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Chapter 15 – Employee and Employer Associations
Unit 4 – People at Work
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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
You will learn …….
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Introduction
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Introduction
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Introduction
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A Trade Union is a group of workers who have joined together to ensure their interests are protected
Trade Union
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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.
Why do workers join a union?
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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 Union Membership
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Trade Unions seek to◦ Put forward views to the
media◦ Influence government
decisions◦ Improve communication
between workers & management
Trade Union Membership
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A craft union is a trade union which represents a particular type of skilled worker.
Craft Union
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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.
General Union
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An industrial union is a trade union which represents all types of workers in a particular industry
Industrial Union
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A white-collar union is a trade union which represents non-manual workers.
White-Collar Union
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Closed shop is where all the employees have to be a member of a particular union.
Closed Shop
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A Single-Union Agreement is where a firm deals with only one particular union.
Single-Union Agreements
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Advantages for employees◦ Discussions clearer◦ Greater power◦ No disagreements between unions◦ Better working relationship◦ Disputes solved quickly
Single-Union Agreements
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Advantages for employers◦ Only one union to negotiate with◦ Better working relationship◦ Disputes resolved more quickly◦ Easier to agree to changes◦ Better relationships
Single-Union Agreements
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The Structure of a Trade Union
President
National Executive
Head Office
Branch
Regional officesRegional offices Regional officesRegional offices
Individual Members
Branch Branch Branch Branch Branch Branch Branch
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Employer Associations Employer FederationsTrade Associations
Business join together to form a association or federation
Subscription Fee Benefits
Employer Associations
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Advantages◦ Representation of Members◦ Offer Advice◦ Pressure Group◦ Sharing good practice◦ Bulk-Buying
Employer Associations
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Act as pressure groups Represent business interests Linked to economic
environment
Government Control & Provide Taxation Rules & Regulations Economic Policies Infrastructure
Employer Associations and the Government
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Collective bargaining is negotiations between one or more trade unions and one or more employees (or employee associations) on pay or working conditions
Negotiation & Collective Bargaining
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Negotiation & Collective Bargaining
Rising Inflation Difficult to recruit
qualified workers Maintaining pay
differentials Changes in the
workplace
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Negotiation, Collective Bargaining and Productivity Agreements
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This is taken by trade unions to decrease or halt production
Industrial Action
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Strike Action
◦ A Token Strike Short Stoppage
◦ A Selective Strike Few selected workers
walk out
◦ An All Out Strike All union members stop
work
Industrial Action
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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
Industrial Action
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Work to Rule
◦ Strictly, Rigidly follow rules/regulations
◦ Work often slows
◦ Workers paid normally
◦ Nothing wrong
Industrial Action
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Go Slow
◦ Similar to “work to rule”
◦ Workers do jobs more slowly
◦ Deliberately take longer to complete tasks
Industrial Action
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Non-Cooperation
◦ Workers refuse to have anything to do with new working practices that they do not approve of
Industrial Action
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Over-time Ban
◦ Normal working hours carried out only
◦ No additional work time is done
◦ Damaging to the company
Industrial Action
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Possible Harmful Consequences of Industrial Action
Loss of Output
Loss of Income/Profit
Poor Reputation
Cash Flow Problems
For Employers
Customers maybe lost to other firms as
orders not delivered
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Possible Harmful Consequences of Industrial Action
Loss of Wages
Threat of job losses
For Employees
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Possible Harmful Consequences of Industrial Action
Find Alternative
Supplier
May cost more for product
Shortage of Product
May not be able to produce goods
For the Firm’s Customers
Deliveries not made
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Possible Harmful Consequences of Industrial Action
Workers have less money to
spend
Lower Income means less
tax collection
Exports lostLess
products being
produced - imports
Striking firm may have to
lay off workers – Incomes fall, unemployment
rises
For the Economy
Bad reputation from not
delivering on time
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Strikes are damaging for both employers and employees
These agreements usually involve an “independent ARBITRATOR”
No-Strike Agreements
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Employer’s Weapons
Dismiss Workers
Lock Workers Out
Pay Freeze
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Poor Wage Rates
Poor conditions of employment
Poor working conditions
Conflict in Business Organisations
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Rigid/Authoritarian Management
Restricted flow of information
Frustration
Conflict in Business Organisations
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Rapid/Poorly Planned Change
Employees downgraded or moved without consultation
Conflict in Business Organisations
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Rapid/Poorly Planned Change
Employees downgraded or moved without consultation
Conflict in Business Organisations
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Lack of involvement in decision-making
Employees feel less important
Employees feel bored, alienated and uncared for
Conflict in Business Organisations
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Decrease in market share
Job security issues
Conflict in Business Organisations
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Conflict in Business Organisations
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Conflict in Business Organisations
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This occurs when employees contribute and are involved in the decision making in the business
Worker Participation
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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
Worker Participation
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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
Worker Participation
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Democratic Styles of Leadership◦ delegation
Worker Participation
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Major UK organisations involved in industrial relations