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Employer / Employee Relations

Employer / Employee Relations. 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.

derek-mckinney
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Employer / 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

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