A Closer Look at the Employee Relations System in UK


 


 


This essay is a discussion of the employee relations systems in the United Kingdom. It underlies the factors that affect the employee relations in terms of economic, social, legal and political contexts. Moreover it aims to present the current practices and the changes undergone by the system of employee relations in the country.


 


The employee relations in the United Kingdom have evolved from the apparent impact of trade union during the post war era. The legislation of trade unions in the country was based on the impact of collective bargaining to the economy. Moreover, industrial relations have become perennially unstable because of institutionalism. Even as the industrial relations have gained momentum during the mid 1970’s, the reforms that are legislated are merely directed to address the pressures made on the management. Policies that are made are aimed at improving the economy and the capital rather than the relationship among employees.


 


Undeniably, the role of trade unions as representations of workers and a means of participation was recognized during those years. However, in the fast changing environment of human relations, the decline of trade union has become apparent. Though some organizations recognize their existence, new human resource strategies are adapted by companies to improve employee relationships.   


 


Industrial Relations in the Past Decade


 


The concerns raised on the development of industrial relations in Britain are attributed to two sources. The first is the appearance of non-institutional, non-union employee relations in the United States. The second source was attributed to the reforms made by the Conservative Government during the 1980’s. The government was driven to the legislative changes due to the concern about the role of trade union in the economy. With this, the industrial reform was put in narrow terms that are mostly concerned in activities of union that are aimed to achieve the economy’s objectives. Neither of these two sources provides a strong explanation of the change pattern in the bargained employment relationship in the United Kingdom. The Human Resource Management strategy is yet to be widely applied in the country. Similarly, reforms on unions have not provided changes in terms of employee relationship (1996, pp.2).


 


Historically and traditionally speaking, the industrial relations in the United Kingdom have become extremely concerned with the role of collective bargaining to the economy. The concern with the trade union remains unresolved in constructing industrial relations. Trade unions as the representatives of the employees for collective bargaining remained an element that has to be addressed. The legislation on industrial relations is part of the process of addressing the issue of collective bargaining. The process of collective bargaining in the UK was seen to be an institutional framework under the legal system in the market economy (1996, pp.4).  


 


The institutional framework consist of four components as described by Purcell; the legal support for union membership, legal unity of trade unions, acceptance of collective bargaining and the legitimization of union influence in the employment at the public sector. The extent to which these pillars were undermined marks the progressive collapse in the system of industrial relations that will bring stability to industrial relations (as cited in 1996, pp.5)


 


The British industrial relations were never institutionalized but perennially unstable because it was not clearly established. The industrial developments during the post war period that includes unionization and the diversification of the wage payment methods were among the elements of institutionalism. Following these developments is the introduction of the concept of voluntarism and several industrial reforms. Among these are the ‘Labour Government’s “In Place of Strife” (1969), the Commission on Industrial Relations (1969-1974), the Conservative Government’s Industrial Relations Act (1972), the Labour Government’s Trade Union and Labour Relations Acts (1974-76) and the Employment Protection Act (1975) and the creation of ACAS’(Beardwell, 1996, pp.6).


 


During the mid-1970’s the issue of industrial democracy have gained interest and become debatable among European Countries. The United Kingdom together with the European Community operated in a work council system to establish industrial democracy. The influence has come from the Trades Union Congress (TUC) paper on industrial democracy. A committee headed by Lord Bullock was established under the Labour Government of 1974 in the effort to establish a system of industrial democracy. The proposals though did not succeed with the advent of the Conservative administration in 1979 Forum (2004, pp. 118).         


 


The Scottish and Newcastle (S&N), one of the leading and largest brewers in Europe exemplifies the importance of employee relations. As a company with such a magnitude of workforce, it has been committed with the principle of employee involvement within its operations. The employee participation comprises of trade unions, and the European Work Council (EWCA) widely known as the Forum. The Forum served as a venue for the representatives of trade unions to come together and meet with the company’s board of directors. Moreover, the chairman at that time has seen the Forum as an effective means in promoting good employee relations. Employee Relations is a method of communicating to the employees the status of a company and the decisions that are undertaken by the management and giving the employees the opportunity to question such actions (Fitzgerald & Sterling, 2004, pp. 117).


 


Participation in a Capitalist Based Society


 


During the tight condition of the labor market, participations schemes are applied to respond to the threats and challenges against the management’s authority. In 1917, the labor management committees were created to address the need for increased production and labor management cooperation. The growth of the union membership has put the labor in strong bargaining positions in pressing for changes. However, the relations under the capitalism become conflicting due the opposing interest of capital and labor. Under these circumstances, the participation becomes illusionary and serves merely as a means to ensure the compliance of the workers (Synagogue, 1991, pp.5).


 


The unions reached their lowest in terms of strength in bargaining during the 1929-1932.  However, the British unions were able to survive the depression with the assurance of industrial relations and payment systems. The TUC assumed its representative role and thus less industrial action took place. National collective bargaining has become established with the employers and unions regarding industrial action as deterrent to the business. This gave rise to negotiated settlement among employers and employees (Booth & Glynn, 1996, pp.108)


 


The state of United Kingdom being a centralized institution is capable of enforcing rule and compelling its populace to comply with these impositions. The focus centers on the equity in the state which is secured by the economic and political freedom. The pressure from the working class gave rise to the legalization of trade unions and the collective bargaining among workplace. This development represents the continued reproduction of laissez faire capitalism. A formative influence of the state in the industrial relations system was reproduced with the regulation of industrial relations to capital and Labour. Minimal regulation in industrial policies remained the preference of the capitalists’ classes in the UK. Industrial policies have come to support the needs of the capital until the post war period (Clark, 2000, pp.82).


 


However, the development of capitalism led to structural problems that cannot be accommodated by the libertarian lazes faire. Thus state intervention and civil society emerged to resolve the failure of the market in the competition. Moreover, the national inclusiveness has done little in the economic performance and appears to be concentrated on economic and political power. Hence, the industrial relations systems demonstrate the need for distribution rather than concentration on power (Clark, 2000, pp.178).


 


Trade Unions


 


The government’s attachment to laissez faire industrial relations poses a threat. In the contemporary industrial relations, the rights of laborer to collective representation are not a high agenda whether to the government or the public. Problems such those in the public institutions are addressed in the political discourse rather than through collective voice of the workers in these given workplace. The regeneration of services can be contributed by the workers if there is an existing work council. The free and voluntary collective bargaining in the British industrial relations had little prospect of the unions. Trade unions are essential in the creation of Labour party and the democracy. They sought democracy and assert their consultative role in the workplace (Fishman, 2002).


 


The strength of trade unions determines the strength of social democracy. However, a social democracy lacking of incentives to restrain neo corporatism can led to instability in the Labour market. The absence of trade union has deemed to be less troublesome though there was a time when such element is encouraged (Crouch, 1993, pp.341). During the 1980’s there was a move for company level personnel policy which was disliked by the unions because at this agenda, the employer are able to determine power. This implies the ability to secure the workers’ loyalty and force them to meet the demands of the market. The workers recognize their dependence on market efficiency and thus the union’s decision making (Crouch, 1993, pp.344)


 


The low unionization specifically among part time workers can be attributed with the lack of organizing in their workplaces. Based on the British panel data, the propensity of the workers to join unions is attributed to their tenure in the organization. Thus, the longer they stay in the firm the higher the possibility of engaging in such unions. However, the involvement of the youth labor market in union has dropped mainly due to their actualization (Boer et al, 2001, pp.30).


 


According to the study made by the British Social Attitude, workers who join union are driven with the motive of being protected in the eventuality of problems and to improve working conditions and pay. Thus, the membership for trade union is invariably related to the size of a firm. The decline in union membership can be attributed with the changing values of the workers. This is marked by the shift to individualist life styles. With the rise of small firms, workers find themselves less likely in structural conditions (Boer et al, 2001, pp.31).


 


Emergence of New Employee Relations


 


The changing nature of employee relations in the United Kingdom marked a change in the agenda. In the last 30 years, the union membership and other union related personnel management work has declined. The prospect of a sustained reemergence is till likely to surface. However, there appears to have an increasing interest in employment relationship and work for Human Resources. This phenomenon can be attributed with the management of philosophies of engagement, commitment, high involvement and empowerment. Aside from this, there is also the continuing failure in the area of management practice and the emergence of alternative communication tools (COPD, 2007).


 


The growth of applying human resource strategy can be attributed to the changing environmental conditions. There are four main areas that influence the change in managing human resource. At the societal level, the changes in the demographics of the workforce are considered a contributing factor. Another is the changes in the structure of the economy and lastly the political and legal level that influences legislation. All of these factors affect the way human resource strategies are adapted and implemented (Grattan et al, 1999, pp.5).


 


The concept of employee relations has evolved from the role of collective bargaining as a representation to the employee assent and the managers’ commitment towards achieving that. The new concept of employee relationships deviates from the unionism with the idea that individualism can provide new industrial relations. The employee relations that has emerged in the British industrial relations is working based on influences brought by market concerns, competition and organizational change and not on the basis of the procedures associated with the concept of collective bargaining(Beardwell, 1996, pp.8).


 


Concept of Employee Relations


 


Trade Unions in the United Kingdom have become more institutionalized since 1997. The 1990’s also brought a significant change in terms of employee relations since many companies started recognizing the importance of building employee relationships and as well as with trade unions. However, employers differ in terms dealing with trade unions. There are companies who are against trade unions and publicly opposed them. On the other hand, there are those who don’t have any opinion or experience in dealing with trade unions but are likely to recognize such unions. Lastly are those who have established a relationship with the trade unions and would like to further develop their relationship.


 


The employee relationship is significant in the business industry. The employee’s voice and participation in the organization contributes to high performance leading to increase productivity. However, the employee relations can be deterred with the lack of skills and enthusiasm in the part of the managers and their employees. The attitudes of the Human Resources also affect the employees in terms of satisfaction and commitment to their job. As an employee, one trusts that the organization he is in will treat him fairly and the attitudes towards them affect their performance.


 


The HR remains in n critical position in handling employee relations. For large employer, it is extremely hard to communicate effectively with their employees and thus necessitating representative structures to facilitate participation. Such conditions are accepted by the public and private sector, though the concern remains on having the efficient machineries for employees’ consultation should still be utilized. In the public sector however, strong commitment in working with trade union is displayed. Generally, the employers or the organizations should be able to deal with their employees on the individual and representative level. Hence, employee relations is about seeing the bigger picture of the organization’s condition and allowing the employees to help in making the necessary solutions or actions (CIPD, 2007).


 


Conclusion:


 


The industrial relations in the United Kingdom is largely dependent on the impact to the market economy. Trade unions are regarded as representatives of the workers. Members are driven to join unions in the motive of being protected in case of problems and also to improve their payment and working conditions. For a time, trade unions have become greatly influential in terms of strong bargaining positions and in pressing changes. This phenomenon gave rise to the legislation of reforms since the government became concern about the impact of trade unions in the economy. However, the reforms are aimed at achieving the objectives of the economy. In this capitalist based economy, collective bargaining has been in conflicting positions because of the concentration on the capital. These reforms have not improved the employee relationship but are merely focused on the economy.


 


Also, the trade unions have decline since collective bargaining have been established among employees and employers. The concept that trade unions can cause the business immensely was realized by employees and employers. Thus giving rise to negotiated settlements. Another factor that can be attributed to the decline of trade unions is the low unionization. This is brought about by the change in the values among the workforce. The youth work forces in particular have become casual about joining unions. Changes in the environmental conditions such as the demographic of the work force, the economy and legal and political changes have pave the way for human resource strategies. Companies recognized the need to establish an employee relationship. The participation of the employees is accepted as a significant factor in the performance of a business and for increased productivity.


 


However, the concept of employee relations has changed from the role of collective bargaining to an improved human resource management. Trade unions are related to the size of its members. They usually exist in large firms such as manufacturing companies that has a huge work force. However, with the emergence of small firms, workers found themselves in less position to be involved in structural conditions. This concept is derived from the shift to individualist lifestyles. Influences such as competition in the market and organizational change have become the basis for improved employee relations and not on the procedures associated with collective bargaining. Ultimately, the employee relations is a significant part of any business whether it may be in the form of collective or individual representations. It is affected by some factors from the societal level as in the change in the workforce, to the economic and legal and political level like in the case of legislation and reforms.



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