Trade Unions and their Impact on Organisational Performance

Trade unions play a pivotal role in shaping the dynamics of employee relations within organisations.

With a history dating back to the industrial revolution, trade unions have evolved to become powerful advocates for workers' rights, influencing workplace policies, and negotiating on behalf of employees.

Introduction

There is much evidence that managers regard unions as hindrances to workplace performance and this has resulted in union avoidance, suppression and substitution (Bryson, 2005; Chen, 2007). Previous Studies by ( Lincoln and Kalleberg, 1990) also show that high performances are less likely to exist in highly unionised organisations. However, there is also research evidence that indicates that unions can play a significant and positive role in enhancing organisational competitiveness. Trade Unions as advocates for workers' rights, not only shape the dynamics of employee relations but also wield substantial influence over the overall performance of organisations.

The historical roots of unions are intertwined with the industrial revolution and the need for collective action to address labor injustices. In particular, it is difficult for individual workers to have an impact on managerial policy or action if it represents a direct challenge to managerial authority (Freeman and Medoff, 1984). As workers united to demand better conditions and fair treatment, unions emerged as stalwart defenders of employees' rights.

Trade Unions and Employee Relations

To leverage the positive aspects of unionism, management must replace the pluralist perspective that has dominated traditional industrial relations with a partnership approach that places less emphasis on conflict of interests between employers and employees and more emphasis on mutual gain (Godard and Delaney, 2001). Studies have proposed that a co-operative, rather than adversarial, relationship with unions can address many of the barriers (Appelbaum and Batt, 1995).

• Collective Bargaining: The cornerstone of the union's influence on employee relations is collective bargaining. Unions negotiate with employers to secure agreements that encompass wages, benefits, working conditions, and dispute resolution mechanisms. This collaborative approach fosters a sense of fairness and equity in the workplace, contributing to positive employee relations.

• Representation: Unions act as the collective voice of the workforce, ensuring that employees' concerns are effectively communicated to management. There is substantial research evidence that indicates that union organisations have more effective individual and collective voice because unions extend voice mechanisms; make direct voice more effective; and provide a collective voice which delivers different outcomes to individual and management sponsored voice (Benson, 2000; Haynes et al., 2005).

• Conflict Resolution: Unions play a pivotal role in mediating conflicts between employees and employers. By providing a structured platform for negotiation and resolution, unions contribute to maintaining a harmonious work environment, reducing disruptions that could impact organisational performance.

Trade Unions and Organisational Performance

• Productivity and Efficiency: Contrary to the misconception that unions impede productivity, research suggests that well-managed unions can enhance organisational performance. Through negotiations that address workers' needs and concerns, unions contribute to a motivated and satisfied workforce, positively impacting overall productivity and efficiency.

• Employee Engagement and Retention: Unions often advocate for employee-friendly policies and benefits, leading to increased engagement and higher retention rates. A satisfied and committed workforce is an asset to organisational performance, as it reduces turnover costs and fosters a positive workplace culture.

• Innovation and Adaptability: Collaborative employee relations, facilitated by unions, can create an environment that encourages innovation and adaptability. When employees feel valued and secure in their roles, they are more likely to contribute ideas, take risks, and embrace change, thereby bolstering the organisation's capacity for innovation.

Conclusion

The relationship between unions, employee relations, and organisational performance is a dynamic force that has evolved over centuries. Well-managed unions have the potential to enhance employee satisfaction, contribute to organisational efficiency, and foster a positive workplace culture.

References

Benson, J. (2000) ‘Employee Voice in Union and Non-union Australian Workplaces’. British Journal of Industrial Relations 38(3): 453-459

Bryson, A. (2005) ‘Union effects on employee relations in Britain’ Human Relations 58(9): 1111-1139.

Chen, S. (2007) ‘Human resource strategy and unionisation: evidence from Taiwan’, International Journal of Human Resource Management 18(6): 1116-1131.

Freeman, R. B. and Medoff J. L. (1984) What do unions do? New York: Basic Books.

Haynes, P. B., Boxall, P. and Macky, K. (2005) ‘Non-Union Voice and the Effectiveness of Joint Consultation in New Zealand’, Economic & Industrial Democracy 26(2): 229-256.

Lincoln, J. R. and Kalleberg, A. L. (1990) Culture, control and commitment, Cambridge: Cambridge University Press

The Positive And Negative Influence Of Trade Unions Over Employment Relations In An Organisation  [Online] Available at: https://writix.com/essay-examples/the-positive-and-negative-influence-of-trade-unions-over-employment-relations-in-an-organisation [Accessed on 16 December 2023]