Employment Relations and Trade Union - Essay Example

?Employment Relations and Trade Union Employment relationship is a relationship between an employer and an employee where employees perform certain duties and some payment received in return. This employment relationship assists workers to gain access to their rights and other benefits in employment as well as determining the level at which the parties apply their rights and obligations to each other (Rose, 2008: 70). At times, conflicts do occur owing to either or both parties’ failure to honour the rights of the other party. However, such conflicts negatively affect working relations, and this requires the organisation to develop sound procedures to solve such conflict so as to promote a positive working relationship. In such instances, intervention of trade unions is vital in that it encourages procedures to be put in place so as to create necessary and balanced relationship; thus promoting mutual understanding between the parties. A win-win situation is built between the parties thereby enabling them to have mutual understanding and better progress. A trade union is comprised of employees who need to have their interests organized and represented not only in the workplace but also in the society. The union ensures proper regulation of the employment relationship through collective bargaining with the management. Here, employers and employees share powers in conducting employment relationship. The process of collective bargaining opens the room for negotiation between employers’ representatives and the union comprising of employees, in the aim of regulating employment where they reach an agreement which is, therefore, applied to employees equitably. This tool is mostly used by unions in protecting or improving their members’ interests. Therefore, involvement of collective bargaining and power sharing between the two parties has a considerable impact in that it improves the employment relationship and fosters organizational performance (Daniels, 2006: 43). The Trade Union and Labour Relations Act governs both permanent and casual workers who have a common interest in regulating their relationship with the employers. Functions of trade union are broad in terms of job regulation, power, social change, economic regulation, self fulfilment and member services. At times, some trade unions have affiliated with some representative bodies, for instance, the UK Trade Union Congress which depicts itself as the voice of all workers in Britain. It helps members to lobby the government concerning various issues, which include, union, economic and employment Unions have the mandate to challenge managerial rights by restricting employees from supplying labour to their employers through the organisation of industrial action (Stephen, 2007: 45). Unions have not only a face of monopolising labour supply to the management, but also a voice for their members. In their operation as a collective voice, they spot employees’ concerns and efficiently convey them to the employer. This enables the management to better treat the employees without having to incur transaction costs. It also impacts an individual employee by overcoming the incentive problem that would cost them by conveying their grievances to management in the absence of the union particularly when the benefit accrues to all workers, for example, public goods like safety and health. In such cases, the employees do not tackle the problems facing them; instead they let them foster and find it more convenient to quit their jobs and go in search for another one elsewhere (Rose, 2008: 38). Unions, therefore, are considered to offer a valuable service to both the management and the employees by collecting all employees’ concerns and passing them on to the employer. This, in most cases, leads to faster and better decision making by the management, which solves employees’ requirements better than in the absence of the union. Effectiveness of a union is gauged by its capability of achieving set goals in serving members through workplace representation and collective bargaining among other influences without losing its organisational strength. In the process of meeting their members’ needs, they face a number of challenges which undermine their organizational viability. It has been difficult for them to organize new workplaces and maintain the union density in already organized parts. British unions rely on subscription of members to make income, and this undermines their viability as a voluntary organization. Coverage of collective bargaining has declined lately since many employers are distancing themselves from it as a pay determination method in the current intensive market competition (Daniels, 2006: 98). Trade unions receive little statutory support and no financial support from the government. Although statutory recognition procedures were recently reviewed, unions still do not have much access to various workplaces for the purpose of organising. Furthermore, they have no right whatsoever to require free riders’ bargaining services fee. In Britain, it is difficult for the union to attract new members or even retain the existing ones if they do not provide proper and effective services. They are required to have some representative and organizational structures put in place in order to become and remain viable in workplaces. Such structures enable them to influence opportunities into affirmative servicing and organizational outcomes. Mostly, unions rely on the employee’s support as well as management’s acquiescence to represent members since workers have an option not to recognise trade union. It is to the advantage of the union when the management takes them seriously and involve them in various processes of consultation, information and negotiations and more so, when they recognise their legal claim of representing employees. It is also significant when their effects towards employment union are considered since, in their omission, the employee relation may become sour. A co-operative environment for both the union and management is very important, where the management is required to engage itself constructively in the purpose of creating a space for collaboration. Quality of the employment relationship depends on voice and monopoly bargaining effects. Union’s outcome, on the other hand, depends on management’s and employee’s perception in regards to climate of employment relations (Gennard, 2005: 122). It is poorly perceived by employees in comparison to the non-union environment. Unionised workplaces are expected to have adverse relations as compared to nonunionised workplaces. This is as a result of unions taking root in workplaces where employees are facing key problems. It has also been noted that trade unions raise awareness of problems partly in workplaces while hoping to rectify them with the management through a negotiation process. However, this can easily increase the rate of information flow to workers; hence intensifying their knowledge of employer shortcomings. Another outcome is quitting voluntarily where unions encourage workers to try and tackle pressing issues they face instead of quitting. Provision of voice to workers is beneficial to employers since with reduction in employee turnover the institution tends to generate more savings on recruitment and training of new staff. It also decreases work team disruptions and more so the employer is likely to receive more returns from the efforts of advancing the workforce. Union’s provision of employees with effective voice enables the management to gain valuable knowledge of workplace operations. In the absence of unions, the employment relationship between the management and the employees is underpinned by services contract. In this case, it the employer who knows each employee's terms and can dismiss the employee on grounds of poor performance especially when others are working as required (Lewis, 2003: 65). This is common with scrupulous employers who use their powers to unfairly treat their workers. The employee, on the other hand, may demand payments for poorly performed work although their interests are not always fully consonant with the employer’s. Quiescence may harmonize the situation in cases where employees have minimal powers. In circumstances where there are problems in workplaces, the discontented employees choose to quit. This is unlikely the opposite when a union is in the picture as it provides incentives for workers to pass their concerns and demands through them and by offering them the voice. As such they reduce employee turnover since they have an opportunity to air their concerns and push solutions. In conclusion, employment relationship is strengthened by trade unions, and this may improve on employee performance since problems are taken care of as they arise. Employers, on their hand, gain more since they save time and cut on cost when dealing with the union itself rather than individual employees. Unions reduce employee turnover leading to increased performance and efficiency from both parties. References Daniels, K. (2006) Employee relations in an organisational context, London, Chartered Institute of Personnel and Development. Gennard, J. (2005) Employee relations, Oxford, Blackwell. Lewis, P. (2003) Employee relations, Harlow, Financial Times Prentice Hall. Rose, E. (2008) Employment relations, Harlow, Financial Times Prentice Hall. Stephen, D. (2007) Employment relations: individualisation and Union, Oxford, Butterworth-Heinemann. Read More