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2.6: Industrial/Employee Relations (Approaches to Conflict Resolution…
2.6: Industrial/Employee Relations
The Role & Responsibility of Employee & Employer Representatives
Employee Representatives / Trade Unions
workers allowed to join trade unions
trade union
: organization of workers with objective of impoving pay & working conditions of members & providing support & legal services
negotiation teams led by generalists who expertise on wide area of subjects
compensation practices
benefit schemes
pensions
safety & health conditions
have legal training
Reasons to Join
"power through solidarity"
negotiate on behalf of all members of a business
puts workers on stronger position than negotiating individually
industrial action
: measures taken by workforce to pressure management to settle industrial dispute in favor of employees
legal support
Union Recognition
not necessarily legal to recognize trade unions
trade union recognition
: when employer formally agrees to negotiate with trade union
employer can choose to treat negotiations individually with each employee
laws demanding recognition of trade unions can boost membership
:check: Benefits for Employers
negotiate with one representative instead of a lot of workers individually
provide channel of communication
union disciplines hasty industrial action
discussion leads to productivity
Employer Represetatives
union may negotiate with single employer who represents company´s shareholders
team making up negotiating body depends on size of business
Small Businesses: senior management; chief executive
Large Businesses: HR managers; Financial officer
role of employer is to present arguments for or against a proposal
reach an agreement that leads satisfactory long-term employer-employee relations
Collective Bargaining
negotiations between employees reps. & employers reps. on issues of common interest
opposite of individual bargaining
can make union leaders very powerful
not used in places where unions are weak or illegal
Action Taken by Employees & Employers
Unions
measures to encourage employers to accept demands
Negotiations
agreeing to arbitration
Go Slow
workers keep working but at minimun pace
may loose bonus payments
Work to Rule
a form of industrial action
employees refuse to do any work
:forbidden: overwork
Overtime Bans
form of industrial action
workers refuse to work more than contracted hours each week
could lead to lost output for employer
Strike Action
most extreme form of industrial action
employees completely withdraw labour for a period of time
leads to stop production completely
can lead to business shut down
Employers
Ways to reach settlement
Negotiations
reach compromise solution
Public Relations
use media to gain public support for employer´s position
may put pressure on union to settle for solution
Threats of Redundancies
might inflame opinions on employees
leads to poor publicity for employer
Changes of Contract
if employees take advantage of contract to work to rule or ban overtime
new contracts issued when old ones are due for renewal
Closure
closure of business/factory where dispute takes place
leads to redundancy for workers & no output or profit for owners
very extreme measures
used when demands of union would lead to serious loss
Lock-outs
short-term closure of business/factory
prevent workers from working & being paid
Which Side is Stronger?
Union Strong
most workers belong to (1) union
all workers agree on industrial action
business busy, close to full capacity & not wanting to disappoint customers
industrial action is costing lots of output/revenue/profits
public support for union case
inflation is high :arrow_right: high wage increase to maintain living standards
labour costs are a low proportion of total costs
Employer Strong
unemployment is high
employer takes action (lock-out)
public support for employer
profits are low :arrow_right: threats of closure
threats of relocation to low-cost conutries
Sources of Conflict in the Workplace
Poor Communication
can result in different communication styles
failure to communicate
Difference in Personalities
different backgrounds & experiences
employees fail to understand or accept differences in personalities
Different Values
common cause is generational gap
young workers vs older workers
difference of values is not a conflict but failure to accept the differences is a problem
Competition
excessive workplace competition
salary linked to production may cause strong competition
can result in sabotage or no cooperation
creates hostile work environment
discourages teamwork & promotes individualism
Approaches to Conflict Resolution
Single-Union Agreement
employer recognises just (1) union for collective bargaining
the workforce of one business can have memebers on different unions
can lead to inter-union disputes
can reduce flexibility of workforce
demarcation dispute :arrow_right: reduces productivity
sign recognition deals with only (1) union
leads to mergers between unions
No-Strike Agreements
unions sign agreement with employers not to strike in exchange for involvement in decisions that affect the workforce
improves the image of the union as being a responsible representative body
agreed to in exchange for greater union involvement
Conciliation & Arbitration
conciliation
: use a third party in industrial disputes
arbitration
: resolving industrial dispute by using independent third party to judge & recomend a solution
in arbitration 3rd party makes the decision
in conciliation third party lisents and finds common ground
pendulum arbitration
: both sides must accept the decision of the arbitrator
Employee Participation & Industrial Democracy
Industrial democracy
implies workers' control over industry
workers' ownership of the business
employee (or union directors) on company's board of directors represent workers approach
Works councils
employment situation
major investment projects planned by business
major organizatoinal changes
health & safety
Autonomous work groups & Quality circles
lead to employee participation in decision-making
avoid "us-them" environment
Employee Resistance to Change
Fear of the Unknown
not knwoing what the future of the business
leads to increased anxiety
results in resistance
Fear of Failure
changes may require new skills
beyond worker's capabilities
Self-Interest
losing something of value
workes lose status or job security
they want know precisely how the change will affect them
Misinformation
false beliefs about need of change
people believe that existing system will work out someday
Low Tolerance
lack of trust
due to past experience
workes may not believe reasons for change
Inertia
maintain status quo
fear of having to work harder causes resistance
Strategies for Implementing, Managing & Controling Change
Understand what Change Means
change management
: planning, implementing, controlling & reviewing the movement of a business from current state to a new one
cope with all kinds of change
Evolutinary or Incremental Change
occurs slowly over time
can be anticipated or unexpected
Dramatic or Revolutionary Change
causes more problems
rethinking of operation using "clean slate"
re-engineering
Recognise the Major Causes of Change
Technological Innovation
Macro-Economic Changes
Legal Changes
Competitors' actions
Understand the Stages of the Change Process
Where are we now & why we need change?
New vision & objectives
Ensure resources are ready to enable change to happen
Plan the timing of the change
Involve workers in plan for change & implementation
Communicate
Intoduce initial changes that bring quick results
Focus on training
Sell the benefits
Always remember the effects on individuals
Check on how individuals are coping and support them
Lead Change, not Just Manage It
establish new objectives that recognise need of change
resources made available for change
appropiate actions that need to be taken
dynamic leaders who bring company away from resistance
motivate staff at all levels
ensure acceptance of change as part of culture
support senior managers who will help the change process
Use Project Champions
project champion
: person assignet to support & drive project forward & explains benefits of change; puts change into practice
have enough influence
cheerleaders for projects
not involved in planning & implementing new scheme
Use Project Groups or Teams
project group
: created to adress problem that requires input from different specialists
team meeting of experts
Planning & Promoting Change
establish sense of urgency
create project team to lead change
develop vision & strategy
communicate change vision
empower people to act
generate short-term gains
consolidate gains & produce even more changes
build change into the culture
Cecilia Martínez A01197738