Trade Union Recognition in Britain - Case Study Example

Industrial Law Industrial Law Titus Rock Manickam Order No. 236723 12 August 2008 Table of Contents Introduction3 Are trade unions necessary.4 The role of trade unions in Europe.5 The inevitability of trade unions...5 Trade unions in Britain..7 A face lift..8 Management's dilemma9 New order in Britain.11 Conclusion.11 Sources..13 Industrial Law Introduction The concept of collective bargaining is a ticklish issue the world over in democratic nations. It is not unique to Britain alone. However, Britain can claim the credit for doing more than anyone else to bridge the communication gap between management and trade unions although she has not fully achieved the desired objective of instilling goodwill and trust on either side so that they operate pragmatically as equals. (Trade Union Recognition) Britain has tried comparing the issue and drawing lessons from the experience of their American counterparts. For some reason, Britain finds the tryst of American corporations with trade union rather incompatible. It appears that the carrot and stick policy couched with a great deal of browbeating tactics used by the American business entities simply do not go down well with the powers that be in Britain, and for good reason. How can a nation with thousands of years of history out of which just a short while ago she ruled the waves draw lessons conclusively from a nation born out of Britain's own bosom only few centuries ago notwithstanding the bloody conception Nonetheless, Britain has good reason to approach and compare her performances with her staunchest ally. Just as in the case of every other issue, on a subject like trade unionism there is nothing so fulfilling as a comparison with the best, even if the lessons learnt turn out to be infeasible. (James J. Brudney) Are trade unions necessary There is a strong universal feeling hitherto unexpressed, especially among business circles that the world could do without trade unions. It is felt that trade unionism, like the socialist form of governance, has been a failure. Britain's tryst with collective bargaining has been particularly phlegmatic and uneventful. It is difficult to prove with any amount of conviction that something good has come out of trade unions. On the contrary, the identity of trade union has been riddled with anti-social activities, strikes, lockouts, go-slow tactics, union rivalries and even mayhem and murders. It may be for these reasons that nobody is really keen to be in the forefront when it comes to formations of trade unions in new corporations. Nonetheless, it must be granted that the presence of trade unions has had a transforming effect on society. Thanks to the principles of collective bargaining, there is more appreciation for the working class, better salaries and working conditions, better living standards, more purchasing power, and recognition and justice for the less privileged and the exploited. Therefore, the two extreme opposites of good and evil have dogged the trade union movement for such a long, disenchanting time that it stigmatized anyone to bring it up until the time was ripe for issue-based confrontations. One cannot but regard with a sense of amusement and awe the manifestation of potentials and capabilities hidden in the portals of trade unions. Come elections and employer-employee agreements, there is a beeline of the unlikeliest visitors humming and buzzing about damp, lackadaisical enclaves of the trade unionists hangouts. The role of trade unions in Europe The activities of trade unions have witnessed sharp decline in Europe. The trade union density is worst hit in France where it is merely 10% now. It is slightly better elsewhere in the continent. The position is much better in Britain where it is 44%. This is proof that in spite of claims of deteriorating working conditions by trade unions, Britain has one of the best employment regulation policies in the world. The fall of the socialist regime in the erstwhile Soviet Union had its worst impact on trade unions in East European countries which broke away from the USSR where memberships fell by over 85%. Trade unions have been consistently lacking the important component of public relations office in their organizations. Exploited by political parties, treated with contempt by the management and society at large and lead by individuals with dubious and even criminal records, trade unions cannot hold anyone but themselves responsible for such unedifying reputation. The failure of trade unions to live up to their ideals has had cascading influence on society as it became the abode for social misfits. Their resort to strong arm tactics and agitations worsened their already sullied image. (Trade unions across Europe) The inevitability of trade unions The British political and business circles have unsuccessfully tried to find an alternative to trade unions. However, there does not appear any viable force or concept capable of standing up to the might of the current one. The situation is similar to someone groping in the dark only to sense someone else is looking for him. This is because of the efficacy and reach of the trade union concept. The concept of collective bargaining goes far beyond the history of its founding fathers. It has also caught the imagination of entities beyond its own boundaries and areas of operation. Historically, whenever and wherever there were disagreements and strife, dialogues and terms of peaceful negotiations were sought. Emissaries and gifts came into the picture. Efforts at negotiated settlements preceded wars. Political, economical and military strategies were considered. It was only after the wise elements of reason and diplomacy failed the saner and more powerful side declared war. In the current scenario, the trade union is perceived as villain and necessary evil. However, the players comprise more than the unionists, the management and the workers. The issues of collective bargaining also necessarily involve politicians, lawyers and the media. The problem bedeviling the unionist movement is not only because of its internal turmoil between management and the workers but also because of the external forces comprising politicians, legal luminaries and the media. Each internal and external player, that is, the employer, the union, the politician, the legal entity and the media profess to act on behalf of the common good of all concerned, and undoubtedly they do. But all of them also have their own hidden agenda. In the circumstances, it is neither ideal nor possible to do away with trade unions. The issues and forces connected with trade unions are too important and powerful to be thrashed out or wished away. Outlawing trade unions would be like throwing away the proverbial baby with the bathwater. Trade unions in Britain In June 2000, the British government instituted an agency called the Central Arbitration Committee (CAC) to oversee the affairs of trade unions in companies employing more than twenty workers. The CAC came under the National Labor Regulations Act (NLRA), followed the Employment Relations Act (ERA) 1999, and was empowered with overriding authority to receive applications, observe the formation of the union, look into accusation of employers' highhandedness and intimidation tactics if any, call for elections and supervise them, and do everything legally permissible to ensure a just and fair outcome to employers as well as employees. Eight years into the CAC, Britain continues to grapple with her trade union issues. Amidst cheers of successful new union formations, employer-employee negotiations and improving relations, there are discordant news of millions of workers in small firms in Britain denied a voice at work, and accusation of Britain's failure to meet the minimum standards set by the UN International Labor Organization (ILO). (Trade Union Recognition) Actually, the problems facing the British industry today are different from the ones it did few decades ago. Changing economic scenario, globalization, competition from emerging markets like China, India and Korea, availability of cheaper overseas labor and products, unrelenting balance of payment deficits, enactment of new employment policies and laws and weakening of the trade union movement worldwide, and other issues like immigration and terrorism keep the authorities' hands full with little time for enforcement of labor laws in every nook and corner. The problems become worse when there seems to be no end in sight and the opposite sides resort to blaming one another. The politicians, legal entities, and the media take on from there in the hope of resolving the issues. While the politicians and the lawyers have a stake in going through the issues threadbare, the media has a different compulsion. In the circumstances, the core issues are either resolved, fizzle out, or end in litigation. In the grand old days, there were faster solutions to such vexing issues. People were thrown into the dungeon or had their heads chopped off if they did not come to a settlement. In the information era today such medieval methods have no place. Today's managing boards have better policies. They agree that you are either in the circle or out of it. At least the antagonists in the medieval era did not have to starve. A face lift Clearly, it is time for introspection for trade unions. Reacting to a militant trade union's symbol which was in the shape of a clenched fist atop a factory chimney, Indira Gandhi, the late prime minister of India once observed you cannot shake hands with a clenched fist. Trade unionism must undergo rigorous surgical treatment to get a new face. Business systems have been changing. Communication and information systems have been transforming in giant strides. Education is metamorphosing from a path of career building to the new concept of career orientation. Society and even far flung hamlets are getting the message that the old systems are dying. It is very high time that trade unions get the message too. In the present business environment where employees are increasing turning shareholders, trade unions must get their acts together for a thorough overhaul and complete transformation so that they may be counted worthy of the noble ideals of lending a helping hand to the toiling masses. Trade union is one of the important stakeholders in business. The British administration system is second to none in the world. The British parliamentarians continue to grapple with union issues. The trade union in Britain is in a position to herald a new era in the annals of trade union history. The union is capable of achieving this feat without the "blood, sweat, toils and tears" adage made immortal by Sir Winston Churchill. The requirement is more basic to introspection and gandhigiri made famous by the Indian film icon, Sanjay Dutt. (Gandhigiri) Management's dilemma The management has a huge stake in helping trade unions find their moorings. It is no use treating the union like the proverbial albatross around the neck. Having their wings already clipped, the enfeebled union is not in a position to resort to agitations or go-slows in the same way they were wont to some decades before. With their powers curtailed and memberships brought to extinction, the unions are going through a phase when they are aware they have to assume more responsible and conciliatory roles. The management's dilemma is that they have been engaged in cold war of sorts with trade unions for such a long time that they find it incredible that they have all but decimated their traditional bte noire. At some places the management is reaping the fruits of improved employment policies. The management is in a position to proactively pursue policies and procedures that not only engage trade unions in profitable ventures but actually treat them as partners and shareholders in the company's affairs. Such path breaking endeavor is bound to have its own set of problems. The fundamentals of collective bargaining essentially engage two opposing sides in negotiating deals and compensations. Collective bargaining can prove to be vexatious enough to create fissures no matter how strong the bonds of amity between the management and union have turned out to be. Nonetheless, there is the provision of agreeing to disagree. It is better than full-scale agitations and lockouts. The business environment is conducive to those who mean business. It is becoming increasingly difficult to work under duress or under one-track mentality. There is place for almost everyone desirous of finding his or her niche and growing from there. Union is a necessary component which has the option to shape up or ship out. Fortunately, there is a section of the union which is shaping up and this section will be the precursor to the new incarnation of the union in the present century. As a nation with the highest density of unions in Europe, Britain appears to be heading towards the distinction of being more labor friendly than any other nation in the EU. But this is because of the abysmally low performance exhibited by other nations in the EU and not because of any extraordinary performance by Britain in union affairs. (Employees less optimistic than about employment relations than managers) New business order in Britain The strong value of the British pound is helping the nation to preserve its top position in world economy. The history and economy of Britain have witnessed fluctuating fortunes down the centuries, with the best times in the centuries preceding the two world wars. The dominance of English adds its own aura into the unique status Britain enjoys in the world affairs. The democratic style of governance has been emulated by many nations after the British parliament. Hence, it only follows that Britain take the lead in ushering in a new era relating to employment relations. Looking at the current state of affairs vis--vis trade unions, it appears to be an uphill task for any nation to transform the legacy trade unions have left. Only divine intervention may help. Conclusion Trade unions have served their purpose. As mentioned earlier, they have a good presence in Britain compared to other nations in the EU. They continue to make news in striking regularity for non-conformity by the management most of the time. According to a Labor Research in 2006, "Britain is clearly not ushering in an era of employment relations, where union membership and union recognition are the norm." It is difficult to single our Britain for the blame when the countries around Britain are faring much worse in the same parameters. The blame lies squarely on the internal as well as external sources for the mess in trade unions. There cannot be smoke without fire. If membership and recognition have to be accorded, they must be accomplished in an environment of mutual trust and on the basis of the unions' popularity. It is not proper to blame the government for the malaise. History has witnessed the rise and fall of nations. Movements like the non-aligned movement have waxed and waned. However, it is difficult to understand trade unions. Is it because they are society's proverbial black sheep Have they been given a fresh chance to reform Only time will tell. Actually the existence and continuance of trade unions is a victory of sorts for democracy. Could anyone imagine their existence in authoritarian and other form of less tolerant regimes The unfortunate treatment of trade unions as a nuisance value makes it difficult for any nation to make a new era out of a movement known only for its medieval tactics. The International Labor Organization is the right forum to regenerate trade unions, but do they have the will Sources: Employees less optimistic than about employment relations than managers, Management Issues, 06 July 2006, http://www.management-issues.com/2006/8/24/research/employees-less-optimistic-about-employment-relations-than-managers.asp Gandhirigi, www,gandhigiri.org Gregor Gall, University of Stirling, Trade Union Recognition in Britain: Is a Corner Being Turned XI. Lera Referred Papers: Labor and Employment Law, Labor Unions/Labor Studies, International/Comparative & NAFTA, Labor And Employment Relations Association Series, Proceedings of the 57th Annual Meeting, http://www.press.uillinois.edu/journals/irra/proceedings2005/gall.html James J. Brudney, Recrafting of a Trojan Horse: Thoughts On Workplace Governance In Light Of Recent British Labor Law Developments, http://www.law.uiuc.edu/publications/cll&pj/archive/vol_28/issue_2/BrudneyArticle28-2.pdf Trade unions across Europe, Federation of European Employers, http://www.fedee.com/tradeunions.html Trade Union Recognition, Trade Union Congress, http://www.tuc.org.uk/law/index.cfmmins=3 Read More