counts then they will be more motivated, higher productivity
• better communication
  ^^^^^ between manager and employees - employee commitment to succeeding the strategy
  ^^^^^ can improve trust, improve commitment and lead to succeeding goals set
• improved quality of decision making
  -complying with the law
  ^^^^^ consultation is improtant and now law for redundancies so not following law will be bad publicity and affect future ability to recruit

Question 14

strategic benefits of industrial democracy/pparticipation

Answer 14

• reduced labour turnover
• reduced recruitment costs
• better trade management - competitive adantage in a changing environment

Question 15

quality circles

Answer 15

regular short meetings of a group of employees during working hours

objectives are to discuss and resolve work-related problems

managers can gain a better awareness of employee problems and concerns

Question 16

industrial action

Answer 16

the measures taken by a union to put pressure on management over a decision thats been made/about to be made

failure to reolve a disput can result in:

• strike action
• work to rule
• refusal to work overtime

Question 17

cost to a business for recognising a union

Answer 17

decision making will be slower
union representatives will push for better conditions and pay for their members but in hope that better decisions will be made

need to reach a resolution vs. the speed to how wuickly the decisions are made
= increase costs and reduce profits in ST
= fall in dvidend price
= reduced beneifts for stakeholders
= worse terms for suppliers
= higher price for customers to make up for profit losses
ONLY IF THE GAINS TO THE EMPLOYEE RESULT IN GREATER PRODUCTIVITY+ PROFITABILITY IN THE LT will it be beneficial to all stakeholders

both parties need to recognise a compromise i.e 3% argued by management and 5% argued by union compromised to a 4% rise in wage
- identifity common ground to move forward more quickly

Question 18

ACAS

Answer 18

best way to avoid manager and union conflict is to follow their guidelines

ACAS give advice on industrial relations to employees and managers
offers them reconciliation (see each others views and persudading them to see the different viewpoint (MEDITATION))
and provides arbitration ( - a jugement for which party is wrong) - (final + binding that is only available for serious matters)

fully funded by the government - independent

provide guidelines for managers looking to set up an effective industrial relations system with employees (with or without a union)

also has codes of practice in industrial relations areas - dealing with dismissal