2.7 Employer & Employee Relations Chapter 16

Vocabulary Trade Union Industrial Action An organization of working people with the objective of improving pay and working conditions and providing them with support and legal services. Industrial Action Measures taken by the workforce or union to put pressure on management to settle disputes in favor of the employees

Collective Bargaining The negotiations between trade unions and employers on issues of common interest such as pay and working conditions. Trade Unions are not legal in all countries. Are they legal in the U.S.? Are they legal in North Carolina?

Why Workers Join Unions Power through Solidarity- Trade unions negotiate on behalf of their members. This puts workers in a strong position to determine pay and other benefits. Individual Industrial Action VS Collective Industrial Action One worker going “on strike” is not as effective as all employees going “on strike”. Legal support for unfair dismissal or poor working conditions Unions pressure employers to ensure that legal requirements are met like health and safety regulations.

Trade Union Recognition An employer officially agrees to negotiate pay and working conditions with a trade union rather than bargain individually with each employee. Do Trade Unions only benefit employees?

Benefits to Employers Employers can negotiate with one organization rather each employee Increases communication between the employer and employees. Unions can impose discipline on their members. Responsible partnering with unions creates a platform for discussing common business issues and promotes productivity, job security, and raises profits.

Types of Industrial Action Negotiation Go Slow (or Slow Down) Workers keep working but at the minimum pace as demanded by the contract. Work to Rule Workers refuse to do any work outside the precise terms of their contract. Overtime Bans Workers refuse to work more than their contracted hours per work. Strike Action – MOST EXTREME Workers refuse to come to work. This causes the business to shut down.

Employer Response to Union Disputes Negotiate Public Relations Using media to gain support for the employers position. Threats of Redundancy May put pressure on the union to settle. Changes of Contract Alter new contract to favor the employer Closure Close the location of the factory with the uncooperative union Lock-Outs Short-term closure of the factory to prevent workers from being paid.

Sources of Conflict Cause of Conflict Management View Employee View Business Change Change is necessary to stay competitive and profitable. Change can lead to Job loss New required skills Increased flexibility Reduction in job security Organizational Change Business needs to cut overhead and adapt to global competition – usually resulting in lower costs. Cost cutting measures always seem to impact workers NOT managers Reduced job security damages motivation.

How to Reduce Conflict Single Union Agreement An employer recognizes only union for collective bargaining. Dealing with one union is less time consuming. Eliminates inner union disputes.

Hot to Reduce Conflict No-Strike Agreement Unions agree to sign agreement not to strike in exchange for greater involvement in workforce decisions. Why give up the right to STRIKE? Improves the image of the union. Is usually traded for greater flexibility in decision-making within the business. Creates a partnership atmosphere.

Options to Resolve Conflict Conciliation The use of a third party to find common ground in order to find an acceptable compromise. Arbitration Using a third party to judge and recommend a solution that is binding.

Pendulum Arbitration Compromise is not allowed. Each “side” presents their best case scenario. The arbitrator decides which case he will “side” with. This decision becomes binding. Advantage: Each side presents what they believe is fair knowing that a compromise is not an option. (Therefore, keeping the pendulum from swinging in favor of one party over the other.)