Employer and employee relations

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Employee relations

Employee relations

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  • 1. Employer / Employee Relations
  • 2. Content
    • Employee / Employer relations
    • Different approaches to employee relations:
    • Collective bargaining
    • Individual bargaining
    • Employee participation and industrial democracy
    • Role of trade unions and ACAS
    • Principals of employment law
  • 3. What is Employee Relations?
    • Employee and Employer Relations describes the relationship between workers and employers in business
  • 4. Why is it important?
    • Motivation
    • Reputation : Potential customers, investor and staff
    • Output
    • Efficiency
    • Profit levels
  • 5. Collective v Individual Bargaining
    • In the nineteenth century workers used to negotiate their own pay and conditions with their employers- INDIVIDUAL BARGAINIG
    • Collective bargaining occurs when workers allow the union to negotiate on their behalf. Negotiations can be with an individual employer or an employers' association.
  • 6. Different Approaches To Employee Relations
    • The workforce is becoming increasingly flexible with an increased emphasis on part-time and temporary workers and against full-time permanent workers
    • A flexible work force is cheaper for firms, allows them to meet changes in demand, reduces training and allows for specialisation
    • However there is less security, communication may be problematic and turnover is higher
  • 7. Salaries Vs Wages
    • Full time salaried workers tend to have more “rights” and job security than part time temporary workers
  • 8. Employee participation and Industrial democracy
    • Employee participation – workers being involved in business decision making
    • Industrial democracy – the methods which workers can influence business decisions
  • 9. Works councils
    • These are forums where workers and management meet to discuss issues concerning work e.g. working conditions, pay, training
    • Usually members are elected
    • Often used where there are no trade unions
  • 10. Employee shareholders
    • Where workers can gain shares in the company
    • There are tax benefits
    • Idea is by owning shares performance and motivation of the workforce increase
  • 11. Autonomous work groups
    • This is where teams of workers have a high degree of control
    • Authority has been delegated from senior management
    • Basis of groups is that motivation and productivity should be increased
  • 12. Team working
    • Teams are responsible for a specific part of the production process
    • This can help increase motivation
    • Team working is compatible with democratic leadership
  • 13. Quality Circles
    • This is when groups of workers meet to talk about ways to improve quality of products
    • Usually a group of 3-10 workers who meet for 1-2 hours 2-3 times a month
    • These often provide imaginative solutions to business problems
  • 14. The Role of Trade Unions
    • Craft unions : represent skilled workers from one occupation
    • General unions representing mainly unskilled workers from many occupations e.g. TGWU (Transport and General Workers' Union).
    • Industrial unions representing mainly workers in one industry.E.g. NUM (miners' union)
    • Professional or white-collar unions representing skilled workers in mainly service industries.E.g. NUT (teachers' union).
  • 15. The Aims of Trade Unions
    • Improve the pay of workers.
    • Improve working conditions and secure longer holidays.
    • Protect members' jobs.
    • Provide local, social and welfare facilities.
    • Influence government policy
  • 16. The Trades Union Congress
    • Made up of over 90 unions representing more than 9 million members
    • An annual conference decides overall union policy and elects the General Council
    • The General Secretary of the TUC is the trades union spokesman in any negotiations with the government or employers' organisations.
  • 17. Disputes & Restrictive Practices
    • Disputes can arise over pay, working conditions, redundancies etc
    • Restrictive Practices may then follow such as:
    • A closed shop - union insists all workers are T.U members.
    • Demarcation when a union insists that only their members do certain jobs
  • 18. Industrial Action
    • If negotiations break down Unions can:
    • Work to rule :do the bare minimum
    • Impose an overtime ban
    • Strike and refuse to work altogether
    • Picketing: ask other members not to enter
    • ‘ Blacking’: Refusing to deal with certain employees or suppliers because they have refused to participate in I.A
    • Employers can operate a lockout and refuse workers entry or they can dismiss striking workers for breach of contract
  • 19. ACAS
    • Arbitration is when employers agree to an independent referee to try to find common ground
    • Advisory Conciliation and Arbitration Service (ACAS) has been available to help solve disputes
    • In the 1980s and 1990s there have been an increasing number of single-union agreements where employers negotiate with only one union
  • 20. Employment Law – Individual labour law
    • Looks at the rights and responsibilities of individuals:
      • Equal Pay Act 1970 – both sexes treated equally re: pay
      • Sex Discrimination Act, 1974 – cant discriminate on grounds of sex or marital status
      • Race Relations Act, 1976 - cant discriminate in relation to colour, race, nationality or ethnic origin
      • Disability Discrimination Act, 1994 – cant discriminate due to disability
      • Working Time Regulations, 1998 – this sets a limit on the number of hours worked per week
  • 21. Collective labour law
    • Looks at the operation of trade unions, industrial relations and collective bargaining:
      • Employment Act 1980 – employees aren't obliged to negotiate with unions
      • Trade Union Act 1984
      • Employment Act 1982, 1988, 1990
      • Trade Union Reform and Employment Rights Act, 1993
      • Minimum Wage Act, 1998
      • Employment Relations Act, 2000
  • 22. Impact of Employment Legislation On Businesses
    • There are positive and negative impacts
    • Can act as a motivator to the workforce
    • Reduction in power of trade unions has increased workforce flexibility
    • Foreign investment has increased as legislation is employment friendly
    • Increases costs
    • Businesses need to employ non productive workers to manage the policies
    • These effects can be more detrimental on smaller firms
  • 23. Summary
    • Employee / Employer relations looks at the relationship between workers and the business
    • Collective bargaining refers to the negotiation between employees and workforce representatives
    • Individual bargaining where a single worker negotiates their working conditions and pay with management
    • Employee participation and industrial democracy – these aim to increase employee involvement in business decisions and can include quality circles
    • Trade unions act to protect and improve the economic and working conditions for their members
    • Acas looks at resolving disputes
    • Employment laws regulate what a business is doing