Hrm Employee Relations

Employers’ Associations •

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Represent the views and interests of companies within one sector or industry. Financed by subscriptions from members. E.g. Newspaper Society, Engineering Employers Association, Meat Marketing Board

Employers’ Associations 

Provide a range of services

3. Try to influence government e.g. taxes, employment law 4. Produce both product and market research for members 5. Public relations voice for industry (e.g. BSE crisis) 6. Can provide negotiating team for pay, working conditions etc.

TRADE UNIONS • •

Individual employees have very little power. A group of workers who join together to further their own interests:

• Obtaining satisfactory pay • Ensuring satisfactory working conditions (no of hours, breaks) • Negotiating bonuses • Obtaining job security

LARGE UNIONS Unison • Representing local govt employees, health, utilities, 1.3m members The Transport and General Workers Union (TGWU) • Represent people working in a range of different occupations and industries in the public and private sector

TRADE UNION CONGRESS (TUC) Represents all trade unions. Provides information and advice to its members Membership starting to increase again Involved in research into employment rights, health and safety, working conditions CBI (Confederation of British Industry) represents employers

SINGLE UNION AGREEMENTS •

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One union represents all workers in an organisation This system saves time and money and there is less likely to be conflict.

Question •

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Describe the role of Trade Unions in supporting employees and employers when disputes occur in the workplace. (3 marks) (2006 Higher Bus Man)

Solution Trade Unions • Represents employees with regard to wage negotiations, conditions of service, dismissal, redundancy and other work-related matters. • Undertake collective bargaining on behalf of employees. • Have greater negotiation power than individuals. • Offer employers advice in work-related matters. • Involvement with Industrial Tribunal.

Professional Associations •

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Represent ‘professional’ occupations Doctors – British Medical Association Police – Police Federation Footballers – Professional Footballers Association

Represent members in bargaining for pay and improved terms and conditions

Employee relations processes •

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NEGOTIATION – discussing, agreeing and implementing changes CONSULTATION – by law employees have to be consulted, however may only involve “telling” ARBITRATION – a third party is called upon to make a decision, eg ACAS, where the employer and employees are in dispute

Employee relations policies •

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Contract of Employment Terms and conditions Procedures/Policies for dealing with staff complaints,the disciplining of staff, redundancy procedures and redundancy payment

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Involvement of staff in decision making

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Trade union recognition

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Collective bargaining

COLLECTIVE BARGAINING •

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This is the process of a group representing the employees negotiating changes in working conditions with the employer(s). Typically agreements will be for several years at a time.

Question •

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Employee Representative Groups, (eg Trade Unions) use the power of collective bargaining for the benefit of their members. Describe 3 advantages of collective bargaining. (2007 Bus Man Higher) (3 marks)

Solution •

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Representing a large number improves the negotiating position and chance of success for members. Agreements reached can be on a national level. Reduces the number of individual meetings required to resolve an issue. Without collective bargaining the employees could be taken for granted and deliberately left out of discussions, consultations or told very little by the organisation. Negotiators are experienced.

INDUSTRIAL ACTION •

Work to rule

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Overtime ban

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Sit in

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Boycott

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Strike

Question •

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Employees may undertake industrial action in an attempt to force employers to meet their demands. Describe types of industrial action that employees could take. • (4 marks) (2008 Higher Bus Man)

Solution •

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Strike - employees refuse to do their work and do not enter the workplace. Sit in - employees are in their place of work but do not do any work. Work to rule - employees only undertake the exact jobs written in their job description. Go slow - employees deliberately work at a much slower rate. Overtime ban - employees do not do any overtime. Picketing - employees protest at entrance to the place of work.

Question Explain possible effects that prolonged industrial action could have on an organisation. (5 marks) (2008 Higher Bus Man)

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Loss in production will lead to possible shortages in stock Loss in sales revenue may lead to liquidation Long term loss of customers who now shop at competitors Image of organization is tarnished- future applicants may not be attracted to the company, so the business might lose out on the best employees. Damage to long term reputation of organization Share price can fall- no shares are being sold so the business are receiving no capital May result in redundancies- employees are still getting paid, therefore the company is losing money as no output is being produced. So as to save money they would sack the staff to save money Improves working practices Facilitates change

WORKS COUNCILS •

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A European concept that has been introduced in UK. Allows access to company information and gives employee representatives joint decision making powers. Companies (150+ employees) can be fined if they do not have a Special Negotiating Board.

Grievance procedures If an employee is unhappy with their conditions or the way in which they are treated. Three stages in the process: 5. Negotiations with union and HRM dept 6. ACAS approached for a ruling 7. Employment Tribunal (has legal powers)

DISCIPLINARY PROCEDURES Steps an organisation will take to deal with an employee who is breaking the conditions of their contract. Could be: • • • •

Verbal warning - logged Written warning Second written warning Contract terminated (P45 issued) However could jump straight to dismissal depending in nature of offence