Employer-Employee Relations

• Employees want

  • to feel
    • valued
    • listened to
    • appreciated
  • to have
    • good relationships with managers

• Poor relations may result in

  • Increased absence
  • Dissatisfaction
  • Higher turnover
  • Industrial action (strikes)
  • Reduced productivity

Employee Representation

Arises when employees are part of a formal structure that involves them in the decision-making process of a business.

Legal requirements to consult with employees

• Proposed redundancy programmes
• When employees are transferred from one employer to another
• On changes to pension arrangements
• Proposed changes to working time arrangements

Benefits

• Increased empowerment and motivation of the workforce
• Employees become more committed to the objectives and strategy of the business
• Better decision-making because employee experience and insights are taken into account
• Lower risk of industrial disputes

Drawbacks

• Time-consuming and potentially slows decision-making
• Conflicts between employer and employee interests may be a block to essential change
• Managers may feel their authority is being undermined

Trade Unions

Main Role

• Protect and improve the real incomes of their members
• Provide or improve job security
• Protect workers against unfair dismissal and other issues relating to employment legislation
• Lobby for better working conditions
• Offer a range of work-related services including support for people claiming compensation for injuries sustained in a job

Two main functions of a trade union

Represent

• To represent and protect the interest of the employees

Negotiate

• Negotiate on behalf of employees with employer

Advantages for an employer having a good relationship with a trade union

• Negotiating with trade unions saves time and cost rather than dealing with all employees individually
• Unions are part of the communication process between the business and employees
• Employee morale and motivation may be improved if they know that their interests are being protected by a union
• The trade union can be a supportive partner in helping a business undergo significant change

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