1. IB Business and Management
2.7 Employer and Employee Relations (HL)

2. Employee-Employer Relations
The term used to describe the relationship between employers and workers
Managers often act as a ‘go between’

3. What is conflict?
A situation of friction or mutually exclusive goals between two or more parties

4. Why might there be conflicts between workers and their employees?

5. Why are there Problems? Employee Objectives Good Pay Less hours
Good working conditions
Lots of breaks
Job security
Employer Objectives
Reducing costs
Having a flexible workforce
More work for less pay
Because these objectives conflict there are often DISPUTES

6. Conflict is likely when…..
When workers feel their needs/wants are ignored
When employee and employer perceive things differently
When employee and employer have strong beliefs and will not compromise
When power is abused
When feelings and emotions are involved

7. Results of Conflict: Lower Productivity
Low morale – and effects of this
Poor teamwork
High labour turnover
Inappropriate behaviour
Bad atmosphere

8. Resolving Conflicts
The aim of negotiation is to make sure that each party finds an acceptable solution to any conflict
This should prevent the need for industrial action

9. Negotiation
A bargaining process where by two or more parties try to agree on an acceptable solution
The ultimate goal would be to find a ‘win-win’ outcome
This is obviously not always possible
Negotiation can be done on an individual basis….. Or through collective bargaining

10. Collective Bargaining
When workers team up to negotiate as a group.
Sometimes this is through a trade union
The group representative negotiates on behalf of everyone and benefits from any agreements
Negotiations may involve areas such as pay, hours, working conditions and fringe benefits.

11. Levels of Negotiation Individualised bargaining
Factory/plant wide level
Local level
National level
International level

12. What is a Trade Union
A trade union is an organisation which represents the interests of the workers who are its members
There are many different types of union representing different types of workers

13. Teaching Unions

14. How do Unions work? Unions rely on a mix of paid and unpaid workers
Workplaces elect a shop steward/union representative
Members can pass on problems to their union rep who can deal with them directly or pass on to someone else
Every year the union has an AGM where representatives attend and make major decisions

15. Task Read the case study about Unison. Answer the following questions:
What are the benefits to a worker of being in a Trade Union?
What services does a Trade Union offer it’s members

16. Trade Union Services
Negotiate with employers over conditions of work, pay, hours, holidays, equal opportunities and safety
Offer advice about issues such as redundancy and unfair dismissal
Gives legal protection to workers
Provide monetary benefits such as strike pay, life insurance, mortgages and personal loans
Act as a pressure group to bring further benefits to workers (lobbying)

17. Stages of Negotiation
Preparation
Proposal
Debate
Bargaining
Closing

18. Result of Negotiations:
The outcome will depend on the relative bargaining strength of each party.
This will depend on:
Negotiation skills of representitive
Size and degree of unity of the group
The state of the economy
Availability of capital as a substitute
Media/pressure group involvement

19. When negotiations fail…..
If the two parties fail to make an agreement, the negotiations may reach a ‘deadlock’
At this point either the workers or the employer may take industrial action to try and get what they want

20. Task
Watch the video clips about the BA strikes.

21. Employees/unions view
What actions by BA have led to employees taking strike action?
Do you think that employees are justified?

22. Industry Expert’s view
Why do the changes in working terms and conditions need to occur?
What implications will the strike action have on BA?

23. CEO’s view http://www.youtube.com/watch?v=GjSkWB_B1hQ
What do you now think of the strike proposals?

24. Industrial Action taken by Workers
Action Days – Workers strike for a day or two at a time
Go-slow – Workers carry on working but do the minimum amount
Overtime ban – Workers still get basic pay but refuse to work overtime
Strikes – Workers withdraw their labour and refuse to work
Withdraw goodwill – refuse to attend meetings or do work of absent staff
Work to rule – Follow rule book exactly and do nothing extra

25. Industrial Action taken by Employers
Threats of Redundancies– Workers are threatened with losing their jobs
Changes of contract – Workers on fixed term contracts or new staff are given new conditions when they re-sign. Anyone refusing to sign their new contract will be replaced
Threat of Closure– Employers threaten to close all or part of the business.
Lock-outs – The employer stops workers from working by temporarily closing

26. Task Research recent news articles related to Industrial Action
Summarise ready to share with the rest of the group next lesson.

27. Benefits of Trade/Labour Union Membership
To an employee
More powerful voice when bargaining as a group (e.g. for pay rises) as can threaten industrial action such as strikes
Workers will have their individual rights better protected e.g. if dismissed unfairly or discriminated against
To an employer
Cheaper and quicker to bargain with one trade union representative than individual workers
Workers are better motivated if they feel their interests are being looked after by trade unions

28. Conflict – Methods of Avoiding and Resolution

29. Outcomes of Conflict

30. Conflict Resolution
The course of action taken to resolve conflict and differences in opinion.
These can include:
Conciliation
Arbitration
Employee participation/Industrial democracy
No-strike agreements
Single union agreement

31. Conciliation
An independent mediator is bought in to listen, advise and encourage both parties to reach a solution that is mutually acceptable

32. Arbitration
An independent arbitrator is bought in to listen to both sides and make a final decision and recommendation.
The arbitrator’s word is legally binding.
The decision required can either be a compromise or a pendulum arbitration can be required

33. Employee Participation/Industrial Democracy
Employee participation is the process whereby employees are involved in decision making processes, rather than simply acting on orders.
Employee participation is part of a process of empowerment in the workplace.

34. No Strike Agreements
a formal agreement between an employer and a labour union that the union will not call its members out on strike.
Other methods such as arbitration/conciliation will be used instead

35. Single Union Agreements
A single-union agreement gives one trade union sole bargaining rights in respect of all employees in an organisation.
That trade union is the only one recognised by the employer in question.