Approaches to Conflict (DP IB Business Management)
Revision Note
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
Communication Workers Union (CWU)
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IG Metal
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Unión General de Trabajadores (UGT)
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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
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 |
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Work-to-Rule |
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Strike Action |
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Examiner Tip
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 Tip
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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