Approaches to Conflict (DP IB Business Management)

Revision Note

Flashcards
Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

Employee Approaches to Conflict

  • A trade union is an organisation whose members come together to achieve common goals

  • They negotiate with employers to improve terms and conditions of employment for workers

    • Improved pay

    • Increases in paid holidays

    • Reduced hours of work

    • Sufficient rest breaks

    • Improved training and development

    • Better facilities

  • Trade unions can also give individual advice when employees have a problem at work

    • They also lobby governments to pass laws that favour employees such as improved health and safety regulations

  • Union members pay a membership fee and elect representatives to represent them in the employment relationship 

  • Approximately one third of British workers are represented by trade unions 

    • In the UK the largest trade unions represent workers in the public sector and previously nationalised industries

      • Members of Craft unions share a specific skill or craft such as printing

      • Industrial unions recruit members from a particular industry such as education

      • General unions accept members from a range of manual industries such as manufacturing

      • White collar unions recruit non-manual workers such as those employed in banking

    • Membership of trade unions is generally in decline

      • Government legislation has weakened their powers

      • Many economies have moved away from manufacturing

      • Part-time and flexible workers tend not to be unionised

Examples of European Trade Unions

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Communication Workers Union (CWU)

  • For people working for telephone, cable, digital subscriber line and postal delivery companies in the UK

screenshot-2024-01-03-at-22-41-11

IG Metal

  • The dominant metalworkers' union in Germany, making it the country's largest union as well as Europe's largest industrial union

screenshot-2024-01-03-at-22-43-55

Unión General de Trabajadores (UGT)

  • Spain's major general trade union, representing production workers in a variety of industries

  • Trade unions can use a range of approaches to resolve conflict in the workplace

    • Collective bargaining

    • Work-to-rule

    • Strike action

Collective bargaining

  • A process where trade unions negotiate with employers to reach agreements on terms and conditions of employment

    • It is a structured way for employers and employees to come to a mutually acceptable agreement

    • Trade unions have greater negotiating power than individual employees

    • Negotiations typically cover a range of issues, including wages, working hours, benefits and workplace conditions

Diagram: the collective bargaining process

This process leads to conflict resolution and collective agreement
This process leads to conflict resolution and collective agreement
  •   The goal of collective bargaining is to reach a collective bargaining agreement

    • This is a legally binding document that determines the employment relationship for a specified period

      • Both parties must adhere to the terms of the agreement

      • If further disputes arise tools such as mediation and arbitration can be used

Other Forms of Trade Union Action

Industrial Action

Explanation

Example

Work-to-Rule

  • Workers adhere strictly to their terms of employment

    • Complete only tasks explicitly stated in the contract of employment

    • Goodwill is withdrawn

      • Work begins and ends at times stated in the contract

      • Staff refuse to cover for absent colleagues

    • Reduces productivity or delays production whilst making it difficult for the employer to take disciplinary action

  • The UK's NASUWT union has instructed its members in schools and colleges to work to rule

  • This includes refusing to carry out extracurricular activities, midday supervision and work during lunch breaks

  • The union is campaigning for improved funding for schools and pay increases for staff

Strike Action

  • Workers collectively refuse to work

    • They are not paid when taking strike action

    • Action may take place continuously or on specified days of work

  • Strike action is normally legal if a successful ballot of trade union members finds a majority in favour of taking such action

    • Changes in law in many countries have reduced the ability of workers to take strike action

  • This is an extreme form of industrial action intended to force an agreement with management

  • Two of the biggest unions representing French ski resort workers called for unlimited strike action during the height of the 2023 ski season

  • The intention was to disrupt operations during the peak tourist season to achieve pension reforms, better pay and improved working conditions

Examiner Tips and Tricks

Instances of employees taking action against their employers - usually through collective trade union action - are frequently in the news

Find examples in the media in your own country and investigate why the conflict has arisen and how it is being solved

Employer Approaches to Conflict

  • Resolving conflict in the workplace is of great important to business owners

  • Organisations may resolve conflicts in-house using highly-skilled senior leaders

    • Senior leaders with HR skills form a negotiation team

    • This team is empowered to act on behalf of the business in reaching a mutually acceptable agreement with employees or their representatives

  • Alternatively it may use external specialists such as management consultancies or align with employer organisations

  • Businesses have a range of tools they (or their representatives) can use to resolve workplace conflict

Threat of redundancies

  • The threat of job losses can be used as a powerful tool to persuade trade unions or employees to end industrial action

    • Trade unions may be more willing to compromise if the alternative is members losing their jobs

  • In August 2023 large-scale redundancy threats helped to bring about a swift settlement to a dispute between British Airways and the Unite union over employee pay and conditions

Changes to contracts of employment

  • Employers can, in some circumstances, make changes to terms and conditions of employment

  • The use of fixed term contracts can support this - workers may not be re-employed if they dispute changes

  • Trade unions may become involved in larger-scale negotiations

Threat of closure

  • In extreme cases businesses may choose to threaten to close the business rather than concede to employees' demands

  • This can be a powerful persuasive tool

    • Employees are not generally paid during periods of closure

    • Permanent closure means workers are made redundant

Lockouts

  • Lockouts are another extreme measure taken during a period of dispute

  • Employees are prevented from entering the workplace

    • Security guards are often employed or premises access codes changed

  • During the period of lockout employees do not receive any pay

  • Lockouts are used to pressure workers to defy trade union instructions and return to work without concessions being made

  • In 2012 contract negotiations between American Crystal Sugar and its workers' trade unions broke down

    • The business wanted workers to agree to higher payments for health coverage and increased outsourcing

    • Its unionised workers refused to accept their demands

    • Following a period of strike action the company locked them out and hired replacement workers on lower wages

    • Workers gradually returned to work and, largely, accepted the employer's contractual changes

Examiner Tips and Tricks

Ongoing conflict between a business and its employees not only presents financial risks - but also reputational risks

Customers may avoid businesses that they perceive to treat workers poorly and attracting new employees may be challenging where there is existing conflict

Investors are often turned off by workplace conflict as the business is unlikely to be as productive or profitable as a more harmonious organisation

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Lisa Eades

Author: Lisa Eades

Expertise: Business Content Creator

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

Steve Vorster

Author: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.