Trade Unions and Industrial Relations - Essay Example

Trade unions and industrial relations According to ILO "Industrial relations deals with either the relationship between the and employees and workers organizations or the relationship between the occupational organization themselves." It extended to denote the relations between state, employer and organization and employee or worker. It has normally been perceive that industrial relation policies were centered on trade unions by which the benefits of productive growth could be distributed in a fair way while in political arena, it has been seen as vital intermediary organizations in pluralist society. Some of the basic objectives of IR could be listed as: Adequate terms and conditions of employment on the interest of employer, employee and society as a whole, through a consensus achieved through negotiation. The establishment of mechanisms for communication, consultation and cooperation in order to resolve workplace issues at enterprise and industry level, and to achieve through a tripartite process, consensus on labour policy at national level. Avoidance and settlement of disputes and difference between employers, employees and their representatives, To provide social protection where needed e.g. in the area of social security, safety and health, child labour etc. Establishment of stable and harmonious relations between employers and employees and their organizations and between them and the state. IR, forms the central place occupied by labour law, freedom of association, collective bargaining, the right to strike, employee involvement practices which involves union, trade unionism and so on. So it has been clearly evident from the above discussion that industrial relation in general ways termed as synonymous to trade union and its activities. Trade unions are part and parcel of employees' relations or in broader terms IR. Need for forming trade unions was felt when workmen failed to get deal from employers by bargaining with them individually. Trade union is basically a continuous association of wage earners for the purpose of improving conditions of employment. This narrower view about the roles of the union has often been discussed in wider framework beyond bread & butter issues. Allen Flanders (1970) says that the major functions of trade unions are 'Regulation' which is of government role, whose essence lies in rule making. The effects of union action extend beyond the securing material gains to the establishment of workers right in an industry. The constant inroads the unions have made into managerial role and prerogatives bring about a duel power structure in the enterprise. As Flanders (1970) says "Union restrain the exercise of managerial authority in deploying, organizing and disciplining the labour force after it has been hired." Thus trade unions are considered not merely as economic organizations, but also as political institutions directed towards wresting control over managerial authority. Trade unions are also seen as moral institutions, which will uplift the weak, and downtrodden and render them the place, the dignity and justice they deserve. The role of the trade unions in industrial relations was a major issue in British politics for much of the twentieth century. The trade union issue remained prominent until mid 1990's by which time adverse economic conditions reinforced by legislation and more generally by the political climate hostile to the trade unions has considerably weakened trade unionism. The received wisdom is that unionization rates have fallen rapidly as unions have failed to become recognized in newly setup work places (Machins, 2000). Throughout the 1980's a range of anti union legislative measures were introduced by conservative govt. and the seemed to have a particularly adverse effect on recognition in establishments setup after 1978 (Disney et. al. 1955). In 1999 the govt. legislated to introduce the Employment Relations Act (ERA) that made provision for statutory recognition procedure. As Wood et. Al. (2003:119) point out the true importance of the legislation is that "it transforms any negotiations about recognition they (unions) may have with employers, since both sides know that the union can resort to the legal machinery." Gall (2004) points to evidence of a number of changes in the glued industrial relations environment over the period of interest. Dibb, Lupton and Alsop (2000, 2002) indicate a fall in the extent to which employers regard unions as damaging to industrial relations. Employers and employee's relations depends on so many aspects. The worker perception about management and employee-employer relations always play significant role. Workers perception of management, which results in employee relations, depends on practices and structure underpinning the relationship between management and employees (both collectively and individually) as well as individuals own work experiences (Katz et. al. 1985) and their frame of reference. Managers and employees may have different frame of reference leading them to process the same information in different ways (Kelly, 1998). Basically unions are inclined and always emphasize on compensations and try to obtain higher wages from employer, which results in grater share from profits at the expense of organization plays have to employee-employer relationship. This relationship leads to conflict between management & employers as both adopting policies to each other (Gallie et. al. 1998; Kelly; 1998). Unions voice through effective communication between management and employees and the resolution of employee grievances lead to improved relationship with employers (Freeman & Medoff, 1984). Union effects on employment relations depend on their monopoly and voice role. Future unions relationship may lie on their emphasis on their voice role (Rubinstein 2001; Wachter 2003). Bargaining arrangements mediate the relationship between unions and perception of employment relations for various reasons. Fernie and Matcalf (1995: 401) agree "the benefits from having a union representation the bulk of the labour force in a work force flow from greater voice and representativesness and less fragmentation of work place employee relations." Analyzing employer perceptions of employment relations in the Workplace Industrial Relations Survey (WIRS, 1990). Fernie et, al. (1994:17) found "multi unionism contributes to inferior relations between management and labour." If workers are close substitute, employers could use fragmented bargaining arrangements to 'divide and rule' them (Horn and Wolinsky, 1988). If they are highly complementary this eventuality does not arise and separate unions or bargaining arrangements may promote better relations by providing voice arrangements for different groups of workers. Unions may obtain a premium where bargaining coverage in high or multiple unions are present (Forth & Millward, 2002). Management employee relations can be viewed as one dimension in what is usually regarded as the multifaceted concept of 'industrial relations climate' In recent years, the workplace relations have been changing drastically. The level of strikes fallen and alternative sources of expressing discontent came up. Sapsford and Turnbull (1994) state, "Strikes are not synonymous with industrial conflict" (p249). Evidence from UK suggests that labour turnover has increased over the past two decades, while job tenure has declined (Burgess & Rees 1996: Gregg & Wadsworth 2002). However workplace dissatisfaction is not mentioned by Gregg & Wadsworth as a possible reason for this trend. The UK has experienced an extremely sharp decline in trade unionism. These falls has been attributed to different factors such as, unions have failed to become recognized in newly setup workplace (Machins, 2002), employment contracts have typically become more formalized and standardized, the role of new employment law etc. UK workplaces inclined towards greater individualization of the employment relation at the expense of collectivism (Kelly 1998). This trend is likely to have been further enhanced by changes in the employment contract. Now unions are changing with the overall change in the working environment. Unions are consulted more often and both public and employers appear to be more sympathetic to a new style of partnership unionism. The new recognition agreements do not seem to have had negative consequences for organization. Despite two decades of decline, trade unions continue to have more significant influence over industrial workplace. Although, an average perceptions of the industrial relations climate are proper among employees in unionized workplace than they are among employees in non-unionised workplace, this average effect in misleading. Union's effects on industrial relations depend upon their strength in the workplace, their effectiveness as perceived by employees and management attitudes to unions. The industrial relations climate in unionized workplaces is perceived to be as good as in non-unionized workplace, where there is a balance of power between union and management where employees view union as effective and where management is supportive of union membership. Conversely when unions are viewed as having to little power, where they are organizationally weak and where management discourages union membership, the industrial relations climate in perceived as particularly poor. Now unions are perceived as civil society organization due to its changing role in the current situation. UK policies and programmes have been geared to provide financial and technical support for trade unions and other civil society organization engaged in conflict resolutions. Unions can assist in reducing the causes of conflict and resolving work place conflict results in bridging divided communities. Unions can play a key role in representing working peoples view. Now trade unions have been adopting the different roles in the changing conditions and offering a different mix of services to their members. ********************************************************************* References: 1. Burgess, S. and Rees, H. 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