Chapter 15 – Employee and Employer Associations

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Chapter 15 – Employee and Employer Associations. Unit 4 – People at Work. You will learn ……. 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. Introduction. Introduction. - PowerPoint PPT Presentation

Text of Chapter 15 – Employee and Employer Associations

Chapter 15 Employee and Employer Associations

Chapter 15 Employee and Employer AssociationsUnit 4 People at WorkThe 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

Sole trader Very few employees Employee problems usually solved by talking to the business owner

Larger Businesses More difficult to discuss issues with a manager/owners of a business

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

3Introduction

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

4Introduction

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

5A Trade Union is a group of workers who have joined together to ensure their interests are protectedTrade Union

Employees generally have the same interests improving pay, working conditions being treated fairly given proper training

A union is there to help employees to achieve improvements in different aspects of their employmentIs a type of pressure group

Unions can be founf all over the world in countries such as the US, AUS, UK, Papua New Guinea, etc

6SHOP 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?

AdvantagesStrength in NumbersImproved Conditions of EmploymentImproved Workplace EnvironmentImproved BenefitsImproved Job SatisfactionAdvice & Financial SupportFurther BenefitsEmployment where there is a closed shopTrade Union Membership

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

8Trade Unions seek toPut forward views to the mediaInfluence government decisionsImprove communication between workers & managementTrade Union Membership

9A 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

11An 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

Office staff, managers, and professional people

13Closed 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

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 join15Advantages for employeesDiscussions clearerGreater powerNo disagreements between unionsBetter working relationshipDisputes solved quickly

Single-Union Agreements

Advantages for employersOnly one union to negotiate withBetter working relationshipDisputes resolved more quicklyEasier to agree to changesBetter relationships

Single-Union Agreements

17The Structure of a Trade UnionPresidentNational ExecutiveHead OfficeBranchRegional officesRegional officesRegional officesRegional officesIndividual MembersBranchBranchBranchBranchBranchBranchBranchPresident / General SecretaryWork for and paid full time by the trade union Work from the headquarters

If union is large, there will be full-time officials working by district/regionSupport and help member branches

Branches Each work site Each has a union representative Representatives elected democratically

18Employer Associations Employer FederationsTrade AssociationsBusiness join together to form a association or federationSubscription Fee BenefitsEmployer Associations

AdvantagesRepresentation of MembersOffer AdvicePressure GroupSharing good practiceBulk-Buying

Employer Associations

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

20Act as pressure groupsRepresent business interestsLinked to economic environment

Government Control & ProvideTaxationRules & RegulationsEconomic PoliciesInfrastructure

Employer Associations and the Government

Government Control economy inflation law & order health education21Collective bargaining is negotiations between one or more trade unions and one or more employees (or employee associations) on pay or working conditionsNegotiation & Collective Bargaining

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 level22Negotiation & Collective Bargaining

Rising InflationDifficult to recruit qualified workersMaintaining pay differentialsChanges in the workplace

Can be at a local or national level

Trade unions argue for a wage increase for one/more reasons Rising Inflation Difficult to recruit qualified workers Maintaining pay differentials Changes in the workplace

23Negotiation, Collective Bargaining and Productivity Agreements

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 productivity24This is taken by trade unions to decrease or halt productionIndustrial Action

Strike Action

A Token StrikeShort Stoppage

A Selective StrikeFew selected workers walk out

An All Out StrikeAll union members stop work

Industrial Action

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 unions strike fundUnofficial Strike or Wild-Cat Strike strike pay will not be paid

If trade union wants to call for a strike, ballot papers will be sent round to vote if they should strike or not. Majority follows

26Picketing Support strikeStand outside workplaceTry to persuade other workers not to go to workMay halt production all togetherGain publicityCompany gets bad publicityApplies pressureIndustrial Action

27Work to Rule

Strictly, Rigidly follow rules/regulations

Work often slows

Workers paid normally

Nothing wrong

Industrial Action

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.

28Go 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

E.g.

A new administration procedure may involve the workers filling in more paperwork. They would refuse to fill in the forms

30Over-time Ban

Normal working hours carried out only

No additional work time is done

Damaging to the companyIndustrial Action

31Possible Harmful Consequences of Industrial Actio