Impact and Changing Role

of Trade Unions
By Saj, Geraint and Yassine.
 Objectives
• The factors that influence the
success of industrial action
• The problems of industrial action for
employers and employees
• The benefits of industrial action
• An account of how industrial action
and trade unions have influenced
(positive and negative) a specific
business
 What is a trade union?
• Trade union is an organisation of
employees, which acts collectively
in dealings with management for
mutual protection and assistance
and is often concerned with wages
and conditions of employment.
 How do trade unions benefit
employers?
• Provide a valuable communication link between
senior management and the workforce .
• Allows management to avoid what would be very
time consuming bargaining and negotiation
with each individual employee.
• A strong union may encourage management to
take workers needs seriously and thus improve
employee morale, which in turn may have a
positive influence on productivity.
• A trade union may ease situations
that could cause difficulty for a firm
such as downsizing and
redundancy, renegotiation of
employment conditions and
contracts.
• Trade union officials can be consulted
at an early stage of the decision-
making process, which may make
the workforce more confident that
management is acting properly and
thoughtfully.
 How do trade unions benefit
employees?
• The main functions that trade unions
provide for their members are
negotiation and representation.
• Negotiation involves the process of
finding a solution to differences. In
many organisations, trade unions are
formally ‘recognised’ by the employer
which means that there is a formal
agreement between the trade union
and the organisation, giving the trade
union the right to negotiate with the
employer.
 Factors that influence the
success of industrial action
• Nature and strength of the union
• Workforce concentration (e.g. Lots of
union members in on e firm
compared with a few members in
many firms)
• Management tactics (e.g. If stocks
are available to meet demand
during a strike)
• Economic and legal climate
• Public support
 Problems of industrial action
for employers
• Lost production, reduced revenue
and lower profits
• Continuing poor relationships and
grievances with employees, that
lead to poor motivation and
communication
• Shifts managements focus away from
strategic planning for the future
• Harms the firms reputation with its
customers
 Problems of industrial action
for employees
• Reduced or lost earnings
• Closure of the business and
redundancies
• Stress and friction between levels of the
hierarchy
• If unsuccessful, workers are in a weaker
position
• Support from the public may decline if
action affects them
• Must conform to legislation or be liable
for damages
Benefits of industrial action
• Resolves ongoing grievances and
improves the atmosphere
• Often leads to new rules about which
all agree (e.g. Regarding rates of
pay or the need to consult)
• Leads to greater understanding of
employer/employee positions
 Account of how industrial
action and trade unions have
influenced a specific business