Employer-Employee Relations

What are the legal requirements for employers to consult with their employees?

• Proposed redundancy programmes

• When employees are transferred from one employer to another (e.g. the sale of the business)

• On changes to pension arrangements

• Proposed changes to working time arrangement

What is Employee Representation?

Where employees are part of a formal structure that involves them in business decision-making

What are the reasons for Formal Employee Representation?

• Make employees’ views known to management

• Help strengthen both management’s and employees’ understanding of workplace issues and other matters affecting the business

• Help create an atmosphere of mutual trust between employees and management and therefore improve workplace relations

What are the benefits of Employee Representation?

• Increased empowerment and motivation of the workforce

• Employees become more committed to the objectives and strategy of the business

• Better decision-making because employee experience and insights are taken into account

• Lower risk of industrial disputes

What are the drawbacks of Employee Representation?

• Time-consuming - potentially slows decision-making

• Conflicts between employer and employee interests may create resistance to necessary change in the business

• Managers may feel their authority is being undermined

What are Work Councils?

EU legislation makes these mandatory for firms that operate in two or more EU countries and have more than 1,000 employees

What is the typical Agenda for a Works Council?

• Business objectives and performance

• Workforce planning issues (recruitment, staffing levels)

• Employee welfare issues (Working conditions, health and safety)

• Training and development programmes

• Compliance with legislation (e.g. discrimination)

What is the role of Trade Unions?

• Protect and improve the incomes of their members

• Provide or improve job security

• Protect workers against unfair dismissal and other issues relating to employment legislation

• Lobby for better working conditions

• Offer work-related services (e.g. legal support)

What are the advantages for an Employer who has a Good Relationship with a Trade Union?

• Negotiating with trade unions (ideally a single union) saves time and cost rather than dealing with employees individually

• Unions are part of the communication process between the business and employees

• Employee morale and motivation may be improved if they know that their interests are being protected by a union

• The trade union can be a supportive partner in helping a business undergo significant change

What are factors which influence the success of industrial action?

• Nature and strength of the union

• Workforce concentration e.g. lots of union members in one firm compared with a few members in many firms)

• Management tactics e.g. if stocks are available to meet demand during a strike)

• Economic and legal climate

• Public support

What are the problems of industrial action can affect employers?

• Lost production, reduced revenue and lower profits

• Continuing poor relationships and grievances with employees, which lead to poor motivation and communication

• Shifts management's focus away from strategic planning for the future

• Harms the firm's reputation with its customer

What problems of industrial action can affect employees?

• Reduced/lost earnings and possible redundancies

• Must conform to legislation or be liable for damages

• Stress due to friction with other workers and with management

• If unsuccessful, workers are in a weaker position

• Support from the public may decline if the action affects them

What are the benefits of industrial action?

• Resolves ongoing grievances and improves the atmosphere

• This leads to new and agreed rules, e.g. about rates of pay or the need to consult

• This leads to a greater understanding of employer/employee positions