2.7 Industrial Relations

unresolved conflict causes

Lower productivity, reduced employee morale, limits opportunities for collaboration, creates negative workplace ‘politics’

reasons for conflict in the workplace

• Inadequate leadership and communication (needs not being met) (perceptions are different to what was meant)

• power struggles (abuse of power)

• relationships (incompatible/bias)

• workplace inequities (unfairness)

• stress and role ambiguity

• differences in values and goals

trade union

An organisation whose members come together to achieve common goals. They negotiate with employers to improve terms and conditions of employment for workers (improved pay, paid holidays, hours, etc)

They also give individual advice when employees have a problem at work

Industrial unions

recruit members from a particular industry such as education

general unions

accept members from a range of manual industries such as manufacturing

while collar unions

 recruit non-manual workers such as those employed in banking

collective bargaining

A process where trade unions negotiate with employers to reach agreements on terms and conditions of employment

goal of collective bargaining

to reach a collective bargaining agreement. This is a legally binding document that determines the employment relationship for a specified period

work-to-rule

when employees do the absolute minimum required according to the rules set by the employer. Workers adhere precisely to all rules and regulations in their deliberate attempts to delay production and to reduce productivity

Strike action

an extreme form of industrial action taken by employees to collectively refuse work. Strike action is only considered to be official if it has the backing of the majority of members of a trade union. 

threats of redundancies

when the business pressurises or warns employees to cooperate otherwise their jobs are at risk.

changes of contract

employers legally change people's contracts of employment (administered fairly and transparently)

closure

closing the business is used when other methods of dealing with conflict have been exhausted. This means that workers will not receive wages, either temporarily or permanently. It is used to force or persuade employees to renegotiate or to settle for a compromise.

lockouts

when employers restrict employees from working during the industrial dispute. This may result in security denying the entrance of some employees. This will carry on until employees renegotiate or settle for a compromise.

industrial action

where trade union members in dispute with management protest or take action such as strikes to achieve their aims

employer approaches to conflict

• threats of redundancies

• changes to contracts of employment

• threat of closure

• lockouts

• collective bargaining

employee approaches to conflict

• collective bargaining

• work to rule

• strike action

resolving conflicts

the steps taken by leaders and employees (or their representatives) to solve disagreements in the workplace. It can be done through:

• Conciliation & arbitration

• Employee participation

• Industrial democracy

• No-strike agreements

• Single-union agreements

Conciliation

involves an independent mediator helping two conflicting parties reach a compromise

Arbitration (and 3 types of it)

When an independent third party makes a decision to resolve the dispute.

Types of arbitration:

Non-binding arbitration: the decision can be accepted or ignored.

Binding arbitration: the decision must be accepted by both parties.

Pendulum arbitration: is binding and makes a decision in favour of one party without compromise

Employee participation

Involves giving employees some control or responsibility within the organisation. Methods include teamwork, suggestion schemes, quality circles, and worker panels

Industrial democracy

Workers are given significant input into business decision-making. Common in worker-owned businesses and co-operatives

No-strike agreements

An agreement between a business and union members to avoid strike action during conflicts. These deals can build trust and improve the reputation of trade unions. Businesses may be more open to negotiation as a result

Single-union agreements

The business agrees to negotiate with just one trade union rather than several. This can make resolving workplace issues simpler and more efficient.