Effective Employer -Employee Relations A2 Business Studies
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Aims and Objectives Aim: Understand the role of trade unions
Objectives: Define trade unions Explain the effects of stoppages on
businesses Analyse actions a business could take to prevent
industrial action Evaluate methods of settling industrial
disputes
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Hard and Soft HRM Effective Communication Centralisation and
Decentralisation Hard and Soft HRM Effective Communication
Centralisation and Decentralisation
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Starter Define trade unions. How has the power of trade unions
changed over time?
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Managing Industrial Disputes Back in the 1970s and 1980s the
news was often dominated by industrial disputes and action taken by
trade unions. However, in the last two decades the incidence of
industrial disputes has reduced dramatically.
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The Power Of Trade Unions 1970s and 1980s http://www.youtu
be.com/watch?v= nDvGxNkX4AU http://www.youtu be.com/watch?v=
nDvGxNkX4AU
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Industrial Actions
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Forms of Industrial Action
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Industrial Action Damages Split into two groups: Businesses
Employers Consider the damages that could be done to your
stakeholder group from industrial action.
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Trade Unions Damage for the BusinessDamage for the Employee
Lost sales and profit from the lost output Lost pay Damage to
customer satisfactionPotential loss of jobs of the action results
in action to cut costs An internal distraction for management and
the business (worse if comp not affected) Possible loss of customer
and public support Damaged relationship with staff may adversely
affect motivation, productivity etc Risk that illegal action will
result in legal proceedings
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Trade Unions What could a business do to prevent industrial
action?
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Settling Industrial Disputes Most disputes are settle without
having to resort to industrial action. When the dispute cannot be
resolved between themselves the dispute is taken to an independent
advisory service. In UK ACAS (Advisory, Conciliation and
Arbitration Service)
http://www.youtube.com/watch?NR=1&v=75aKkYwqFWE&
feature=endscreen
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Conciliation Conciliation is used when an employee is making a
specific complaint against their employer to an employment
tribunal. Conciliator has no authority to seek evidence or call
witnesses, or make decisions or awards. Conciliator discusses the
issues with both parties in order to help them reach a better
understanding of each other's position. The conciliator encourages
the parties in dispute to come to an agreement between themselves,
and so avoid the stress and expense of contesting the issue at an
Employment Tribunal.
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Mediation Involves an independent, impartial person helping two
or more individuals or groups reach a solution that's acceptable to
everyone. Aim is to restore and maintain the employment
relationship wherever possible not apportion blame Best used early
on in a dispute Agreements are not legally binding, but usually
carried out
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Arbitration An alternative to a court of law Held in private
rather than in public (court case) Arbitration involves an
impartial outsider being asked to make a decision on a dispute. The
arbitrator makes a firm decision on a case based on the evidence
presented by the parties. Arbitration is voluntary, so both sides
must agree in advance that they will abide by the arbitrator's
decision. Often used in disputes between employers and trade unions
over collective bargaining issues (e.g. pay awards)
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Power of Trade Unions Qantas axe 1000 jobs and outsource
maintenance from Austrailia
http://www.bbc.co.uk/news/business-15507106 Do some trade unions
still have power? What could the implications be for the Australian
economy and Qantas?
