Approaches to Conflict (HL IB Business Management)

• 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) For people working for telephone, cable, digital subscriber line and postal delivery companies in the UK
	IG Metall The dominant metalworkers' union in Germany, making it the country's largest union as well as Europe's largest industrial union
	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

•   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

• 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