Download A trade union

HRM501: Introduction to IR & HRM
Topic 2: Trade Unions
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HRM501 -Trade Unions
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OBJECTIVES
 Explain and outline the roles and functions of trade union in work
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place relation
Identify different forms of employee representation
Discuss main ways that unions represent employees
Analyze various reasons as to why employees join union
Trace historical development of Union from Fiji’s context
Explain the reason decline in union membership from Fiji’s
context.
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Trade Unions
A trade union (or labor union, labour union)
is an organization of workers who have banded together to achieve
common goals in key areas, such as working conditions.
 The trade union, through its leadership, bargains with the
employer on behalf of union members (rank and file members)
and negotiates labor contracts (Collective bargaining) with
employers.
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Trade Unions
 This may include the negotiation of wages, work rules, complaint procedures, rules
governing hiring, firing and promotion of workers, benefits, workplace safety and
policies.
 The agreements negotiated by the union leaders are binding on the rank and file
members and the employer and in some cases on other non-member workers.
 Trade union organizations may be comprised of individual workers, professionals,
past workers, or the unemployed. The most common, but by no means only, purpose
of these organizations is "maintaining or improving the conditions of their
employment
 Over the last three hundred years, many trade unions have developed into a number
of forms, influenced by differing political and economic regimes
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Roles and function of TU
1.
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Provision of benefits to members:
Early trade unions, like Friendly Societies, often provided a
range of benefits to insure members against unemployment, ill
health, old age and funeral expenses. In many developed
countries, these functions have been assumed by the state;
however, the provision of professional training, legal advice and
representation for members is still an important benefit of
trade union membership
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Roles and function of TU
2.
3.
4.
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Collective bargaining:
Where trade unions are able to operate openly and are
recognized by employers, they may negotiate with employers
over wages and working conditions.
Industrial action:
Trade unions may enforce strikes or resistance to lockouts in
furtherance of particular goals
Political activity:
Trade unions may promote legislation favorable to the interests
of their members or workers as a whole
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Forms of employee representation
1. Non Union representation
a.
b.
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Two forms of representation;
Voluntary
Initiated voluntarily by management, which includes forms of
employee consultation and participation [e.g. company unions,
consultative committees]
State Sanctioned
state intervenes to compel employers to consult with or even gain the
consent of non union representatives of employees.
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Forms of employee representation
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2.
Union Representation
a.
Informal Collective bargaining;
where unions emerge to bargain informally with employers
without state sanction
b.
Statute
–
sponsored
collective
bargaining,
conciliation and arbitration;
more formal mechanism by which unions draw on legal
compulsion either to force employers to bargain or to enforce
agreements reached with employees.
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Three main ways that unions represent
employees
1.
2.
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Monopoly face [Freeman and Medoff [1984]]
focuses on roles of union in uniting individual employees into
groups that seek to raise wages [and improve other conditions
of employment] above rates which could have been expected
under pure market forces.
Collective voice/ institutional response face
where unions assist in communicating to employers the
concerns of employees about their employment conditions ,
thus allowing employers to remedy the problems.
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Three main ways that unions represent
employees
3.
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Political Activities
here unions pursue political objectives that advance the interest
of the unions , unions as organizations and the broader working
class. Ie, not only advancing the particular interest of union
members but also protecting the interest of all workers.
The extent of this political objectives also reflects the alliances
or affiliations in almost all countries that often develop unions
and political parties.
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Reason as to why employees join Trade Unions.
The decision to unionize is affected by at least three [3] factors;
1.
2.
3.
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Dissatisfaction with economic aspects of the job.
This involves the dissatisfaction with the supervisory relationship, job
content, and involvement in all work.
A desire to influence those aspects of the work environment
through union oriented means.
This involves the desire to remedy unsatisfactory working conditions
through unions rather than through other more
informal,
individualistic or employer – initiated participation programs.
A belief that the benefits of unionism outweigh the expected
cost.
This is the individual’s calculation of whether the expected benefits of
unionization outweigh the expected cost.
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Reason as to why employees join Trade Unions.
Free Ride
 Any individual may be able to secure many of the benefits of unionism
without actually joining and bearing the financial cost of membership.
 Unions provide both public goods and private goods. Wage improvements,
safety condition and superannuation entitlements apply to all workers ,
irrespective of union membership.
 The indivisibility of these benefits allows individual a free ride on the
public goods provided by the union.
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Reason as to why employees join Trade Unions.
 Strategy to attract more employees to become
members.
 private goods cannot be consumed without being a union member. In
order to make it more attractive to become members , unions may adopt
different strategies. Ie they can provide range of services that are
additional to their central role and may only be enjoyed by members.
This include credit union facilities, insurance, legal advise or discount
purchasing agreements.
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Objectives of Trade Union
Representation
2. Collective bargaining / Negotiation
3. Voice in decisions affecting workers
4. Members services such as education and training, legal
assistance, financial discounts, welfare benefits.
1.
Function of Trade Union
Collective Bargaining
2. Safeguarding jobs
3. Safeguard workers against exploitation by employers, union
leaders and by political parties.
1.
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Functions of Trade Union
4. Protect workers from the violence and unfair practices of the
management.
5. To ensure healthy, safe and conducive working conditions, and adequate
conditions of work.
6. To remove the dissatisfaction and redress the grievances and complaints of
workers.
7. To encourage worker’s participation in the management of industrial
organization and trade union, and to foster labor-management
cooperation.
8. Union play a role of pressure group particularly for reform of legislation.
9. Provision of Social Services – like financial assistance for sickness,
unemployment, retirement and death.
10. Provision for friendly services – like legal advice, professional service,
and facilities
for leisure in club rooms.
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State and Trade Union Act
 Fiji – Trade union Act (1996)
- Trade Union Recognition Act 1998
-Now Repealed – ERP (2007)
Trade Union Rights - Rights of individuals to form and join unions of
their own choice, to carry on the work of the union without interference or
control by outside agencies (e.g. government, employers), to bargain
collectively and to strike if necessary.
These rights are laid down in the Universal Declaration of
Human Rights adopted by the United Nations in 1948 and in the
ILO Conventions such as Freedom of Association Number 87”
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Trade Union Rights
FREEDOM OF ASSOCIATION- every individual has the Freedom to
be a member of a trade union of they own choice. Neither the
Employer or the State can stop them, nor a trade union can force
them to join. The worker has a choice”. ( Chand, A. 2007). It stops
“Yellow Dog Contract” and “Closed Shop”.
Yellow Dog Contract - A Contract whereby a Employer writes a
clause in a worker’s contract stopping him/her to join a trade
union”.This is against “Freedom of Association”
Closed Shop- A Contract whereby a trade union makes it
compulsory for all workers whether existing or new workers to be a
member of trade union in factory or organization” (Chand, A. 2007).
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Types of Trade Union
 Craft Union - Are organisations of skills workers e.g. woodworkers
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(coppers), carpenters, bricklayers, engineers, steel workers, etc
General Unions - Are unions where the recruitment system is open to all
workers working anywhere regardless of their occupation and skills. E.g. In UK,
Transport & General Workers Union (TGWU), General
Municipal
Boilermakers and Allied Trade Unions.
Industrial Unions - Is a union which organize workers along the industrial
lines irrespective of the occupation. E.g. in agricultural industry, Tourism
Industry, manufacturing Industry, Mining Industry etc.
Enterprise Union – represents all the workers in a company/firm.
Splinter Unions – formed when one trade union splits to form two unions
e.g. Fiji telecom and Post Office unions splits.
In – house unions / company sponsored unions – these unions are
encouraged and sponsored by employers e.g. Vatukoula Works Council, Mine
Workers Unions, Ship Building Trade Unions.
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Historical development of Trade unions in Fiji
 The Fiji Trades Union Congress (FTUC) is a trade union organization in
Fiji, originally founded in 1952 under the leadership of Pandit Ami
Chandra as the Fiji IndustrialWorkers Congress (FIWC)
 As the FIWC the organization was the third federation in Oceania, after
the ACTU and the NZCTU, to join the ICFTU. In 1975 the FTUC's
membership was 25,000. Currently, the FTUC is affiliated to the
InternationalTrade Union Confederation.
 It has a close relationship with the Fiji Labor Party.
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Reason as to why employees join Trade Unions.
1.
Instrumental consideration - union membership is the
result of the costs and benefits of union membership
2.
Ideological beliefs - union membership is the result of an
individual identifying with the values of the union
movement.
3.
Normative pressures - union membership is the result of
a closed shop or other interpersonal pressures to join.
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Historical development of Trade unions in Fiji
 The FTUC has 30 trade union affiliates, covering the public and private
sectors. Major affiliates include:
 the Fiji Public Service Association,
 the Fiji Teachers Union,
 the Fiji Sugar & General Workers Union,
 the National Union of Hospitality, Catering & Tourism Industries
Employees and
 the National Union of Factory and CommercialWorkers Union.
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Historical development of Trade unions in Fiji
 The Fiji Islands Council of Trade Unions (FICTU) was established in
August, 2002 as a breakaway from and rival to the FTUC
 Fifteen unions, which were formerly affiliated to the FTUC, initially
joined the new umbrella organization.
 The move follows the unions’ dissatisfaction with the FTUC led by
Senator Felix Anthony, which they see as too closely linked with the
Labour Party.
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Historical development of Trade unions in Fiji
 The FICTU is led Maika Namudu, of the Fijian Teachers Association, as
president and Attar Singh, of the Fiji Aviation Workers Association, as
general secretary.
 Mr Namudu claimed that the new body was not politically motivated
but the former Minister for Labour, Kenneth Zinck, an opponent of the
Labour Party, described the launch of the new trade union body as a
breath of fresh air for workers in the country.
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Example – Fiji Teachers Union
 Fiji Teachers Union (FTU) is a union representing elementary and
secondary education teachers in Fiji. It is a member of the Fiji Trades
Union Congress, and Education International.
 The FTU was formed as a multi-racial organization. However, in 1960
the FijianTeachers Association (FTA) was founded.
 The FTA limited its membership to indigenous Fijians.
 Most indigenous Fijian educators left the FTU, so that the FTU's
membership is now overwhelmingly Indian.
 In 2004, the Fiji Teachers Union counted about 4,200 members
(including over 700 indigenous Fijians). The Fiji Teachers’ Association
had about 3,500 members.
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Reason for decline in union membership
1.
Changing composition of employment
the growth in the proportion of non – manual service sector employees, combined with
the significant expansion of part time work and self employment, would appear to be
associated with the decline in membership. There is also a fall in the proportion of
manufacturing employment. Increase in the number of non union jobs in the service
sector.
2.
Economic factors
Increase in unemployment rate also decline union membership. [Bouland and Ouliaris
1994] they found that upward movement in unemployment rate had a negative effects
on unionisation rate. However Bodman [1998] found that higher employment had a
positive impact on union membership levels, because ‘workers are likely to join unions
in the hope of greater job security as unemployment rises.’
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Reason for decline in union membership
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3.
Public perception of unions
negative community attitudes reduce the willingness of individuals to
join a union. Employees who held negative image of unions and their
leaders were significant less likely to be unionized.
4.
Role of Management
Organization can put into effect policies that seek to substitute or
suppress unions. Substitution policies that aim to reduce or remove
the demand for union services can take the form of initiatives such as
enhanced communication process, decentralized decision making or
employee shareholding schemes. On the other hand, management may
seek to heighten the barriers to unionization by restricting the access
of union officials to worksites or by denying unions a collective role in
determination of wages and working conditions.
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Reason for decline in union
membership
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5.
Government policies
Hostile labor laws have made it both harder to stay with the
union and easier to leave a union. Statutory individual contracts
and increased penalties for industrial action have placed unions
on the defensive.
6.
Union structure and policies
union structure and policies have contributed to decline in
union membership. Union became to close to government and
employers and failed to advance the interest of union members.
Union structures became less democratic.
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Reason for decline in union
membership
Some union commentators believe that union structures became
less democratic and responsive as a result of union amalgamation
process and the trend to employ professionals in the position of
union advisors and advocates, rather than elect members to this
position.
The determination of union policies and the method by which
those policies were pursued were highly centralized.
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Reason for decline in union
membership - Fiji
Fiji – reason for decline
1.
Change in composition of employment, significant reduction in
public sector employment such as PSC due to various public
enterprise reforms.
2.
Apart from high unemployment rate, the increasing cost of
goods reduces household income which drives people to
withdraw from union.
3.
Role of management in suppressing union in terms of
individual employment contract. Most firms undergoing
reforms are issuing employment contract which has conditions
in relation to union membership
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Reason for decline in union
membership - Fiji
4.
5.
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Government policies like reducing the retirement age to 55
years reduces the union membership. Migration of people
overseas.
Changing union policies and structures without proper
consultation to members. Most decisions are highly centralized.
Changing terms and condition regarding the services [such as
loan facilities, interest rate etc] provided by the union which
can cause dissatisfaction to members and lead withdrawal.
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THE END
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