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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