Third Party Institutions for Employee Relations - Literature review Example

Critically evaluate the effectiveness of third party employee relations s in representing and supporting workers. Introduction Employee relations is a comparatively new term which connotes the field that explores the relationship between business management and their workers. The context for employee relations is set by government legislations and regulations which deal with various employment issues varying from minimum wage to unlawful dismissal. One of the most eminent facets of this field is its ability to become accustomed to change for change is relentlessly bound to happen whether it be technological, economical or political as each of which bring up the notable question of how an entity should take action. In view of the fact that employee relations occur on a range of different levels, the proper allocation of power amongst these levels is crucial as it can significantly affect the way an economy functions. There is no dispute regarding the implication of employee relations as a decisive element of people management policies; indeed, it that has a great impact on performance (Chartered Institute of Personnel and Development 2005; p. 1-4). Third Party Institutions for Employee Relations The U.K. labour market embodies diversity and flexibility as proven by the extensive assortment of existing jobs varying from part-time jobs that requires only a few hours of work to agency jobs and jobs that provide opportunities to work overtime. Around 4 million workers have the freedom, at any moment, to choose to get a better or different job especially in times of redundancies. There exists provisions to “make work pay” through the induction of tax credits and to make work accessible through committed assistance for the most disadvantaged. These have given opportunities for employment to more and more people (U.K. Dept. of Trade and Industry 2006; p.5) During the late 1980’2 and 1990’s, a widespread speculation regarding the prospects of labour relations and the new role of employees and their interest associations was circulating around Central and Eastern Europe. The revolution in the international economic and social aspects in these countries brought about seemingly unexpected configurations of labour relations and social corporations. Due to the fact that the social and economic perspectives of the transformation differ from one country to another, various strategies and practices of the these institutions were built together with national and local customs of interest represented. This consequently resulted in a full variety of new autonomous structures of labour relations (Mako & Simonyi 1997; p.221). Specialist Regulatory Consultancies One type of these aforementioned institutions are better known as consultancies which are dedicated to assist in the activities of the client company and its employees in conformity with labour laws. These organisations are comprised by certified labour relations consultants who negotiate directly with employees and clarify facts regarding unions in order to explicitly convey managements position on union recognition and other issues affecting employment. This service allows the employees to inquire from professional labour relations consultants rather than merely rely on information given by their colleagues or by union organisers. The consultants meet with individual employees and build both rapport and credibility. The consultants then make use of the National Labour Relations Act together with other pertinent documents to communicate the facts of various labour issues including unionisation (The Burke Group 2004). According to the governments own figures there was over £11bn of regulatory impacts which hit business ever since 1997. In response to this phenomenon, every business needs to either establish a committed and suitably supported in-house team or, as evidently increasing, to seek assistance from outsourcing and external specialists—the regulatory consultancies. These specialists are said to be a new breed of legal risk specialists who face the challenges for tens of thousands of U.K. businesses and, thus, lead the way ( A.R.K. Business Analysis 2007). There had been a widespread assumption that this is a market dominated solely by employment lawyers. The truth is that this market goes beyond traditional legal services and solicitors practices. Although major companies still favour to hire the services of employment lawyers to deal with formal dispute resolution issues, they also keep internal teams of personnel and HR specialists such as industrial relations and employee relations specialists. As a matter of fact, there is a broad variety of choice, a dynamic list of consultancy agencies and specialists abound in this market. These agencies offer different solution types including insurance, publications, consultancy or outsourcing, technology services and management consulting (A.R.K. Business Analysis 2007; U.K. Dept. of Trade and Industry 2006; 25). In addition, U.K. mid market or small and medium size enterprises (SME) are progressively making use of more external non-legal specialist consultancies as SMEs prefer insurance backed outsourcers while micro enterprises favour insurance and affinity group rooted guidance and support services as well as outsourcing. This practice increasingly educates in-house staff on how to adjust with the situation (A.R.K. Business Analysis 2007). With the presence of these consultancies, companies began to take in the services of expert specialist to work on projects and to troubleshoot specific problems instead of just relying on their own staff; thus, they were able to advance to more intelligent use of their workforce (U.K. Dept. of Trade and Industry 2006; p.25). National Skills Academies The Leitch Review of Skills published in December 2006, stressing the nation’s skills are not of international standards and that the nation is in the verge of a great risk that will undermine the U.K.’s enduring affluence had triggered panic in both the public and private sectors. Despite current developments, the U.K. is faced with social disparities due to high levels of child poverty, low employment rates for the disadvantaged, regional disproportions and reasonably high income disparity. One solution surfaced to address this issue and that is improving skill levels (The National Skills Academy 2008; U.K. Dept. of Trade and Industry 2006; p.25). In addition to the said issue, another concern is the fact that majority of the industries in the U.K. are encountering skills shortages especially with the forthcoming retirement of the current workforce as there are very few recruits to take their places. Thus, there is a desperate need to invest in training potential employees (The National Skills Academy 2008). Aside from some consultancy firms offering this kind of training service, National Skills Academies are a principal part of the Government’s strategy for improving the skills on hand to employers and to generate opportunities for their employees. The academies main objective is to escalate the quality of course content, teaching and assessment throughout the broad scale of skills required by manufacturing in the U.K.. These academies will cultivate the existing best practice and provision which includes Centres for Vocational Excellence (The National Skills Academy 2008; U.K. Dept. of Trade and Industry 2006; p.26). Union Learning Representatives Contrary to employers’ claims, unions are significant sources of help and advise on skills in the work environment and even play a vital role in the workforce development. In line with this, the Union Learning Representatives (ULRs) was conceptualised. This is comprised of lay union representatives whose ultimate task is to provide sound advises to union members with regard to their training, educational and development needs. By means of advocating a constructive attitude towards training and by providing assistance and invoking the importance of learning at all levels and all stages of a career, they can help to elevate productivity and motivation. Studies conveyed that they have a remarkable influence on building enthusiasm for learning among both workers and employers. Majority of ULRs were trained as part of the government’s Union Learning Fund (ULF) projects which has supported hundreds of projects in more than 50 different unions. These projects varied from embarking upon basic skills needs which is the primary focus of the Fund up to continuing professional advancement; consequently developing networks of ULRs and instituting learning centres in workplaces and union premises. At present, there are approximately 12,000 trained ULRs who had helped more than 67,000 workers concerning their training and development needs (U.K. Dept. of Trade and Industry 2006; p.26-30). The ULRs are provided for by the Employment Act 2002 in view of the overall government plan to improve and stimulate learning and professional development and opportunities for all adults. Moreover, the URL is not entirely for the employees’ benefit. Employers also have an advantage as it provide a two way communication with their staff regarding training and development issues. Subsequently, they gain additional resource for training/personnel officers who have to access to reach out to employees who are not taking up training/development opportunities. Also, they are able to identify problem areas/skill needs as early as possible and provide accessible and independent on site advices (Prospect 2008). Govenment Websites Since 1997, the government have founded several of means where workers can learn about their rights. A perfect example of these websites is the www.direct.gov.uk which is designed to be a pivotal and accessible resource for employees seeking information regarding employment rights and responsibilities. The website incorporates interactive tools that provide more customised assistance for individual circumstances (U.K. Dept. of Trade and Industry 2006; p.31). Furthermore, it contains information from various government departments and elsewhere on different topics including completing your driving test, parental leave, finding a job or a local NHS service. Other information embedded therein are money, travel, education, disabled people, the over 50s and parents (Directgov 2008). On the other hand, the independent Public Legal Education and Support Taskforce12 (www.pleas.org.uk) is focusing by and large into enriching public awareness and comprehension of the people’s responsibilities and rights. Additionally, it intends to help people achieve the skills and confidence required when encountering disputes and legal problems (U.K. Dept. of Trade and Industry 2006; p.31). Government Helplines There are numerous helplines providing useful advise on employment-related issues. For instance, Acas helpline10 which is reported to be receiving almost one million calls per year is an excellent resource for workers and employers alike. It offers free, unprejudiced and sensible advices on employment issues and on solving problems. The Disability Rights Commission (DRC) provides helpline11 advice to disabled employees or job applicants and also a wide range of printed and online guidance (U.K. Dept. of Trade and Industry 2006; p.31). Government Protection to Vulnerable Employees The Government is aware of its responsibility to guarantee safety to workers who are the vulnerable and therefore has to implement laws against those who break it especially employers who employ illegal migrant labour (UK Dept. of Trade and Industry 2006; p.35). This relentless problem on illegal migrant labour led to the establishment of the Home Office-led West Midlands Joint Workplace Enforcement Pilot (JWEP) which was launched in the West Midlands in 1995. It was as presupposed to be a three-year pilot intended to investigate, with closer co-ordination with the Government workplace enforcement and compliance departments in order to track down both the utilisation and abuse of illegal migrant workers. Also involved in the operation are the UK Immigration Service, BERR (formerly the DTI), HMRC, the Health and Safety Executive, the Department for Work and Pensions and the Gangmasters Licensing Authority (GLA) (Low Pay Commission 2008). The operation will be building on the upshot from the pilot and then in conjunction with the extensive compliance and enforcement work, these agencies will examine viable course of action to allow the existing information-sharing capabilities work out as effectively as planned, take into account further co-ordinated joint encounter in ‘hot spot’ sectors or areas with a piercing incidence of illegal migrant working as well as initial campaigns to advertise compliance, be concerned whether further strength is required for enforcement agencies to assemble and disclose valuable information (UK Dept. of Trade and Industry 2006; p.35). Aiming to protect maltreated workers in specific area, the Gangmasters Licensing Act was enforced in 2004 for agricultural, shellfsh and related food processing and packaging industries. It was premeditated to help in terminating the abuse of workers and the activities of illegal operators which have been a dominant problem in this sector. Basing its foundation on the Act, the Department of Environment, Food and Rural Affairs (Defra) introduced a set of laws that will impel the Gangmaster Licensing regime into full operation, starting from exterminating the unlawful actions of these gangmasters (Office of Public Secotr Information ; UK Dept. of Trade and Industry 2006; p.33). The Leicester (formerly Highfields) Minimum Wage Project began as a partnership project funded by the DTI through HMRC. It also involved Leicester City Council who managed the project as well as the Community trade union. The Highfields project in conjunction with the trade Union Community and the local National Minimum Wage Enforcement and Compliance team originally embarked on a leafleting campaign in the community to elevate awareness regarding the minimum wage increase including the pay structure comprising of compensation of attendance bonus and the enforcement of the increased hourly rate of pay to at least the minimum wage. In the process, other health & safety issues were also addressed. As a result, more than 300 workers gained benefit; whereas over £40,000 was paid in minimum wage amount overdue (Leicester City Council 2001; UK Dept. of Trade and Industry 2006; p.37). At present, the Leicester project offers services such as providing information, advice, free assistance and support in obtaining the right to the National Minimum Wage (Nextstep Additional Service Directory 2005). Conclusion The emergence of specialist regulatory consultancies has created a new wave in the trade market. The Business Intelligence Report examines the position of these consultancies within the broader employment law as well as the health and safety markets in the U.K. Accordingly, the market is divided into two levels. One is comprised of those that provide higher service levels such as Croner Consulting, Citation, Drury, Ellis Whittam and Park City which are all able and keen to compete with the specialist employment lawyers in a straight line. The other is comprised of those that offer "light touch" or off-site consultancy which is often intended for SMEs and micro businesses, such as Abbey Protection Group, Peninsula Business Services and RBS Mentor Services ( A.R.K. Business Analysis 2007) The services offered by these consultancies characteristically include personnel and safety compliance, albeit increasingly some extend to offering tax fee protection services to high end accountancy firms as a complementary service which also including IRPC/Croner and Peninsula/QDos ( A.R.K. Business Analysis 2007; U.K. Dept. of Trade and Industry 2006; 25). On the other hand, after examining the evidence presented in responses to the consultation and, taken into consideration, the account of actions already undertaken since 1997, the Government believes revolution applied in the legal framework would not thwart instances of abuse or lack of awareness. However, it could result in possible damage in the flexibility of the labour market and might result in a reduction in overall employment. It was concluded therefore that the present legal framework mirrors the extensive diversity of employment arrangements and the different levels of responsibility and rights in varying employment relationships. The Government firmly believes that it has met the labour market’s current requirements; henceforth, the need for further legislation in this area is no longer necessary (U.K. Dept. of Trade and Industry 2006; p.17). The programs instituted by the Government proved to be successful in their respective fields. This includes the National Skills Academies which was premeditated to further develop the already acquired skills of the employees and promote continuous education; and the Union Learning Representatives who were specially trained as part of the government’s Union Learning Fund (ULF) in accordance with the Employment Act 2002 which provides assistance to union members in terms of improving awareness on labour issues and, similar to the National Skills Academies, aims on encouraging continuous learning. Other projects incorporate Government protection to vulnerable employees. These include the Home Office-led West Midlands Joint Workplace Enforcement Pilot (JWEP) which, through the Gangmasters Licensing Act, gears to eradicate illegal migration of worker; and The Leicester or Highfields Minimum Wage Project which aims to protect employees from malpractices of employers as far as compensation is concerned. Apart from these the Government also funds websites, www.direct.gov.uk and www.pleas.org.uk, that provide highly accessible information on employee relations and other subject areas. Finally, the Government Helplines such as Acas helpline10 and Disability Rights Commission (DRC) (U.K. Dept. of Trade and Industry 2006). Generally speaking, the laws implemented by the government do not aim to enforce a solution on parties to trade disputes, but rather are premeditated to provide support to the involved parties in terms of resolving their differences. The Government has, by and large, narrowed its role to the groundwork of voluntarism by means of the stipulation of a framework and the industrial relations institutions that is able to assist in the resolution of disputes between employers and workers through which good relations can prosper. The record of success regarding this matter is clear from the available data, which confirms that the Conciliation Services Division reliably straightens out about 80% of all cases referred to it. In the same way the Rights Commissioner Service, which is dealing with extremely substantial growth in demand for its services, was able to resolve the considerable majority of all cases referred to it (Kelleher 2007). Additionally, institutions of social partnership take a significant part in warranting the proper conveyance of the industrial stability and peace provisions of the National Agreements. In this milieu, the National Implementation Body (NIB) function as a round-table where the Government, employers and trade unions can work in harmony to facilitate a definite positive industrial relations climate for economic and social growth. Nevertheless, social partnership was not exclusively responsible for the dramatic transformation of our economic and social state though it served as a key factor for enabling the Government, employers, trade unions, farmers and, in the fullness of time, the community and voluntary sector, to establish a consensus about the general direction of the economic and social policy and to work hand in hand to the achievement a shared vision of the future (Kelleher 2007). Recommendation All of the aforementioned forces will resolutely transform the employment landscape across the country. To ensure economic prosperity in the future, the U.K. will need to be a nation that is rich in human capital and irrefutably has the ability to utilise that human capital successfully in order to yield innovative, high quality goods and services. The percentage on skills will grow though some skills have the tendency to become redundant, others will develop to become essential given that they are provided with lifelong learning which is increasingly important for the prospects of an individual and for the competitiveness of the nation. Obtaining basic skills which is already a key determinant of the success of the labour market at the present time will be playing a more significant role than ever. Individuals, employers and the government will have to further invest in the attainment of skills and demonstrate the capability to adapt and innovate as they will face new demands and challenges at the workplace and be subjected under increased pressure from global competition. Albeit, once these obstacles are overcome, it will definitely lead to greater prosperity for individuals and exceptional economic success for the country. The need will arise for trade unions to recruit members from new industries and low paid sectors and develop new means of providing accessible support to people. The mounting prosperity will pave ways to new opportunities to build more profitable businesses and new employment. In view of this, work patterns should become more flexible in response to the forthcoming new demands from customers and the prospective needs and wishes of employees. Moreover, to be able to meet the impending challenges of globalisation, there will be a requirement for more high-performing and conducive workplaces (U.K. Dept. of Trade and Industry 2006; p.7). References A.R.K. Business Analysis. 2007. The UK employee relations and Employee Law Services Market: consulting, content & advisory. [Online]. Available at: http://www.arkbusiness.co.uk/ inside.php/business_intelligence/employee_relations [accessed 12 October 2008] Chartered Institute of Personnel and Development. 2005. What is employee relations?. 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