Employee Participation The extent to which employees are involved in the decision-making process

Industrial relations The atmosphere prevailing between a management & its workforce representatives – the trade unions

Industrial democracy When employees have the opportunity to be involved in and to influence decision making: Worker directors (elected to board of directors by employees from the factory floor) Works councils Workers’ cooperatives (where firm’s workers own majority of its shares, e.g. John Lewis Partnership)

Works council Committee of management & workforce representatives that meet to discuss company-wide issues, e.g. training, investment & working practices Bargaining over issues such as wages, terms of employment & productivity is left to trade union negotiations

European works councils Under EU law, large companies operating in two or more EU countries must set up European works councils Aim is to ‘improve the right to information and to consultation of employees’ Aim to restrict power of multinationals & to provide workers in different locations with the opportunity to discuss common concerns

Trade Union A pressure group that represents the interests of people at work Craft union Industrial union General union

Negotiation Collective bargaining Union representatives in an organisation discuss with management the issues that affect employees in that organisation

Representation Trade unions also represent individual union members when they have problems at work Offer legal representation, e.g. compensation for work-related injuries

Do trade unions benefit employers? Valuable communication link between management & the workforce Management can avoid time-consuming bargaining & negotiation with individual workers Strong union may encourage management to take workers’ needs seriously  improved morale  increased productivity, etc Ease situations such as relocation, downsizing,etc

How have trade unions changed recently? Membership has declined – lower union density Union density = proportion of all employees who are union members Why has this happened?

Reasons for decline Fall in number of jobs in manufacturing industries Privatisation of major utilities, reducing number of employees in public sector Increase in flexible working Increase in proportion of workforce employed by small businesses Legislation that makes it more difficult for unions to operate Improved employment rights in the workplace

Industrial dispute A disagreement between management & the trade union representing Industrial action = measures taken by employees to halt or slow production or disrupt services in order to put pressure on management during an industrial dispute Strike Overtime ban Work to rule Go-slow

Single-union agreement Recognition by a firm of only one trade union for collective bargaining purposes No-strike agreement Pendulum arbitration System of binding arbitration in which an independent person or panel must decide in favour of one side or the other

ACAS Advisory, conciliation & arbitration service Ambition is to improve organisations & working life through better employment relations Funded by the Department of Trade & Industry Non-governmental body – independent, impartial & confidential

Reaching agreement Conciliation Negotiation intended to reconcile differences between the parties to an industrial dispute (agree before whether solution will be binding or non-binding) Binding arbitration – both parties agree in advance that they will accept the arbitrator’s solution Non-binding mediation – both sides consider what mediator suggests, but ultimately do not have to act on it

Collective employment law Aims to influence industrial relations & control activities of trade unions Employment Act 1980 – employers no longer obliged to recognise or negotiate with a particular union