Business Management 2.6 – INDUSTRIAL / EMPLOYEE RELATIONS
ROLE AND RESPONSIBILITY OF EMPLOYEE AND EMPLOYER REPRESENTATIVES
Trade union: an organization of working people with the objective of improving pay and working
conditions of its members and providing them with support and legal services. Generally led by
generalists.
Why workers join trade unions
Power through solidarity. Ability to engage in collective bargaining. Stronger position to workers
Individual industrial action, to put pressure on management to settle an industrial dispute
Provide legal support
Union recognition – In many countries it is not a legal requirement to recognize trade union
(negotiate with unions rather than employees).
Benefits to employees
Negotiate with one officer rather than individual workers
Channel of communication with workers. Two-way communication
Unions discipline members planning hasty industrial action
Employers can discuss issues of common interest and making new workforce agreements to
increase productivity
Employer representatives
Present the arguments for or against a particular proposal from the viewpoint of shareholders or
business owners. Achieve lowest cost and achieve employees motivation, reaching satisfactory long-
term employer-employee relations
Collective bargaining: negotiations between trade unions and employers on issues of common
interest. In some countries, employers also belong to employers’ associations that negotiate with
unions and any agreements made will cover all firms that belong to the association. Trade union
leaders have the power of calling for strike action.
Action taken by employees and employers
Unions Employers
Negotiations Negotiations
Go slow: work as demanded by contract, Public relations: to gain public support
together with disruption and costs to and pressure unions
employees Threats of redundancies: may lead to
Work to rule: do not do anything not poor publicity for the employer
stated on their contract Changes of contract: increase work rates
Overtime bans: do not work extra hours and overtime working
Strike action: employees withdraw their Closure: redundancy for workers and no
labour for a period of time. Business may profit for business owners
shut down Lock-outs: short-term closure to prevent
employees from working and being paid
1
ROLE AND RESPONSIBILITY OF EMPLOYEE AND EMPLOYER REPRESENTATIVES
Trade union: an organization of working people with the objective of improving pay and working
conditions of its members and providing them with support and legal services. Generally led by
generalists.
Why workers join trade unions
Power through solidarity. Ability to engage in collective bargaining. Stronger position to workers
Individual industrial action, to put pressure on management to settle an industrial dispute
Provide legal support
Union recognition – In many countries it is not a legal requirement to recognize trade union
(negotiate with unions rather than employees).
Benefits to employees
Negotiate with one officer rather than individual workers
Channel of communication with workers. Two-way communication
Unions discipline members planning hasty industrial action
Employers can discuss issues of common interest and making new workforce agreements to
increase productivity
Employer representatives
Present the arguments for or against a particular proposal from the viewpoint of shareholders or
business owners. Achieve lowest cost and achieve employees motivation, reaching satisfactory long-
term employer-employee relations
Collective bargaining: negotiations between trade unions and employers on issues of common
interest. In some countries, employers also belong to employers’ associations that negotiate with
unions and any agreements made will cover all firms that belong to the association. Trade union
leaders have the power of calling for strike action.
Action taken by employees and employers
Unions Employers
Negotiations Negotiations
Go slow: work as demanded by contract, Public relations: to gain public support
together with disruption and costs to and pressure unions
employees Threats of redundancies: may lead to
Work to rule: do not do anything not poor publicity for the employer
stated on their contract Changes of contract: increase work rates
Overtime bans: do not work extra hours and overtime working
Strike action: employees withdraw their Closure: redundancy for workers and no
labour for a period of time. Business may profit for business owners
shut down Lock-outs: short-term closure to prevent
employees from working and being paid
1
