Industrial Relations

This refers to the relationship between employers and employees. It covers issues such as how they communicate, work together and get along with each other. Industrial relations can be good/bad in a workplace.

Good Industrial RelationsBenefits• High staff morale and

motivation.• High productivity.• Positive public image.• Easier to recruit and retain

staff.• No industrial disputes .• Low levels of absenteeism.• Encourages creativity and

innovation.

Promoted by:• Treating everyone equally

and with respect.• Clear lines of communication.• Honouring promises.• Paying good wages and

having good working conditions.

• Clear grievance procedures- rules agreed between management and staff when raising work place issues.

Trade Unions• A TU is an interest group that represents e’ees views and interests

and seek to improve the pay and conditions of work of employees. Every trade union must have a licence from the Dept of E,T&E.

• Examples include SIPTU, ASTI, NBOU.• (Services industrial professional technical union.)• E’ees pay an annual subscription to join and enjoy membership

benefits.• A closed shop is a workplace where you must be a member of a

particular trade union. This can only happen if there is an agreement between the e’er and the union on this matter.

• Union members elect a shop steward to represent the members views to their employer.

Shop Steward• This is a spokesperson elected by workers in the workplace as

their official union representativeFunctions:• Negotiate on behalf of union members who are in dispute with

their employer.• Keep union members informed and up to date on union

matters from head office. • Recruit new members to the trade union• Inform head office of members concerns• Represent members in negotiations with mgmt.

Benefits of Trade Unions to Employees

1. Power to employees - The power of a united voice in the workplace is more effective when seeking improvements in pay and working conditions, than individuals.

2. Representation – trade unions represent employees who are in dispute with Employer. They are/use skilled negotiators to help their members get the best deal.

3. Job security – job security for members is enhances as managers will be deterred from sacking an employee or from introducing redundancies without good cause.

4. Industrial democracy - is enhanced, as unions campaign for greater employee input into work place decision making. This can increase job satisfaction.

Benefits to members

5. Services – trade unions provide important services to its members such as insurance and saving schemes. As there are large numbers seeking these services discounts can be enjoyed.

6. Representation at National Pay Agreements– the ICTU speaks and campaigns on behalf of workers with the Govt,EU & Employers organisations

Benefits of Trade Unions to employers

• Trade unions simplifies negotiations by dealing with group rather than individuals

• Trade Unions maintains discipline among union members

• Trade unions provides wage stability by entering national wage agreements

ICTU-Irish Congress Of Trade Union

• Is an interest group representing almost all trade unions in Ireland – 750,000 workers.• It is an umbrella body of Trade Unions in Ireland - Most TU in

Ireland are affiliated to it.

Causes of Industrial disputes

• Trade dispute is a legal term referring to any conflict between workers and employers.

Causes

Claims for better pay and rewards. There are four types of pay Claims

Pay Claims1.Productivity claim –occurs where workers seek

improved pay and conditions as a reward for increasing their output and efficiency or to compensate for having to work harder to cope with changes introduced by employer.

2 .Cost of living claim – arises where employees want their wages to keep up with inflation. For example if inflation is 4% workers want a 4% pay increase.

Pay Claims3. Comparability claim – arises where employees want similar pay and conditions as workers doing comparable work in a different company. Employees may request a pay rise because other employees doing similar work got one. Example: Super Quinn and Dunne's Stores checkout assistants. Pilots in Ryanair may seek same pay and conditions as pilots in Aer Lingus.

4. Relativity claim – occurs where one group of workers want to maintain higher pay than another group. Sometimes pay of certain e’ees is linked to the pay of other, even though they do different work. For example, if the waiters in a hotel get a pay increase then the chefs may seek an increase to maintain the relative difference in pay. Similarly, nurses and doctors.

Other causes of Disputes• The selection for redundancies if compulsory

• Disputes over Demarcation: who does what job

• Unfair selection of employees for promotion

• Disputes over unfair dismissal

• Dispute over discrimination in pay or conditions

Employer-Employee Conflict • Non-Legislative Resolution of Employer-Employee

Conflict:

(a) Discussion and negotiation: An atmosphere of open communication, consultation and discussion in the workplace will reduce conflict.

(b) Follow a grievance procedure: which is a series of agreed steps to be followed by the employer and employee to resolve a dispute.

• 1.The employee reports grievance to a supervisor.• 2. If there is no resolution the employee can take their complaint

to the shop steward. • 3. The shop steward will meet with the human resource manager.

A code of practice will be followed. • The HRM may meet with the TU Branch Representative or if

unsuccessful the TU Head Office may be called in

Types of industrial Action

1.Picketing- employees walk outside the business holding placards to highlight to the public there is a industrial dispute on in the workplace, it give a bad image to the business.

• Primary Picketing: takes place at the location where the employer in dispute works or carries on business.

• Secondary Picketing: refers to placing pickets at the location of the second employer who is not directly involved in the dispute, but is assisting the first to overcome the industrial action. It is allow if it is peaceful and if it is reasonable for workers to believe the second employer is directly assisting the first.

Types of Industrial Action

• 2. Strikes• Official strike – is a refusal to work. It is official if:• It is approved by the trade union.• It has been approved by a secret ballot of the workers.• 7days notice given to employer.

• Unofficial strike – where the above conditions have not been filled.• no secret ballot, and/or no notice, • TU does not recognise the strike, illegal.• Employees may be sued for loss of earnings by the employer

• Wildcat strike – type of unofficial strike, employees go on strike without giving notice. They literally walk off the job. Illegal.

• All out strike – The ICTU instructs all trade unions in the workplace to go on strike. All employees go on strike even though only some are in dispute with employer.

Types of Industrial Action

• Work to rule - e’ees only carry out their work following all rules to the letter. They do their basic work and nothing else. Completely inflexible and refuse to do anything extra. It slows down production. They do enough to still get paid

• Overtime ban - e’ees refuse to do any overtime

• Sympathy strike - a group of e’ees not involved in the dispute go on strike to show its support for the disputing workers. Illegal.

Laws/Acts that deal with industrial relations.1. The Industrial Relations Act 19902. The Unfair Dismissals Act 1977-19933. The Employment Equality Act 1998

Statutory Agencies which deal with industrial relations mattersThese agencies were set up by the various Acts1. The Equality Authority2. The Director of Equality Investigations3. The Labour Relations Commissioner4. The Labour Court5. The Employment Appeals Tribunals

The Industrial Relations Act 1990 The main provisions of the Act are as follows:1. It sets out clearly what a trade dispute is:A Trade Dispute: is defined under the act as any dispute between employers

and workers that is connected with the employment or non-employment or the terms and conditions of employment of any person.

2.It states the 5 grounds for a legitimate trade dispute Legitimate trade disputes: Under the Act, the following are valid for a

trade dispute:• Dismissal or Suspension-sacking an employee for an unfair reason is

grounds for a legitimate trade dispute. This includes constructive dismissal, whereby the employer makes life difficult for the employee in the hope that he/she will resign of his own accord.

• Trade Union Recognition-management must recognise the right of workers to join or be represented by a trade union.

Continued:

• Pay and Conditions of Employment-issues could include wages/overtime, holidays, demarcation etc. an employer who cuts costs by sacrificing employee welfare gives the employee grounds for legal trade dispute. • Range of Duties (demarcation)-the employees should

not be asked to perform tasks that are not in the work contract.• Discrimination-Under Employment Equality Act 1998 it

is illegal for persons to be treated differently in employment on the grounds of their sex or marital status.

continued3. It clearly states the grounds that do not give rise to

legitimate trade disputes.Illegal Trade disputes include:• A dispute of a political nature. • An attempt to enforce a “closed shop” agreement. A

closed shop is a workplace where a worker can obtain the job only if he/she is a member of a certain union.• A disagreement between workers and management

about how the business should be run.

continued

4. It outlines the correct procedure for going on a strike-Balloting.• There must be grounds for legitimate trade dispute.• A Secret Ballot of all members must be held before any industrial

action is taken. Every trade union must have a secret ballot included in its rules.

• One weeks notice must be given to the employer following the secret ballot before industrial action can begin.

• Successful completion of above gives immunity to unions and members, which means they cannot be sued for damages suffered as a result of industrial action.

5. It outlines specific grounds for Picketing: • Peaceful picketing is legal: it means that workers can walk up and down

outside their workplace with a placard saying “Strike on here” and encourage other people not to pass the picket.

• Primary picketing is aimed at the employer that is directly in the dispute with the employees.

• Secondary picketing is allowed if the second employer is doing something to frustrate the settlement of the strike.

6. The requirements to form a Trade Union. There must be at least 1,000 members and €12,700 in bank account. Lodge

deposit to High Court to get licence. Unions must receive a licence from minister for Enterprise & Employment before they operate.

7.It establishes The Labour Relations Commission to solve industrial disputes.

The Labour Relations Commission-LRC

Set up under The Industrial Relations Act 1990Role of the LRC• To promote improved industrial relations, policies, procedures

and practice.• To assist in settling trade disputes.• To reduce the number of industrial disputes coming before

the Labour Court.

Functions of the LRC1. It provides a conciliation service. conciliation is a procedure where parties in a dispute meet to sort out

their differences with the help of a third party. An Industrial Relations Officer (IRO) provides a mediating between the two parties. The IRO makes a recommendation, which can be accepted or rejected.

2. It provides Rights Commissioners who investigate disputes involving one person or a small group of workers on issues such as unfair dismissal, suspensions, disciplinary procedures, maternity leave etc. They make recommendations which may be accepted or rejected. Appeals can be made to the Labour Court.

3. It provides codes of practice. These are a collection of generally accepted rules, practices and procedures to be followed when dealing with industrial relations problems. They are not legally binding, but consideration should be given to them.

Functions4. It provides an industrial relations advisory service. This is

aimed at helping employers and employees to build a good industrial relations climate.

5. It assist Joint Labour Committees (JLCs) JLC’s are statutory bodies set up by the Labour Court to

investigate rates of pay and conditions of employment in industries where workers who do not have Trade Unions.

It recommends minimum rates of pay and conditions which are approved by the Labour Court and become Employment Regulations Orders ERO’s and are enforceable by law.

6. It assists Joint Industrial Councils (JIC)s JIC s are a voluntary body set up to solve disputes that may affect a particular industry like restaurant or pub ind

7. It conducts research into and monitors developments in industrial relations matters

8. Appoints equality officers to investigate discrimination disputes

Functions of The Labour Relations Commission

The Labour Court• The LC is a court of last resort in industrial relation

disputes.• It consists of representatives of employers (IBEC), and

employees (ICTU) and an independent chairperson.• The LC hears both sides of the dispute and then makes a

decision –arbitration. The decision is not legally binding however it is expected that parties that ask for the LC to intervene will accept the decision. The decision may be binding depending on the law which applies.

Functions of the Labour Court:1. It investigates disputes in certain circumstances:• On appeal from the LRC• If the LRC has waived its right to be involved• If there are exceptional circumstances• If the Minister for Enterprise, Trade and Employment

requests it.

• 2. Court of Appeal: It hears appeals on the recommendations and decisions made by Rights Commissioners and Equality Officers

Functions3. It sets up Joint Labour Committees (which

investigate pay and conditions) and assists them in preparing Employment Regulation Orders giving legal effect to their proposals.

These include fast food industry, the catering, small hotels and hair dressing industries.

Functions

4.It registers agreements between employers and employees. The LC registers ‘employment agreements’ which are employment deals negotiated by both sides in an enterprise or an industry and registered with the LC. Once registered the provision of the agreement becomes legally binding and the LC can issue a legally enforceable order.

Labour Court

5. It interprets codes of practice; these are standards of good behaviour that are prepared by the LRC in consultation with ICTU&IBEC on various situations which arise in Industrial relations.

Functions of Labour Court

The Unfair Dismissals Act 1977-1993• The purpose of the Act is to protect employees, full

time/part time from being unfairly dismissed.• It applies to employees aged 16 yrs and up to retirement

age, who have at least 1 yrs continuous services done with the same employer.• The Act provides that every dismissal of an employee will

be presumed to be unfair until proved otherwise. The burden of proof is on the employer, who must show there were substantial grounds justifying a dismissal.

1. The grounds for Fair Dismissal

1. Misconduct – theft, lateness, assault.2. Capability, competence or qualifications –

capability would relate to illness/injury preventing the employee from working on a regular basis. Competence refers to poor work performance. Qualifications would relate to not having the correct qualification.

3. Redundancy-no work available for employee

2. Grounds for dismissal deemed to be unfair.

1. Trade Union membership-an employee cannot be sacked because he is in or is about to join a trade union or because he engages in trade union activities either in work or outside of work.

2. Pregnancy-an employee cannot be sacked just because she is pregnant or because of matter relating to her pregnancy such as giving birth, breastfeeding, going to ante-natal classes, taking maternity leave etc.

3. Race or colour or sexual orientation –an employee cannot be sacked because the colour of the skin ethnic background or sexual orientation.

4. Political or Religious beliefs-an employee cannot be sacked just because of their religious or sexual beliefs.

5. Being a member of the travelling community-an employee cannot be sacked just because he is a member of the travelling community.

6. Suing the employer—an employee cannot be sacked just because she is suing her employer or is a witness in a case against her employer.

7. Going on strike-an employee cannot be sacked just because they took part in a strike or plan to take part in a strike.

3.Constructive Dismissal is illegal.

• Means making the working conditions for the employee so difficult that the employee is forced to leave his/her job, such as giving an excessive workload or harassment.

4. The procedure for dismissal must include the following

1.Counsel the employee-point out what is wrong and outline what the employee should now do to rectify the situation.

2.If counselling fails, the employee should be given a verbal warning.

3. A written warning follows a verbal warning.4.A final written warning is then given.5.Suspension from work is confirmed in writing, with or

without pay.6.Finally, the employee is dismissed

• All employees have certain entitlements. They should know the reason for the dismissal, have the right to reply to it and have the right to an impartial hearing.

5.If unfairly dismissed take your case to:

1. The Rights Commissioner or2. The Employment Appeals Tribunal

6. The redress awarded to an employee who was unfairly dismissed :• The employee is reinstated in the job as if nothing had

occurred• The employee is re-engaged in another job in the firm under

acceptable conditions• Financial compensation up to a maximum of two years’ salary

is awarded.

EAT Employment Appeal Tribunal

• The EAT is an independent body in Ireland, responsible for implementing your rights under protective employment law.• EAT consists of 3 people: an independent chairperson,

one employers representative and one trade union representative • It resolves disputes under a number of industrial relation

Acts in particular it hears appeals of the Rights Commissioner.• It makes a decision which is final/legally binding, and is

called a determination.

The Employment Equality Act 1998

• This act seeks to promote equality in the workplace for both full time and part time workers, in both public and private sectors.• It disallows discrimination, victimisation,

harassment of employees.• It is the duty of the employer to investigate any

complaints of this nature and take necessary steps to stop the problem.• This act also set up the ‘Office of the Director of

Equality Investigations’ and the ‘Equality Authority’

Employment Equality Act 1998Main Provisions

1. The Act defined discrimination as the ‘treatment of one person in a less favourable way than another person is, has been or would be treated’ (in a comparable situation on any of the nine grounds).

2. Harassment: Both harassment in general and sexual harassment were defined and outlawed under the Act. Harassment is defined as ‘any behaviour which is unwelcome and offensive no matter what form it takes’.

.

Employment Equality Act 1998

3. Discrimination between people is outlawed on nine distinct grounds;• 1.Gender: Male/Female.• 2. Marital Status: single/married/separated/divorced.• 3. Family Status: i.e. pregnant• 4. Religion: one has different religious belief from the other.• 5. Age: discrimination is outlawed between people in the age range

18-65.• 6. Disability: one is a person with a disability and the other is not.• 7. Race: they are of a different race, colour, nationality, ethnic

origin.• 8. Membership of the Traveller Community: one is a member of the

traveller community and the other is not.• 9. Sexual orientation: heterosexual/homosexual/bisexual

4.Areas covered under the Act

• The act outlaws discrimination in the following situations:• Recruitment-an employer cannot publish/display an advert

seeking employees on any grounds that would be regarded as discriminating on any criteria outlined in the act.

• Conditions of employment-the act insists on equal pay for employees doing the same work, similar work of equal value. i.e. a single person must be paid the same as a married person.

• Training – staff of equal status must be given equal opportunity to undertake training.

• Promotion - as above• Redundancy – selection for redundancy cannot be on any of the

criteria outlined in the act.

The Employment Equality Act 1998

5. Equal pay: All employment contracts must have an equal pay clause that all employees are entitled to equal pay for ‘like work’. ‘Like work’ may be shown by making a comparison between the work of a claimant (who has less pay) and another employee (who has more pay) of the same employer or an associated employer.

The Employment Equality Act 1998

6. Equality Authority: The Equality Authority was set up under the Act. Its role is to:• Work towards the elimination of discrimination in relation to the

9 grounds outlined in the Act• Promote equal opportunities at work for people who fall into any

of the nine categories• Draw up codes of practice to help with the elimination of

discrimination in the workplace and promote equal opportunity at work.

• It monitors and reviews the Act and provides information to the public about the Authority’s progress in achieving its aims

(NB Notice it has no powers)

6. The Office of Director of Equality

Investigations • Also known as The Equality Tribunal• Anyone who feels discriminated against can apply to the director. • He decides whether these cases should be examined by:

• An Equality Mediator Officer (less serious cases) or• An Equality Officer.

• An Equality Officer will investigate the complaint of discrimination and send the results to the Director, who then makes a decision. The decision is binding and enforceable through the Circuit Court. All decisions made may be appealed to the labour court within 42 days of issue.

• The Director may also order subject to the agreement of the parties refer the case to an Equality Mediation Officer. She/he will help the parties to reach their own agreement. If a claim is sent for mediation and not resolved, the complainant may re-lodge the claim with the Director.

7. RedressWhere the Director finds thee has been discrimination she/he may

order:• In an equal pay case: equal pay and arrears in respect of a period

not exceeding three years.• In other cases: equal treatment and compensation up to a

maximum of two years pay.

Pay Bargaining

• When employers and employees wish to change their contract of employment, a bargaining process takes place. This may be:• Individual bargaining: the employer negotiates

with one employee. This often happens in Performance Appraisal. (See HRM chapter)

Collective bargaining

• Collective Bargaining involves the negotiation of wages, hours and working conditions between the employers and employees represented by unions. The negotiations are called collective bargaining and take place on a voluntary basis. When both sides agree on the conditions of employment, a collective agreement is drawn up. A collective agreement is not legally binding and this voluntary aspect is a big weakness to this kind of approach.

• When there is no national interference it is referred to free collective bargaining.

• An advantage of collective bargaining is negotiations between management and unions take place without any third party presence i.e. conciliators or arbitrators and both sides are then responsible for ensuring that the agreement is adhered to.

National Agreements

• National agreements are negotiated every three years between the social partners.

• These consist of the Government, employers represented by IBEC, employees represented by the ICTU, farmers represented by the IFA and community and voluntary organisations.

• When an agreement is reached it is voted on by the social partners and if it is accepted it then becomes a national agreement.

• Towards 2016 is the current national agreement.• The following areas of agreement are included in a centralised Wage

agreement: • Wage increases • Development of small business-important for job creation• Agri-industry, food, forestry and rural development• Tax reform• Public sector services, e.g. health and education

Centralised Wage Agreements (National Agreements)• Advantages• Management face less

uncertainty because wage levels are agreed by all sides

• Industrial problems are reduced and this is good for employers, employees, unions and the economy.

• Eliminates need to negotiate several times at local level

• Disadvantages of Negotiations may be dominated by the stronger social partners

• National Agreements do not provide for special cases, such as low paid groups of workers

• Serious changes in economic circumstances may cause agreement to collapse or to need re-negotiation

Evaluation of The Labour Court(Explain function&then evaluate)• The LC does a good job in dealing with ind.rel.conflict b/c

it has the power to get the truth in the conflict&therefor makes a fair rec’n that both sides can agree on.(1)• The LC….b/c it deals with workplace discrimination very

thoroughly in that its ruling must be followed.(3)• The LC does a good job…..b/c it deals with cases that

breach codes of practice and ensures that e’ers and e’ees obey best ind.rel. prictices.(6)• The LC does a good job in dealing with ind rel disputes

b/c it gives both sides ina dispute the confidence of knowing that the agreement cannot be broken once the LC registers it.(5)