Chapter 15 – Employee and Employer Associations

Unit 4 – People at Work

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

You will learn …….

Introduction

A Trade Union is a group of workers who have joined together to ensure their interests are protected

Trade Union

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.

Why do workers join a union?

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

Trade Union Membership

Trade Unions seek to◦ Put forward views to the

media◦ Influence government

decisions◦ Improve communication

between workers & management

Trade Union Membership

A craft union is a trade union which represents a particular type of skilled worker.

Craft Union

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.

General Union

An industrial union is a trade union which represents all types of workers in a particular industry

Industrial Union

A white-collar union is a trade union which represents non-manual workers.

White-Collar Union

Closed shop is where all the employees have to be a member of a particular union.

Closed Shop

A Single-Union Agreement is where a firm deals with only one particular union.

Single-Union Agreements

Advantages for employees◦ Discussions clearer◦ Greater power◦ No disagreements between unions◦ Better working relationship◦ Disputes solved quickly

Advantages for employers◦ Only one union to negotiate with◦ Better working relationship◦ Disputes resolved more quickly◦ Easier to agree to changes◦ Better relationships

The Structure of a Trade Union

President

National Executive

Head Office

Branch

Regional officesRegional offices Regional officesRegional offices

Individual Members

Branch Branch Branch Branch Branch Branch Branch

Employer Associations Employer FederationsTrade Associations

Business join together to form a association or federation

Subscription Fee Benefits

Employer Associations

Advantages◦ Representation of Members◦ Offer Advice◦ Pressure Group◦ Sharing good practice◦ Bulk-Buying

Employer Associations

Act as pressure groups Represent business interests Linked to economic

environment

Government Control & Provide Taxation Rules & Regulations Economic Policies Infrastructure

Employer Associations and the Government

Collective bargaining is negotiations between one or more trade unions and one or more employees (or employee associations) on pay or working conditions

Negotiation & Collective Bargaining

Rising Inflation Difficult to recruit

qualified workers Maintaining pay

differentials Changes in the

workplace

Negotiation, Collective Bargaining and Productivity Agreements

This is taken by trade unions to decrease or halt production

Industrial Action

Strike Action

◦ A Token Strike Short Stoppage

◦ A Selective Strike Few selected workers walk

◦ An All Out Strike All union members stop work

Industrial Action

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

Industrial Action

Work to Rule

◦ Strictly, Rigidly follow rules/regulations

◦ Work often slows

◦ Workers paid normally

◦ Nothing wrong

Industrial Action

Go Slow

◦ Similar to “work to rule”

◦ Workers do jobs more slowly

◦ Deliberately take longer to complete tasks

Industrial Action

Non-Cooperation

◦ Workers refuse to have anything to do with new working practices that they do not approve of

Industrial Action

Over-time Ban

◦ Normal working hours carried out only

◦ No additional work time is done

◦ Damaging to the company

Industrial Action

Possible Harmful Consequences of Industrial Action

Loss of Output

Loss of Income/Profit

Poor Reputation

Cash Flow Problems

For Employers

Customers maybe lost to other firms as

orders not delivered

Loss of Wages

Threat of job losses

For Employees

Find Alternative

SupplierMay cost more for product

Shortage of Product

May not be able to produce goods

For the Firm’s Customers

Deliveries not made

Workers have less money to

Lower Income means less

tax collection

Exports lostLess

products being

produced - imports

Striking firm may have to

lay off workers – Incomes fall, unemployment

For the Economy

Bad reputation from not

delivering on time

Strikes are damaging for both employers and employees

These agreements usually involve an “independent ARBITRATOR”

No-Strike Agreements

Employer’s Weapons

Dismiss Workers

Lock Workers Out

Pay Freeze

Poor Wage Rates

Poor conditions of employment

Poor working conditions

Conflict in Business Organisations

Rigid/Authoritarian Management

Restricted flow of information

Frustration

Rapid/Poorly Planned Change

Employees downgraded or moved without consultation

Rapid/Poorly Planned Change

Employees downgraded or moved without consultation

Lack of involvement in decision-making

Employees feel less important

Employees feel bored, alienated and uncared for

Decrease in market share

Job security issues

This occurs when employees contribute and are involved in the decision making in the business

Worker Participation

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

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

Democratic Styles of Leadership◦ delegation

Major UK organisations involved in industrial relations

Chapter 15 – Employee and Employer Associations

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