Employer and employee relations

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Employee relations

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Employer and employee relations

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

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