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Summary IB Business Management 2.6 - Industrial & Employee relations $3.48
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Summary IB Business Management 2.6 - Industrial & Employee relations

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IB Business Management summary of Chapter 2.6 - Industrial & Employee Relations made from Cambridge IB Business Management for the IB Diploma (2nd edition). Easy to understand with dynamic charts.

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  • Unit 2
  • May 2, 2020
  • 5
  • 2019/2020
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Business Management 2.6 – INDUSTRIAL / EMPLOYEE RELATIONS


ROLE AND RESPONSIBILITY OF EMPLOYEE AND EMPLOYER REPRESENTATIVES
Trade union: an organization of working people with the objective of improving pay and working
conditions of its members and providing them with support and legal services. Generally led by
generalists.

Why workers join trade unions
 Power through solidarity. Ability to engage in collective bargaining. Stronger position to workers
 Individual industrial action, to put pressure on management to settle an industrial dispute
 Provide legal support

Union recognition – In many countries it is not a legal requirement to recognize trade union
(negotiate with unions rather than employees).

Benefits to employees
 Negotiate with one officer rather than individual workers
 Channel of communication with workers. Two-way communication
 Unions discipline members planning hasty industrial action
 Employers can discuss issues of common interest and making new workforce agreements to
increase productivity

Employer representatives
Present the arguments for or against a particular proposal from the viewpoint of shareholders or
business owners. Achieve lowest cost and achieve employees motivation, reaching satisfactory long-
term employer-employee relations

Collective bargaining: negotiations between trade unions and employers on issues of common
interest. In some countries, employers also belong to employers’ associations that negotiate with
unions and any agreements made will cover all firms that belong to the association. Trade union
leaders have the power of calling for strike action.

Action taken by employees and employers
Unions Employers
 Negotiations  Negotiations
 Go slow: work as demanded by contract,  Public relations: to gain public support
together with disruption and costs to and pressure unions
employees  Threats of redundancies: may lead to
 Work to rule: do not do anything not poor publicity for the employer
stated on their contract  Changes of contract: increase work rates
 Overtime bans: do not work extra hours and overtime working
 Strike action: employees withdraw their  Closure: redundancy for workers and no
labour for a period of time. Business may profit for business owners
shut down  Lock-outs: short-term closure to prevent
employees from working and being paid




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