Trade Unions

What is employees relations?

The term used to describe the relationship between employers and employees.

In the UK, employer/employee relationships are founded on the contract of employment which lays out the roles and responsibilities of both employer and employee.

What are some legal requirements for employers to consult with employees?

• Proposed redundancy programmes

• When employees are transferred from one business to another

• Changes to pension arrangements

• Proposed changes to working time arrangements

What is a contract of employment?

A contract is an agreement between employers and employees that sets out an employee’s:

• employment conditions

• rights

• responsibilities

• duties.

What is dismissal?

Dismissal is when your employer ends your employment – they do not always have to give you notice.

If you’re dismissed, your employer must show they have:

• a valid reason that they can justify.

• acted reasonably in the circumstances.

Exam Question: Other than equal pay, explain the areas of discrimination that businesses must address to comply with equal opportunities requirements in the workplace.

Exam Question: 'UK businesses can only benefit from ensuring that their female managers are paid the same as their male counterparts'. Discuss.

What are trade unions?

An organised association of workers in particular industry.

What are 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

What are the pros of trade unions to employees?

• Workers no longer need to negotiate with management on their own, as they benefit from collective bargaining.

  
   

• Workers receive better pay than non-unionised workers.

  
   

• Workers enjoy better working conditions than non-unionised workers.

  
   

• Workers enjoy better non-wage benefits such as guaranteed lunch breaks.

  
   

• Workers receive specialised job training & free legal advice from the union.

What are the advantages / disadvantages of trade unions to employers?

Advantages

• Training from the trade union increases worker productivity which decreases costs.

Disadvantages

• Including unions in decision-making increases the time period taken to implement changes which can be detrimental to effective competition.

• Management styles have to be more inclusive & less authoritarian which some managers find difficult to accept.

• Meeting union demands increases costs of production, which may reduce output & profits.

What is collective bargaining?

The process by which trade unions negotiate with employers, on behalf of their members.

What is industrial action?

When trade union members take action against their employer because of a work dispute.

What are the types of industrial action?

• An overtime ban – workers just work basic hours and refuse to do any extra work.

• A work-to-rule – workers stick very closely to every rule in the workplace, especially health and safety rules. This slows down production and reduces output.

• Strikes – a withdrawal of labour. An all-out strike is called as a very last resort. Both sides have much to lose – the workers’ income and the employer’s profits.

Explain the role of ACAS.

• Advisory Conciliation and Arbitration Service (ACAS) has been available to help solve disputes and find a solution that is acceptable for both sides.

• The conciliation process involves an invited independent ACAS conciliator discussing disputed workplace issues with both parties in order to help them reach a better understanding of each other’s position and underlying interest.

• Arbitration involves an impartial ACAS advisor being asked to make a decision on a dispute. The arbitrator makes a firm decision on a case, based on the evidence presented by the parties. Arbitration is voluntary, so both sides must agree to go to arbitration; they should also agree in advance that they will abide by the arbitrator’s decision.

Exam Question: Evaluate the impact of equal opportunities legislation on employers and employees in the UK.