Notes
Slide Show
Outline
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British IRHRM
Environments and Ideology
  • Lecture 1 of 7
2
Administrative
  • Reading for Next Class
3
Review
  • Theoretical frameworks of IRHRM


  • Canadian IRHRM ‑ similarities with and differences from USA
4
Today
  • Themes of British IRHRM
  • Contexts
  • Ideology
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I. Themes of British IRHRM
  • Voluntarism
    • Self‑reliant trade union movement relying on collective bargaining
    • Tradition of minimal government intervention
  • Dramatic shift away from voluntaristic approach
  • Impact of European Union
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II.  IRHRM Environments in Britain
  • Political Context
  • Population
  • Form of Government
    • Constitutional Monarchy
    • Parliamentary Democracy
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II. Politcal Context
  • Parliamentary Democracy
      • In effect ‑ system is almost unicameral
      • Parties
        • Conservative ‑ Tory
        • Labour
        • Liberal Democrats
        • Independent parties & factions based in Scotland and N. Ireland
      • Few of the checks and balances familiar to Americans
  • Stability
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May 2005 Election
  • Party Percentage Seats


  • Labour 35% 356
  • Conservative 32% 197
  • Liberal Dems 22% 62
  • Other 11% 31
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II. Contexts - Technological
  • Modern industrial economy
      • Highly industrialized
      • High productivity and standards of living

  • Britain as a trading nation
      • Much more open economy than the USA
      • No substantial agricultural exports but does produce most of its own food


  • Resources
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II. Contexts - Economic
  • Background


      • Industrial Revolution ‑ 1760
      • Dominated 19th Century World Economy

  • Post World War II


      • Living standards improved steadily to mid‑1970's
      • Loss of exploitable colonial possessions
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II. Economic Context
    • Conservative government relied on restrictive monetary and fiscal policies to combat inflation
    • 2005 unemployment rate 4.7%
    • Taxation and Government spending
    • Highest percentage of part-time workers in the course (2004)

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III. Ideology
  • Consistency
  • Over‑all Society
  • Labor and Management
    • Substantial differences in policy areas
    • Since 19th century labor movement constitutional in orientation
    • Traditionally both disliked compulsory government intervention
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Next Time – Actor
  • Historical Development of British Unionism
  • Modern British Union Movement
  • Trades Union Congress
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British IR ‑ Trade Unionism
  • Lecture 2 of 7
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Administrative
  • Reading for Next class
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Review ‑ Contexts of British IRHRM
  • Constitutional Monarchy and Parliamentary Democracy
  • Technologically advanced
  • Poor relative economic performance for early  post‑war period
  • Ideologically as stable as anywhere in the world
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Today
  • Historical Development of Unionism
  • Modern Trade Union Movement
  • Operation of the TUC


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I‑ Historical Development of British Trade Unionism
  • Origins
    • 1st evidence of attempt at permanent organization 1387
    • Real beginnings of unions as permanent and important organizations in mid‑18th century
  • Trades Union Congress
    • Founded 1868
    • Function initially political
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I‑ Historical Development of British Trade Unionism
  • 1880's dominant union creed changed
  • 20th Century
    • By 1920 unskilled and general workers 30% of unionists
    • May 1926 General Strike
    • Rapid growth of unions from mid 1950's into late 1970s
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II‑ Modern British Union Movement
  • Extent
    • 2004 unions 26% of labor force ‑ peak 55% 1979
    • Public sector most highly organized part of economy
    • Dramatic decline in number of unions by merger and amalgamation continues with some quite large unions
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II‑ Modern British Union Movement
  • Structure
    • Almost no pure craft or industrial unions


    • Largest unions traditionally general


    • TUC
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Operation of Unions
    • Limited funds
    • Officers
      • Few full‑time
      • Large group of shop stewards
    • Focus on bargaining
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Shop Stewards
  • Traditionally
    • Inside work place, stewards represent only members of their own unions
    • In large workplace, stewards elect chief steward
    • Reflected multi-unionism in many cases
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III‑ Operation of the T.U.C.
  • Little formal authority over affiliates


  • Principal function is to act as spokesman with government
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Next Time
  • Labour Party
  • Employer Organization for IRHRM
  • Government Organization for IRHRM
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British IRHRM
 Labour Party, Employer and Government Organization
  • Lecture 3 of 7
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Administrative
  • Reading for next class
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Review ‑ British Trade Unionism
  • First among skilled and later unskilled
  • Unions grew up to 1979 and have declined to about 26% since
  • Very limited financial and personnel resources
  • Structure and Functions of TUC
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Today
  • Worker Organizations – the Labour Party
  • Labor political involvement – other parties
  • Employer Organization for IRHRM
  • Government Organization for IRHRM
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I‑ Worker Organization‑ The Labour Party
  • Origins


      • Party developed from several attempts beginning in 1887

      • Until 1919 only unions could affiliate


      • Party leader since 1994 - Tony Blair
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I‑ Labour Party
  • The Labour Party and the Unions


      • Unions used to dominate party mechanisms


      • Unions dominated Party finances


      • 1990s Party changed to "one member one vote"
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I‑ The Labour Party and the TUC
  • No organic link between the TUC & the Labour Party


  • Labour came to power in 1974 on the basis of explicit understandings with the TUC - "The Social Contract"


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Blair and the Unions
  • Blair and TUC Convention
  • Labor and Employment Legislation
  • Labour Government and Strikes
  • Iraq War has created further real strains with the unions
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II‑ Labour Political Involvement ‑ Other Parties
  • Conservatives
  • The Communist Party
    • Significant minority of union officials are party members especially stewards
    • Not much evidence Communist shop stewards behave differently from other militant shop stewards
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III‑ Employer Organization for IRHRM
  • Employer Associations ‑ origins 1800s
    • More employer cooperation than in U.S. or Canada
    • Traditionally employers joined industry associations
    • Legal advice to members and lobbying Parliament
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III‑ Employer Organization for Industrial Relations
    • The Confederation of British Industry
      • CBI formed in 1965
      • Focus on IR and HR issues
      • CBI doesn't bargain and has little formal authority over its affiliates
    • Institute of Directors
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IV‑ Government Organization for IRHRM
  • Traditional Government Approach
    • Limited intervention in industrial relations
    • Most intervention has been by the courts applying general principles of civil or criminal law
    • Other specific intervention (i.e. legislation) was largely designed to created immunities or protection for unions from the judicial system
    • Government began to take a more active interest around 1970
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IV‑ Government Organization

  • Advisory Conciliation and Arbitration Service
  • Central Arbitration Committee
  • Government as Employer
    • Traditionally much more important than in USA
    • In 1980s and 90s all nationalized industries and most public utilities sold off


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Next Time
  • History of British Public Policy on IRHRM
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History of British Public Policy on IRHRM – Procedural Rules
  • Lecture 4 of 7
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Administrative
  • Reading for next class
  • Paper Reminder
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Review
  • Contexts
    • Parliamentary Democracy
    • Technologically Advanced
    • Relatively poor economic performance
  • Trade Union Movement and Labour Party
  • Employer and Government Organization for IRHRM
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Today
  • History of British Public Policy on IRHRM
  • 1970s – the Rise of Legal Intervention into Unionism and Collective Bargaining


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I‑ History of British Public Policy on Labor Relations
  • Various legal impediments to union activity
    • Masters and Servants Act
    • "The Document
  • Most serious obstacles to unions, bargaining and striking removed by legislation of 1875‑76
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I‑ History of British Public Policy on Labor Relations
  • Public Policy through the 1930's
    • Trade Disputes Act of 1906 said employers couldn't sue unions for damages
    • Trade Union Act of 1913 made union political activities legal
    • Emergence of free collective bargaining and government restraint in the post- World War I period
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I‑ World War II and After
    • Arbitration system during World War II


    • Replaced with a new arbitration system 1951‑59, but one the unions didn't mind since there were no prohibitions on striking


    • Wages Councils Act of 1959
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I‑ 1950s and 1960s
  • No compulsion to recognize
  • No obligation to bargain
  • No prohibition of victimization
  • Almost no regulation of bargaining content
  • Almost no regulation of industrial conflict
  • Agreements not enforceable in court & often of no specified duration
  • Voluntarism
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II‑ The 1970's ‑ the Rise of Legal Intervention into Collective Bargaining
  • The Industrial Relations Act of 1971 ‑
    • Modeled on Taft‑Hartley
    • Much more complex
  • Experience under the Act
    • TUC mobilized affiliates not to register and expelled the 20 small unions that did
    • Almost all repealed in 1974 in the aftermath of the  Conservative defeat in election that year
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II‑ The 1970's
  • Aftermath of 1974
    • The Trade Union and Labor Relation Acts of 1974,76
    • Employment Protection Act of 1975
    • Other legislation in 1970s to protect individual rights
      • Equal Pay Act
      • Sex Discrimination Act
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Next Time
  • Recent Changes in British Public Policy on IRHRM
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British IRHRM - Recent Changes in the Legal Environment
  • Lecture 5 of 7
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Administrative
  • Reading for next class
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Review
  • Tradition of Government Non‑Involvement in IRHRM
  • The Shift toward legislative intervention in the 1970's
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Today
  • Legislative Changes Under the Thatcher Government
  • Blair Government Changes
  • Current Legal Environment


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I- Legislative Changes under the Thatcher Government
    • Five separate pieces of legislation 1980-90


    • Regulated unions, collective bargaining, picketing  and industrial conflict and a few related matters


    • Designed to avoid the “all at once” approach of 1971 that helped bring down that Conservative Government
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Regulation of Trade Unions
  • Union officers must be elected every five years
  • Elections of union officers by secret postal ballot
  • Must poll members on whether to have political fund
  • Outlawed Bridlington Principles
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Regulation of Collective Bargaining
  • Gradual elimination of closed shop
  • Must get members to vote to reauthorize the “check off” every three years
  • Employees have right to negotiate individual contract if they prefer
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Regulation of Picketing
  • Must be related to trade dispute
  • Must be outside or near picket’s place of work
  • Limited purposes
  • Normally limited to six persons
  • Secondary picketing
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Regulation of Industrial Conflict
  • Immunity from lawsuits limited
  • Strikers not protected from “unfair dismissal”
  • Non-strikers can’t be disciplined by union
  • Regulation of unofficial strikes
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Other Issues
  • Outlawed commercial contracts requiring the use of unionized labor
  • ILO found some of this to violate conventions on freedom of association and collective bargaining
  • Dramatically raised rights of individuals above collective rights
  • Brought courts deeply into IR
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II- Blair Government Changes
  • Approach
  • Rejected militance and industrial disruption of early 1970s
  • Sought to bring about partnerships between unions and employer
  • Series of laws on both IR and employment issues
  • EU Policy Directives
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Unions and Union Recognition
  • Still encourages voluntary recognition
  • Elections
  • First Contract Bargaining
  • Discrimination against unionists
  • Can’t offer employees inducements to remain non-union or to avoid collective bargaining
  • Public sector similar to private sector
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Workplaces – Union and Nonunion
  • All employers must have grievance/disciplinary procedure
  • Employers must consult with union or employee representatives over planned redundancies or work transfers
  • Right to assistance
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Employment Issues
  • April 1999 introduced first national minimum wage in Britain's history
  • Hours and Holidays
  • Flexible scheduling
  • Paid sick leave
  • Unfair Dismissal Protection
  • Consultation
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Discrimination
  • Religious discrimination prohibited
  • Discrimination based on sexual orientation prohibited
  • 2005 drafting legislation to prohibit age discrimination
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III- Current Legal Environment
  • Collective bargaining still relatively unencumbered but agreements unenforceable
  • Shift toward increased intervention
    • Unions and Bargaining
    • Minimum wages and Discriminations
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Next Time
  • Rule making – Collective Bargaining
  • Rule making – Industrial Conflict
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British IR - Collective Bargaining and Industrial Conflict
  • Lecture 6 of 7
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Administrative
  • Reading for next class
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Review
  • Traditional Voluntarism of British Approach
  • Dramatic Increases in Union and Bargaining Restrictions under Conservatives
  • Changes under Labour since 1997
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Today
  • Rule-making – Procedural Rules
  • Workplace Bargaining
  • Industrial Conflict



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I‑ Procedural Rules - Collective Bargaining
  • Formerly prevalence of industry‑wide bargaining
  • 2004 approximately 35% of employees covered by collective bargaining
  • Prior to 1980, importance of informal workplace bargaining
  • Now replaced largely by formal workplace mechanisms
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I‑ Procedural Rules: Civil Service Pay Determination
    • Traditionally based on comparability with private sector ‑ biannual survey
    • Thatcher Government stopped the surveys
    • Imposition of cash limits to constrain bargaining
    • Government has also discontinued availability of arbitration at request of either party
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II‑ Substantive Bargaining Issues
    • Wages
    • Work Hours
    • Holidays and vacations
    • Overtime premia
    • Shift premia
    • Union Security
    • Local work rules
    • Piece rates and incentive rates
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III‑ Industrial conflict
  • 1950's through 1970s
    • Overall level of conflict not high but perceived to be high
    • Most strikes small, short and unofficial‑ coal, autos, shipbuilding esp. strike prone
    • Frequent use of non‑strike sanctions, esp. work‑to‑rule and overtime ban
    • Peak reached 1970-74 under Heath Government
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III‑ Industrial conflict
  • Economic deterioration under Thatcher weakened unions and reduced strikes to record low levels
  • Coal Strike of 1984‑85
    • Most important strike since 1926
    • Lasted full year, March to March
    • Complete defeat for miners and their Marxist president, Arthur Scargill
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III‑ Industrial conflict
  • Annual average work days lost per 1000 workers 1994-2003 2nd lowest in course after Germany and quite similar to USA
  • 1998-99 levels at historic lows
  • Unions claim it is now so hard to conduct legal strike in Britain that the country is in violation of ILO conventions
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Recent Strikes and Strike Patterns
  • Still pattern of limited short strikes and non-strike actions
  • 2002-3 national strike by Fire Fighters
  • November 2004 Civil Service held one-day national strike
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Next Time
  • Incomes Policy
  • Administrative Rules – Grievance Procedures
  • Other Issues
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British IR - Incomes Policy, Grievance Procedures and Other Issues
  • Lecture 7 of 7
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Administrative
  • Reading for next class – Sweden
  • First paper due soon
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Review
  • National and Workplace Bargaining
  • Growth of decentralized bargaining mechanisms
  • Traditional pattern of conflict ‑ unofficial strikes
  • Weak unions produce little but bitter conflict in 1980s
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Today
  • Tri-lateral Bargaining – The Impact of Incomes Policy
  • Administrative Rules – Grievance Procedures
  • Themes
  • Comparisons
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I‑ Trilateral Bargaining‑ The Impact of Incomes Policies
  • 1950s-1970s continual balance of payments crises
    • Sometimes just exhortation
    • Frequently formal statutory policies
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I‑ Trilateral Bargaining‑ The Impact of Incomes Policies
  • The Social Contract
    • Explicit understanding between unions and Labour Party prior to and after 1974 election
    • Unions promised wage restraint in return for legislative changes in bargaining, social and economic areas
    • Labour party offered
    • TUC response
    • Broke down 1978‑79 “winter of discontent”  Helped produce Thatcher victory
  • Social Contract dramatically increased effective role of TUC in bargaining in that brief period
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II‑ Administrative Rules ‑ Grievance Procedures
  • Many industry‑wide agreements had grievance procedures
    • Typically proceed step wise as in U.S.‑ Most grievances settled in plant
    • Often terminated by strike‑i.e. deal similarly with disputes over interests and rights
    • Since agreements not enforceable, these procedures aren't either
  • Widespread habit of ignoring or short‑circuiting the procedure
    • 1st level supervision often by‑passed
    • Unconstitutional strikes ‑ in past quite prevalent in engineering industry
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II‑ Grievance Procedures
  • Recent very active role of tri-partite industrial tribunals in some of these issues but especially in areas of individual rights
    • unfair dismissal
    • redundancy
    • equal pay
  • Statutory requirement now for both unionized and non-unionized employers to have grievance procedures
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III‑  Themes
  • Voluntarism
      • Self‑reliant trade union movement relying on collective bargaining
      • Tradition of minimal government intervention
  • Dramatic shift away from voluntaristic approach
  • Impact of European Union
89
IV. Comparisons
  • How Does Britain Compare to Canada and the United States?
  • What are the strengths of the British system?
  • What are its weaknesses?
90
Next Time
  • IRHRM in Sweden
  • Check Atlapedia and Labourstart