Functions of Trade Unions - Case Study Example

Functions of Trade Unions Introduction Human resources play a significant role in the development of every country. Besides being instruments for development, human resources are also the main beneficiaries of national development, therefore, making it necessary for the government, the employers and the workers to cooperate in an attempt to achieve growth. Trade unions play an important role in facilitating cooperation and providing a link between the government, the employers and the employees (Cihon and Castagnera, 2008:3). They can be termed as the voice of the workers because they seek to ensure that their needs are catered for. Before the emergence of trade unions, it was difficult for employees to seek action against unfair treatment by their employers (Warner, 2012:133) Employees were having difficulties at work since the employers’ words were final, therefore, getting poor pays and working in poor conditions. With the emergence of trade unions, the employees were able to acquire better pays and their working conditions were improved. Trade unions represented the employees, protected them from exploitation, helped in the implementation of laws and policies that protected the employees and campaigned for improved payments (Ewing, 2005:1). This essay will discuss the main functions of trade unions and examine how effectively they can achieve their goals in the modern day employment relationship. The Employment Relations Act of 2008 describes a trade or a labour union as a registered or unregistered organisation of people, whose main objective is to ensure the ordinance of employment relations between workers and employers (Employment Relations Act 2008, 2008:3). In the contemporary world, governments and employers are fully aware of the significance of trade unions, as failed negotiations can lead to various actions, such as, overtime bans and strikes, which stagnates development. Employers tend to avoid such situations as they lead to low productions, therefore, translating to unmet demand and losses. However, trade unions in the United Kingdom have experienced many changes that have risen due to political and economic factors. This owes to the fact that employers have restructured the labour market, as many industries have been privatised, temporary employment and the use of contracts has increased and the workforce has been downsized (McKenzie, 2010:5). Globalisation has also led to the changes experienced in the operations of many trade unions. Many companies have been internationalised, therefore, acquiring workers from foreign countries, which has also complicated the trade unions’ roles (Fernie and Metcalf, 2005:3). Unlike the olden days when trade unions were generalised and covered every employee, new forms of trade unions have been established to help represent the different kinds of employees in the modern day society. This indicates the emergence of new roles that trade unions have to carry out in order to fulfil the different needs of the different kinds of employees (Cornfield and McCammon, 2003:2). Over the past three decades, the function of trade unions has changed, thus leading to the emergence of new forms of trade unions. These include Craft Unions, General Unions, Industrial Unions and white Collar Unions. This trend can be attributed to the growing complexity of workers’ needs (Blanpain and Dickens, 2008:40). In the modern day society, trade unions seem to be experiencing a decline in membership owing to the diminishing level of influence and collective bargaining with the employers. Therefore, trade unions have decided to embark on new plans to help them maintain a relevant relationship with their employers. They have added new functions such as training services and implementing employees support, as they try to woo members into their associations (Moore, 2010:14). The paper will proceed to discuss the functions of trade unions. Negotiation This is one of the chief functions of trade unions, which involves discussions with relevant employers over matters affecting employees in their workplaces. Individually, an employee or a number of employees do not hold enough power to negotiate with their employers. The employers are powerful and they would not change an entire organisation’s operations to fit the interests of a few individuals. However, when the employees are grouped in a trade union, they bear the power to influence the organisation’s management, therefore, possessing the bargaining power that they need to establish their terms and conditions (Nowak, 2009:137). Negotiations carried out by trade unions on behalf of the employees are usually referred to as collective bargaining. Trade unions serve as instruments of negotiations, therefore, settling on the suitable terms and conditions for their members. They play a crucial role in determining various workplace issues that affect the productivity and the living conditions of their members and other workers. Trade unions functions to defend and improve the workplace conditions of their members. They accomplish these functions by engaging in negotiations or collective bargaining with the employers mainly on matters concerning the conditions and pay of their members (Ruhemann, 2010:12). The main issues that the trade unions emphasise on are hiring rationale, promotion procedures, work principles that encompass the rules and regulations, work policies, dismissing rationales, complaint procedures and workplace safety among others. Trade unions possess the right to carry out negotiations with the employers (Burgess and Symon, 2013:720). They are recognised by The Employment Relations Act of 1999, therefore, giving them the mandate to negotiate on behalf of their members through collective bargaining (Nowak, 2009:133). Collective bargaining is effected through a collective agreement, which is a mutual agreement between the employers and the trade union. This agreement ensures that the employers treat the employees according to the terms and conditions that the trade union agreed upon. The need for negotiations can also arise when there are conflicts between the employees and the organisation’s management. The conflict may involve work practices, holidays, working hours or overtime pays. These issues keep recurring due to the changing nature of the workforce from one generation to another and the rising cost of living as years proceed. Therefore, employees require constant bargaining services of their trade unions. As trade unions seek to reinvent themselves, some have implemented extra measures as they seek to negotiate with the employers over the employee’s bonuses, rates of pays and rewards for target achievements (Dolvik and Nergaard, 2012:285). Employee’s voice and representation Trades Unions act as representatives for employees whenever they are faced by certain challenges in the workplaces such as, legal problems, disciplinary action, unlawful work termination or exploitation among others. The trade unions assist in voicing the employees’ grievances, therefore, acting as their spokesperson (Milner and Mathers, 2013:125). Their role is to support the workers and ensure that fair treatment is employed in all the issues concerning their occupations. Trade unions are also tasked with the role of enunciating problems facing the employees in a bid to negotiate for a lasting resolution. After collective bargaining with the employers, trade unions act as employees’ representatives, as they voice the actions following a successful or an abortive negotiation. In case of an abortive negotiation, trade union officials state the workers’ position by announcing strikes or other suitable measures. In case of a successful negotiation, the officials state that an agreement has been reached and therefore, the employees can resume normal operations. This clearly shows the representative role of trade unions and the manner in which they affect the organisation (Pernicka, 2009:468). Over the past thirty years, employers have started to utilise non-union worker voice mechanisms that have gained popularity over the years. This trend has affected the effectiveness of trade unions in their representatives’ roles. Employers have decided to take these stringent measures owing to competition, therefore, the need to control their workforce effectively. Employers have shunned the trade unions and insisted on dealing with them only if they play consultation roles and make positive contribution towards productivity (Willman et al., 2009:101). It is apparent that trade unions form the best representatives for workers and the non-union voice representation is a method that employers are utilising to protect their interests (Butler, 2009:197). However, trade unions have agreed to form partnerships with employers in order to give their members the best representation. As the trade unions and the employers cooperate, the workers are able to be get representation and the employees are benefiting from efficient working practices. The approach has enabled the trade unions to motivate their workers, which translates into improved financial performance for the organisations. The employees can also benefit from bonuses and better paycheques that the trade union negotiated for in the employees’ contracts (Samuel and Bacon, 2010:431). Provision of advice and other member services Following recent developments that have seen trade unions’ membership diminish, many trade unions have tried to attract clients by providing complementary services. Trade unions have implemented this approach as a revitalising strategy that will ascertain their ascension (Ruhemann, 2010:4). Over the years, trade unions embarked on providing advice and information to their members. Unions have many officials that are experts in problem solving, therefore, offering their guidance to members who are dealing with problems pertaining to their work. Trade unions officials also have a lot of information, therefore, can prove to be resourceful when one approaches them with an issue concerning work. The officials also offer legal guidance and advice to their members on work related cases and personal cases (Lucio and Perrett, 2009:327). Union members have been enticed with this offer as it shows that their representatives can also solve their personal issues too. Trade unions provide financial assistance to their members by offering loans, mortgage discounts, insurance and welfare benefits (University and College Union, 2013:2). The welfare benefits are provided as financial aid when the union member does not have employment or he or she is ill. It is a gesture of care and it has attracted workers to the respective trade unions. Employment rights The Unions are also concerned with promoting and educating workers about their employment rights (Blyton, Heery and Turnbull, 2011:87). This assists in ameliorating the workplace conditions and prevents the employers from exploiting the workers. Trade unions are known for ensuring that employment rights are adopted, thus making positive contributions in protecting the workers’ rights (Colling, 2006:144). Some trade unions have established alliances with civil society organisations such as, advocacy groups and community groups to teach untypical workers about their employment rights. Through these initiatives, trade unions have been able to advocate for better salaries and working conditions for the atypical employees (Wills, 2009:448-457). Provision of Training skills and Education Trade unions have expanded their operations by establishing various groups such as Learning Fund and Union Modernisation Fund, which are aimed at delivering trainings and education to help improve the knowledge pool and skills of workers in their workplaces. Union Modernisation Fund has played a significant role in educating workers on cultural issues, therefore, assisting in promoting cultural diversity, which is crucial in the modern workplaces (Gall, 2010:24). The workers have also received training services on work safety issues, health issues, communicating using technology and other basic skills through the Learning Fund. The trade unions want to explore this field of training and education extensively, as it promises a great way that they can revitalise themselves (Cooney, 2012:39). Unions will be able to appeal to workers if they can provide services such as diversity management and skills improvement. The workers will find the trade unions beneficial, as they will provide personal development and even enhance career development (Stuart et al. 2010:13). Recently, trade unions seem to focus on learning agreements, as they have found out that many employers are interested in dealing with unions that assist their employees to gain skills, thus increasing productivity (Blyton, Heery and Turnbull, 2011:90). The Unions are also able to target the employees in the higher caste, who seem to be more interested in learning opportunities than increased pay. The employers and the workers have realised that the educational opportunities and training services offered by the trade unions have a positive effect on reducing skill gaps and improving organisational performance. This has helped the trade unions to increase their collective bargaining with the employers, thus contributing significantly to their revitalisation (Darlington, 2010:127). Beneficial functions to the employers Trade unions also function to help the employers. As they improve the workers’ conditions, they also play a significant role in improving productivity in the organisations. Enhancing productivity Trades Unions can assist in bargaining for productivity deals from their members (DeVaro, 2011:41). Unions are able to influence their members to work efficiently or inefficiently. The trade unions are also capable of influencing their members to adopt improved working practices that can be beneficial to the employers. This is achieved by influencing the employees to employ technology and work efficiently in order to increase the firm’s production (Glynn, 2013:233). However, the employees need to be motivated through increased pay or using pay per performance systems. The trade unions are also tasked with the function of ensuring that their members are motivated. Depending on the relation of an organisation and the trade union, workers can be highly motivated or not through the unions. In the case where trade unions motivate their members, the employers are able to maximise production since they do not experience a high employee turnover. This helps to increase production, therefore, improving the financial performance of the organisation (Johansson, 2012:21). Trade unions assist in the recruitment and selection process of new employees (Glynn, 2013:237). They ascertain that the right candidates for a particular job description is provided to the organisation, therefore, reducing the amount of time taken to search for the right employees. The trade union also ensures that the employees follow the code of conduct provided by the organisation, thus assisting in maintaining order within different organisations (Böheim and Zweimüller, 2013:65). Considering that trade unions make a significant contribution to the society, they are therefore deemed to promote national integration. Trade unions achieve this function by reducing industrial disputes and instilling social responsibility within the employers and employees (Giuli, 2013:330). Conclusion The essay indicates that trade unions have many roles in every country. In the United Kingdom, it is apparent that trade unions are losing ground but with the new strategies that they are implementing, they will be able to revitalise. The primary function of trade unions is to guarantee its members’ welfare by protecting and fighting for their interests. Trade unions ensure the accomplishment of this function through negotiations, acting as the employee’s voice and representative, providing advice, financial assistance, legal advice and training skills and education (Ribarova, 2013:295). Through their leadership, trade unions are able to engage in collective bargaining, therefore, ameliorating the pay and working conditions of their members (Kirton and Healy, 2013:1). Trade unions also pay an important function in teaching other employees about their employment rights. Trade unions function to increase productivity within the firms by motivating their employees. This contributes to economy growth and national integration (Giuli, 2013:330). References Blanpain, R. & Dickens, L. 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