Trade Union

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Principles of Business

Form 4
Trade Unions
Definition of a trade union
A trade union is a group or collection of workers who combine to make stronger their bargaining
position with the employer.

Industrial Relations
Industrial relations refers to the degree of conflict or peace in industry and between employers
and employees.

Industrial dispute
This is an issue of conflict between employers, trade unions and management which can be
manifested (to show, or develop) in a number of ways referred to as industrial action.

Industrial Court
Industrial court also called labour court, any variety of tribunals established to settle disputes
between management and labour, most frequently disputes between employers and organized
labour (trade unions).

Industrial Legislation
Rules established governing the actions of both members and unions:
The unions must not;
- Coerce anyone to join or not join a union
- Coerce employees in their choice of the parties to bargain on their behalf
- Charge unfair membership fees
- Refuse to bargain collectively with an employer
- Cause the employer to pay for services not rendered
- Influence an employer to discriminate against an employee.
The employer must not:
- Interfere with or restrain employees who wish to join a union
- Discriminate against people because of union membership
- Refuse to bargain collectively with employees’ representatives
- Discriminate against employees who testify before tribunals
Restrictive practices
This is also known as industrial action refers to measures taken by workers either to put pressure
on their employers during the course of an industrial dispute, or as result of their working
conditions.
e.g. strike, go slow (workers do their job thoroughly but at a much slower pace), work to rule,
closed shop (all workers of a firm belong to the same union and refuses to work with persons not
from that same union), picketing, sit-in etc.

Trade union aims:


- Participation in company decision-making processes
- Improved wages and reduced working hours
- Better working conditions
- Full employment and national prosperity
- Job security
- Benefits for members who are sick, retired or on strike
- Improved social security payments e.g. unemployment and sickness benefit and pension.
- An influence on government
- A reasonable share of the wealth of the country improved public and social services.

Collective bargaining
This refers to talks between representative of employers and trade unions to decide pay rates and
other terms and conditions of employment.

Collective bargaining also includes:


Hours of work, working conditions, sick pay, pensions, training, holiday entitlement, promotion,
pensions, redundancies, maternity leave, recruitment etc.

Grievance
This is an official statement of a complaint over something believed to be wrong or unfair.
Grievance Procedures
This is a formal way for an employee to raise a problem or complaint with an employer. The
employee can raise a grievance if:
- They feel raising it informally has not worked
- They do not want it dealt with informally
- It is a very serious issue

Third Party involvement strategies to resolve conflicts (grievances)


- Mediation
- Arbitration
- Conciliation
- Trade union representation

Benefits of trade union membership

Good Management and Worker Relationship

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