The primary institutions involved in employer and employee relations can be broadly categorized into organizations representing employers and those representing employees.
These institutions interact in a complex web of relationships, working together to ensure fair and productive workplaces. Effective employer and employee relations are essential for both businesses and employees, leading to increased productivity, morale, and job satisfaction.
Employer organizations
Employer organizations are other individuals or organizations that represent the management team in the collective bargaining process with employees. The primary role of employer organizations is to protect the interests of the company. These representatives act as authorized representatives and contact people for the employees.
1. The Advisory, Conciliation and Arbitration Service (ACAS). In the UK, the mission of ACAS is ‘to improve the performance and effectiveness of organizations by providing an independent and impartial service to prevent and resolve disputes and to build harmonious relationships at work’. It operates in a number of ways:
a. By preventing or resolving employment disputes. ACAS believes that the best way of improving industrial relations is for employers and employees to work together to solve problems before they develop into full-blown disputes and confrontation. Through workshops and joint working parties, ACAS’s experienced staff can help organizations avoid industrial relations problems. Under employment law, ACAS has a statutory duty to try to obtain an agreed settlement of a complaint that an individual has made or could make through an industrial tribunal. This could come under the heading of unfair dismissal, equal pay for equal work, sex discrimination or racial discrimination.
b. By conciliating in actual or potential complaints before industrial tribunals. Where parties agree to conciliation by ACAS, a conciliation officer is assigned to the case. This officer will explain tribunal procedures, outline the legal aspects of the case and generally help the parties to be aware of the options open to them. If employment disputes occur, ACAS can help by offering conciliation. Conciliation is voluntary and attempts, through discussion and negotiation, to enable the parties in dispute to reach their own agreement. ACAS conciliators have no power to impose, or even recommend, settlements. Where conciliation cannot resolve a dispute, the two sides may ask ACAS to provide arbitration. An independent arbitrator or board of arbitration will examine the case for each side and make an award. Sometimes the parties to a dispute ask for the help of an independent third party to mediate and make recommendations for a settlement or to suggest a basis for further discussion. If so, ACAS can help by appointing a mediator. When negotiation or consultation fail. ACAS provides variety of services such as conciliates in industrial disputes, arbitrates and mediates, issues codes of practice on industrial relations and enquiries e.g. flexible working.
c. By providing information and advice. ACAS operates a nationwide network of public enquiry points. These deal with queries on almost all employment matters, including rights and obligations under employment law. The service is available, free of charge, to any individual or organization.
d. By promoting good practice. ACAS organizes conferences and seminars on current employment and industrial relations issues. It also runs self-help workshops for small organizations at which employment policies and procedures can be discussed. There is usually a charge for these. ACAS also produces a range of publications offering practical guidance and advice on employment practices and industrial relations.
2. Employers’ associations. These organizations represent the general views and interests of all businesses within a certain sector of industry. They act as a public relations voice for the industry as a whole, and can produce both product and market research for their members offering technical support and advice. Employers’ associations can provide a negotiating team to act on behalf of employers in negotiating with trade union representatives about pay, working conditions and other employment related matters. As well as lobbying government and influencing government action regarding TAXes, business legislation and consumer laws. They are mainly financed subscriptions from members,
3. Consulting firms. Employers often have an advantage of employing and specialist consulting companies. They mainly offer their services in corporate strategy, business transformation and negotiations. Specialist management consultancy firms hire knowledgeable, highly-skilled and experienced professional; hence their training and development ensure they are up-to-date in their knowledge of modern management practices and corporate legislation.
4. Additional in-house specialists. Some employers prefer to use a small team of highly skilled individuals working inside the business on the senior management team. In large organizations, they are mainly based in the company’s head office. And, may be called on the support employees in various departments in different locations. For example, these additional specialists may include employment lawyers who will prevent or delay industrial action by employees such as calling a strike or initiating other forms of disruptive action.
Example 1: In the UK, The Confederation of British Industry (CBI) is an employers’ association that has members from many different industries. Some other better-known employers’ associations include The Newspaper Society and The Engineering Employers’ Association.
Employee organizations
Employee organizations are other individuals or organizations that represent the workers in the collective bargaining process with employer. The primary role of employer organizations is to protect the interests of the employees. These representatives act as authorized representatives and contact people for the employer.
1. Trade unions. Trade unions are a form of employee association that represent people at work. They are set up to protect and represent their members in their day-to-day work in order to improve people’s pay and conditions of employment. An individual worker has very little power to influence decisions that are made about his or her job, but by joining together with other workers, they have more chance of having their voice and influence. It is done through collective bargaining on behalf of all members of the trade unions. They also campaign for laws and policies that will benefit working people through persuading governments to pass legislation in favor of workers such as minimum wage legislation. These days, all sorts of jobs are covered by trade unions. In the UK, Trades Union Congress (TUC) is the official body representing British trade unions.
2. Works councils. These councils consist entirely of workers’ representatives and have legal rights of access to information from management on a wide range of topics as well as make joint decisions on all matters pertaining to employees and levels of manpower. They usually operate alongside the trade unions in larger firms and have a considerable amount of power in discussions and negotiations with management.
3. Staff associations. Staff associations are internal organizations that represent the employees in negotiations with the employer. These have similar roles to a trade union except that they operate only within the organization. They exist primarily to further their members’ interests. Therefore, the issues dealt with by a staff association are more relevant to the workers specifically, although their bargaining power is weaker than that of a tade union.
4. Professional associations. These represent diverse professional occupations such as doctors, lawyers, the police and even athletes. They are similar to trade unions in representing their members in bargaining for higher payment, and improved terms and conditions of employment. Professional associations are also involved in setting and maintaining quality standards as well as determining qualifications required to belong to a particular profession.
Example 2: When one of the British car manufacturing companies was taken over by the German car company BMW, it introduced a workers’ council. According to introduction of the Social Chapter of the Maastricht Treaty, workers’ councils will have to be introduced in all medium-size to large-sized businesses.
It is important to note that the specific institutions involved in employer-employee relations can vary depending on the country, industry, and size of the organization. However, the core principles of fair treatment, mutual respect and open communication remain constant.
