2.7 Industrial/employee relations Advantages and Disadvantages

Advantages of collective bargaining

gives employees greater negotiating power
reduces need for industrial action
simplifies negotiation for employers

Limitations of collective bargaining

can lead to conflict if negotiations fail
time-consuming process
may increase likelihood of industrial action

Advantages of work-to-rule

puts pressure on management without breaking contract
low risk for employees
reduces output to force negotiation

Limitations of work-to-rule

reduces productivity and efficiency
delays business operations
may damage employer-employee relationships

Advantages of overtime ban

effective during busy periods
pressures employer to negotiate
easy for employees to participate

Limitations of overtime ban

reduces output and customer service quality
loss of revenue for business
may harm business reputation

Advantages of strike

strongest pressure on employer
can lead to significant concessions
high visibility draws attention to issues

Limitations of strike

loss of wages for employees
major loss of output and revenue
damages reputation and relationships

Advantages of redundancy

reduces costs for business
pressures employees during negotiations
can improve efficiency

Limitations of redundancy

low employee morale and motivation
damages trust and relationships
risk of losing skilled workers

Advantages of contract changes

allows flexibility for business
can reduce costs
aligns workforce with business needs

Limitations of contract changes

can cause conflict and dissatisfaction
may be seen as unfair
legal restrictions may limit use

Advantages of closure

strong pressure on employees
forces quick resolution

Limitations of closure

loss of revenue and output
damages relationships and reputation
extreme and rarely sustainable

Advantages of lock-out

puts financial pressure on employees
can break employee unity
forces negotiations

Limitations of lock-out

loss of output for business
damages employee relations
negative public image

Employee participation and industrial democracy Advantages

increases employee motivation and job satisfaction
encourages ideas and innovation
reduces conflict and labour turnover

Limitations of employee participation and industrial democracy

slow decision-making
possible disagreements between employees
management expertise may be overlooked

Advantages of no-strike agreement

prevents disruption to production
protects business reputation
ensures business continuity

Limitations of no-strike agreement

reduces union bargaining power
may weaken employee representation
can lead to unfair agreements

Advantages of single union agreement

simplifies negotiations
reduces conflict between unions
saves time in decision-making

Limitations of single union agreement

may not represent all employees effectively
reduces union power
employees may feel underrepresented

Advantages of conciliation

maintains privacy and protects reputation
uses an expert third party
encourages negotiation between parties

Limitations of conciliation

not legally binding
may not resolve the dispute
no guaranteed outcome

Advantages of arbitration

quicker and cheaper than court
parties choose an expert arbitrator
clear final decision

Limitations of arbitration

decision may be biased
no right to appeal
less control over final outcome