5th Year Business Unit 1m

#separator:tab #html:true what is a business"an organisation set up to provide goods and services to customers. people set up businesses to make a profit. for example starbucks sells coffee.  " list the main stakeholders, people who are affected by how a business is run"entrepreneur investor employer employee manager consumer producer supplier service provider interest group " what is an entrepeneur "a person who spots an opportunity and takes the initiative and financial/personal risk to set up a business to make money from that opportunity for example, jeff besos spotted the potential of the internet to sell products and set up an online store called amazon " what risks does an entrepeneur take to set up a business"financial risk: if the business fails theyll lose money they invested personal risk: if the business fails theyll lose their self esteem and self confidence. example: jeff bezos took a risk by quitting his well-paid job on wall street to set up amazon. " what is an investor"a person who gives money (capital) to the entrepeneur that he needs to set up, run and grow his business in exchange for a return on investment " what is debt capital"when an investor lends money to the entrepeneur with the expectation of being paid back with interest " what is equity finance"when an investor gives the entrepeneur capital in return for a share (part ownership) in the business " give an example of investors being involved in a business"jeff bezos' parents invested 250k in amazon to help get it started, as the business grew bezos sold more shares in it to investors to pay for its expansion " give an example of an investor"banks, that give loans to entrepeneurs and local enterprise offices that give grants + loans to entrepeneurs to help them set up their business " what is an employer"a person who hires others to work for them. the employer rewards the employee for their work, eg: financially with pay + bonuses + comissions and non financially through holidays example: aer lingus, hires pilots to fly their planes. " how can an entrepeneur become an employer"when their business grows and they cannot do all the work themselves because they might not have certain skills essential for running the business.  example: they may employ a computer graduate to design the business website " what is an employee"an employee is a person who for an employer in return for wage, they carry out essential tasks needed to make the business a sucess example: an employee is a pilot in aer lingus, he flies planes for the airline in return for a wage. " what is a manager"a person whos job is to run the business and make sure it achieves its objectives, they must use the resources of the business (money, equipment and people) in the best possible way so that business is a success example: an example of a manager is the group chief executive officer of ryan air, michael o'leary, he turned the company into a success. " what is a producer"is a business that makes finished products from scratch to sell to consumers, they take raw materials and use manufacturing process to turn them into a different product. they use the 4 factors of productions to make a product. (land, labour, capital and enterprise) example: cadbury takes milk and other ingredients and turns them into chocolate. tayto takes potatoes and turns them into crisps " what is a consumer"a person who buys goods or services from the entrepreneur for his own personal use, the consumers provides the entrepreneur with a market for her product, and thus a profit they also provide market research information by telling the entrepreneur what he likes / dislikes in a product, they use this to make their products better and thus sell more. example: you are a consumer when you buy clothes in a physical shop " what are suppliers"the other firms the business buys from. suppliers provide the business with goods and other things it needs to be successful example: pat the baker supplies all the major supermarkets in ireland with bread to sell " what is a service provider"a business that offers a range of helpful supports to an entrepreneur for a fee. Service providers operate in the tertiary sector of the economy. example: accountancy firms are service providers, they prepare the business's financial statements " what is an interest group"an organisation of people who come together and campaign for a common goal by pressurising those who make decisions, in bigger groups they have more power and will most likely be listened to. " what tactics can an interest group do"organising negative publicity and boycotts of businesses that they are campaigning against.  lobby politicians to bring out laws that will meet their demands  " what is lobbying"the deliberate effort to apply pressure to the decision-maker by contacting her and persuade her to make the decision the group wants " examples of interest groups in ireland"the Irish business and employers confederation (IBEC)  the Irish Small and Medium enterprises (ISME) the Irish Congress of Trade Unions (ICTU) " explain the irish business and employers confederation"helps entrepreneurs by lobbying the minister of finance to do something positive for business people in their budget (eg lower business taxes) every year a budget submission is prepared to suggest what the minister should take action wise in their budget to help improve the economy for Irish business people. Their office is in brussels, for engaging with EU institutions to promote the interest of irish business ar EU level. " who are consumers represented by"Consumers Association of Ireland " what represents irish farmers"the Irish Farmers Association (IFA) and the Irish creamery milk suppliers association (ICMSA) " "All stakeholders have different relationships with each other. They are as follows:""1. **Cooperative Relationship** 2. **Competitive Relationship** 3. Dependent Relationship 4. Dynamic Relationship " A Co-operative Relationship is"where both parties are working towards shared goals and for mutual benefit. A cooperative relationship is a win-win relationship for each stakeholder. Example: A co-operative relationship may exist between investors and entrepreneurs. An entrepreneur wants to be successful so that they can attract investment in the future and therefor works alongside the investor towards a shared goal " Other Cooperative examples between stakeholders"• Employees working together as a team to increase sales/ team goals • Local business co-operates with local community when it reduces environmental waste and increase local employmentTwo businesses working together in market research- e.g. Renault and Volkswagen share the cost of a report into the cost of inflation in the car market • All financial information provided by the manager to investor is accurate and up to date. The manager uses the investment appropriately. The investor will benefit from seeing that their investment is safe and the manager will find it easier to acquire the necessary finance to fund new projects • Local business co-operates with local community when it reduces environmental waste and increase local employment " A Competitive Relationship involves"two or more rival parties. They both want to be successful but this is impossible. There is only one winner in a competitive relationship. It is known as a win-lose relationship. Example: The shareholders of a business may only pay their employees minimum wage in order to keep money to invest in other parts of the business.  " Other Competitive Relationship examples between stakeholders"• Business is competitive with other firms for quality of goods, price, recruitment, customers, advertisements etc. (Aldi v Tesco) • Employees battle with each other for promotion • Employers versus employees in wage negotiations/working conditions • Government and businesses at odds over tax rates such as VAT rates • Local business co-operates with local community when it reduces environmental waste and increase local employment • Producer charges a fair and reasonable price for a product/service and the consumer continues to use it. The Producer rewards their customers and treat them with respect, in return for brand loyalty. • The supplier provides good quality raw materials, components, and finished goods to a business who, in turn, pays the suppliers on time and importantly offer a fair price to supplier " Dependent Relationship involves"two or more parties that cannot achieve success on their own. The success of one party depends on the actions of the other party. If one fails so does the other. Example: A dependent relationship exists between consumers and producers. If consumers stopped buying goods then there would be no demand for producers’ products and they would go bankrupt. " a Dynamic Relationship is"This is a relationship that is likely to change over time. Example: Consumer and Producer The relationship between both parties is good is goods are delivered on time and are I good condition. A bad relationship can result from goods arriving late and being in damaged " A Contract is "a legally binding agreement made between parties who have the power to undertake such a contract when buying or selling goods or services. This means that if one party breaks an agreement, a judge can order that party to pay compensation to the other party. " The following are the main elements of the contract:"1. offer 2. acceptance 3. consideration 4. intention to contract 5. capacity to contract 6. consent to contract 7. legality of form 8. legality of purpose " expand on offers in contracts"This can be an offer to buy or sell a good or service. It can be made orally, in writing or by action. it is not to be confused with an invitation to treat (eg. a price tag on an item in a shop window)  The offer must be made in a clear and final manner, and must be communicated by the offerer to the offeree so that the person receiving the offer can either accept or reject it Example: Jim is selling his bike for €200. Lee offers Jim €200 for the bike. " The Termination of an Offer can occur in the following ways:"a) Revocation If the offer is taken back (revoked) by the offerer prior to acceptance. Revocation cannot occur after acceptance- example if the price in the window is marked incorrectly  b) Lapse The passage of time or the death of one of the parties may cause the offer to lapse and so cannot be accepted c) Rejection This may be expressed when notice of the rejection is given to the offerexample a bid for a house is rejected and the bid is withdrawn " expand on acceptances in contracts"Acceptance is when a party who receives an offer agrees to all the terms of the deal without any conditions. • They can accept it by speaking, in writing or by conduct and it then becomes legally binding. The party who receives the offer must accept all the conditions exactly as the contract lays them out and cannot change them. • To change any conditions is called a counter offer. A counter offer is considered as a new offer and also as an automatic rejection of the first offer. Example: Jim is selling his bike for €200. Lee offers Jim €200 for the bike. Jim accepts the offer and there is a handshake. This is an agreement. " expand on consideration in contracts"Something of value moves between both parties. The acceptance of an offer must be accompanied by payment (cash, cheque, etc) moving in one direction and in goods or services moving in the other direction. Example: In the bike deal Luke pays John €200 for the bike. This is consideration. " expand on intention to contract"The parties signing or agreeing to a contract must know that they are entering a legal agreement which cannot be broken. There must be an intention by both parties to create a contract or legal agreement. They could end up in court if the contract is broken. Example: If one company agrees that they will supply toilet rolls for a music festival, they are bound to supply the toilet roll on time. " expand on capacity to contract"The parties to a contract must have the legal ability to make the contract. The following do not have the capacity to contract: 1. Those under 18- (although can for normal day-day items, e.g. food) 2.Persons under the influence of alcohol or drugs 3.Persons of unsound mind 4.A bankrupt person 5.Company directors without consent from other partners- this is known as acting Ultra Vires " expand on consent to contract"All parties entering into a contract must do so on their own free will. • One party cannot force another into a contract. • Both parties must understand the conditions of the contract. Example: You cannot be bullied (by threat or intimidation) into selling your own house " expand on legality to form"This refers to the manner in which the contract is made- must be legal 1. Contracts can be made orally – simple contracts 2. Contracts may have to be written down due to their complexity- example would be for a house there must be a written contract for it to be legal " expand on legality of purpose"For a contract to be valid it must be for a legal purpose ie. it must comply to the laws of the land Example: A judge will not reward damages to a person if their drug dealer failed to supply them the drugs they paid for. " name things involved in the Termination of the Contract "1. agreement 2. specific 3. frustration 4. breach of contract " expand on agreement of termination of the contract"The termination of a contract when all parties involved agree to cancel the contract before it is carried out. This happens when neither party benefit from the completion of a contract. Example: A footballer has their contract cancelled by mutual consent. " expand on the specific performance within the termination of the contract"If both parties to the contract fulfil their contract obligations, the contract has been completely performed. Example: U2 are paid €2,000,000 to perform at Croke Park. Upon full payment and completion of the concert the contract is terminated as both parties have fulfilled their obligations. " expand on frustration within the termination of the contract"A contract comes to an end if some unforeseen event occurs which makes it impossible to carry out the contract. Neither party is to blame. Example: A U2 concert cancelled due to war breaking out in a country and it is impossible to fulfil the date. " expand on breach of contract within termination of a contract"If either parties fail to carry out their part of the agreement the contract will be terminated, this happens when they break a condition of the contract. This is known as a breach of contract. Example: If Bono doesn’t show up the contract is in breach and they broke an essential condition of the contract. " Breach of Condition v Breach of Warranty"A condition is an essential element which goes to the heart of the contract. Breach of conditions are effectively breaking the contract. Example: U2 don’t show up for a Concert. This is a breach of condition. The contract is terminated and the concert organisers can sue U2. Warranty A warranty is a less important part of the agreement. A breach of warranty will often not break the contract. Breach of warranty generally results in a fine. Example: U2 don’t show up for sound checks on the day of the concert. This is a breach of warranty. The contract is not terminated and the concert still goes ahead. U2 may be fined for this breach of warranty. " breach of contract is "when any condition of a contract is broken. " remedies of breach of contract"1. sue for damages 2. specific performance 3. rescind the contract 4. agreement " expand on sueing for damages in breaches of contracts"The aggrieved party takes the other party to court. The aggrieved party receive financial compensation for the loss suffered because of the breach. This is known as suing for damages. Example: The Concert organisers sue U2 for damages and loss of potential earnings through ticket and bar sales. " expand on specific performance in breach of contract"This involves the judge ordering the contract to be carried out as had been agreed. If the contract is not carried out as agreed the aggrieved party may then sue for damages. Example: U2 redo the concert at a later date. " expand on rescinding contracts in breaching contracts"The contract be cancelled. Both parties return to exactly the same position they were in before the contract started. This is a common remedy for contracts involving frustration. Example: U2 repay the concert organisers the €2,000,000 and both parties go their separate way. " expand on agreement within breach of contract"Both parties agree to cancel the contract before it is carried out. Both parties agree to the contract being terminated and so the contract is annulled. Example: A contract with a builder is terminated before work begins, it suits you and it suits the builder. " Consumer conflicts: Can be solved in 2 ways:"1. Non-legislative methods 2. Legislative methods " What is a Consumer?"A consumer is somebody who buys a good for their own personal use Example-buying a new pair of jeans for yourself in H&M. " List the Non-Legislative Methods to solving Consumer Conflict"1. Meet and Negotiate 2. Letter of complaint 3. Third Party Assistance: Consumer’s Association of Ireland/European Consumer Centre Ireland " what is negotiation"Negotiation is when the consumer and retailer bargain and try to reason with one another. " What steps are involved in negotiating?"1. The consumer approaches the manager and makes a complaint. The consumer’s tone should be firm but polite 2. The consumer shows proof of the purchase they have made 3. The consumer and manager will continue to negotiate until a compromise has been me " expand on Letter of complaint"If the consumer is unhappy with how their face-to-face negotiating goes they should write a letter of complaint to the store. This is to be a formal letter outlining your issues and the redress you require. " expand on Third Party Assistance"Consumer’s Association of Ireland - You will then contact the Consumer Interest Group ‘The Consumer Association of Ireland’. This is an independent, not for profit organisation representing the views and interests of consumers. Consumer Association of Ireland produce a monthly magazine called Consumer Choice to educate consumers about their rights and also provide a telephone service and website for more information. - European Consumer Centre Ireland The ECC Ireland helps consumers when buying goods from other EU countries. " list the Legislative Ways of Solving Consumer Conflict"• Sale of Goods and Supply of Services Act 1980 • Consumer Protection Act 2007 • Competition and Consumer Protection Commission (CCPC) • Ombudsman • Small Claims Court " expand on what the act 1: sale of goods and supply of services act 1980 states in terms of goods"When consumers buy goods from a retailer, both parties have entered into a contract. Under this act, the buyer has the right to assume: 1. Goods must be of merchantable quality: This means that the good must be of an acceptable standard, taking into account price and durability. Example: If you buy a watch it should not stop working after using it once. 2. The goods are fit for purpose: This means that the good must do what you expect it to. Example: A freezer should freeze food 3. Goods supplied as described: This means that the description of the good should match the packaging, catalogue, or description given by the sales person. Example: A silver I-phone X must be silver if selected by the consumer.  4. Goods should match the sample: This means the sample shown to you by the seller should match the product purchased by the consumer. Example: A sample of curtain selected must match the sample delivered to the consumer. " expand on what the act 1: sale of goods and supply of services act 1980 states in terms of services"Under this act, the buyer has the right to assume: 1. Parts should be of merchantable quality: This means that the parts supplied during a service are of merchantable quality. Example would be a door handle should open a door. This is a part of the overall good. 2. Service must be carried out by suitably qualified people. This means that you have the right to assume that a person doing the work for you is qualified at their job. Example: Mechanic fixing your car, not your Business teacher. 3. The service provider must take proper care and attention: When carrying out the work, a surgeon for example must take proper care when doing the procedure. If they do not, they would be legally liable. They cannot be watching Netflix while performing the procedure. " "OTHER provisions of Sale of Goods and Supply of Services Act 1980 in terms of goods""Rented/Leased/ Hire Purchased Goods: You are entitled to return such goods if they do not work- example rent a lawnmower from the local hardware store that doesn’t work Second Hand Goods: They must be fit for the purpose they are sold but not fair for us to assume they should be brand new either. It is important to note if you buy from a private seller you are not covered- example a second hand video game from a friend Inertia Selling/Unsolicited Goods: This is where goods are sent to a person who hasn’t ordered them and the seller later demands payment for them. This law makes this practice illegal. The Act outlaws this practice and allows the consumer to keep the good free of charge after 30 days provided they have written to the seller asking them to collect the goods, or after six months, as long as the consumer has not prevented the seller from accessing them " "provisions of Sale of Goods and Supply of Services Act 1980 in terms of illegal shops signs""It is an offence for the retailer to display signs that give the consumer the impression that they have no legal rights. E.g. ‘No Refunds on Sale Items’ Consumers’ rights under the act cannot be taken away or limited by signs such as ‘Credit Notes Only’, ‘No exchange on items’ etc. These signs are illegal and do not affect your statutory consumer rights " "provisions of Sale of Goods and Supply of Services Act 1980 in terms of guarantees""Guarantees are seen as additional protection given to the consumer and they cannot limit the consumer’s rights under consumer law. The consumer can choose to have the goods fixed by the manufacturer or they can insist that the retailer deals with the complaint regardless of the guarantee. The contract is between the seller and the buyer " remedies for breach of act 1 sales of goods and supply of services 1980"consumer has no right to redress when the goods are not faulty, where they themselves damage the goods, or when they simply change their minds Redress: Refund/ Repair/ Replacement 1. Refund If a consumer buys a good that does not meet the standards set out by the Sales of Goods and Supply of Services Act they are entitle to a complete refund. This is one form of redress that is used to solve consumer conflicts. Example: You pay for a guided tour of Rome through English. The guide cannot speak English and gives the tour in Italian. You are entitled to a refund. 2. Repair If a consumer buys a faulty good in need of repair through no fault of their own they can ask for a repair. Example: A dress with a faulty zip is returned to the seller and repaired for the consumer. 3. Replacement If a consumer buys a faulty good they can ask for a working replacement. This form of redress is common, especially when the good cannot be easily repaired. Example: You buy an iPad which stops working for no apparent reason. When you bring it to the Apple Store they say it cannot be repaired. You are entitled to a replacement iPad. " "The Consumer Protection Act 2007 sets out the following rules about:""• Aggressive business practices • Claims about prices • Prohibited practices • Price Controls • Misleading Descriptions " expand on The Consumer Protection Act 2007 in terms of the aggressive business practices"A business cannot force or threaten a consumer to buy a good/service. Example: A restaurant owner or chef cannot harass you until you come into their restaurant. " expand on The Consumer Protection Act 2007 in terms of claims about prices"This means the price of certain goods must be displayed in a particular way. 1. Goods sold must be final price inclusive of VAT etc.. 2. Grocery stores selling Fruit must provide weighing scales. 3. If a special offer price is only available for a limited period this must be clearly stated. - Example while stocks last/ ‘Must End Friday’ A wise consumer will always shop around to get the best price. The Latin phrase Caveat Emptor meaning ‘let the buyer beware’ as the buyer alone is responsible for checking the quality and suitability of goods before a purchase is made. " expand on the consumer protection act 2007 in terms of prohibited practices"Certain practices are banned under this law: 1. Making false claims about cures for illnesses. 2. Offering free prizes when it costs money to claim these prizes. 3. Running competitions when the top prize is not available 4. Claiming a business is closing down when it is not 5. Ban of Pyramid Schemes " expand on the consumer protection act 2007 in terms of price control"In emergency situations the government can introduce a maximum price for a product. Example: Tickets for gigs cannot go over cost price to eliminate touting as a government policy. " expand on consumer protection act 2007 in terms of misleading descriptions"Sellers cannot advertise in a way that deceives or misleads consumers. 1. About the product or service- the ingredients or materials used to make the good. A company saying their food is fat free when it’s not.  2. About usage/ history of 2nd hand goods, e.g. a car dealer changing the mileage on a car. 3. The country of origin of the good 4. The quantity or weight of the good " evaluation of the consumer protection act 2007"The Act benefits consumers as they must receive fair and accurate information from retailers about goods and services. This will ensure the consumer knows exactly what they are buying and at what price. " Evaluation of the Sale of Goods and Supply of Services Act 1980"I believe the ‘The Sale of Goods and Supply of Services Act 1980’ is very effective because it: Informs consumers of their rights when purchasing and enables them to understand that they are entitled to a Refund/Repair/Replace if their rights are infringed upon. Consumers cannot be misled by retailers and they know that they are protected when purchasing goods and services. " "The Competition and Consumer Protection Commission (CCPC) is""The CCPC is an independent body that enforces consumer protection and legislation in Ireland. " what functions does the CCPC operate "• Inform consumer of their rights • Investigate breaches of consumer laws • Advise the Government • Provide personal finance information and advice • Enforce product safety regulations " expand on the CCPC in terms of informing consumers of their rights"The CCPC provides consumers with information about their rights in relation to the purchase of goods and services, as well as financial services. They provide a website, a helpline, social media site and engage in radio and television advertising. They also produce a newsletter through a subscription service on their website " expand on the CCPC in terms of enforcing breaches of consumer laws"The CCPC is the statutory body responsible for enforcing all consumer laws. They issue compliance notices, on the spot fines, prohibition notices and produce a Consumer Protection List of all businesses who have breached consumer law. " expand on the CCPC in terms of advising the government"The CCPC conducts research and identify areas where consumers need greater protection. It then informs the government about the impact these new laws would have on Irish consumers. " expand on the CCPC in terms of personal finance information and education"The CCPC provides financial information to consumers. They run campaigns and education programmes in offices and schools. The CCPC website has many tools for consumers to use to make more informed decisions. These include financial calculators, cost comparisons for various financial services, interactive quizzes etc. They also sponsor How to be Good with Money. " expand on the CCPC in terms of enforcing product safety regulation"The CCPC share information about dangerous goods and ensure producers and retailers obey product safety regulations. " evaluation of the ccpc"I feel that the CPPC is essential for Consumer Protection. Its provisions ensure that we as consumers have a body that looks out for our best interests in the market place and protects us in our dealings with the various stakeholders in business. " the small claims court is for when "a consumer and a retailer are unable to resolve a dispute the consumer might look to bring the retailer to The Small Claims Court. It aims to sort out consumer claims quickly, cheaply and without a solicitor " facts about the small claims court"1. The small claims procedure doesn’t deal with debts, personal injuries or breaches of leasing agreements. It also does not deal with most claims about private rental properties. 2. The largest amount a consumer can sue a retailer for is €2,000 3. A special application form must be filled out along with a €25 fee 4. This meeting is as informal as possible and private 5. After listening to all the evidence the Registrar makes their ruling 6. There is no need for a solicitor to be present- you can represent yourself 7. It the Registrar is unable to solve the complaint, they will bring the case to the District Court for a hearing " evaluation of the small claims court"The Small Claims Court is very effective for consumers as it provides a cheap and fast way to solve conflict between a consumer and a business. It is housed in the local District Court (there are 23 in Ireland) which means a consumer has a number of courts close to their vicinity that they can have their case heard. " the obudsman is set up by and for"Set up by The Ombudsman Act 1980, if a consumer has a problem with any of the 4 following public bodies they can make a complaint to The Ombudsman.  " "Legally the ombudsman can investigate the following 4 institutions.""goverment departments, an post, health services executive (HSE) and local authorities " the obudsman operates as follows:"1. Complaint The consumer makes a complaint to The Ombudsman, this must be done within one year of the incident. There is no fee for the services of The Ombudsman. 2. Investigation The ombudsman will investigate the complaint. 3. Recommendation After considering all of the evidence The Ombudsman will make a recommendation. • The recommendation/ findings are not legally binding. • The public body doesn’t have to obey The Ombudsman. • But if the public bodies don’t comply, The Ombudsman will include them in a report sent to Dáil Éireann every year. " evaluation of the ombudsman"The ombudsman is very effective because the service is provided free of charge. The Ombudsman also discourages bribery in public state bodies. The ombudsman is independent of the government. " what is industrial relations"industrial relations is the term used to describe the relationship between managers and workers of a business. good industrial relations happens when employers and employees work together. " Maintaining good Industrial Relations can lead to the following:"1. Increased Morale and Productivity Good industrial relations lead to happy workers. Happy workers with high morale are normally more productive than unhappy workers. Think of the jobs with great perks like working in Facebook 2. Less Absenteeism When workers are happy in their job they are less likely to call in absent. A good employee/employer relationship is vital for this reason 3. Lower Staff Turnover Staff turnover is the rate at which employees leave a business. Employing new workers is expensive because of high training costs. Good industrial relations result in decreased staff turnover. Think of when Máistir worked in his jobs when in college. There was always a high staff turnover and as a result people were not that motivated in their jobs 4. Customer Loyalty When there is a good employee-employer relationship there is a smaller chance of constant industrial action. Customers don’t enjoy strikes and may take their business elsewhere 5. Encourages Investment Shareholders are more likely to invest in a business that that has positive Industrial Relations and therefore it will be easier for a business to raise capital " The most common causes of Industrial Relations Disputes are:"• Pay and Working Conditions • Discrimination • Redundancy • Promotion • Demarcation " expand on pay and working conditions dispute"The Economic downturn will have seen many employees pay and working conditions change. In some cases this has been accepted but in others there have been noticeable disputes around this (Bus Eireann, Teachers, Ryanair pilots etc…) " There are 4 reasons an employee may ask for a pay increase:"1. Productivity Increase If an employee is asked to work harder or produce more goods and services by a manager they make look for compensation in the form of a pay increase. This is known as a productivity claim. 2. Cost of Living Increase Workers will often make a claim for a pay increase in an effort to keep up with general rising prices and inflation. This is known as a cost of living claim 3. Comparability Increase This is where employees ask for a pay increase when they see workers from different business doing similar jobs but earning more. An example would be if workers in LIDL get a pay increase, then the workers in ALDI might seek the same. 4. Relativity Increase Sometimes people’s jobs are linked with each other. If one person receives a pay increase then the other person may also seek one. An example of this would be if waiters receive a 5% increase in wage, then the bar staff may also look for a 5% increase to maintain the pay gap. " expand on discrimination in terms of dispute"Examples of discrimination would be paying men more than women for doing the same job or not treating new staff fairly. Discrimination of workers is illegal under the Employment Equality Act 1998. " expand on redundancy in terms of dispute"Redundancies happen when staff lose their jobs usually through cutbacks in a job. Trade Unions will try to ensure redundancies are voluntary. Sometimes staff can deem redundancies unfair and as such form a dispute against their employer. " expand on promotion in terms of dispute"This is when somebody gets an upgraded position in the workplace, and can be a massive source of conflict in the workplace. Reasons can include seniority and experience lead to promotion but this may not always be the case. It can cause particular unrest in a job. " expand on demarcration in terms of dispute"This is a dispute about who does what in a particular job. You should only do the work you are qualified to do and not be asked to do duties that you are not supposed to do. For example if your teacher was constantly being asked to man the office reception as well as teach classes they might have a dispute with management over this. " types of illegal industrial action"• Unofficial Strike • Lightning/Wildcat Strike " expand on unoffical strike"An unofficial strike is one where employees don’t hold a secret vote and/or don’t give their employer 7 days’ notice. The trade union doesn’t recognise unofficial strikes and will not pay workers strike pay " expand on lightening/wildcat strike"This is a sudden strike where no prior notice has been given. Employees literally walk out of the job. This sort of a strike is illegal in Ireland " types of legal industrial action"• Official Strike • All out Strike • Work to rule • Overtime ban • Token Stoppage " expand on official strike in terms of legal actions"An official strike is legal in Ireland. First employees must hold a secret vote. If 51% of people want to go on strike they give their employer 7 days ‘notice. The trade union instructs employees to cease working. They will pay workers strike pay. " expand on all out strike"This is where every single employee in the business goes on strike. For an allout strike to be legal the workers must get the approval of the Irish Congress of Trade Unions " expand on work to rule"This is where workers do the least amount of work possible under the terms of their employment contracts. An overtime ban or go slow may be part of “working to rule”. " expand on token stoppage"Workers temporarily stop work for a short period of time. This is an attempt to get the employer to listen to the workers and solve industrial disputes " expand on overtime ban"This is when employees refuse to do any overtime for the employer. " non legislative ways of solving industrial dispute"negotiation concilliation arbitration " expand on negotiation"This is where an employer/ manager and representatives of the employee (trade union) sit down with one another. They will discuss the reason for the dispute and attempt to seek common ground and come to a solution. Any deal that is agreed is known as a “collective agreement”. This collective agreement holds no legal power. " The role of the Trade Union as part of negotiation:"An employee may chose to use their Trade Union to assist them in their negotiation. When employees begin work they enter into a contract with their employers. Over time it may be necessary to change the terms and conditions of a contract and both sides negotiate the changes. It is most common in these circumstances for the employees to be represented by a Trade Union. " what is a trade union"a trade union is an organisation that represents employees in their workplace. it is set up to protect the rights of employees and to negotiate to management on their behave example: SIPTU, TUI " what does ICTU do"represents most trade unions in ireland. It negotiates on behalf of its members with the government. " SIPTU is "(Services, Industrial, Professional and Technical Union) is the largest trade union with over 20,000 members. " what are the functions of a trade union"protect jobs improve working conditions secure pay increases represent workers in an industrial dispute collective bargaining: Negotiate on behalf of all unions members rather than each individual worker which can save on cost and time " The Shop Steward are"The elected staff representative for the Trade Union is known as the Shop Steward. The Shop Steward is the first 'port of call' if a member has any kind of difficulty or concern in their workplace. The Shop Steward also has other duties such as informing workers of any trade union updates, encouraging new memberships and service benefits in the workplace, organising meetings, and organising the votes for an industrial dispute on behalf of the union. " expand on conciliation"involving an Unbiased third party + aims to get the two sides in dispute to listen to each other’s points of view, to discuss the issues and negotiate an agreed settlement before the dispute grows into a serious one. In the case of a conflict, e.g. of an industrial relations nature, it means the voluntary coming together of the parties to the dispute in the interest of resolving the conflict. Once the agreement is made it is not a legally binding one but its aim is to resolve the dispute without strike action. They investigate both sides separately before they bring the two sides together and help them see each others point of view They DO NOT make a decision. They merely help both sides to reach an agreement. One of the main functions of the Workplace Relations Commission, a body set up under the Industrial Relations Act 1990, is to provide a conciliation service to help resolve industrial relations difficulties.  " where to go for complaints on each side (concilliation)"Consumer complaints: CAI, Trade Associations, Ombudsman Employee complaints: WRC " expand on arbitration"Arbitration is where the settlement of a dispute (conflict) is sent before one or a group of independent (impartial/unbiased) persons for adjudication (settlement). It is the final non legislative option. It is where both sides agree to allow a third party who is unbiased to make a decision that is legally binding. The parties to the dispute agree in advance to the arbitration process and that the arbitration decision will be binding on them. " The main type of disputes dealt with by arbitration are ones that concern:"• The conditions of general contracts. e.g. travel agents with customers for holidays, building contracts for houses, etc. • Industrial relations agreements between (employees) trade unions and employers. " legislative methods of solving dispute"This is where industrial conflicts are solved by using Irish law. There is a number of acts that are used as legislative methods of solving conflicts: 1. Industrial Relations Act, 1990.* 2. The Workplace Relations Commission. 3. The Labour Court. 4. Employment Equality Acts 1998-2015 5. Unfair Dismissals Act, 1977 & 2007. " The Industrial Relations Act 1990 was introduced to"improve industrial relations in Ireland. " The main features of the The industrial relations act 1990 are:"1. Trade Dispute 2. Secret Ballot 3. Notice 4. Picketing " expand on Trade Dispute"A dispute must be legitimate, which is any dispute between employers and employees that relate to conditions of employment. An example of a legitimate trade dispute would be pay and working conditions etc. An ilegitimate trade dispute would be not liking your employer etc… " expand on secret ballot"For official industrial action to be taken, a secret ballot must take place to vote on the action. If the majority of 51% or more vote in favour, then official industrial action can take place and the trade union will decide what form. " expand on notices"The employeed by law must give their employers 7 days notice that the industrial action will take place. " expand on picketing"theres 2 types Primary Picketing can take place at the employees workplace. Employees walk up and down outside with placards indicating that they are engaged in strike action. Secondary Picketing may also take place outside another employer if it is found that that employer is directly involved in their industrial dispute, e.g. sending over their workers to man the tills. It is illegal to do it if it does not impact directly on the dispute in question " expand on immunity"The employer is not allowed to sue the trade union or workers for losses made by the business due to strike action provided that they have followed the steps in the dispute. " Evaluation of the Industrial Relations Act"Very effective as it puts into a law a legitimate trade dispute and protects workers in official disputes with their employers in the workplace. " expand on workplace relations commissions in terms of the industrial relations act 1990, (why it was set up)"The Industrial Relations Act 1990 gave legal status to The Workplace Relations Commission. The Workplace Relations Commission was set up to promote and improve industrial relations in a timely and effective way and reduce the number of industrial conflicts brought to the Labour Court. " Functions of the Workplace Relations Commission"1. Information The WRC provides information on employment law and industrial relations to employers and employees through its website. 2. Advisory Service The WRC works with businesses to build and maintain positive industrial relations in the workplace, often visiting businesses and provide workshops and training. 3. Conciliation service The WRC employs an Industrial Relations Officer (I.R.O.) who provides a conciliation service. Their job is to try and solve any disputes between employers and employees and reach a mutually accepted agreement. 4. Mediation/Adjudication The WRC offers a mediation service, and if successful it becomes legally binding. If it is unsuccessful, it is referred to an Adjudication Officer who will then hear both sides and give a recommendation. Decisions made by the AO can be appealed at the Labour Court. 5. Codes of Practice The WRC consults with the ICTU and designs codes of practice. These codes of practice make it clear for employees/ employers what they should do in specific situations of industrial conflict " Evaluation of WRC"Despite the fact that the LRC’s agreements are often not legally binding they are still very effective because they have a Rights Commissioner who strives to resolve conflicts between employees and employers. The Rights Commissioner achieves this through a private hearing where they hear both the employee and employers point of view. They give a recommendation as to how best solve any conflict. " The Labour Court, Why is it called the court of last resort?"Because disputes are referred to the labour court if: 1. The W.R.C. can’t resolve the dispute 2. A decision by the rights commissioner is appealed 3. A decision by the equality officer is appealed " Functions of the Labour Court"1. Investigate disputes The Labour Court investigates disputes between employers and employees. It gives a non-legally binding recommendation to both parties. If neither side is happy with their recommendation they can appeal to the High Court. 2. Hear Appeals If either party rejects the recommendation of the WRC, the case will be sent to the Labour Court. The Labour Court issues a binding judgement to the case. 3. Register Employment Regulation Orders The Labour Court draws up an ERO to fix pay and working conditions for people in certain industries that become legally binding, e.g. window cleaners 4. Interpret Codes of Practice The Labour Court interprets the Labour Relations Commissioner’s codes of practice. It will also investigate any breach of these codes of practice 5. Joint Labour Committees Establishes Joint Labour Committees which produce employment regulation orders enforceable by law. They regulate industries where workers have no union, to discuss issues such as pay etc.. " Evaluation of the Labour Court"Because the Labour Court is a court of last resort for solving industrial conflicts most employees and employers accept their recommendations. The Labour Court also has the respect of all parties in Industrial relations and the majority of their recommendations are accepted " expand on The Employment Equality Acts 1998-2015"The Employment Equality Acts 1998-2015 outlines discrimination in the workplace to temporary, part-time, and full-time staff. It also applies to areas of employment such as pay and promotion. **It defines discrimination as when one person is treated less favourable than another in a comparable situation** " in relation to, The Employment Equality Acts 1998-2015. There are 9 grounds of discrimination, and they are:"1. Age 2. Gender 3. Race 4. Sexual Orientation 5. Member of Travelling Community 6. Religious Beliefs 7. Marital Status 8. Family Status 9. Disability The Act also set up the Equality Authority which was set up to ensure businesses treat their workers with respect and decides whether discrimination can be examined. " The Employment Equality Acts 1998-2015 gives the following functions:"1. Monitor the operation of employment legislation 2. Assists people with complaints  3. Advises employers and employees of their legal rights with regards to discrimination " Under The Employment Equality Acts 1998-2015. In terms of legislative methods, If an employee cannot resolve the issue in the workplace, they can"contact the WRC and request Mediation in order to get a third party involved to achieve a mutually agreeable solution. The solution is recorded in writing and becomes legally binding. Unsuccessful mediation can be referred to an Adjudication Officer. They hear the case, and if discrimination is proved, they can reward damages such as financial compensation or take action against the employer. " Under The Employment Equality Acts 1998-2015, in terms of non legislative methods what can be done"A Meeting with management is scheduled where the complaint is discussed. The employee may bring the shop steward with them. It will be hoped that the complaint is listened to and a solution can be brought forward there and then. " Evaluation of The Employment Equality Acts 1998-2015"This act does a good job of protecting employees because there is a government backed official who’s RULING MUST BE OBEYED. It also clearly sets out the grounds for discrimination which clearly must be followed and provides employers and employees with advice and assistance if needed. " expand on The Unfair Dismissals Acts 1977-2015"The Unfair Dismissals Acts were introduced to protect employees from being dismissed from the workplace for unfair reasons. The Acts refer to employees with 1 year + continuous employment with the same employer. Under the Acts, all dismissals are deemed to be fair and the burden of proof lies with the employer. " "Under the The Unfair Dismissals Acts 1977-2015, the following are reasons for fair dismissal in the workplace:""Incompetence: The emloyee does not perform their job to a resonal standard, e.g. continuous failure to reach targets Redundancy: If a job is facing redundancies for genuine reasons, such as poor sales. The redundancy must be chosen fairly and cannot be forced on one person and not another for no reason Not Qualified: If the employee does not have the relevant qualifications needed for the job Misconduct: This is unacceptable behaviour by an employee in the workplace, and can range from high absentessism and persistant lateness to gross misconduct like theft or assault Legal Reasons: An employee can be dismissed if their employment breaks the law, for example they do not have a valid work visa. " Procedure for fair dismissal under The Unfair Dismissals Acts 1977-2015"1. Counsel Employee- The employer notices the employee is underperforming and tries to work with them to solve the issue. A meeting is called where the problems are outlined and extra assistance is provided if needed, e.g. extra training. 2. Verbal Warning- Performance has not improved and a formal meeting is called where a verbal warning is given to an employee. The employer outlines a target that must be achieved. 3. First Written Warning- This is issued by the employer if performance shows no improvement. 4. Final Written Warning- If there has not been any significant improvement, a final written warning will be issued and if performance does not improve within a specified time frame, an employee will be suspended or dismissed. 5. Suspension- The employee may be suspened with or without pay until an investigation has concluded 6. Dismissal- The employee is removed from their job as performance is not up to standard, despite efforts of support and training " Redress for Unfair Dismissal under The Unfair Dismissals Acts 1977-2015"1. Reinstatement Here, the employee gets their old job back, they will also receive any back pay outstanding and is entitled to any improvements in conditions of employment when they were dismissed 2. Re-engagement This means that the employee can get either their old job back, or a new position as approved by the WRC, but they are not entitled to back pay 3. Financial Compensation This means the employee can get financial compensation up to two years salary if they have suffered a financial los due to dismissal, or up to four weeks salary if they have not suffered financial loss " Constructive Dismissal occurs when"This occurs when an employee is forced to leave their job due to the employer’s behaviour and attitude towards them. The employee feels that their job is becoming so unbearable that they cannot remain in the job. The burden of proof lies with the employee, and so they must show that their resignation was justified. They should have tried every possible way to solve the issue with their employer and document evidence of any concerns along the way. " what are inventations to treat"a pre offer communication made by someone as a way to attract others into making her an offer, for example: an advertisement, price tag, or display of goods IT IS NOT A LEGAL OFFER. it is an indication that the seller of an item would like to receive offers for it. It is a guide to the price the seller is willing to consider and may possibly accept if offered. "

5th Year Business Unit 1m

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5th Year Business Unit 1m

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