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Trade Unions & Employment Law

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Trade Unions

Organisation that employees can join in order to have their interests and goals better represented

Categories

Craft of skills union - represent skilled workers e.g. Musicians Union (MU)

Industrial unions - represent members of one particular industry e.g. Fire Brigades Union (FBU)

General unions - unions which recruit workers from all types of industries and with any level or range of skills e.g. Amicus – Manufacturing Science and Finance Union (MSF)

White-collar unions - represent office workers e.g. National Union of Teachers (NUT)

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Trades Union Congress (“TUC”)

Role: to represent all British trade unions at a national and international level

Tries to influence government decision making in best interests of unions and workers

Coordinates with trade union movements in other EU countries

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Benefits of Union Membership

To an employee

More powerful voice when bargaining as a group (e.g. for pay rises) as can threaten industrial action such as strikes

Workers will have their individual rights better protected e.g. if dismissed unfairly or discriminated against

To an employer

Cheaper and quicker to bargain with one trade union representative than individual workers

Workers are better motivated if they feel their interests are being looked after by trade unions

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Collective Bargaining

When one trade union representative negotiates with employers on behalf of all workers belonging to that trade union

Negotiations may involve areas such as pay, working conditions and fringe benefits.

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Forms of Industrial Action

Strike

Work to rule

Boycott

Go slow

Overtime ban

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Reasons for Declining Influence of Trade Unions

Laws passed which have weakened power of trade unions

Decline in trade union membership

Change in structure of industry from heavily unionised manufacturing industry towards service sector businesses

Change in philosophy from conflicts due to collective bargaining to individual bargaining between firms and employees

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Employers’ Associations

Represents views and interests of companies within a certain industry

Act like a pressure group on government and also negotiate with trade unions.

Examples

Universities and Colleges Employers Association

Engineering Employer’s Federation

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Main UK Employment Legislation

Equal Pay Act 1970

Ruled that both sexes should be treated equally in terms of pay and other employment issues

Sex Discrimination Act 1975

Made discrimination on grounds of sex or marital status illegal in all aspects of working life

Race Relations Act 1976

Made discrimination on grounds of colour, race or nationality in terms of employment illegal

Disability Discrimination Act 1995

Ruled that employers must treat a disabled person equally as others unless good reason

Working Time Regulations 1998

EU legislation that set a limit on maximum umber of hours (48 hours) employees should be required to work in a week. Employees can choose to work more hours if they wish.

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Minimum Wage

Legal minimum hourly wage rate that a business can pay an employee

Introduced into UK in 1999

2003 minimum wage for someone over 21 is £4-20

Rate is subject to regular reviews and is likely to be increased every few years as cost of living increases

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Businesses Most Affected by an Increase in Minimum Wage

Small businesses who find it harder to cope with increases in costs

Businesses which employ a large number of low-skilled workers

Examples:

Catering

Hotels

Leisure businesses