Hrm Employee Relations

8/14/2019 Hrm Employee Relations

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Employers Associations

Represent the views and interests ofcompanies within one sector or industry.

Financed by subscriptions from members.

E.g. Newspaper Society, EngineeringEmployers Association, Meat MarketingBoard


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TRADE UNIONS

Individual employees have very little power. A group of workers who join together to

further their own interests:

Obtaining satisfactory pay

Ensuring satisfactory working conditions (no ofhours, breaks)

Negotiating bonuses

Obtaining job security


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LARGE UNIONS

Unison Representing local govt employees, health,

utilities, 1.3m membersThe Transport and General Workers Union

(TGWU)

Represent people working in a range ofdifferent occupations and industries in thepublic and private sector


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Represents all trade unions.

Provides information and advice to its members

Membership starting to increase again

Involved in research into employment rights, healthand safety, working conditions

CBI (Confederation of British Industry) representsemployers

TRADE UNION CONGRESS (TUC)


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SINGLE UNION AGREEMENTS

One union represents all workersin an organisation

This system saves time andmoney and there is less likely tobe conflict.


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Question

Describe the role of Trade Unions insupporting employees and employers when

disputes occur in the workplace.(3 marks)

(2006 Higher Bus Man)


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Solution

Trade Unions Represents employees with regard to wage

negotiations, conditions of service, dismissal,redundancy and other work-related matters. Undertake collective bargaining on behalf of

employees.

Have greater negotiation power than individuals. Offer employers advice in work-related matters. Involvement with Industrial Tribunal.


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Professional Associations

Represent professional occupations

Doctors British Medical Association Police Police Federation Footballers Professional Footballers Association

Represent members in bargaining for pay andimproved terms and conditions


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Employee relationsprocesses

NEGOTIATION discussing, agreeing andimplementing changes

CONSULTATION by law employees haveto be consulted, however may only involvetelling

ARBITRATION a third party is calledupon to make a decision, eg ACAS, wherethe employer and employees are in dispute


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Employee relations policies

Contract of Employment Terms and conditions

Procedures/Policies for dealing with staff

complaints,the disciplining of staff,redundancy procedures and redundancypayment

Involvement of staff in decision making

Trade union recognition

Collective bargaining


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COLLECTIVE BARGAINING

This is the process of a group

representing the employeesnegotiating changes in workingconditions with the employer(s).

Typically agreements will be forseveral years at a time.


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Question

Employee Representative Groups, (eg TradeUnions) use the power of collective bargaining

for the benefit of their members. Describe 3advantages of collective bargaining.

(2007 Bus Man Higher)

(3 marks)


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Solution Representing a large number improves the

negotiating position and chance of success formembers.

Agreements reached can be on a national level. Reduces the number of individual meetings requiredto resolve an issue.

Without collective bargaining the employees could be

taken for granted and deliberately left out ofdiscussions, consultations or told very little by theorganisation.

Negotiators are experienced.


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INDUSTRIALACTION

Work to rule

Overtime ban

Sit in

Boycott

Strike


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Question

Employees may undertake industrial actionin an attempt to force employers to meet

their demands. Describe types ofindustrial action that employees couldtake.

(4 marks) (2008 Higher Bus Man)


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Solution

Strike - employees refuse to do their work and donot enter the workplace.

Sit in - employees are in their place of work but do

not do any work. Work to rule - employees only undertake the exact

jobs written in their job description. Go slow - employees deliberately work at a much

slower rate. Overtime ban - employees do not do any overtime.

Picketing - employees protest at entrance to theplace of work.


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Question

Explain possible effects that prolongedindustrial action could have on an organisation.

(5 marks)(2008 Higher Bus Man)


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Solution Loss in production will lead to possible shortages in stock Loss in salesrevenue may lead to liquidation Long term loss of customers who now shop at competitors Image of organization is tarnished- future applicants may not

be attracted to the company, so the business might lose out

on the best employees. Damage to long term reputation of organization Share price can fall- no shares are being sold so the

business are receiving no capital May result in redundancies- employees are still getting paid,

therefore the company is losing money as no output is being

produced. So as to save money they would sack the staff to savemoney Improves working practices Facilitates change


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WORKS COUNCILS A European concept that has been

introduced in UK. Allows access to company

information and gives employeerepresentatives joint decisionmaking powers.

Companies (150+ employees) can befined if they do not have a SpecialNegotiating Board.


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If an employee is unhappy with theirconditions or the way in which they are

treated.

Three stages in the process:

5. Negotiations with union and HRM dept6. ACAS approached for a ruling7. Employment Tribunal (has legal powers)

Grievance procedures


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DISCIPLINARYPROCEDURES

Steps an organisation will take to deal with anemployee who is breaking the conditions of theircontract. Could be:

Verbal warning - logged Written warning Second written warning

Contract terminated (P45 issued)

However could jump straight to dismissal dependingin nature of offence

Documents

Hrm Employee Relations