IB Business and Management 2.7 Employer and Employee Relations (HL)

Employee-Employer Relations The term used to describe the relationship between employers and workers Managers often act as a ‘go between’

What is conflict? A situation of friction or mutually exclusive goals between two or more parties

Why might there be conflicts between workers and their employees?

Why are there Problems? Employee Objectives Good Pay Less hours Good working conditions Lots of breaks Job security Employer Objectives Reducing costs Having a flexible workforce More work for less pay Because these objectives conflict there are often DISPUTES

Conflict is likely when….. When workers feel their needs/wants are ignored When employee and employer perceive things differently When employee and employer have strong beliefs and will not compromise When power is abused When feelings and emotions are involved

Results of Conflict: Lower Productivity Low morale – and effects of this Poor teamwork High labour turnover Inappropriate behaviour Bad atmosphere

Resolving Conflicts The aim of negotiation is to make sure that each party finds an acceptable solution to any conflict This should prevent the need for industrial action

Negotiation A bargaining process where by two or more parties try to agree on an acceptable solution The ultimate goal would be to find a ‘win-win’ outcome This is obviously not always possible Negotiation can be done on an individual basis….. Or through collective bargaining

Collective Bargaining When workers team up to negotiate as a group. Sometimes this is through a trade union The group representative negotiates on behalf of everyone and benefits from any agreements Negotiations may involve areas such as pay, hours, working conditions and fringe benefits.

Levels of Negotiation Individualised bargaining Factory/plant wide level Local level National level International level

What is a Trade Union A trade union is an organisation which represents the interests of the workers who are its members There are many different types of union representing different types of workers

Teaching Unions

How do Unions work? Unions rely on a mix of paid and unpaid workers Workplaces elect a shop steward/union representative Members can pass on problems to their union rep who can deal with them directly or pass on to someone else Every year the union has an AGM where representatives attend and make major decisions

Task Read the case study about Unison. Answer the following questions: What are the benefits to a worker of being in a Trade Union? What services does a Trade Union offer it’s members

Trade Union Services Negotiate with employers over conditions of work, pay, hours, holidays, equal opportunities and safety Offer advice about issues such as redundancy and unfair dismissal Gives legal protection to workers Provide monetary benefits such as strike pay, life insurance, mortgages and personal loans Act as a pressure group to bring further benefits to workers (lobbying)

Stages of Negotiation Preparation Proposal Debate Bargaining Closing

Result of Negotiations: The outcome will depend on the relative bargaining strength of each party. This will depend on: Negotiation skills of representitive Size and degree of unity of the group The state of the economy Availability of capital as a substitute Media/pressure group involvement

When negotiations fail….. If the two parties fail to make an agreement, the negotiations may reach a ‘deadlock’ At this point either the workers or the employer may take industrial action to try and get what they want

Task Watch the video clips about the BA strikes.

Employees/unions view http://www.youtube.com/watch?v=H0dNcxbU9f8&feature=related\ What actions by BA have led to employees taking strike action? Do you think that employees are justified?

Industry Expert’s view http://www.youtube.com/watch?v=L_Hqjb_tehA Why do the changes in working terms and conditions need to occur? What implications will the strike action have on BA?

CEO’s view http://www.youtube.com/watch?v=GjSkWB_B1hQ What do you now think of the strike proposals?

Industrial Action taken by Workers Action Days – Workers strike for a day or two at a time Go-slow – Workers carry on working but do the minimum amount Overtime ban – Workers still get basic pay but refuse to work overtime Strikes – Workers withdraw their labour and refuse to work Withdraw goodwill – refuse to attend meetings or do work of absent staff Work to rule – Follow rule book exactly and do nothing extra

Industrial Action taken by Employers Threats of Redundancies– Workers are threatened with losing their jobs Changes of contract – Workers on fixed term contracts or new staff are given new conditions when they re-sign. Anyone refusing to sign their new contract will be replaced Threat of Closure– Employers threaten to close all or part of the business. Lock-outs – The employer stops workers from working by temporarily closing

Task Research recent news articles related to Industrial Action Summarise ready to share with the rest of the group next lesson.

Benefits of Trade/Labour Union Membership To an employee More powerful voice when bargaining as a group (e.g. for pay rises) as can threaten industrial action such as strikes Workers will have their individual rights better protected e.g. if dismissed unfairly or discriminated against To an employer Cheaper and quicker to bargain with one trade union representative than individual workers Workers are better motivated if they feel their interests are being looked after by trade unions

Conflict – Methods of Avoiding and Resolution

Outcomes of Conflict

Conflict Resolution The course of action taken to resolve conflict and differences in opinion. These can include: Conciliation Arbitration Employee participation/Industrial democracy No-strike agreements Single union agreement

Conciliation An independent mediator is bought in to listen, advise and encourage both parties to reach a solution that is mutually acceptable

Arbitration An independent arbitrator is bought in to listen to both sides and make a final decision and recommendation. The arbitrator’s word is legally binding. The decision required can either be a compromise or a pendulum arbitration can be required

Employee Participation/Industrial Democracy Employee participation is the process whereby employees are involved in decision making processes, rather than simply acting on orders. Employee participation is part of a process of empowerment in the workplace.

No Strike Agreements a formal agreement between an employer and a labour union that the union will not call its members out on strike. Other methods such as arbitration/conciliation will be used instead

Single Union Agreements A single-union agreement gives one trade union sole bargaining rights in respect of all employees in an organisation. That trade union is the only one recognised by the employer in question.