1. Effective Employer -Employee Relations
A2 Business Studies

2. Aims and Objectives Aim: Understand the role of trade unions
Define trade unions
Explain the relationship between trade unions and employers
Analyse how the power of trade unions has changed
Evaluate the effects of trade unions on stakeholders

3. Hard and Soft HRM
Creating a flexible workforce
Centralisation and Decentralisation

4. Employee Representation
Employee representation or participating arises when employees are part of a formal structure for involving them in the decision-making process of an organisation.

5. Employee Representation
The law requires a business to consult with employees on things such as:
Redundancy programmes
When employees are transferred from one employer to another (e.g. the sale of the business)
On changes to pension arrangements
Proposed changes to working time arrangements

6. Employee Representation Reasons
Businesses should have a form of employee representation to:
Make employees' views known to management
Help strengthen both management's and employees' understanding of workplace issues and other matters affecting the business
Help create an atmosphere of mutual trust between employees and management and therefore improve workplace relations

7. AN: Employer Representation to Business
Advantages
Disadvantages
Increased empowerment and motivation of workforce.
Employees become more committed to achieving objectives.
Better decision making.
Lower risk of industrial disputes.
Time consuming – potentially slows decision making.
Conflicts between employer and employee interests may block essential changes.
Managers may feel their authority is undermined.

8. Trade Unions
Trade unions are organisations of workers that seek through collective bargaining with employers to:
Protect and improve the real incomes of their members
Provide or improve job security
Protect workers against unfair dismissal and other issues relating to employment legislation
Lobby for better working conditions

9. Trade Unions Vs Firms? Conflict Partnership
Interests of firms and trade unions are conflicting.
Higher wages for workers mean higher costs and lower profits for the firm.
Union activity may then be seen as damaging to both the firm and the economy, reducing supply.
The success of the firm is in the interests of both parties.
A profitable firm is more likely to generate jobs and pay it’s workers well.
If workers receive better pay and working conditions their morale may increase, leading to increased productivity for the firm.

10. Benefits to Firms of Trade Unions
Negotiating with trade unions (ideally a single union) saves time and cost rather than dealing with all employees individually
Unions are part of the communication process between the business and employees
Employee morale and motivation may be improved if they know that their interests are being protected by a union
The trade union can be a supportive partner in helping a business undergo significant change

11. Trade Unions
In the UK there has been a long term decline in union membership.
In 2008, only 28% of people in a job in the UK were members of a trade union.
That percentage is much lower in the private sector where less than one in six employees is in a union.
Unionisation is much higher in the public sector – at over 50%.
4.30

12. Trade Unions

13. Trade Unions
What reasons may there be for a steep decline in Trade Union membership since the 1980s?

14. Trade Unions
Decline in employment in manufacturing (where union membership is traditionally strong) and an increase in employment in the service sector where unions are less well established
Growth in the number of small firms which tend not to recognise (or need) trade unions
Significant growth in flexible working (part-time, temporary, seasonal) – where employees see less need for union protection
Improved employee involvement in the workplace – so less perceived need for collective bargaining

15. EV: Trade Unions
Under UK law employers must recognise a trade union in pay and employment discussions when a majority of the workforce want to be represented and has voted for it. But there is little evidence that union members secure any significant wage “mark-up” or greater job protection than people in non-union jobs.
Are trade unions a good thing for employers?
Are trade unions a good thing for employees?