Chris Jarvis 1 HRM & Industrial Relations. Chris Jarvis 2 HRM & Industrial Relations Industrial Relations – defining the scope male, FT, unionised,

Chris Jarvis 1

HRM & Industrial Relations


Chris Jarvis 2


Industrial Relations – defining the scope

male, FT, unionised, manual, “heavy” industries & public sector , restrictive practices, strikes & collective bargaining?

Employee relations - more diverse jobs: non-manual, female, PT, non-union, services, high tech, “new” business etc

Focus = regulation of employment relationship (control, adaptation, adjustment) - legal, political, econ, social, historical contexts. “Collective aspects”?

“operating within & outside the workplace concerned with determining & regulating employment relationships.”

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Comparative

HRM

Unitary MarxistPluralistic

Labourmarket

Socialaction

SystemsControl over

labour process

Input Conversion Output

Conflictdifferences

Institutions & processes

Regulation(rules)

Approaches to IR

Wider approaches

EvolutionRevolution

CooperationConflict

AuthoritarianPaternalism

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Capitalist society

integrated group

common values, interests, objectives

one authority /loyalty

irrational + fractional

coercion

intrusive

anachronistic

only accepted if forced

Unitary Pluralistic MarxistAssume

Nature of conflict

Conflict resolution

TU Role

• Post-capitalist society• Sectional groups - coalesce• different values, interests, objec

tives

• competitive authority /loyalty (formal/informal)

• inevitable, rational, structural

• compromise + agreement

• legitimate• internal, integral to workplace• accepted role in econ & manag

erial relations

• Capitalist• Division of labour/capital• social imbalance + inequalities - p

ower, wealth etc

• inherent in econ. & social systems• disorder - precursor to change

• change society

• employee response to capitalism• mobilise, express class consciousn

ess• develop political awareness & acti

vity

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Input-output model

convert potential for conflict into regulation

reconcile conflicts of interest through legitimate, functional processes & institutions

at the heart ....... collective bargaining

regulatory output Rules: unilateral, joint or imposed by government

substantial & procedural arrangements

within-the-organisation or external rules (law, national agreements)

varying degrees of formality

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Systems approach (Dunlop 1958)

IR - a social sub-system within the econ. & political systems

Components actors

contexts (influences & constraints on decisions & action e.g. market, technologigy, demography, industrial structure)

ideology - beliefs affecting actor views - shared or in conflict

rules - regulatory elements i.e. the terms & nature of the employment relationship developed by IR processes

Stable & orderly Unstable & disorderly?

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Social action (Bain & Clegg)

actor perceptions & definition of “reality” determine behaviour, actions, relationships

work orientation is as much a result of extra-organisational experience as experience within the workplace

structural factors may limit individual choice & action

bounded rationality - interrelated decisions may fix or significantly shift values, focus, roles or relationships.

instrumental & value-based considerations

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Control over labour process

transformation in inputs by labour using tools & methods. Products, under capitalism, become exchangable, marketable commodities. Relevance to banking, retailing, local gov’t etc ?

labour-capital relationship - essentially exploitative (ownership, surplus value, logic of efficiency & savings, structures of control.

Braverman - to achieve capital’s objectives - specialisation, standardisation, simplification, substitute technology for labour (Taylor), de-skilling? Critique?

Core + peripheral employees. Segmented labour markets

Job enrichment, empowerment & responsible autonomy

Personal control & bureaucratic control

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Labour Market - how work is distributed within society

Issues increase in women’s activity rates level + nature of unemployment, long vs. short-term jobs manufacturing service + globalisation vs. local market regulation strategies + dual labour markets

Economic labour market modelPay = price mechanism (SS/DD. elasticity & equilibrium) One market (same £ for all) or differentiated by skill, job, location

etc. assumes Pricing +

Work - disutility. Wages compensate for less leisure Marginal productivity gain from using one extra unit of labo

ur

“institutionalised” labour market - wage floor, "going rate", range (quartiles), collective bargaining vs. individual negotiation.

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Labour Market - social acceptance & hierarchies

Possible Issues Unskilled, semi-skilled & skilled. Blue-collar, white-collar.

Professionalisation. Other desire the same.

UK recognition of “engineers”

UK “class” system & differential access to education (private schools) & labour divisions.

Government interest Passive & active policies

Retirement age, unemployment benefit, training, job support

Who pays - via taxation or direct Er /Ee contributions?

Interventionist & corporatist approaches (state regulation)

Deregulation - free, flexible labour market, pay decided by “ability to pay”.

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Economic environment

UK de-industrialisation + manufacturing decline

increasing liberalisation, internationalisation & globalisation of trade

government management of economy e.g. Keynesian vs monetarism.

increasing inequality in wage distribution

industrial restructuring & introduction of new technologies

expansion of service sector

Participation rates in employment between 1966 & 1981

77.3 to 75.3% Overall

97.7 to 87.8% Men

55.4 to 61.5% Women

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Employment trends 1981-91

Male FT

PT

Total

Female FT

PT

Total

All

Manufacturing 1981 4242 69 4311 1342 395 747 6058

1991 3157 55 3212 1080 282 1362 4574

-26% -20% -26% -20% -29% -22% -25%

Services 1981 5460 601 6061 3752 3288 7040 13101

1991 5691 879 6570 4491 4249 8739 15309

+4% +46% +8% +20% +29% +24% +17%

Figures rounded to nearest ‘000

Source: Employment Gazette

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Social environment

industrialised, capitalist society

principles of freedom of thought, expression & association

Protestant work ethic

Welfare state vs. independence & expansion of individual opportunities

class & social mobility - manual to middle & professional

home & share ownership

unemployment, “haves & have nots”. NHS vs. private medicine

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Political environment

• internal organisational decision-making. Power-authority structures

• external governmental politics

• individual liberalist, laissez faire vs. corporatist, interventionist

• government responsibility for high employment

• privatisation (public vs private)

• TU role/protections & employer role/protections

• law & order

• European Union - national vs supra-national & conflicting political ideologies

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Development of Industrial Relations - 1

“in restraint of trade” - Tolpuddle Martyrs

late 19th c. TUs & collective bargaining confined to skilled trades & piecework. Industrial strength, mutual assurance, control over entry. Common interest in “local rules”. Employer interest in controlling wage competition

WW1 industry level bargaining uniformity in wage claims. 1916 Whitley Committee 70+ JICs set up 1918-21

20s & 30s recession, unemployment decline in TU membership, wage cuts and...!!!...more industrial action. Some JICs disbanded (industries facing foreign competition). Many survive (public utilities, Logov & gov’t.)

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1950s & 60s improvement in economic conditions ----> inc. TU membership & IR activity.

Pressure on industrial bargaining. Productivity problems. PIP. Shift to shop floor bargaining (stewards vs national officials).

Donovan Commission (1968) recommends reform of voluntary coll. bargaining. Pluralism & company agreements

1970s “IR tensions & confrontations” (3 day week, miners, Winter of Discontent, wage push inflation). Employment legislation to enhance worker rights & extend coll. bargaining. Voluntary incomes policy.

From early 80s recession Gov’t non-intervention re- industrial restructuring but strengthening of individ

ual over collective rights. TU member decline. Competitiveness, globalisation & and TQM. Managerial (HRM) resurgence.

Development of IR - post 1945

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Donovan Commission 1968 (majority & minority report)

IR improvement by reform & extension of voluntary collective bargaining

management initiative & TU agreement

develop formal company level agreements.

substantive terms & conditions, rights & obligations etc

procedural conduct of relationships, dealing with disputes/conflict;

about power & authority in organisations

management to embrace pluralism & joint participation

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Government & Legal intervention

Managing the economy. Balance of Payments & IMF. Problem of growth, industrial change & inflation. Gov’t - TU - Employer triangle.

Contrary to Donovan voluntarism Increased legal intervention

1969 “In Place of Strife” recommended law to deter destructive industrial action (“unofficial strikes”) bring orderliness into IR.

1971 Industrial Relations Act (failed) - more legal control over TU action & unofficial strikes. Unfair dismissal.

1974 “Social contract” & support for collective bargaining, stewards’ rights, disclosure of information, consultation, time off.

1978-79 Industrial democracy & Winter of Discontent

1979 steady, greater legal control & restrictions over TU activities

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Conservative legislation to limit TU activities

Employment Acts 1980 , 1982, 1988 & 1990

Trade Union Acts 1984 & Wages Act 1986

Employment Acts, Trade Union Reform Employment Act 1993

Employment Rights Act 1996 no statutory recognition procedure nor closed shop

no immunity from secondary industrial action

independently scrutinised ballots for industrial action

union officers responsible for unlawful actions & must repudiate

right NOT to be disciplined by union for not taking part in action

secret ballots for election of NEC officers

abolished Wages Councils (“price people back into jobs”)

early 80s confrontations: miners, Wapping P&)/NUS

extended rights to obtain redress individually

new realism - single union agreements

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New Realism?

management proactivity - neo-HRM, TQM & IIP.

Integration with business competitiveness, excellence, customer care.

bargaining structures shift from management-union (collective) to management-individual relationships (co

mmunication, empowerment, ownership)

multi- to single-employer. Sole-union recognition for flexible working

pay & working conditions emphasis flexibility & individual.

more temporary & part-time working

core/periphery staff with task-function & time flexibility.

performance-related pay (individual & team)

share ownership & profit bonuses

TUs on the defensive. 1979-1993 lose 4.5m members. Cooperative employer partnerships. Member services from credit to training.

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Concepts & Values in IR

fairness & equality (but fairness is relative & not constant) utilitarian or democratic

impersonal technical notion

reciprocity of the exchange, consistent with other exchanges, equality of treatment & consideration.

power to control, influence & modify versus legitimate authority French & Raven - 5 sources of power

reward, coercion, legitimised, referment, expertise

Morgan (more diffuse, implicit, pervasive) control of resources & systems; control of knowledge, information &

decision-making; use of organisational structures, rules & regulations; control of alliances, networks & counter-organisation

Magneau & Pruitt - reciprocal perception of power.

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individual negotiation vs combining against Er-Ee imbalance

Oversimplification to say Mgt-employee relationship = “individual” & Mgt-TU = “collectivism” .

Issue = degree to which the individual is or should be Feels in control, responsible, allied with or subordinated to, regul

ated by & protected

Issues of I & C in industrial relations Mgt “claim right” to deal with staff without intermediate TU const

raint (represent/regulate on joint basis)

Individual PRP vs. one package for all

individual “sees” his/her well-being deriving from own efforts vs.fraternalism (improvement through solidarity)

High trust - Low trust (Alan Fox - Beyond Contract)

Individualism & collectivism

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Trade Union Functions

Power - protect/support through strength in association - a countervailing force, pressure group. Note: bargaining leverage & member willingness to act together.

Economic regulation - maximise member returns within wage-work framework. Note: political nature of TU wage policy - comparability & differentials. Inflation & unemployment (cost-push & demand pull). Win bigger slice of national income.

Job regulation - establish a joint-rule making system to protect members from arbitary management action . Enable participation in decisions affecting their employment. Expand job opportuities?

Social change - express social cohesion, aspirations, political ideology & develop a society which reflects this? Institutionalise “class” & “conflict”? Dilemma of participating in government.

Member services - provide benefits/services to members

Self-fulfilment - assist individuals to develop outside their job domain & participate in wider decision-making processes

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Union character

expression of sectional/class consciousness ---> “socialist” society

social responsibility - exercise role in non-detrimental ways

business unionism - maximise benefits from employer relationships

welfare unionism - wider social, econ. & political involvement for all

political unionism - through political alliances

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Why do people join or NOT join trade unions?

Blue/white collar

Manual, clerical, technician, technologist, supervisor, manager

Heavy – light, old – high-tech. industry

Individualism vs. fraternal/collective

instrumental reasons for joining. Support in uncertainty

preference for cooperation with Mgt rather than conflict

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What is Recognition?

Mgt. formally accepts a TU (or TUs) to represent all/some employees & enters into joint determination of terms & conditions on a collective basis.

confers legitimacy & defines scope of union’s role

movement from unilateral management action to pluralism. TU has right to “exist & organise in workplace, support members & have shop stewards, challenge managerial action & bargain”.

rights to information disclosure & consultation (redundancy, transfer of undertaking, H & S & pensions).

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TU Recognition Process

Claim for recognition

Managementpolicy

Recognition agreement

Recognition ballotWhat %?

Bargaining unit (common interest, internal homogeneity)•characteristics of work group (skills, pay, jobs, dispersion)•TU membership %•collective bargaining arrangements•management structure & authority

Bargaining agent•independent•appropriate for all employees•effective/sufficient resources•representative

Degree of recognition•representative &procedural only•negotiating (some/all, joint or sole)•union membership agreement

TU & employee’sexpectations

•management rights to manageappropriate•scope & instutions of collective bargaining•role of representatives

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Recognition

Implications for Managers challenge & appeal against decisions. Slower processes

representatives as mediator of communications & may block

work to agreements, procedures with “rights” to be consulted

persuasion & negotiation to secure “consensus”

time off & protections for appropriate/legitimate TU activities.

Grunwick 1977 determined not to grant recognition & dismissed all employees who took action

Recognition & non-recognition often exist side by side

decline in membership & now 1998 Fairness at Work

- Gov’t proposals to enable employees to have a TU recognised by their employer where a majority of relevant workforce wishes it & to introduce statutory procedures for both recognition & derecognition

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Collective Bargaining

an institutionised system of determining terms & conditions of employment & regulating the employment relationship between representatives of Mgt & employees intended to result in an agreement which may be applied across a group of employees.

•decline in coverage 1980 - 90•collective agreements > union membership.

•public sector > private manufacturing > service•manual > white collar men > women

•53% firms in 1990•66% of FT workers (direct or indirect)

•Larger firms & public-sector organisations

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Models of Collective bargaining

Chamberlain & Kuhn conjunctive bargaining

mutual coercion - agreed truce - indispensible to each other - Lose-lose

cooperative bargaining

both accept neither will gain advantages unless the other gains too. Win-Win - willingness to concede - to increase size of cake

Walton & McKersie distributive bargaining

basic conflict over slice of the cake. Fixed-sum game - if you win, I lose.

integrative bargaining (common perception & acceptance of issue)

Mgt accept employee influence. TU accepts business responsibility.

Cooperate to increase cake. Adversarial- cooperative tension remains

intra-organisational bargaining.

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Content & Scope of Collective Bargaining

Substantive rules (economic matters) pay (basic, overtime, PBR, guaranteed payments.....bonuses???), hours

(37, 40, shifts, shorter week, flexi-time?) , holidays, fringe benefits (pension, sick pay, company cars?, BUPA?). Annual negotiations.

Procedural rules status quo (no change until disputes procedure exhausted). Shop stewar

ds, grievance, negotitating, disputes, redundancy, consultation, discipline?

Work methods/arrangements. The nature of work & how it is =carried out. Flexibility, multi-skilling, productivity, assignments, teams, use of contractors, operating procedures?

Bargaining levels National/Industry wide (multi-employer & TU Federations?)

Company-wide

Plant/shop level

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What enables bargaining power?

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Involvement & participation in decision making

industrial democracy (worker control) - little currency in contemporary market-driven economies

participation in decisions traditionally the prerogative of management equal power or management style/good-will? HRM & reaction against confrontation management

involvement to mobilise cooperation, talent & creativity Task participation: empowerment, cell technology, team working, briefin

g groups & quality circles, delegation, job enrichment & MbO joint problem-solving. McGregor Theory Y. Employee reports. 360 degree appraisal

financial particpation profit-related bonuses, share ownership schemes approved deferred share trusts SAYE to buy company shares employee share ownership plans

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Employee participation

Worker directors Bullock report

Works Councils

European pressure for Mgt to consult employee representatives collective redundancies, transfer of undertakings, health & saf

ety.

European Works Council Directive (1994) EWC for information & consultation to be estabished in any m

ultinational organisation with at least 1000 employees (including 150 in each of at least 2 member states)

Documents

Chris Jarvis 1 HRM & Industrial Relations. Chris Jarvis 2 HRM & Industrial Relations Industrial Relations – defining the scope male, FT, unionised,