1. People and business
Industrial relations

2. An introduction What is meant by ‘industrial relations’
The relationship between a business and its workers
Common interests
E.g. ensuring the survival of the business
Conflicting interests
E.g. a pay increase means more money for workers, but higher labour costs for the business

3. History of industrial action
Before the 1980s
Rivalry between unions - ‘they got more than we did’
‘Wildcat strikes’ - unofficial and short lived
Since the 1980s
New laws created (e.g. secret ballot, requiring 50% ‘in favour’)
Workers became afraid (i.e. period of mass unemployment)
Employers became tougher (e.g miners’ strike)
Union membership fallen (i.e. manufacturing sector declined)

4. Industrial action by the employees
Overtime ban - only work hours stated in contract
Work to rule - only do what rules and regulations say
Go-slow - carry out work more slowly than normal
Sit-in - occupy the building, to publicise the protest
Picketing - stand outside, lobbying workers to support
Strike - withdraw labour, by refusing to go to work
Key people only, to hinder and/or halt production
If all members are involved, this is an ‘all out strike’

5. Industrial action by the management
Lockout
Prevent workers from entering the workplace
Dismissal
People refusing to work are sacked, and replaced by new workers
Compromise
Only people who are prepared to accept the management’s terms are allowed to resume work

6. The costs of industrial action
To the workers
Loss of wages, overtime, bonuses, commission
Potential redundancy, due to fall in business sales
To the business
Loss of sales (perhaps to competitors) and profit
Damage to industrial relations and corporate image
To the economy
Social security benefits up, tax revenues down

7. The new ‘blame culture’
Why are so many people making complaints against their employers?
Numerous laws created to protect the worker
Greater awareness of their rights under the law
Motivation of financial compensation
Breaking a stalemate - the role of ACAS

8. Going to court - the industrial tribunal
The role of ACAS
What is ‘ACAS’ and what does it do
The Advisory, Conciliation and Arbitration Service
An independent body, financed by government
Resolves disputes between workers and employers
How does ACAS do this
Provide advice to both the employer and the union
Find common ground, to re-start negotiation
Arbitrate a binding decision for both parties
Going to court - the industrial tribunal

9. The industrial tribunal
What is an industrial tribunal
A court dealing mainly with employment law
How does the tribunal work
A worker decided to sue the employer
The tribunal hears evidence for both sides
The tribunal then makes a decision
If the employer is found to be at fault
Employee - reinstatement, financial compensation
Employer - company fine, bad publicity

10. Revision: a quick test Q1. What does ‘work to rule’ mean?
Q2. What might happen if a firm loses at tribunal?
Q3. How might industrial action affect the economy?
A1. Staff only do what the rules and regulations say
A2. Pay compensation (to worker), and/or fine (to court)
A3. Production & sales go down - tax revenues go down
Unemployment goes up - benefit payments go up
Government revenue down + costs up = economy suffers

11. People and business
End of presentation