Employee and Industrial Relations (IR) – An Irish Context Lecture 4 Tues 3/03/09 Paul Dervan BSc (IT) MBA (OU) References: Ch 11 & 13 Gunnigle, P, Hearty, N. & Morley, M. (2006): Human Resource Management in Ireland, 3ed, Gill & Macmillan, ISBN (Due to be published in May 2006) Material provided by Tara Rooney, ITB Lecturer is acknowledged

Objectives Understand the terminology used in Industrial Relations (IR) Examine The history of pay bargaining in Ireland Examine issues around Negotiation & Conflict Understand Disciplinary Procedures Discuss Employee Participation

Exercise The HR Director (newly appointed) from a low cost PC (non-Unionised) manufacturing Company is meeting a number of employees concerning a request to join a Trade Union. The Company currently does not encourage Trade Union membership. There has been some unrest at plant level recently although it is not clear what the cause of this is The HR Director has asked her team to brief her on the Union request and to propose a position she can adopt. Identify the pros and cons in agreeing to the request What is your advice to her?

Introduction Employee relations is a significant aspect of the HR role in organisations. Employee Relations is a broad term covering; 1.Collective Bargaining 2.Grievance Handling/Discipline Issues 3.Other The Participants 1. Individual employees 2. Trade Union rep.’s 3. Government bodies 4. Managers5. Employers Ass.’s 6. Courts & Tribunals

Collective Bargaining Key terms – Negotiation & Compromise Regulating interaction between unions, employees & employers Aim to reach agreement on issues such as pay, working conditions, procedures etc. Collective representation as opposed to individual Freedom of Association Art – ee’s have the right to join together in trade unions Er’s must be prepared to recognise & deal with T.U.’s *Irish system of collective bargaining is voluntary

Bargaining - Scope Establishment Level Bargaining (covering one workplace) Multi-Establishment Bargaining (covering several workplaces) Regional (e.g. covering all retail employers & unions in a particular city) Industrial (e.g. construction industry involving negotiations between Construction Industry Federation on employer side & a trade union grouping representing workers in the construction sector **National (e.g. agreements centrally negotiated between employers, unions, Government & other rep. bodies since 1987) Multi Employer Bargaining Focus on one employer

History of Pay Bargaining in Ireland 1. Prior to 1981 Up to 1960s Ireland had a highly protected market. 1960s – “A decade of upheaval” Ireland join EEC in 1973 ‘EU’ *National agreements in 1970s gave cost of living increases High Strike Activity – 1987 Economy in serious trouble Trade union membership down A – year agreement aimed at regenerating the economy and improving social equity 4. Programme for Economic and Social Progress, PESP, Key Objectives – sustaining economic growth, increasing employment, reductions in long-term unemployed, development of social benefits

History of Pay Bargaining in Ireland 8. Sustaining Progress (SP) (Parts One & Two) Goals: economic inclusion based on full employment, economic development that is socially and environmentally stable, commitment to social justice and change. Elements: Pay increases, national minimum wage, increased maternity benefits, workplace learning, industrial peace, work-life balance.

Negotiating in Employee Relations Fundamental element of CB Negotiations in employee relations involved discussions and interactions between representatives of employers & employees over some divisive issue with the objective of reaching agreement 2 dominant forms of negotiation: Distributive bargaining: involves bargaining over issues where a favourable settlement for one party means an element of loss for the other (win-lose) Integrative (or co-operative) bargaining: involves a joint problem-solving approach. Both parties are concerned with finding a jointly acceptable solution resulting in benefits for both sides (win-win)

Phases in the Negotiation Process Preparation Bargaining Involves opening; expectation structuring; offer, concession, movement; agreement/disagreement and; close Follow-up Involves reporting back to the people each side represents; reviewing the implementation of any agreement reached; possibly a general evaluation of the implications of the negotiation & agreement

Industrial Conflict Unitarist/Pluralist perspectives Industrial conflict is categorised into 2 broad forms: Explicit & organised industrial conflict (e.g. strikes, go-slows, overtime bans) Unorganised & more implicit industrial conflict (e.g. absenteeism, labour turnover, poor performance) Source: LRC

Strike Activity in Ireland 3 key measures in evaluating extent of strike activity: Strike frequency (number of strikes) Workers involved (number of workers participating in strikes) Working days lost (number of working days lost due to strike activity)

Strike Activity in Ireland Impact of official & unofficial strikes is another important issue affecting patterns of strike activity Official strikes are those that have been fully sanctioned by the union executive Unofficial strikes are those that have not been sanctioned by the union. Normally last for a shorter time & have fewer workers involved

Conflict resolution: dealing with disputes Industrial conflict can be beneficial – can facilitate change & development in the nature of employee relations Most widespread response to conflict is development of joint mechanisms to discuss & resolve issues of difference Reflect pluralist approach to employee relations

Grievance Handling Grievances describe a formal expression of employee dissatisfaction Grievance handling involves the establishment & application of procedures Aim of grievance procedures is to ensure employees’ issues are adequately handled & settled fairly as close as possible to point of origin Advantages of grievance procedures: Increased clarity in employee relations interactions Prevention of misunderstandings & arguments over interpretation Ease of communication Increased fairness & consistency in application Can refer situation to a third party for mediation and/or arbitration if the issue cannot be resolved

Handling Disciplinary Issues Disciplinary rules set out the standards of acceptable behaviour expected from employees & the consequences of not meeting these standards Disciplinary procedures constitute the administrative machinery for applying these rules & executing any resulting action Common law concept of natural justice requires that: Company rules should be clearly outlined & communicated Consequences of breaching such rules/standards should be clear Employees not reaching the required standard should be informed & given the opportunity to improve Employees entitled to fair & consistent treatment, opportunity to state their case, access to representation, right to appeal to a higher authority 2 types of discipline rules/standards: Rules & standards where breaches may lead to dismissal in the first instance E.g. theft or violence at work Rules & standards where breaches would lead to the operation of a standard disciplinary procedure E.g. lateness, absenteeism, inadequate work performance

Handling Disciplinary Issues Steps involved: Conduct a thorough investigation Conduct a disciplinary interview Purpose is to assess culpability, allow the employee the opportunity to present his/her viewpoint, decide on appropriate action & attempt to effect desired change in employee behaviour Onus on management to ensure employee knows of right to appeal Details of interview should be recorded & given to employee and/or his/her representative Follow-up and monitoring STAGE Nature of Grievance ManagementEmployees/Trade Union 1. Local work rules or affecting small group ?? 2.Issue unresolved at Stage 1- implications for a group of workers on a dep./sectoral level ?? 3. Issue unresolved from Stage 2 – Grievance or claim with company wide implications ?? 4. Unresolved issue through the appropriate lower stages & remains unresolved ? 5. Any issue which remains unresolved after stage 4 ? Level of involvement

Handling Disciplinary Issues Management will seek to take disciplinary action against employees who fail to conform to the established rules and norms of the organisation such as performance levels, attendance, conduct etc. Disciplinary Rules Disciplinary Procedures What are the objectives? Why is it important that procedures are followed? What piece of legislation will allow Testing for Intoxicants?

Trade Unions – Sell Out Deal! Irish Ferries is justified in seeking to replace its Irish Workforce with cheaper Labour?

Employee Participation Employee participation may be interpreted as incorporating any mechanisms designed to increase employee input into managerial decision-making It can take many forms from management informing employees of decisions that affect them, to consultation with employees on decisions or joint participation in actual decision-making process Direct forms of employee influence: Workers are directly involved in the decision- making process Employee involvement Quality circles Consultative meetings Team-working 4 forms of participation Task participation Equity participation Representative participation Participation through CB

Advantages of Employee Participation For Employers Creates a flexible, responsive and committed workforce For Employees Achievement of an input into relevant decisions is a legitimate goal Allows them greater control & discretion in their jobs For the State & Community Benefits from positive workplace relations based on trust, open communications & employees’ satisfaction