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People management - Industrial disputes and industrial action Back in the 1970s and 1980s the news was often dominated by industrial disputes and action taken by trade unions. However, in the last two decades the incidence of industrial disputes has reduced dramatically, as evidenced by the chart further below.
There are rarely any winners from industrial action. It is just about possible to argue that industrial action can lead to a better long-term relationship between employer and unions and that a dispute that is settled might improve the deal earned by employees. However, wherever you look in a prolonged industrial dispute, you can see many problems and costs. The damage from industrial action includes:
Given the costs involved, what can a business do to prevent industrial action in the first place? The priority for management should be to encourage a workplace culture that prevents conflicts from arising. This involves informing and consulting workers and their representatives on employment matters and business developments more widely Depending on the size of the business, management could set up:
Many employers, especially those which recognise trade unions, have written procedures in place to discuss with representatives collective grievances or other significant issues affecting all or part of the workforce. Those procedures are important and can be used to address emerging problems at an early stage. European Union legislation formalised many of the above actions in relation to firms that operate in two or more EU countries and have more than 1,000 employees. These businesses are required to set up Works Councils. Works Councils are now an increasingly popular method for a larger business to communicate with employees. The typical agenda on a Works Council meeting would include:
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Related Study Notes
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