Industrial Relations and Workplace Change - Assignment Example

Running Head: INDUSTRIAL RELATIONS Industrial Relations and Workplace Change Student’s Name: Course Code: Lecture’s Name: Date of presentation: Question 1 Unions are an important drive for an organization’s revenue and successful business practices. When the management recognizes unions, mutual respect and confidence develops between the employer and employees. This way, unions help create a cooperative relationship with the management and can therefore play an important role in overcoming barriers to human resource practices that may hinder employee competitiveness and productivity. In a way, non-unionism denies employees and employers the opportunity to attain competitive advantages through the development and application of human capital. In particular, unionism has the advantage of promoting the independent voice, which cannot be substituted by any managerial practices. As such, Flood and Toner’s understanding of non-unionized workplace is not likely to accommodate successful workplace change, especially in today’s workplaces. Their understanding clearly seems to downplay the important benefits that organizations gain through the collective bargaining power of employees. According to Pyman, Cooper, Teicher & Holland (2006) the first step in transforming an organization into an all time productive entity is the recognition of trade unions by employers. It is therefore imperative for an organization to implement policies that consistently encourage and support collective bargaining. The other negative side of non-unionism is that it does not promote collective agreements between employers and employees, which can address a number of issues that can be beneficial to both employers and employees. Therefore, recognizing unions is an essential initiative that can help bring together employees and management in a partnership, which outlines policies for instituting fair workplace processes. Salamon (2000) has explained that some management may find it necessary to work under non-unionism but when they recognize the power of unions, the results are immense and beneficial to all stakeholders. It is for this reason that some organizations have departments of industrial relations separate from the human resource department and whose core function is to form and maintain a functional machinery of joint consultations. Such a department is responsible for keeping in touch with the state of employee-employer relations and advising the management of existing or potential industrial relations problems. Another important reason why Flood and Toner’s argument cannot add any meaningful value to workplaces is that non-unionism denies the opportunity to settle disputes by negotiation, conciliation or arbitration. In fact, where the management recognizes unions, all rules and regulations governing unionism are known to the human resource officers and employees. This enables all employees to have adequate knowledge of procedures for negotiation and consultation and the importance of formal and structured consultation, which translate into job satisfaction, good human resource practices and improved performance. In his argument, Pyman, Cooper, Teicher & Holland (2006) says that unions not only contribute to managerial competence and organizational competitiveness, but they also ensure that employees benefit from good workplace practices and hence secure their own relevance in organizations. This important contribution that unions make is complemented by appropriate and relevant human resource management practices and the willingness of employees to engage in consultative relationships. A classic research by Spencer (2008) reveals that managements that recognize the power of unionism do not engage in negative practices such as autocratic management or adversarial industrial relations. Researchers have also shown that the existence of unionism is essential in reducing conflicts arising from the workers resentment of the manager’s powers. Where the management is cooperative and ready to acknowledge the feelings of others, conflicts are likely to be reduced. Putting too much emphasis on union efficiency is essential in improving labor turnover, poor work and strikes. In fact, non-unionism lacks the ability to cultivate good relationships between the management and employees. Such relationships can only thrive under unionism and they help determine the success of organizations. This way, unionism helps maintain and promote the welfare of both the management and employees. Question 2 In the strict sense of the word, flexicurity is all about striking the right balance between secure job transitions and flexible job arrangements. The idea is to enable the creation of more and better jobs and as such, the two concepts should be regarded as complementary. Ideally, it is not easy for flexicurity to result in 'win-win' workplace change outcomes. The win-win outcome refers to the situation where both employees and employers are able to reap benefits from their workplace arrangements. Such a work place environment should be secure and flexible. Flexibility implies that the workplace should allow employees to combine their work and private responsibilities. It is also about giving employers a more flexible work environment in which they can easily change their jobs. Security implies giving employees the necessary training needed to develop their skills and keep up to date with job requirements. Although it is widely believed that the above two considerations – flexibility and security- can be beneficial to both employees and employers and hence result in 'win-win' relationships, there are certain factors that may hinder them from resulting in win relationship. According to Pyman, Cooper, Teicher & Holland (2006) flexicurity can only thrive in an environment of trust and consultative dialogue among stakeholders. In other words, the win-win change outcomes can only be realized if flexicurity is allowed to develop as a product of positive relationships between employers and employees in the workplace. Where there is such a relationship, employees can readily take up their responsibilities and adapt to work place changes. Although the management assumes the overall responsibility of supervising employees and developing workplace policies, it is ideal that the policies are instituted in accordance with the wishes and interest of both the employer and employees. In his book, Salamon, (2000) explains that involvement of all workplace stakeholders in the implementation of policies is the easiest way and most popular one for developing win-win workplace relationships. This is attained through social dialogue as well as collective bargaining, which are essential components of a flexicurity. Spencer, (2008) has explained that guaranteeing job security and flexibility may not necessarily result in win-win relationship because it requires cost-effective allocation of resources. In fact, flexicurity can only work and remain relevant in a workplace environment where it is allowed to be compatible with the organization’s financial constraints. Where there is no fair distribution of resources, benefits and costs between the management and employees, job security cannot prevail, and hence the win-win relationship cannot develop. Thus, Auer’s claims that subsuming the two concepts may not result in a win-win outcome are, in fact, true. In modern labor markets like in the European Union, flexicurity is implemented in workplaces with the view that it can help promote more responsive and open labor markets. It takes into consideration the interest of both the employed and the unemployed. Opportunities, supportive measures and economic incentives are necessary in implementing a secure and flexible workplace environment. Largely, it is difficult for some organizations to sacrifice their resources as is necessary to provide flexible and secure jobs and working environments. This, therefore, becomes an important impediment in the realization of win-win workplace change outcomes. Another important consideration, which has been cited to support the view that flexicurity may not necessarily result in win-win change outcomes, derives from the fact it requires the creation of social protection strategies. Social protection helps provide the necessary incentives and support for job transitions, as well as, access to new jobs. However, if a particular labor market cannot provide these incentives, no meaningful win-win outcomes can be realized. Question 4 In many ways, non-union employees representations (NER) can be complementary to the roles played by trade unions but can also challenge the conventional roles of trade unions. There are a number of important tools that can be used to promote employee voice. These are trade unions and non-unionized employee representations. Non-unionized employee representations have a long-standing history of coexisting with the collective bargaining forms of voice recognition. They offer fair representation of employees in workplaces where unions are not recognized or where some groups of workers are outside the scope of union recognition. According to Pyman, Cooper, Teicher & Holland (2006), NER is a key mechanism for improving worker-employer relationships in the non-unionized workplace environments. In any workplace environment, employee voice is essential in expressing complaints and grievances and the participation of employees in the organization’s decision-making process. In some forms of NER, information and consultation representatives are appointed to negotiate the setup and be members of consultation bodies. These bodies help facilitate sharing of information between employees and employers and hence serve complementary roles to those of trade unions. For instance, European Union member states have allowed the formation of consultative bodies in workplaces where trade unions do not exist. These bodies have the necessary statutory rights and authority to set up appropriate consultative procedures. Once established, the rights of these bodies apply to employee representatives. According to Salamon (2000), different types of non-unionized employee representations exist. A notable example is the pension representation, which is a form of non-union representation charged with the responsibility of making consultations over changes to pension arrangements. One of the advantages of such a representation plan is that it keeps employees informed and consulted over the transfer of any undertaking affecting their pension plans. Spencer (2008) has effectively captured the important role played by the non-unionized employee representation by stressing their role in reinforcing collective redundancy. In workplace settings, where there are no trade unions recognized for collective bargaining, it becomes necessary for employees to be informed and consulted in circumstances where redundancy of employees is proposed. This can be essential in avoiding arbitrary laying off of workers. This way, the non-unionized employee representative complements trade unions. Nevertheless, there are instances in which the role of non-unionized employee representation can be challenging to the role of trade unions. As an example, non-unionized representation brings about loss of flexibility for employees to negotiate effectively improved working conditions such as increased salary, benefits and vacation time. Sometimes, the terms under which non-unionized representations work do not make for meaningful provisions, as is the case for unionized representations. In most cases, these terms are vague and loosely defined hence are less authoritative. Gollan (2001) has argued that the success of non-unionized representations depends on the strength and solidarity of council members and how willing they are to fight for their collective welfare. Perhaps the most disadvantageous way in which non-unionized representation challenges the role of trade union is by giving little or no chance for employees to advance in union shops. This is often because of the seniority regulations, which for instance requires bidding for jobs. Thus, opportunities to excel and learn are often thwarted. Lloyd, (2001) has noted that non-unionized representatives might not be knowledgeable or experienced about the economic and social factors, which may bear on employees. As such, incorrect judgments about striking can be counterproductive to employees who choose to engage in strikes. However, since unions are certified the representative of employees, all employees become members of an overall bargaining unit. In such a case, union members can make important decisions for all employees, which can be deemed to be in the best of their individual interests. Question 7 Employee voice refers to the two-way communication between employers and employees. It is an essential process through which employers communicate to their employees and receive and listen to communication from the employees. According to Freeman (1996), the concept of employee voice focuses on creation of opportunities for employees to be collectively involved in decisions, be it through trade unions or any other means. As such, it appeals to employees in their quest to attain greater organizational efficiency and the employees when seeking for the recognition of their rights. With this background information, it is easier to evaluate the merits of the Communication Workers Union getting involved in the decisions of Australian Post Management. As a recognized representative body of workers’ rights, the Communication Workers Union’s intervention will go a long way in calling for the Post Management to involve workers in all decisions that directly or indirectly affect the welfare o f the workers. This can result in the participation of employees in influencing important corporate decisions and will substantially reduce conflicts. It will also lead to the establishment of formal mechanisms of communication, which will be an essential way of ensuring that employees are informed and given required voice in the management of their welfare. Absence of formal means of communication is a hindrance to effective representation of employees. Freeman (1996) has explained that all organizations that have employed staff members must nurture relations that are both beneficial and positive to business. For instance, it is apparent that the Australian Post Management did not consult or inform its staff of the intention to introduce the Attendance Improvement Management System. Therefore, seeking a second opinion from company doctors is not likely to develop a positive relationship between the organization and employees. The concept of employee voice recognizes that employees should have input in matters pertaining to their welfare in workplaces. In this case, of the Australian Post, the consideration of employee voice can only be achieved through the intervention of the Workers Union. The Union will give a formal capability for the staff members at the Australian Post to voice their concerns collectively and have the unethical policy of seeking a second opinion abolished. The most important benefit that will be accrued from the decision by the Workers Union to get involved in the decision by the Post Management is that the Union will help organize the workers. Once organized, the workers will be able to negotiate a collective bargaining agreement with the post management. Such a bargaining agreement would cover such important things as the attendance improvement management system. In conclusion, the existence of a recognized and strong workers representation is necessary for the success of the Australian Post. This is because decisions taken through the process of collective bargaining as well as negations between the organization’s management and employers are influential. Therefore, the intervention by the Workers Union will play a crucial role in effecting communication between the management and the workers. The Union will invaluably provide advice and support to ensure that the decision by the management does not result into bitter conflicts, which can be counterproductive to both the organization and employees. Undeniably, the intervention by the trade union will help provide voice for the employees. The Union will also be an important educational role, offering training for members on a wide range of representation matters. Education of employees can empower employees to raise their voice and ask for their inclusion in all decisions affecting them. References Freeman, R.B. (1996). “Individual Mobility and Union Voice in the Labor Market”. The American Economic Review, Vol. 66, No. 2, pp. 361-368. Gollan, P.J. (2001). “Tunnel Vision: Non-Union Employee Representation at Eurotunnel” Employee Relations, Vol. 23, No. 4, pp. 376-400. Lloyd, C. (2001). “What do Employee Councils Do? The Impact of Non-Union Forms of Representation on Trade Union Organization”. Industrial Relations Journal, Vol. 32, No. 4, pp. 313-327. Pyman, A., Cooper, B., Teicher, J., and Holland, P. (2006). “A Comparison of the Effectiveness of Employee Voice Arrangements in Australia”. Industrial Relations Journal, Vol. 37, No. 5, pp. 543-559. Salamon, M. (2000). Industrial Relations: Theory and Practice. 4th ed. Harlow: Prentice Hall. Spencer, D.G. (2008). “Employee Voice and Employee Retention”. Academy of Management Journal, Vol. 29, No. 3, pp. 488-502. Read More