Employer-employee relations
Conflict resolution
EMPLOYER industrial action
Collective bargaining
Work to rule
Strike
Overtime bans
EMPLOYEE industrial action
Redundancy threat
Closures
Lock outs
Changes of contract
Go slow
Conciliation and arbitration
No-strike agreement
Single-union agreement
Employee participation / industrial democracy
Attempts to reduce conflict by achieving a closer working relationship.
Unions sign an agreement with employers not to strike in exchange for greater involvement in decisions that affect the workforce
Conciliation: Use of a third party in industrial disputes to help come to a compromise = listen to both sides and find common ground
Sources of conflict
Poor communication
Representatives
Employer representatives
Usually an employer who represents the firms' shareholders or negotiated with a group of businesses to reach an industry-wide agreement.
The compromise will be the 'lowest-cost possible' for the firm and also an agreement that will motivate employees to strive towards the goals of the firm
The representatives will present the arguments for or against the proposal from the POV of the shareholders or business owners.
Employee representatives
Trade unions
An organisation of working people with the goal of improving working conditions and pay of the members and providing them with legal services and support
The representative will be elected by the union members and will have extensive knowledge on: pensions, benefit schemes, health conditions etc. They will represent the entire union to fight for whatever the employee wants
Why join?
'Power through solidarity' = Unions negotiate on behalf of all members in the business. Stronger position than if the employee negotiated alone.
1 worker going on strike will not be as effective as all members of the trade union in the business = Collective industrial action
Legal support to all employees whenever needed
Unions pressurise organisations to follow legal requirements = health and safety rules etc.
Negotiations between employees' representatives and employers on issues of common interest
Employees belong to unions or associations that negotiate for them = power for the union (can call for strike action)
MOST EXTREME - the last resort
Employees will completely withdraw their labour for a timeperiod
Production will stop completely = businesses can shut down
Employees will refuse to do any work additional to the precise terms of their contract.
Overtime will not be done and all non-contractual cooperation will be removed
Workers refuse to work more than the contracted number of hours/week.
In busy times this will cause a large loss of output
Employees will work but at the min pace as demanded by their contract of employment
Bonus payments can be lost = very disruptive and costly for employers
Short term closure to prevent employees from working = being paid
Workers who need to work after long periods will put pressure on the union leader to agree on the terms presented
Complete closure of the area where the dispute occurs
= Redundancy for all workers and no profit for the firm
Very extreme would only occur if the terms of the union would provide a higher loss for the business than closure
Will cause pressure to agree to the settlement
Can cause poor publicity for the firm seen as 'bullying'
Due to work-to rule and overtime ban, new contracts could be issued (during renewal time)
When employees take advantage of their contracts
Public relations
Using media to gain support for the POV of the firm
Pressure on the union to settle
Differing personalities
Competition
Different values
Failure to communicate or difference in communication
When salary is linked to production, competition may be very present and intense. This can lead to unmanaged competition which can sabotage efforts of others.
It can lead to a hostile working environment, discouraging teamwork and individualist thoughts
e.g. a manager reallocates an employee's task to another employee however, the manager failed to communicate this to the initial employee. This may lead to feelings of rejection and unworthiness
A generation gap = Young workers may possess differing POV or work place values than the previous generation.
The failure to accept the difference in values causes conflict = insults on experience and character
Employees fail to understand or accept differing character traits
e.g. a confident person always speaks their mind in a direct fashion = could be offensive and rude
Many unions in one business means:
Collective bargaining is harder, Inter-union disputes over decisions, Reduce flexibility of the workforce due to a 'demarcation dispute" (members of one union are prevented from doing the work of other members from another union)
An employer recognises one union for purposes of collective bargaining
Why should the union
Improves the image of the union as being responsible (encourages member to join)
Agreed to in exchange for greater employer involvement in decision making and representing employees (leads to employer - union agreements)
Arbitration:*Resolving a dispute by using a third party to judge and recommend a solution* = listen to both sides and make a decision (if both parties agree it become a binding arbitration)
e.g. Union or employee directors = more power in the organisation, works council discuss relevant issue and avoiding the 'us and them' idea by involving workers in everyday decisions
Consequences = The union may not be able to represent the range of staff and their needs at work + the union will be more influential during collective bargaining
Influences
Innovation
Cultural difference
Ethical considerations
In different countries, there are different ways employee-employer interact
Product innovation requires workers to adapt and have new skills.
Is it ethical when:
- nurses and doctors go on strike?
- Employers do not recognise trade unions in areas not obliged by law?
- Employers lower wages during recession?
- Decisions about the future of the business are taken without consulting employees?
Process innovation results in change in working practices and methods = rejected by employees especially regarding: retraining, job losses and relocation