Effective Employer -Employee Relations A2 Business Studies

Aims and Objectives Aim: Understand the role of trade unions Objectives: Define trade unions Explain the effects of stoppages on businesses Analyse actions a business could take to prevent industrial action Evaluate methods of settling industrial disputes

Hard and Soft HRM Effective Communication Centralisation and Decentralisation Hard and Soft HRM Effective Communication Centralisation and Decentralisation

Starter Define trade unions. How has the power of trade unions changed over time?

Managing Industrial Disputes Back in the 1970s and 1980s the news was often dominated by industrial disputes and action taken by trade unions. However, in the last two decades the incidence of industrial disputes has reduced dramatically.

The Power Of Trade Unions 1970s and 1980s be.com/watch?v= nDvGxNkX4AU be.com/watch?v= nDvGxNkX4AU

Industrial Actions

Forms of Industrial Action

Industrial Action Damages Split into two groups: – Businesses – Employers Consider the damages that could be done to your stakeholder group from industrial action.

Trade Unions Damage for the BusinessDamage for the Employee Lost sales and profit from the lost output Lost pay Damage to customer satisfactionPotential loss of jobs of the action results in action to cut costs An internal distraction for management and the business (worse if comp not affected) Possible loss of customer and public support Damaged relationship with staff may adversely affect motivation, productivity etc Risk that illegal action will result in legal proceedings

Trade Unions What could a business do to prevent industrial action?

Settling Industrial Disputes Most disputes are settle without having to resort to industrial action. When the dispute cannot be resolved between themselves the dispute is taken to an independent advisory service. In UK – ACAS (Advisory, Conciliation and Arbitration Service) feature=endscreen

Conciliation Conciliation is used when an employee is making a specific complaint against their employer to an employment tribunal. Conciliator has no authority to seek evidence or call witnesses, or make decisions or awards. Conciliator discusses the issues with both parties in order to help them reach a better understanding of each other's position. The conciliator encourages the parties in dispute to come to an agreement between themselves, and so avoid the stress and expense of contesting the issue at an Employment Tribunal.

Mediation Involves an independent, impartial person helping two or more individuals or groups reach a solution that's acceptable to everyone. Aim is to restore and maintain the employment relationship wherever possible – not apportion blame Best used early on in a dispute Agreements are not legally binding, but usually carried out

Arbitration An alternative to a court of law Held in private rather than in public (court case) Arbitration involves an impartial outsider being asked to make a decision on a dispute. The arbitrator makes a firm decision on a case based on the evidence presented by the parties. Arbitration is voluntary, so both sides must agree in advance that they will abide by the arbitrator's decision. Often used in disputes between employers and trade unions over collective bargaining issues (e.g. pay awards)

Power of Trade Unions Qantas axe 1000 jobs and outsource maintenance from Austrailia Do some trade unions still have power? What could the implications be for the Australian economy and Qantas?