AS90844: EXternal pressures on A Large Business Political Influences (Cont…Trade unions / employer associations) legal influences (the Employment Relations Act 2000, Resource Management Act 1991, Privacy Act 1993).

Political influences cont….. Changes in policy Employment protection and legislation The government are in charge of looking after the human resource of a country. Legislation to protect resources – Employment Law Employment Relations Act 2000

Trade Unions Relying on legal protection is not always enough Trade unions (TU) exist to represent and uphold the rights of employee Re-adress the power balance between workers and managers TU work with employees and employers to achieve Fair working conditions Fair wages Negotiate collective contracts

Trade Unions Union Intervention TU will be called if workers feel they are being exploited or situations change in the workplace to the detriment of workers. E.G if redundancies or restructuring occurs the TU will negotiate how many, if they have to occur and what the redundancy package would be

Union membership ADVANTAGES DISADVANTAGES Legal support Fees Collective bargaining Advocacy and mediation Advice DISADVANTAGES Fees Forced to act if you do not personally agree with the union action

Other union activity Industrial action Political Lobbying Public Relations Legal representation on issues in the workplace (not directly affected by workers)

Employer representations The employers are represented by EMPLOYER ASSOCIATIONS Groups of employers (managers) discuss how to improve efficiency and productivity, balance the power of the unions provide specialist advice and guidance. Local Employer Associations are know as the Chamber of Commerce

Political Influences: Legal Business laws focus on 3 areas: Employment, Consumer Protection + Business Operations Employment Relations Act 2000 - employees must have written contracts with duties included Resource Management Act 1991 – how natural resources can be used by organisations Privacy Act 1993 – how consumers details are to be stored, protected and not passed on.

Business responses to legal influences Businesses have to operte within the law – Compliance department Laws are always being updated and changed to reflect changes in society Ignorance is not a defence Business will adapt the way they operate to follow the law Failure to follow the law leads to fines and can increase costs.

fINALLY……. Key Terms Workbook reference Collective bargaining Lobbying Advocacy Industrial relations Industrial Action Employer Associations Chamers of Commerce Pages 65-68 – TU Pages 68-70 – Employer Associations