Chapter-22-Employer-employee-relationships

Employer/Employee Relationships

Contract of Employment

  • Foundation of Employer/Employee Relationships: Governed by contracts outlining responsibilities and rights.

  • Employment Law: Establishes rules for both parties; now favoring partnership over adversarial approaches.

  • Role of Trade Unions: Represent employee interests, contributing to more collaborative employer-employee dynamics.

  • Trends in Industrial Disputes: Decreased frequency of disputes in recent times.

Duties and Rights

  • Employers’ Responsibilities:

    • Ensure health and safety of employees (e.g., safe working environments, training).

    • Provide written contracts of employment within 12 weeks, detailing pay, holiday entitlement, benefits, etc.

  • Employees’ Responsibilities:

    • Adhere to health and safety regulations.

    • Rights against unfair dismissal after 2 years of service.

European Legislation and Worker Rights

  • Social Chapter of the Maastricht Treaty: Establishes various worker protections, including:

    • Legal limits on working hours (max 48 hours/week).

    • Paid maternity and paternity leave.

    • Prohibition of discrimination based on sex, race, age, or disability.

    • Equal pay laws for similar job roles enforced since the mid-1970s.

Minimum Wage

  • Introduction of the National Minimum Wage (NMW):

    • First set at £3.60/hour in April 1999.

    • Increased rates as of October 2015:

      • Adult rate: £6.70

      • Development rate (18-20): £5.30

      • Under 18: £3.87

  • Impact on Employment:

    • Minimal overall impact on job losses; areas with NMW saw job growth.

    • Approximately 7-8% of workforce directly affected.

Effects of Minimum Wage on Employees

  • Benefits:

    • Increased wages primarily benefited younger workers in low-paid sectors (e.g., care, catering).

    • Some moved away from poverty due to higher wage standards.

  • Unemployment Levels: No significant adverse effects observed from 2000-2008.

Effects of Minimum Wage on Employers

  • Challenges:

    • Attractiveness to foreign investment decreased, especially for labor-intensive small businesses.

    • Productivity focus through training pushed by increased wage costs.

    • Wages for higher tiers rose due to pressure to maintain differentials.

    • Closure of many care facilities due to unsustainable cost increases.

Equal Opportunities

  • Equality Act 2010: Prohibits discrimination in the workplace based on:

    • Age, gender, marital status, pregnancy, disability, race, religion, sex, sexual orientation.

  • Types of Discrimination:

    • Direct, indirect, harassment, and victimization.

  • Protected Characteristics: Employees must not be discriminated against regarding;

    • Dismissal, employment terms, pay, promotion, training opportunities, and recruitment.

Trade Unions

  • Purpose of Trade Unions:

    • Represent workers in various industries to improve working conditions.

    • Collective bargaining boosts workers' influence and power.

  • Roles of Unions:

    • Advocacy for members facing issues (redundancy, grievances).

    • Negotiating employment terms collectively for better conditions.

    • Supporting health and safety standards in the workplace.

    • Promoting equal opportunity policies.

Why Join a Union?

  • Representation in disputes: Legal assistance in grievances, redundancy.

  • Collective bargaining advantages for negotiating pay and conditions.

  • Health and safety advocacy: Ensures workplace safety standards are upheld.

  • Support Services: Financial, legal, and welfare services for members.

Industrial Disputes

  • Common Dispute Causes: Wages, hours, working conditions, layoffs, health, and safety issues.

  • Resolution Strategies:

    • Local representatives (shop stewards) participate in direct negotiations.

    • National union officials involved for unresolved disputes.

Types of Industrial Action

  • Overtime Bans: Workers only perform basic hours.

  • Work-to-Rule: Strict adherence to all workplace rules.

  • Strikes: Last resort measure amid unresolved disputes.

  • ACAS Involvement: Advisory, conciliation, and arbitration services can facilitate dispute resolution but require agreement from both parties.

ACAS Roles

  • Advisory: Provides information to employers and employees on best practices regarding employment law.

  • Conciliation: Facilitates discussions between conflicting parties to encourage voluntary agreements.

  • Arbitration: Involves binding decisions made by ACAS upon request from both parties on employment disputes.

Discussion Themes

  • Importance of robust employer/employee relationships.

  • Evaluation of the National Minimum Wage benefits and implications.

  • Reasons for union membership and collective bargaining effectiveness.

  • Examination of ACAS's role in mitigating industrial disputes.