Chapter 11 – Industrial Relations

Learning objectives
• Identify the different views of the role of conflict in social systems and the various forms
conflict might take in industrial relations.
• Understand the economic, organizational and social factors which may influence the use of
industrial action and the changing patterns of strikes
Introduction
 The use or threat of industrial action is considered as ‘an inherent accompaniment to trade
unionism and collective bargaining’, it has also been perhaps the most controversial issue in
industrial relations.
Function and forms of industrial action
Conflict within social structures, such as the industrial relations system, may be viewed from three
perspectives.
1. The expression of conflicting ideas and interests represents a direct challenge to the internal
order and stability of the social system. It is feared that, without such order and stability,
the social system may degenerate into a state of anarchy and lawlessness.
2. Conflict is a necessary prelude to the development of a new social order. A social system can
only move from one state of order to another if the existing status quo is overtly challenged
and defeated.
3. The open expression of conflict is an important element in the maintenance of stability
within the social system.
A strike or any other form of industrial action is often perceived as an irrational act. Hyman suggests
that, apart from those who reject the basic principle of conflict in organizations, such a view is
founded on two main beliefs:
1. That all conflict of interest can, and should, be resolved within the recognized procedures
and institutions of the industrial relations system including reference, if necessary, to
arbitration as an alternative to the use of industrial action.
2. That the costs to employees of undertaking industrial action far exceeds any gain that may
result its use.

Forms of industrial action

Employee discontent may be expressed through a variety of organized collective action.
 Withdrawal of co-operation – withdrawal of representatives from joint institutions,
particularly those associated with consultation and productivity; excessive use of the formal
procedures; strict interpretation of any status quo provision; absence of flexibility on the
part of employees and their representatives in the resolution of the problems.
 Overtime ban – collective refusal to work outside normal contractual hours of work, thereby
affecting the rate of production

 Work to rule – strictly interpreting the duties specified in the contract of employment,
collective agreement, job description or other rules (eg safety procedures) and requiring
precise instructions from management regarding the execution of work.
 Go-slow – working without enthusiasm and at a lower level of performance / output than
normal
 Strike – temporary withdrawal of labour and stoppage of work
 Work-in / sit-in – occupying the workplace and, possibly, continuing to ‘demonstrating that
the plant is a viable concern’ or ‘preventing the transfer of plant and machinery to other
factories’
Management and industrial action
 It is perceived that industrial action should be perceived as exclusively an employee or union
phenomenon. Where employee or union are seeking change, management can, if it wishes
 to maintain the status quo, adopt a passive approach by simply saying ‘no’ within the
negotiations and thereby place the onus on employees or union to take the initiative and
responsibility for utilizing direct industrial action in pursuit of their claim.
Strike patterns
There are three indices which are used to assess strike activity:
1. Number of stoppages – generally no distinction is made between strikes and lock-outs.
2. Number of workers involved – usually included those directly and indirectly involved.
3. Number of working days lost – this is the number of workers involved multiplied by the
length of the stoppage.

Influences in industrial action

 Economic environment –
 Business expansion and recession.
 Industrial / organizational environment –
 Employees’ industrial location relative to society
 The nature of the work and people employed
 Organizationally related factors
 Size of the organization – large organizations tend to have higher levels of
unionization, greater emphasis on formalized relationships, and greater divorcement
of employees from management than small organizations.
 Production patterns and technological change – intermittent production patterns,
frequently changes or crises, or rapid technological changes reduce organizational
stability and may create feelings of insecurity and stress, increasing the potential for
industrial action.
 Nature of the work – assembly line type of work…
 Cost and market factors – pressure on prices, profits and costs is likely to bring
management into conflict with employees over achieving ‘labour savings’.
Summary
 The primary function of industrial action is to allow employees and unions to exert power
within the collective bargaining process by introduction temporary disorder into the
economic and authority relationship of the organization.
 There is no simple or single causal explanation for variations in the pattern of strike activity
over time or between countries, industrial or organizations rather various structural
influences interact with the economic, social and political environments to affect the
aspirations and perceptions of the participants.
Chapter 12 Conciliation and Arbitratio

Chapter 12 - Learning objectives

• Identify the differences between conciliation and arbitration

• Understand the role of each in relation to the collective bargaining process, their potential
impact on the participants’ relative bargaining power and government policy towards
conciliation and arbitration.
• Explain the role and work of Advisory, Conciliation and Arbitration Services (ACAS) in respect
of both collective and individual issues
Introduction
 The establishment of formal systems and institutions of conciliation and arbitration within
the industrial relations systems reflects the fact that ‘most systems of labour relations …
presupposes the possibility of disagreement and disputes’ between the parties involved
Conciliation
 In conciliation the ‘third party’ supports the direct bipartite negotiating process by assisting
the parties to identify the cause and extent of their differences, to establish alternative
solutions and their various implication and to develop and agree a mutually acceptable
settlement.
 The conciliator acts as a medium for the continuation of the dialogue

Arbitration
 In arbitration, on the other hand, the direct negotiation between management and union is
replaced with a process of adjudication which involves the third party in making a decision
(award) between the two conflicting positions.
 The arbitrator ‘is empowered to take a decision which disposes of the dispute’ and
therefore, is not required to seek a direct reconciliation between the two parties.
The nature of conciliation and arbitration
 The precise nature and role of conciliation and arbitration within the industrial elation
systems depends on two main factors:
1. The perceived relationship of these processes to the ‘normal’ bipartite
process of direct negotiations between management and union (including
the possible use of industrial action);
2. Whether these processes are to be used by the parties on voluntary or
compulsory basis

The role of the conciliator

 The powers of a conciliator are reason and persuasion, the only assumption that can make is
that both parties come to conciliation because they desire agreement or understanding…
 A major task of the conciliator is to identify the subtitles that can result in favorable change.
 The reason why the conciliation process is preferred lies in the single word ‘control’. The
trade union and the employer who agree to conciliation remain very much in control of
events – either can withdraw at any time

ACAS conciliation staff will:

 Remain impartial and independent at all times;

 Seek to understand both the dispute and the attitude of the parties to it;
 Gain the trust and confidence of both parties so that a sound working relationship ca be
developed;
 Make constructive suggestions to facilitates negotiations where appropriate;
 Provide information (eg about legislation) at the request of the parties’.

The role of the arbitrator

 Arbitrators are rarely presented with a simple between an employer’s offer and a trade
union’s claim. The two parties often present complex packages with conflicting views on
their consequential effects and divergent evaluations of detailed financial data.
  Arbitration is an outcome of a ‘failure to agree’. This means that an independent person will
make a decision that in all probability will satisfy neither party to the dispute. What the
parties are agreeing to is to abide by the decision of the arbitrator’.

Collective & Individual Conciliation

 ACAS is available to provide conciliation at the request of either or both parties involved in a
collective dispute or may offer to conciliate on its own initiative.
 It is important to note that the number of requests for collective conciliation has increased
and continues to be in demand.
 Collective conciliation is a specific term used to refer to talks between representative
groups (often trade union) and employers, facilitated by an independent third party. ACAS is
often brought in to provide conciliation services for this type of situation
 Individual conciliation also has an important role to perform in relation to legislation on
individual rights. It has a duty after the individual has made a complaint to an Employment
Tribunal, to seek a conciliated settlement if either party requests it or if ACAS considers
there is a reasonable prospect of success.
 Arbitration – ACAS officials do not, themselves, arbitrate. To do so would be detrimental to
the confidentiality and impartiality of their conciliation role.

Summary
 Conciliation and arbitration provide channels through which management and union may, if
they wish, seek to resolve their differences by introducing a third party; the availability or
use of such process does not automatically mean an avoidance to reduction in the use of
industrial action.
 Conciliation is supportive of the joint regulatory framework.
Chapter 13 – Negotiation
Learning objectives

 Explain the role of the negotiator, in particular, the task and skills required and the
importance of the relationship with the people he or she represents;
 Understand the phases of a negotiation and the strategies used within the encounter, in
particular, preparation and the identification of bargaining limits and the use of information,
arguments and persuasion to modify expectations and secure movement;
 Appreciate the importance of securing and maintaining a relationship of trust between
negotiators
Definition
 The term negotiation applies to a particular process of dialogue between people to resolve
their differences and reach an agreement. In industrial relations this is conducted primarily
through representatives of management and employees
Introduction

 Unfortunately, and confusingly, the terms ‘collective bargaining’ and ‘negotiation’ often
appear to be used synonymously. It is perhaps more useful to regard negotiations as part of
collective bargaining.
 The process of negotiating has been described as ‘the deliberate interaction of two or more
complex social units which are attempting to define or redefine the terms of their
interdependence.
Tasks of the negotiator
 Negotiators are acting, in a representative capacity, as the link between principals who
themselves never meet. The objective of the negotiator is, therefore, to reach an
agreement which is mutually acceptable not only to the negotiation involved but also to the
principals they represent and which, in the light of the circumstances prevailing at the time,
secures the maximum possible advantage to their interest group.
Negotiation Basics
Negotiation Basics
• Get Data---information is power
• Have alternatives
• Practice with colleagues
• Be clear about what is most important to You
• Be relentlessly pleasant

Negotiating Styles
 Collaboration (most powerful)
 Competing
 Compromising
 Accommodating
 Avoiding

Collaboration
 Those who collaborate are both assertive and cooperative; they are the exact opposite of
avoiders. Collaborators seek a solution that satisfies all concerns while taking a leadership
role in the conflict resolution. Collaborating involves creative solutions that embody the
wants and needs of all involved in the conflict.
Competing
 Those who use a competing negotiation style are often assertive and unwilling to cooperate.
They place their needs above the needs of others and try to manipulate the situation in their
favor. They are usually more concerned with winning the fight than finding the best solution.

Compromising
 Between competing and accommodating is the compromising style. Those who compromise
try to find a quick solution that benefits everyone involved. Compromising frequently means
both sides will give up part of their wants and desires in order to find common ground

Accommodating
 Individuals who use an accommodating negotiation style tend to be passive as they seek
cooperation. They often neglect their needs and wants to make sure others get their way.
Those who accommodate tend to be submissive, selfless and afraid of conflict.

Avoiding
 Avoiding is a style in which neither assertiveness nor cooperation takes place. Typically
ambivalent to their own wants and desires as well as the wants and desires of others,
avoiders do just that. They have no desire to be involved in the conflict and will try to
sidestep the situation, postpone dealing with it, or propose that the issue be ignored.
Elements of the negotiator’s task
 To provide advice to his or her principals on, and subsequently prepare, the initial bargaining
objectives and strategy for the interest group;
 To arrange and conduct negotiating meetings
 To state, explain and defend the interest group’s case;
 To listen to, investigate and seek to understand the other party’s case;
 To assess, within the predefined strategy and in the light of information gained during the
negotiation, when to adjust or confirm positions and/or when to exert pressure on the other
party’s negotiator to modify positions;
 To inform, advise and consult with his or her principals on the progress of the negotiations
and, if necessary, revise the objectives and strategies of the interest group;
 To seek to influence the other party’s negotiator, and through this the other party’s
principals, to modify their position;
 To maintain an effective and continuing personal relationship with the other party’s
negotiator
Team roles
 Negotiator – main spokesperson and controller of the team.
 Recorder – notes what is said and the reactions of the opposing teams.
 Analyst – prepares information, considers strengths and weaknesses in both cases,
examines implications and effects of concessions.
 Specialist – provides detailed knowledge and experience of the issue under negotiation
Description of Negotiation Activities
 Skillful negotiations can enable a reduction in payments for one party and an increase in
receipts for the other.

 One of the most vital activities involved in negotiation is the gathering of information.
  You need to have relevant information about the subject transaction so that you can
negotiate effectively.
 The information collected should include the weaknesses and strengths of all involved.
 This information will help you maneuver the negotiations to get the results you want.

Guidance
 Guide the decisions toward a successful conclusion. Your research of the parties involved
should help you add information to the negotiation that you know will fit with the other
party's values.
 Repeating solid facts several times, this can have the effect of changing the opinion of an
undecided party, as you will create the perception of being truthful and confident in your
reiterations.
 Assertion and confidence are also vital in guidance, and you should look the other party
straight in the eye, speaking clearly and steadily
Handling the Opposition
 There may be times during the negotiation process when the other parties are decidedly
negative. As the negotiator, you must determine whether these are merely stalling tactics or
whether there is a genuine and valid reason for opposing the proposal.
 It's also possible that the negativity stems from your approach, in which case you should
change your delivery of the proposal.
 Subtle changes such as using the words "us" and "we" can have a positive effect.
Interpersonal skills and tact are vital in this situation, and demonstrating that you
understand the other party's point of view can often quickly turn negativity into positivity.

The negotiating encounter

This encounter usually involves a number of distinct phases:

 Preparation
 Opening the encounter
 The negotiating dialogue and
 Termination
These phases are basically standard all things considered, consideration is given for smaller
negotiations etc.
The following is a model used for understanding the negotiating process
Phase I - preparation
 Preparation is invariably the key to successful negotiating. It allows negotiators t develop a
clear understanding of their task and increases their confidence in their ability to carry it out.
 Preparation is the most important prerequisite to effective negotiation. Neither experience,
bargaining skill, nor persuasion on the part of the negotiator can compensate for the
absence of preparation.
 Preparation improves the likelihood of a win/win negotiation that will produce a quality
contract and set the foundation for timely and effective contract performance.
 Preparation produces tangible rewards, including:
 Fewer contract modifications because the technical requirements are well conceived
and well defined;
 Better technical performance because requirements were well defined; and
 Cost estimates closer to actual contract costs.
Phase II – the opening encounter
 This phase of negotiations is often referred to as ‘the dialogue of the deaf’ or ‘challenge and
defiance’ because ‘the negotiators appear to be ignoring the arguments presented by the
others and concentrating their whole efforts on the presentation and consolidation of their
own case.’
 Opening a negotiation can be as simple as the given example or it may involve a complex
presentation. A confident opening projects confidence in your ability to meet the employer's
or job seeker's needs. Over time this will foster a working relationship based on trust and
respect.
Phase III – the negotiating dialogue
 This phase is often referred to as ‘thrust and party’ because, as Hawkins noted each side is
seeking, at least initially, ‘to develop its own case and undermine the arguments put forward
by the other.’
 "A negotiation is an interactive communication process that may take place whenever we
want something from someone else or another person wants something from us.“
 "Take it or leave it!" "This proposal is non-negotiable."
Phase IV – termination
 The termination phase is just as important to a successful negotiation as either the
preparation or encounter phases. During the final stage of the negotiating dialogue, once an
overall agreement is in sight, it is very easy for the negotiator to experience a psychological
uplift at the apparent success of the negotiations and to suffer a lapse of concentration.
 Closing is a process of gaining validation and acceptance rather than forcing agreement.
Each negotiation may require different ways to accomplish this; the critical factor is that the
philosophy that underlies the approach must be built on respect, understanding, and
mutuality.
Conventions of negotiation
 Role of negotiator – each negotiator has the right and authority to state and argue his or her
side of the case and reach an agreement on their behalf.
 Approval of principals – the negotiator may, if necessary, make am agreement conditional
upon its acceptance nu his or her principals. On the management side, this will arise when
the negotiator has, ‘ on his or her own authority, gone beyond the bargaining limits
established as part of the mandate, which is only likely to happen if the negotiator feels that
the principals will accept his or her judgment in this matter
 Setting for the negotiation – generally it is management which provides the room etc.
 Team negotiation – if the negotiation is to be conducted by a team, it is important to ensure
that there is only one main spokesperson on each side, and that the two sit opposite each
other so that they may communicate directly.
  Personal conduct – at no time should a negotiator lose his or her temper during the
encounter: to do so is to lose the initiative and control of the negotiation.
Summary
 Negotiation is not simply a ‘ritual’ but a process which allows the representatives of
different interest groups to reach a mutually acceptable settlement of an issue while, at
the same time, seeking to maximize the advantages to be gained for their interest group.
 A successful negotiator is one who has command of the facts and is able, through
argument and persuasion, to encourage movement away from prearranged positions