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Origins of Industrial Conflict and Conflict Resolution Methods

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Lockouts

 

Action taken by employers where employees aren't permitted to enter the workplace and are locked out from the workplace unless they agree to follow management order or work as directed

 

Pickets

 

Pickets is where striking workers or a union attempt to gather outside the workplace forming a line to prevent entry of other employees, contract labour or suppliers from entering the workplace.

 

Strikes

 

A strike is a withdrawal of labour from production. Strikes are the most overt form of industrial action and aim to attract publicity and support for the employees case. Strikes occur when employees withdraw their labour in order to enforce a demand or express a grievance.

 

Bans

 

 

Is when employees refuse to form a task that is usually not specified in their employment contract, such as overtime.

 

Work-to-Rule

 

Working to rule is similar to a work ban and involves workers only performing what is contained in their employment contract or award and following the strict terms of their employment contract or award.

 

Covert

Absenteeism, sabotage, turnover, exclusion from decision-making in business

 

Covert action is not openly acknowledged or displayed with no organisation.

 

Absenteeism

 

Usually refers to when employees are unhappy, usually when employees are not being considered by employers in times of dispute, the employees may undertake a system where they do not show up to work, and absent themselves. Employees may undertake mass absenteeism with many being off at the same time, or rotational absenteeism where they almost roster who will be taking time off. Action of this sort disrupts the business but does not stop the employee's income (sick leave), so it is favored by some employees

 

Sabotage

 

 

Employees may take industrial action in the form of deliberately damaging physical items and causing vandalism in the workplace. Damage is done by employees to either the product or in the production of the product. Employees usually take such action to harm or destroy the image of a firm.

 

Staff Turnover

 

 

High voluntary labour turnover (resignation) rates are often linked with absenteeism rates as indicators of conflict and dissatisfaction among employees.

 

Exclusion from Decision-Making in Business

 

Conflict can arise when employees believe that they haven't been given the opportunity to have their say for e.g. not inviting employees to meetings. It occurs when an employer does not involve employees in decisions that affect them.

 

Dispute resolution processes - conciliation, arbitration, grievance procedures, negotiation, mediation, common law action, business/division closure

 

Many firms now try to develop a corporate climate in which disputes are minimised through collaborative working relationships, and by training staff in procedures, policies and guidelines for managing disputes.

 

Grievance Procedures

 

The very first step of negotiating any industrial relations issue starts in the workplace. A grievance procedure is a formal series of steps which are meant to be followed when a dispute arises.They usually start with the first point of contact, such as a supervisor and then to senior levels of management.

 

Negotiation

 

This involves a formal or informal discussion between the employee and employer level in which both parties agree to a mutual agreement to resolve the dispute. Under the process of negotiation parties do not require the assistance of unions or other assistance.

 

Mediation

 

Mediation follows if negotiation is unsuccessful. Mediation occurs when a neutral third person is introduced who helps the parties to find a basis for an agreement that is acceptable to the disputing parties to reach a final agreement.

 

Conciliation

 

Conciliation is the formal means of settling a dispute when it cannot be resolved and may be referred to a third party, such as the AIRC, usually an industrial commissioner with the necessary qualification and skillswho encourages the parties to negotiate their own agreement and brings the parties together.

 

Arbitration

 

If conciliation fails, the matter may be referred to arbitration, arbitration is very similar to the procedures of conciliation, where the independent third party again comes from the Industrial Relations Commission.

 

The main difference here is that the arbitrator considers the arguments of both sides and makes the final decision, which is legally binding on the parties involved.

 

Common Law Action

 

This is where a dispute goes beyond the boundaries of a quick resolution such as conciliation, arbitration; grievance procedures, negotiation and mediation, and needs to be settled in court, where common law applies. Here the Australian legal system will be used if the party believes that the dispute or action has broken the law. This could be a breach in tort law or contract law.

 

Business/Division Closure

 

If the dispute is impossible to resolve it may result in the closure of that division or business.Closure of a division or a business permanently or temporarily may also be a resolution or outcome of a dispute.

 

     

    • Costs and benefits of industrial conflict

     

    • Industrial conflicts have both costs and benefits although in many cases they are difficult to measure.

     

    • The costs and benefits may be financial, personal, social, political and international.

     

       

      Financial

       

      Costs

       

      Cost could include loss of production and reduced productivity due to bans, and loss of wages for the employee if the dispute results in cutting production and work. Firm's reputation may be damaged. The cost associated with legal representation is a financial burden upon the firm.

       

      Benefits

       

      Benefits could mean better work practices and increased productivity, and for employees through higher wages. It could result with fewer disputes and less absenteeism and labour turnover.

       

      Personal

       

      Costs

       

      Could include a high level of stress for employer and employee and reduced job satisfaction and could result with an increase in absenteeism.

       

      Benefits

       

      Could mean improved working conditions for employees, including better occupational health and safety, and better more efficient production processes for employers. Greater employee involvement and motivation.

       

      Social

       

      Costs

       

      Tensions and dissatisfaction at work can lead to breakdowns at home, even domestic violence. Employers could suffer from vandalism of the workplace and conflict in the community.

       

      Benefits

       

      For both employers and employees could be that the conflict clears the air and leads to improved communications systems.

       

      Political

       

      Costs

       

      Cost could include damaged reputations for some politicians and political parties associated with industrial conflicts. Bitterness between unions and government can lead to political conflict

       

      Benefits

      Could flow to politicians and political parties who present policies that reduce industrial conflict

       

      International

       

      Costs

       

      Nations reputation for stability can be lost and Gain a reputation as being an unreliable supplier. Productivity levels drop increasing costs and making Australian business less competitive against overseas efficient businesses. Furthermore a loss of export income could occur after periods of disruption.

       

      Benefits

       

      Conflict improves business's international competitiveness presenting opportunities for international expansion and improved production.

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