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Unit 4 – People at Work
   The role of trade unions

   The role of employer associations

   The process of collective bargaining

   The different types of industrial action

   How conflicts can be resolved
   A Trade Union is a group of workers who
    have joined together to ensure their interests
    are protected
SHOP STEWARD

For an annual fee that
pays for the employment
of union officials, they
will represent the views
of those in the union to
achieve their aims.
   Advantages
    ◦ Strength in Numbers
    ◦ Improved Conditions of
      Employment
    ◦ Improved Workplace
      Environment
    ◦ Improved Benefits
    ◦ Improved Job Satisfaction
    ◦ Advice & Financial Support
    ◦ Further Benefits
    ◦ Employment where there is a
      closed shop
   Trade Unions seek to
    ◦ Put forward views to the
      media
    ◦ Influence government
      decisions
    ◦ Improve communication
      between workers &
      management
   A craft union is a trade union which
    represents a particular type of skilled worker.
   A general union is a trade union which
    represents workers from a variety of trades in
    the industry. They are often un-skilled but
    also semi-skilled workers.
   An industrial union is a trade union which
    represents all types of workers in a particular
    industry
   A white-collar union is a trade union which
    represents non-manual workers.
   Closed shop is where all the employees have
    to be a member of a particular union.
   A Single-Union Agreement is where a firm
    deals with only one particular union.
   Advantages for employees
    ◦   Discussions clearer
    ◦   Greater power
    ◦   No disagreements between unions
    ◦   Better working relationship
    ◦   Disputes solved quickly
   Advantages for employers
    ◦   Only one union to negotiate with
    ◦   Better working relationship
    ◦   Disputes resolved more quickly
    ◦   Easier to agree to changes
    ◦   Better relationships
President


                               National Executive


                                  Head Office



Regional offices    Regional offices         Regional offices    Regional offices


Branch     Branch   Branch     Branch       Branch     Branch   Branch     Branch


                             Individual Members
   Employer Associations
    Employer Federations
    Trade Associations
   Business join together to
    form a association or
    federation
   Subscription Fee
     Benefits
   Advantages
    ◦   Representation of Members
    ◦   Offer Advice
    ◦   Pressure Group
    ◦   Sharing good practice
    ◦   Bulk-Buying
   Act as pressure groups
   Represent business interests
   Linked to economic
    environment

   Government Control & Provide
   Taxation
   Rules & Regulations
   Economic Policies
   Infrastructure
   Collective bargaining
    is negotiations
    between one or more
    trade unions and one
    or more employees
    (or employee
    associations) on pay
    or working conditions
   Rising Inflation
   Difficult to recruit
    qualified workers
   Maintaining pay
    differentials
   Changes in the
    workplace
   This is taken by trade unions to decrease or
    halt production
   Strike Action

    ◦ A Token Strike
      Short Stoppage

    ◦ A Selective Strike
      Few selected workers walk
       out

    ◦ An All Out Strike
      All union members stop
       work
   Picketing
    ◦ Support strike
    ◦ Stand outside
      workplace
    ◦ Try to persuade other
      workers not to go to
      work
    ◦ May halt production
      all together
    ◦ Gain publicity
    ◦ Company gets bad
      publicity
    ◦ Applies pressure
   Work to Rule

    ◦ Strictly, Rigidly follow
      rules/regulations

    ◦ Work often slows

    ◦ Workers paid normally

    ◦ Nothing wrong
   Go Slow

    ◦ Similar to “work to rule”

    ◦ Workers do jobs more
      slowly

    ◦ Deliberately take longer to
      complete tasks
   Non-Cooperation

    ◦ Workers refuse to
      have anything to do
      with new working
      practices that they do
      not approve of
   Over-time Ban

    ◦ Normal working hours
      carried out only

    ◦ No additional work time
      is done

    ◦ Damaging to the
      company
Loss of                              Loss of
 Output                            Income/Profit

                For Employers



                                    Cash Flow
   Poor      Customers maybe
                                    Problems
Reputation   lost to other firms
                as orders not
                  delivered
Loss of                   Threat of job
Wages                        losses

          For Employees
Find
Alternative                              May cost more
 Supplier                                 for product

              For the Firm’s Customers



                  Deliveries not          May not be
Shortage of
                      made                  able to
  Product
                                           produce
                                            goods
Workers have                        Lower Income
 less money                          means less
   to spend                         tax collection

                 For the Economy



                Bad reputation       Striking firm
Exports lost
                    from not        may have to lay
    Less
               delivering on time    off workers –
 products
                                     Incomes fall,
   being
                                    unemployment
produced -
  imports                                rises
   Strikes are damaging for both employers and
    employees
   These agreements usually involve an
    “independent ARBITRATOR”
Lock Workers Out




Dismiss Workers




                  Pay Freeze
   Poor Wage Rates

   Poor conditions of
    employment

   Poor working
    conditions
   Rigid/Authoritarian
    Management

   Restricted flow of
    information

   Frustration
   Rapid/Poorly Planned
    Change

   Employees
    downgraded or
    moved without
    consultation
   Rapid/Poorly Planned
    Change

   Employees
    downgraded or
    moved without
    consultation
   Lack of involvement
    in decision-making

   Employees feel less
    important

   Employees feel
    bored, alienated and
    uncared for
   Decrease in market
    share

   Job security issues
   This occurs
    when
    employees
    contribute and
    are involved in
    the decision
    making in the
    business
   Worker Directors
    ◦ appointed representative
    ◦ usually do not attend board
      meetings
   Works Council
    ◦ Representatives of workforce
      meet
    ◦ Discuss management
      proposals
    ◦ Feedback on ideas and
      comments
    ◦ Issues may include;
      Health and Safety
      Introduction of New Machinery
   Quality Circles
    ◦ Used by many companies
      (especially Japan)
    ◦ Encourage continuous
      development
    ◦ Team Working
    ◦ Discussions on improvement on
      how things are carried out or how
      the product is assembled
    ◦ Improved feeling of importance
      and motivation of employees
      results
   Democratic Styles of Leadership
    ◦ delegation
Chapter 15   employee and employer associations (1)

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Chapter 15 employee and employer associations (1)

  • 1. Unit 4 – People at Work
  • 2. The role of trade unions  The role of employer associations  The process of collective bargaining  The different types of industrial action  How conflicts can be resolved
  • 3.
  • 4.
  • 5.
  • 6. A Trade Union is a group of workers who have joined together to ensure their interests are protected
  • 7. SHOP STEWARD For an annual fee that pays for the employment of union officials, they will represent the views of those in the union to achieve their aims.
  • 8. Advantages ◦ Strength in Numbers ◦ Improved Conditions of Employment ◦ Improved Workplace Environment ◦ Improved Benefits ◦ Improved Job Satisfaction ◦ Advice & Financial Support ◦ Further Benefits ◦ Employment where there is a closed shop
  • 9. Trade Unions seek to ◦ Put forward views to the media ◦ Influence government decisions ◦ Improve communication between workers & management
  • 10. A craft union is a trade union which represents a particular type of skilled worker.
  • 11. A general union is a trade union which represents workers from a variety of trades in the industry. They are often un-skilled but also semi-skilled workers.
  • 12. An industrial union is a trade union which represents all types of workers in a particular industry
  • 13. A white-collar union is a trade union which represents non-manual workers.
  • 14. Closed shop is where all the employees have to be a member of a particular union.
  • 15. A Single-Union Agreement is where a firm deals with only one particular union.
  • 16. Advantages for employees ◦ Discussions clearer ◦ Greater power ◦ No disagreements between unions ◦ Better working relationship ◦ Disputes solved quickly
  • 17. Advantages for employers ◦ Only one union to negotiate with ◦ Better working relationship ◦ Disputes resolved more quickly ◦ Easier to agree to changes ◦ Better relationships
  • 18. President National Executive Head Office Regional offices Regional offices Regional offices Regional offices Branch Branch Branch Branch Branch Branch Branch Branch Individual Members
  • 19. Employer Associations Employer Federations Trade Associations  Business join together to form a association or federation  Subscription Fee  Benefits
  • 20. Advantages ◦ Representation of Members ◦ Offer Advice ◦ Pressure Group ◦ Sharing good practice ◦ Bulk-Buying
  • 21. Act as pressure groups  Represent business interests  Linked to economic environment  Government Control & Provide  Taxation  Rules & Regulations  Economic Policies  Infrastructure
  • 22. Collective bargaining is negotiations between one or more trade unions and one or more employees (or employee associations) on pay or working conditions
  • 23. Rising Inflation  Difficult to recruit qualified workers  Maintaining pay differentials  Changes in the workplace
  • 24.
  • 25. This is taken by trade unions to decrease or halt production
  • 26. Strike Action ◦ A Token Strike  Short Stoppage ◦ A Selective Strike  Few selected workers walk out ◦ An All Out Strike  All union members stop work
  • 27. Picketing ◦ Support strike ◦ Stand outside workplace ◦ Try to persuade other workers not to go to work ◦ May halt production all together ◦ Gain publicity ◦ Company gets bad publicity ◦ Applies pressure
  • 28. Work to Rule ◦ Strictly, Rigidly follow rules/regulations ◦ Work often slows ◦ Workers paid normally ◦ Nothing wrong
  • 29. Go Slow ◦ Similar to “work to rule” ◦ Workers do jobs more slowly ◦ Deliberately take longer to complete tasks
  • 30. Non-Cooperation ◦ Workers refuse to have anything to do with new working practices that they do not approve of
  • 31. Over-time Ban ◦ Normal working hours carried out only ◦ No additional work time is done ◦ Damaging to the company
  • 32. Loss of Loss of Output Income/Profit For Employers Cash Flow Poor Customers maybe Problems Reputation lost to other firms as orders not delivered
  • 33. Loss of Threat of job Wages losses For Employees
  • 34. Find Alternative May cost more Supplier for product For the Firm’s Customers Deliveries not May not be Shortage of made able to Product produce goods
  • 35. Workers have Lower Income less money means less to spend tax collection For the Economy Bad reputation Striking firm Exports lost from not may have to lay Less delivering on time off workers – products Incomes fall, being unemployment produced - imports rises
  • 36. Strikes are damaging for both employers and employees  These agreements usually involve an “independent ARBITRATOR”
  • 37. Lock Workers Out Dismiss Workers Pay Freeze
  • 38. Poor Wage Rates  Poor conditions of employment  Poor working conditions
  • 39. Rigid/Authoritarian Management  Restricted flow of information  Frustration
  • 40. Rapid/Poorly Planned Change  Employees downgraded or moved without consultation
  • 41. Rapid/Poorly Planned Change  Employees downgraded or moved without consultation
  • 42. Lack of involvement in decision-making  Employees feel less important  Employees feel bored, alienated and uncared for
  • 43. Decrease in market share  Job security issues
  • 44.
  • 45.
  • 46. This occurs when employees contribute and are involved in the decision making in the business
  • 47. Worker Directors ◦ appointed representative ◦ usually do not attend board meetings  Works Council ◦ Representatives of workforce meet ◦ Discuss management proposals ◦ Feedback on ideas and comments ◦ Issues may include;  Health and Safety  Introduction of New Machinery
  • 48. Quality Circles ◦ Used by many companies (especially Japan) ◦ Encourage continuous development ◦ Team Working ◦ Discussions on improvement on how things are carried out or how the product is assembled ◦ Improved feeling of importance and motivation of employees results
  • 49. Democratic Styles of Leadership ◦ delegation

Editor's Notes

  1. Sole trader Very few employees Employee problems usually solved by talking to the business ownerLarger Businesses More difficult to discuss issues with a manager/owners of a businessScenarioYou are head of HR with 500 employees all have different skills, scientist to cleaner How do you agree on their wages? If a pay rise is imminent, how much and who would get the most? Will the pay rise be across the board and at the same rate?Easier for managers if workers get together and are represented by a TRADE UNION Saves time for HR No need for each individual to agree to pay, for example
  2. ScenarioYou are head of HR with 500 employees all have different skills, scientist to cleaner How do you agree on their wages? If a pay rise is imminent, how much and who would get the most? Will the pay rise be across the board and at the same rate?Easier for managers if workers get together and are represented by a TRADE UNION Saves time for HR No need for each individual to agree to pay, for example
  3. Easier for managers if workers get together and are represented by a TRADE UNION Saves time for HR No need for each individual to agree to pay, for example
  4. Employees generally have the same interests improving pay, working conditions being treated fairly given proper trainingA union is there to help employees to achieve improvements in different aspects of their employmentIs a type of pressure groupUnions can be founf all over the world in countries such as the US, AUS, UK, Papua New Guinea, etc
  5. Strength in NumbersImproved Conditions of EmploymentImproved Workplace Environment Health and Safety, Noise, HeatingImproved Benefits sick, retired, redundanciesImproved Job Satisfaction Engaged trainingAdvice & Financial Support If unfairly dismissed or made redundant, asked to do something that is not in their job descriptionFurther Benefits discounts, provisions for sporting facilities or clubsEmployment where there is a closed shop
  6. Office staff, managers, and professional people
  7. Becoming popular as employees are trained to do several jobs  multi-skilledEmployees now more flexible  used in different stages of productionSometimes it is difficult to determine which union to join
  8. President / General SecretaryWork for and paid full time by the trade union Work from the headquartersIf union is large, there will be full-time officials working by district/regionSupport and help member branchesBranches Each work site Each has a union representative Representatives elected democratically
  9. Representation of Members Work on behalf of their membersOffer AdviceEmployment Law, effects of trade agreements, health and safety regulations, taxation lawsPressure Group greater strength due to large numbers put arguments to govt when changes are requested one business maybe ignored, but many cannot beSharing good practiceShare ideas, help each other, usually when not in direct competition May share research facilities, as it can be expensiveBulk-buyingAble to gain from discounts, economies of scale
  10. Government Control economy inflation law & order health education
  11. As discussed before, it is not feasible or economic to deal with each worker/staff member separately. Therefore agreements are made between representatives of different interested groups, management & workforce collective bargainingCollective Bargaining Aim – arrive at a mutually acceptable agreementCan be at a local or national level
  12. Can be at a local or national levelTrade unions argue for a wage increase for one/more reasons Rising Inflation Difficult to recruit qualified workers Maintaining pay differentials Changes in the workplace
  13. Productivity Agreements Derived from an increase workers’ productivity  more output being produced Workers argue for their fair share Acts as a motivator for workers to work harder Therefore managers sometimes link increases in pay with increases in productivity
  14. Strike ActionA Token StrikeShort Stoppage  half day, one day, even an hour  want to indicate the strength of feeling about the claim  E.g. workers at the car factory stop producing car from 9:00am to 14:00pm causing no output rate in the companyA Selective StrikeFew selected workers walk out  chosen by trade union in order to cause the most damaging disruption to the workplace  E.g. trade union told the managers of the car company not to work so the workers will be unattended causing a big mess in the company.An All Out StrikeAll union members stop work  they leave the workplace until the dispute/claim is settled Workers maybe paid when on strike from trade union’s strike fund“Unofficial Strike” or “Wild-Cat Strike” strike pay will not be paidIf trade union wants to call for a strike, ballot papers will be sent round to vote if they should strike or not. Majority follows
  15. E.g. There may be several checks that should be made to a delivery lorry before it goes out on delivery.All these checks may take a long time ad therefore some checks will normally not be carried out every time the lorry goes out.
  16. E.g. A new administration procedure may involve the workers filling in more paperwork. They would refuse to fill in the forms
  17. Independent ARBITRATOR acts as a judge, who hears both sides of the argument (what the pay rise should be) then an mutual agreement is made. Just like a trade union and employer negotiate.
  18. Dismiss Workers Drastic action Leave the business in a mess Unable to produce product Not able to satisfy ordersLock Workers Out Known as “lock-out” Prevent workers from entering the work site that want to return Useful if workers are “working to rule” or are on “go slow” Employer will save on wagesPay Freeze Used in disagreements over work practices E.g. when new machinery is introduced
  19. Until workers receive a fair wage, conflicts continue to existFair wage varies from country to country (minimum wage requirements), developed & developing countries vary greatlyUnion membership on the increaseBalance between rich and poor, a more equal society
  20. Consultation Views need to be expressed openly and freely Do not have to always do what the employees wants, and to be in disagreement on a final decision is fine Consultation is different from collective bargaining / negotiation they do not normally seek the formal agreement of employees they simply ask for their views, these may/may not be taken into consideration to come to a final decision
  21. TUC – Trade Union Congress Members include full time workers, admin, economists, solicitors Made up representatives from all unions More powerful than one union Aims are to; Act as a pressure group Represent trade union views in general Influence employer associations Influence govt policyCBI – Confederation of British Industry Represents many UK industriesAims are to’ act as a pressure group represents employers tries to influence govt decisionsACAS– Advisory, Counciliation, and Arbitration Service Independent organisation Financed by the govt role is to try and improve industrial relations provides services for free is impartial (does not take sides) both sides must agree on ACAS rulingsThe service providesadvice and info on all areas of employment (employer/employee)conciliation to find a middle ground where both parties agreeArbitration if discussions have reach a deadlock, and no settlement is near independent group listens to both sides propose a fair settlement both sides must agree & accept arbitrators findings