Trade Unions

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Trade Unions Industrial Relations

• I Stewart

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Representing workers

• Staff associations e.g. Guinness Staff
  Association
• Trade unions e.g Unison, GMB, NUT
• Likely to be registered/independent
• Will undertake collective bargaining
• Can initiate industrial action

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Functions of trade unions

• Obtain satisfactory rates of pay
• Monitor health safety
• Negotiate benefits/bonuses
• Obtain job security
• Negotiate contracts/conditions of employment
• Deal with redundancy/dismissal procedures and
  issues
• Negotiate grievance procedures

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Industrial relations

• Successful minimises conflict and ensures both
  parties are aware of the wishes of the other
• Unsuccessful brings conflict which impacts upon
  business performance

5
Bargaining power

• Trade unions can be more effective where there is
  a highly unionised workforce
• Union density can be measured
• ACTUAL UNION MEMBERSHIP X 100
• POTENTIAL UNION MEMBERSHIP

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Relevant organisations

• Craft - e.g. Bakers Union (BFAWU)
• Industrial unions e.g. NUM
• General unions e.g. GMB, MSF
• TUC Trades Union Congress
• CBI Confederation of British Industry

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Unions Pay

• Unions seek to achieve higher pay for members
• This must be tempered by the knowledge that
  higher pay means higher costs for businesses
• Unions are more likely than ever to tie pay
  increases to profits

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Legislation

• 19802 2 points of view existed
• 1 - Poor management was responsible for
  uncompetitive state of British business
• 2 - Excessive union power was strangling British
  industry
• The then government introduced legislation aimed
  to control unions

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Criticism of unions in the 1980s

• Excessive power
• Disruptive of progress
• Created unrest/stoppages
• Unofficial picketing
• Unofficial strikes
• Undemocratic decision making
• Closed shops

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Effects of legislation

• Legal immunity
• 1974 TULR Act
• Can take action over conditions of employment,
  suspension/termination etc
• Employers not allowed to take civil action to
  recover damages

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• 1982 Employment Act
• Unions now liable for any losses suffered from
  action for other reasons
• Companies could gain injunctions preventing
  illegal action
• 1990 Employment Act
• Unions now liable for losses to suppliers
  customers from unofficial strike action

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• Picketing
• 1980 Employment Act
• Secondary (flying) pickets made illegal
• The Closed Shop
• 1980 1982 Employment Acts
• Made this illegal
• No longer a reason for fair dismissal

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• Rights of members, businesses consumers
• 1984 Trade Union Act Strike ballots to be
  conducted secretly
• 1988 Employment Act Gave workers the right not
  to strike
• 1993 TURER Act Allowed postal ballots on
  action, the right NOT to have union subscriptions
  deducted without consent, the right to 7 days
  notice of action

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• Trade union recognition
• 1999 Employment Relations Bill
• Businesses must recognise trade unions if a
  majority of workers wish recognition
• Made dismissal for union membership unfair

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Union membership

• 1970s growth
• 1980/90s decline
• 1999 30 union density
• Reasons
• Fall in collective bargaining
• Laws to opt out of membership

• Laws limiting influence
• Trade cycle position
• Loss of traditional unionised industries
• Growth of small business (less than 10 workers)
• Growth in flexible working patterns

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Power and influence

• Greater if
• High union density
• Backed up by public opinion
• Economy is doing well
• Backed up by legislation e.g. Employment
  Relations Bill 1999 gave unions right to be
  present at grievance procedure hearings
• The union is larger (hence the number of recent
  amalgamations)

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Changing roles

• Trends towards
• Single union agreements
• No strike agreements (can use arbitration
  instead)
• Partnership (e.g.g Tesco and USDAW)
• Negotiated agreements
• Service provision e.g. insurance, education

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• The TUC
• Act as a pressure group on government policy
• Consults with government (after 1997)
• Promotes membership

• The CBI
• Similar role to TUC but from employers point of
  view
• Seeks to
• Influence government
• Provide services
• Provide advice

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Common causes of conflict

• Pay
• Working conditions
• Change e.g. new machinery, appraisal
• Introduction of flexible working practices
• Imposed changes

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Collective bargaining

• i.e. negotiation between employer and employees
  as a whole body
• To take place
• Union membership must be easy
• Union must be recognised
• Union must be independent
• Both parties must act in good faith
• Both parties must be bound by any agreement

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• End result collective agreement
• These can be
• Substantive about terms and conditions
• Procedural how the bargaining should be
  undertaken
• Levels of agreement
• International, national, local, plant ,
  individual

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The negotiation process

• Set an agenda to suit both parties
• Both parties must collect the facts required to
  support their argument
• Formulate strategy
• Agree objectives
• Allocate roles
• Predict opposite party strategy
• 4) Agree size of negotiating parties
• 5) Decision making accept or decline?
• 6) Provide written statement of decisions

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Methods of consultation

• Pseudo no power with employees
• Classical work with representatives
• Integrative 2 parties make joint decision

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Benefits of consultation

• Avoid industrial action
• May motivate
• May generate new ideas and solutions
• May develop more positive culture
• Can better inform both parties

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Advisory, Conciliation and Arbitration Service

• ACAS can be used where consultation and
  negotiation have failed
• ACAS was formed in 1974
• ACAS is made up of union representatives,
  academics and business people to ensure
  impartiality

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Services provided
Conciliation Arbitration Mediation
Advice Enquiries
Individual case investigation Codes of practice Tribunals
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• Conciliation discuss with both parties and
  encourage settlement
• Arbitration both parties put forward argument
  and ACAS make a decision
• Mediation ACAS recommend solution and allow
  parties to discuss
• Enquiries e.g. in to use of flexible labour

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• Individual cases - e.g. unfair dismissal, race
  discrimination
• Tribunals offers alternative dispute resolution
  to industrial tribunals
• Advice e.g. codes of practice, developing
  consultation

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Industrial action

• Employers
• Withdraw overtime
• Lock-outs
• Closure
• Dismissal if The CAC (after 8 weeks) agrees
  that the employer has done all reasonably possible

• Employees
• Work to rule
• Go slow
• Overtime ban
• Sit-ins/work-ins
• Strike

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Success through industrial action

• This is dependent on
• Strength of the union
• Organisation of the workforce
• Public support
• Management tactics
• Economic climate
• Legislation (discussed earlier)

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Problems of industrial action

• Employers
• Lost production
• Wasted capital investment
• Future bad relationship with workers
• Bad publicity
• Lost orders

• Employees
• Loss of earnings
• Can lead to closure
• Possible dismissal
• Stress
• Weaker position if action fails

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Benefits of industrial action!

• Clears the air
• Establishes new rules
• Changes goals/objectives
• Develops understanding of other party