Unit 4 – People at Work

The role of trade unions

The role of employer associations

The process of collective bargaining

The different types of industrial action

How conflicts can be resolved

A Trade Union is a group of workers who
have joined together to ensure their interests
are protected
SHOP STEWARD
For an annual fee that
pays for the employment
of union officials, they
will represent the views
of those in the union to
achieve their aims.

Advantages
◦ Strength in Numbers
◦ Improved Conditions of
Employment
◦ Improved Workplace
Environment
◦ Improved Benefits
◦ Improved Job Satisfaction
◦ Advice & Financial Support
◦ Further Benefits
◦ Employment where there is a
closed shop

Trade Unions seek to
◦ Put forward views to the
media
◦ Influence government
decisions
◦ Improve communication
between workers &
management

A craft union is a trade union which
represents a particular type of skilled worker.

A general union is a trade union which
represents workers from a variety of trades in
the industry. They are often un-skilled but
also semi-skilled workers.

An industrial union is a trade union which
represents all types of workers in a particular
industry

A white-collar union is a trade union which
represents non-manual workers.

Closed shop is where all the employees have
to be a member of a particular union.

A Single-Union Agreement is where a firm
deals with only one particular union.
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Advantages for employees
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Discussions clearer
Greater power
No disagreements between unions
Better working relationship
Disputes solved quickly

Advantages for employers
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Only one union to negotiate with
Better working relationship
Disputes resolved more quickly
Easier to agree to changes
Better relationships
President
National Executive
Head Office
Regional offices
Branch
Branch
Regional offices
Branch
Branch
Regional offices
Branch
Individual Members
Branch
Regional offices
Branch
Branch
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Employer Associations
Employer Federations
Trade Associations
Business join together to
form a association or
federation
Subscription Fee
 Benefits

Advantages
◦
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Representation of Members
Offer Advice
Pressure Group
Sharing good practice
Bulk-Buying
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Act as pressure groups
Represent business interests
Linked to economic
environment
Government Control & Provide
Taxation
Rules & Regulations
Economic Policies
Infrastructure

Collective bargaining
is negotiations
between one or more
trade unions and one
or more employees
(or employee
associations) on pay
or working conditions




Rising Inflation
Difficult to recruit
qualified workers
Maintaining pay
differentials
Changes in the
workplace

This is taken by trade unions to decrease or
halt production

Strike Action
◦ A Token Strike
 Short Stoppage
◦ A Selective Strike
 Few selected workers walk
out
◦ An All Out Strike
 All union members stop
work

Picketing
◦ Support strike
◦ Stand outside
workplace
◦ Try to persuade other
workers not to go to
work
◦ May halt production
all together
◦ Gain publicity
◦ Company gets bad
publicity
◦ Applies pressure

Work to Rule
◦ Strictly, Rigidly follow
rules/regulations
◦ Work often slows
◦ Workers paid normally
◦ Nothing wrong

Go Slow
◦ Similar to “work to rule”
◦ Workers do jobs more
slowly
◦ Deliberately take longer to
complete tasks

Non-Cooperation
◦ Workers refuse to
have anything to do
with new working
practices that they do
not approve of

Over-time Ban
◦ Normal working hours
carried out only
◦ No additional work time
is done
◦ Damaging to the
company
Loss of
Income/Profit
Loss of
Output
For Employers
Poor
Reputation
Customers maybe
lost to other firms
as orders not
delivered
Cash Flow
Problems
Threat of job
losses
Loss of
Wages
For Employees
Find
Alternative
Supplier
May cost more
for product
For the Firm’s Customers
Shortage of
Product
Deliveries not
made
May not be
able to
produce
goods
Lower Income
means less
tax collection
Workers have
less money
to spend
For the Economy
Exports lost
Less
products
being
produced imports
Bad reputation
from not
delivering on time
Striking firm
may have to lay
off workers –
Incomes fall,
unemployment
rises

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Strikes are damaging for both employers and
employees
These agreements usually involve an
“independent ARBITRATOR”
Lock Workers Out
Dismiss Workers
Pay Freeze
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Poor Wage Rates
Poor conditions of
employment
Poor working
conditions

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Rigid/Authoritarian
Management
Restricted flow of
information
Frustration

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Rapid/Poorly Planned
Change
Employees
downgraded or
moved without
consultation
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Rapid/Poorly Planned
Change
Employees
downgraded or
moved without
consultation

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Lack of involvement
in decision-making
Employees feel less
important
Employees feel
bored, alienated and
uncared for


Decrease in market
share
Job security issues

This occurs
when
employees
contribute and
are involved in
the decision
making in the
business

Worker Directors
◦ appointed representative
◦ usually do not attend board
meetings

Works Council
◦ Representatives of workforce
meet
◦ Discuss management
proposals
◦ Feedback on ideas and
comments
◦ Issues may include;
 Health and Safety
 Introduction of New Machinery

Quality Circles
◦ Used by many companies
(especially Japan)
◦ Encourage continuous
development
◦ Team Working
◦ Discussions on improvement on
how things are carried out or how
the product is assembled
◦ Improved feeling of importance
and motivation of employees
results

Democratic Styles of Leadership
◦ delegation