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Industrial Relations Chapter 26

Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

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Page 1: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

Industrial Relations

Chapter 26

Page 2: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

Industrial Relations

What does ‘Industrial Relations’ mean?

Industrial relations refers to the relationship which exists between employers and employees.

It is most important that this relationship is good.

Page 3: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

Good Industrial relations Good Industrial Relations ensure that:1. Discussions take place on a continuous

basis2. Disputes over wages, working conditions,

etc can be settled quickly and without a strike taking place.

3. Workers are happier in their work and are more productive

Industrial Relations

Page 4: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

Industrial Relations

Bad Industrial Relations Bad Industrial Relations lead to:1. Disputes and strikes2. Loss of pay for employees3. Loss of profits for employers4. Workers looking for new jobs5. High levels of absenteeism and staff

turnover

Page 5: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

Industrial Relations

What is a ‘Trade Union’?

Trade Unions are organisations formed by workers to protect the interests of their members.

Page 6: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

Industrial Relations

Trade Unions help their members in the following ways:

1. They negotiate with employers for better wages, shorter working hours, longer holidays, safer working conditions, etc.

2. They protect members from unfair dismissal3. They represent members in discussions with

employer organisations and the government, on matters such as taxation, wages, etc.

Trade Unions

Page 7: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

Industrial Relations

There are 4 types of Trade Union

1. Craft Unions2. White Collar Unions3. Industrial Unions4. General Unions

Trade Unions

Page 8: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

Industrial Relations

1. Craft Unions Members belong to a particular trade and

have served an apprenticeshipeg.: Irish Actors’ Equity Union, Irish Master

Butchers Federation

2. White Collar Unions Members work in professional areas such

as the civil service and teaching.eg.: ASTI Association of Secondary Teachers TUI Teachers’ Union of Ireland

Types of Trade Union

Page 9: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

Industrial Relations

3. Industrial Unions Members work in the same industry regardless of

the work they do in that industry. It represents people working at different types of

jobs in nursing, banking, etc.eg.: INO Irish Nurses Organisation, Prison Officers

Association

4. General Unions Members work in all types of industry such as

manufacturing, cleaning, electricians, etc.eg.: Services Industrial Professional and Technical

Union - SIPTU

Types of Trade Union

Page 10: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

How is a Trade Union run?

Trade Union members elect certain people (shop steward, general secretary, president) and committees to run the union.

Industrial Relations

Page 11: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

What is a ‘Shop Steward’?

This is the local union representative and is elected by members for a term of one to three years.

The main duties of a shop steward include:1. Recruiting new members2. Acting a as a link between members and

union HQ and passing on any information received from head office.

3. Negotiating with the employer on behalf of its members (employees)

Industrial Relations

Page 12: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

The Irish Congress of Trade Unions (ICTU) This is a voluntary body made up of member

trade unions. Most trade unions in Ireland are affiliated to the

ICTU.1. It provides one voice for all its members (unions)2. It consults with the government and the

government on all matters of national interesteg.: wages, tax, social welfare3. Gives advice and training to trade unions4. Nominates people to the Labour Court and

Labour Relations Commission.

Industrial Relations

Page 13: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

The other party in industrial relations is the employer.

Human resource (personnel) managers represent the employer in all discussions with workers/unions.

Many potential disputes are settled when shop stewards and personnel managers meet

Industrial Relations

Page 14: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

Industrial Relations

At national level employers are represented by the Irish Business Employers Confederation (IBEC), the Irish Small and Medium Enterprises Association (ISME), Construction Industry Federation (CIF), etc.

Employers organisations:1. Provide one voice for its members

(employers)2. Represent employers in discussions with the

Government3. Sometimes intervene if one of their members

(an employer) is in dispute with a trade union4. It gives advice to its members

Page 15: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

Industrial Relations

What is Collective Bargaining? This takes place between the Social Partnersi.e. the Government, Trade Unions, Employers

Organisations, etc They decide on the increase in the level of wages in

an economy over a period of time. In return for keeping wages increases low, the

government agrees to keep taxes low. Collective bargaining leads to the National Wage

Agreements Theses agreements lead to1. Better industrial relations (less strikes)2. Lower costs, lower prices and increased sales and

employment

Page 16: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

Industrial Relations

The following are reasons for ‘Industrial Relations’ disputes:

1. Pay2. Working Conditions3. Unfair Dismissal4. Redundancy5. Demarcation6. Discrimination

Page 17: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

Industrial Relations

1. Pay Workers might want higher wages. Workers might want extra pay for extra

work doneeg.: teachers getting paid for supervision

2. Working Conditions Fewer hours of work Safer Work Areaseg.: Insisting on safety netting on

scaffolding

Reasons for an Industrial Dispute

Page 18: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

Industrial Relations

3. Unfair Dismissal of Workers Ensuring that employees are fairly

dismissed The Unfair Dismissals Act lays down what

an unfair dismissal is, what is a fair dismissal is, the proper procedure for dismissing workers and the forms of redress workers are entitled to if they’re unfairly dismissed.

Reasons for an Industrial Dispute

Page 19: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

Industrial Relations

4. Redundancy Employees are made redundant if there is no

work available for them. Conflict can arise over what employees are laid

off first (Last In First Out [LIFO]) and the redundancy payment that they are entitled to.

5. Demarcation This relates to doing the work one is employed

and qualified to doeg.: an electrician doing the work of a plaster

Reasons for an Industrial Dispute

Page 20: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

Industrial Relations

Unions can take 4 different types of ‘Industrial Action’ to back their claims:

1. Work to rule2. Go slow3. Overtime ban4. Sit in5. Strike

Page 21: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

Industrial Relations

1. Work to rule Where employees will only do the

exact work they were employed to do

2. Go slow Where employees do their work but

do so as slowly as possible

Industrial Action

Page 22: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

Industrial Relations

3. Overtime Ban Where employees refuse to do any

overtime required by their employer

4. Sit-in This is when workers refuse to leave their

place of work Unions are rarely officially involved in a sit-

in

Industrial Action

Page 23: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

Industrial Relations

5. Strike Where workers stop working and place a

picket on the employer. If the strike is official it will have the

backing of the union and the ICTU

What is a Picket? This is when workers walk up and down

outside their workplace carrying placards stating that a strike is taking place

Industrial Action

Page 24: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

Industrial Relations

Page 25: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

Industrial Relations

All disputes should be resolved at the earliest possible stage to ensure that both the employee and employer do not loose out.

A Win-Win solution for both sides should be the aim.

If the written down procedures are followed then strikes should not take place.

Page 26: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

Industrial Relations

The following are the 5 steps in the resolution of an industrial dispute:

1. Worker Supervisor2. Shop Steward Manager3. Union Official Head Office/employer4. Conciliation5. Arbitration

Page 27: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

1. Worker – Supervisor The worker should firstly discusses the problem

with their supervisor. If there is no agreement then they go on to step 2

2. Shop Steward – Manager The shop steward will then discuss the dispute

with the manager. If there is no agreement we go onto step 3

3. Union Official – Employer A Union Official from head office will discuss the

problem with the employer (who informs IBEC). If there is no agreement then we go onto step 4

Industrial RelationsResolution of Industrial Relations Disputes

Page 28: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

Industrial Relations

4. Conciliation An acceptable person or organisation is asked to

help both sides settle their dispute. This is an 3rd party or middle man. They encourage both sides to talk out their

problems and help both sides reach a mutually acceptable, negotiated solution.

They may suggest a way of solving the conflict. They cannot tell the parties involved what to do If there is no agreement we move onto step 5.

Resolution of Industrial Relations Disputes

Page 29: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

Industrial Relations

5. Arbitration An acceptable independent person

or organisation is asked by both sides to examine the dispute and to make a decision which both sides gave agreed in advance to accept.

The decision is acted upon.

Resolution of Industrial Relations Disputes

Page 30: Industrial Relations Chapter 26. Industrial Relations What does ‘Industrial Relations’ mean? Industrial relations refers to the relationship which exists

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The Labour Court This is a court of last resort. It is made up of a representative of employers, a

representative of the unions and an independent chairperson.

The labour Court investigates a dispute. They make recommendations having listened to both sides.

These decisions are not legally binding but both sides are expected to consider them seriously.

Usually both sides agree in advance to accept the recommendations of the labour court. This is called binding arbitration

Resolution of Industrial Relations Disputes