Employer / Employee Relations
• Employee / Employer relations • Different approaches to employee relations: • Collective bargaining • Individual bargaining • Employee participation and industrial democracy • Role of trade unions and ACAS • Principals of employment law
What is Employee Relations?
• Employee and Employer Relations describes the relationship between workers and employers in business
investor and staff • Output • Efficiency • Profit levels
.Why is it important?
• Motivation • Reputation : Potential customers.
. Negotiations can be with an individual employer or an employers' association.INDIVIDUAL BARGAINIG • Collective bargaining occurs when workers allow the union to negotiate on their behalf.Collective v Individual Bargaining
• In the nineteenth century workers used to negotiate their own pay and conditions with their employers.
reduces training and allows for specialisation • However there is less security.Different Approaches To Employee Relations
• The workforce is becoming increasingly flexible with an increased emphasis on part-time and temporary workers and against fulltime permanent workers • A flexible work force is cheaper for firms. allows them to meet changes in demand.
Salaries Vs Wages
• Full time salaried workers tend to have more “rights” and job security than part time temporary workers
Employee participation and Industrial democracy
• Employee participation – workers being involved in business decision making • Industrial democracy – the methods which workers can influence business decisions
training • Usually members are elected • Often used where there are no trade unions
.g. working conditions. pay.Works councils
• These are forums where workers and management meet to discuss issues concerning work e.
• Where workers can gain shares in the company • There are tax benefits • Idea is by owning shares performance and motivation of the workforce increase
Autonomous work groups
• This is where teams of workers have a high degree of control • Authority has been delegated from senior management • Basis of groups is that motivation and productivity should be increased
• Teams are responsible for a specific part of the production process • This can help increase motivation • Team working is compatible with democratic leadership
• This is when groups of workers meet to talk about ways to improve quality of products • Usually a group of 3-10 workers who meet for 1-2 hours 2-3 times a month • These often provide imaginative solutions to business problems
3.The Role of Trade Unions
1. Industrial unions representing mainly workers in one industry.
. 2. 4. NUM (miners' union) Professional or white-collar unions representing skilled workers in mainly service industries. NUT (teachers' union).E. Craft unions : represent skilled workers from one occupation General unions representing mainly unskilled workers from many occupations e.g.E. TGWU (Transport and General Workers' Union).g.g.
• Provide local. • Influence government policy
. • Protect members' jobs. • Improve working conditions and secure longer holidays. social and welfare facilities.The Aims of Trade Unions
• Improve the pay of workers.
The Trades Union Congress
• Made up of over 90 unions representing more than 9 million members • An annual conference decides overall union policy and elects the General Council • The General Secretary of the TUC is the trades union spokesman in any negotiations with the government or employers' organisations.
working conditions.U members. • Demarcation when a union insists that only their members do certain jobs
.union insists all workers are T.Disputes & Restrictive Practices
• Disputes can arise over pay. redundancies etc • Restrictive Practices may then follow such as: • A closed shop .
A • Employers can operate a lockout and refuse workers entry or they can dismiss striking workers for breach of
• • • • • If negotiations break down Unions can: Work to rule :do the bare minimum Impose an overtime ban Strike and refuse to work altogether Picketing: ask other members not to enter • ‘Blacking’: Refusing to deal with certain employees or suppliers because they have refused to participate in I.
• Arbitration is when employers agree to an independent referee to try to find common ground • Advisory Conciliation and Arbitration Service (ACAS) has been available to help solve disputes • In the 1980s and 1990s there have been an increasing number of single-union agreements where employers negotiate with only one union
1976 . nationality or ethnic origin – Disability Discrimination Act.Employment Law – Individual labour law
• Looks at the rights and responsibilities of individuals:
– Equal Pay Act 1970 – both sexes treated equally re: pay – Sex Discrimination Act. 1994 – cant discriminate due to disability – Working Time Regulations. 1998 – this sets a limit on the number of hours worked per week
. 1974 – cant discriminate on grounds of sex or marital status – Race Relations Act. race.cant discriminate in relation to colour.
1993 – Minimum Wage Act.Collective labour law
• Looks at the operation of trade unions. 2000
. industrial relations and collective bargaining:
– Employment Act 1980 – employees aren't obliged to negotiate with unions – Trade Union Act 1984 – Employment Act 1982. 1990 – Trade Union Reform and Employment Rights Act. 1988. 1998 – Employment Relations Act.
Impact of Employment Legislation On Businesses
• There are positive and negative impacts • Can act as a motivator to the workforce • Reduction in power of trade unions has increased workforce flexibility • Foreign investment has increased as legislation is employment friendly • Increases costs • Businesses need to employ non productive workers to manage the policies • These effects can be more detrimental on smaller firms
• Employee / Employer relations looks at the relationship between workers and the business • Collective bargaining refers to the negotiation between employees and workforce representatives • Individual bargaining where a single worker negotiates their working conditions and pay with management • Employee participation and industrial democracy – these aim to increase employee involvement in business decisions and can include quality circles • Trade unions act to protect and improve the economic and working conditions for their members • Acas looks at resolving disputes • Employment laws regulate what a business is doing