HRM Employer and Employee Relations Unit 2 Section 2.6

Managers strive to ensure that there are good working relationships at work. This is not easy to do! Poor working relationships often lead to low morale and conflict. Industrial unrest can arise thus employer and employee relationships worsen. If things get worse, representatives will step in and deal with the sources of disputes on behalf of their members to resolve the conflict.

Some individuals may use agents to act on their behalf Collective Bargaining : the process by which pay and working conditions are settled by negotiations between employers and employees or by their respective representatives. Negotiation : is a bargaining process whereby 2 or more parties attempt to achieve a mutually acceptable result. (reach a ‘win-win’ outcome)

I. Employee Representatives a) Trade Union (or labor union) – this is an organization (a union of workers) whose members unite to protect their rights and welfare. This gives them bargaining power due to the strength in numbers. From an employer’s perspective, it’s cheaper and quicker to bargain with one trade union representative than many individual workers.

…..continuing Trade unions Members of a trade union must pay an annual fee to contribute towards the costs of running the union. Union subscription fees also cover the costs of legal advice & representation for members in industrial dispute. The main role of trade unions is to protect the interests of their members.

Main issues that unions deal with: Increased pay and benefits Improving conditions of work Supporting members with necessary legal advice when needed Providing financial support and legal advice to members who may have been unfairly dismissed or made redundant

Types of Labor Unions [Box 2.6.a (pg.206)]

II. Employer Representatives These are individuals or organizations that represent the management team in the collective bargaining process. Some use a specialist management consultancy firm. Others prefer to use a small team of highly skilled individuals on the senior management team. In large organizations, the employer representatives are often from the company’s head office. Employers can also use employer’s associations : these are organizations that represent the general views and interests of all businesses within a certain industry by negotiating with unions and influencing government action.

The bargaining strengths of the employer & employee representatives depend on several factors : Level of skills & experience of the negotiators Number of members & the degree of unity within the trade union State of the economy Demand for labor Degree of substitution between labor & capital Public & media opinion Government involvement

I. Industrial/Employee Relations METHODS USED BY EMPLOYEES Collective Bargaining: senior managers are more pressured to listen to the workers when represented by a trade union (a united workforce). ii. Go-slows: under this form of industrial action, employees work at the minimum pace allowable in their employment contract.

II. Industrial/Employee Relations Employer objectives include: 1- Lower production costs to remain competitive 2- Improved productivity levels 3- Lower rates of absenteeism 4- Higher staff retention

Methods used by Employers The senior management team and the employers’ associations use a combination of tactics during industrial unrest : 1- Collective Bargaining (negotiations) : this differs from other forms of conflict resolution in that it does not require the involvement of third parties to establish a win-win situation. 2- Threats of redundancies : some negotiators use intimidation to pressure or threaten employees. 3- Changes of Contract 4- Closure 5- Lock-outs

Sources of Conflict A- Needs and Wants of people are ignored B- Misunderstandings and Misperceptions C- Incompatible Values or beliefs D- Abuse of power – making people do things against their will E- Ignored feelings and emotions of others in an organization

If Conflict is not managed, it can: Hinder productivity Reduce staff morale Cause inappropriate conduct Fuel the internal politics Hamper opportunities for collaborative teams

5 Possible Outcomes :

Resistance to Change One of the major barriers to effective change management is the resistance to change from the workforce. Professor John Paul Kotter (1979) said there are 4 main reasons why people resist change in the workplace :

Professor Kotter’s 6 Approaches to Deal with Resistance :

HRM Unit 2 End of Section 2.6