Union recognition in Britain's offshore oil and gas industry: implications of the Employment Relations Act 1999

The Employment Relations Act 1999 (ERA) has provided trade unions in the UK with new opportunities for achieving recognition. After a long history of anti‐unionism in the offshore oil and gas industry, employers have voluntarily ceded recognition to Trades Union Congress (TUC)‐affiliated trade unions. The legitimacy of this recognition process has been contested by the non‐TUC Offshore Industry Liaison Committee (OILC), an offshore workers’ union, seeking to act as a recognised bargaining agent. The ERA may be promoting ‘business friendly’ agreements at the expense of claims to recognition of other bargaining agents and of democratic employee choice.     

Conflict for Mutual Gains?*

abstract This paper adopts Walton and McKersie's Behavioral Theory of Labor Negotiations to examine the outcomes of industrial relations negotiations to implement teamworking. Negotiations from 21 departments across two integrated steelworks are classified into four negotiation patterns, each producing different outcomes from teamworking for managers and employees. Managers secured lower manning and increased productivity in negotiations both in departments characterized throughout by cooperation and those characterized by conflict. However, mutual gains were secured only where union negotiators pursued conflict tactics during bargaining. In those departments where union negotiators adopted more conflictual bargaining tactics, more employees reported pay increases and greater satisfaction with teamworking agreements, compared with employees in more ‘cooperative’ departments. ‘Mixed’ bargaining approaches in other departments were less successful, particularly for union negotiators.     

Union responses to ‘multi‐enterprise’ factories in the Italian motor industry

During the 1990s, outsourcing work was commonly associated with the weakening of union organisation and the deterioration of pay, working conditions and job security. A variant of outsourcing, termed here as ‘insourcing’, involves a firm purchasing ‘non‐core’ functions and services from enterprises located under the same roof. This case study of Fiat outlines the impact of insourcing on traditional arrangements and practices, and analyses the response of Italian local unions. The findings indicate that in the context of ‘bargained compromise’ between trade unions and management in the Italian motor industry insourcing did not have the negative implications for union organisation and employee terms and conditions associated with traditional outsourcing.     

So what’s the news? Management strategies towards non–union employee representation at News International

In an environment of what would appear to be a widening ‘representation gap’ developing in many organisations, there has been considerable discussion on the effectiveness of non–union employee representation (NER) structures as communication devices and mechanisms for employee involvement, or as a substitute for unions in the collective bargaining process. The underlying debate centres on whether NER forms make trade unions unnecessary, or whether NER forms have a role different from, but complementary to, that of unions at the workplace. The findings of this study suggest that a ‘substitute’ or union avoidance strategy as used at News International Newspapers could have limitations. The implications of not recognising these limitations could result in greater indirect union influence in workplace issues and greater employee dissatisfaction at the workplace.     

Accounting for the trend in trade union recognition in Ireland

Considerable controversy surrounds the issue of union recognition in Irish industrial relations. Academic commentators have sought to identify and explain the trend in recognition since the 1980s. Their arguments are examined and tested. No secular rise in non‐recognition is evident, and ‘individualisation’ and ‘union substitution’ are shown to add little to explaining the trend. No evidence is found that the trend reflects Irish employers pursuing union suppression and US‐employers pursuing union substitution. The significant development is a sharp rise in non‐recognition among new US employers. Their anti‐union animus does not, however, appear to be coupled with any distinctive or generalised union avoidance strategy.     

Why So Unhappy? The Effects of Unionization on Job Satisfaction*

Using linked employer–employee data we investigate the job satisfaction effect of union membership in Britain. We develop a model that simultaneously controls for the determinants of individual membership status and for the selection of employees into occupations according to union coverage. We find a negative association between membership and satisfaction. However, having accounted for selection effects, we find that the negative association is confined to non‐covered employees. This is consistent with ‘voice’ effects, whereby non‐covered members voice dissatisfaction to achieve union goals, and with the possibility that membership increases preferences for collective bargaining, thus lowering members’ satisfaction in non‐covered environments.     

Non‐union employee representation: exploring the riddle of managerial strategy

Utilising case‐study research in two organisations this article considers the strategy underpinning managerially imposed systems of non‐union employee representation. Drawing on Dundon and Gollan's ‘sensitising framework’, an interplay of external factors and internal dynamics is seen to prompt objectives that are both defensive (union avoidance) and proactive in nature (e.g. the legitimisation of change). The article suggests that such goals represent ‘rival logics of action’, the tensions unleashed being ultimately reflected in the ineffective functioning of the institutions under review.     

Shaping the bargaining agenda. The Audit Commission and public service reform in British local government

This article examines the role of the Audit Commission (AC) in local government collective bargaining. While the AC has no official role in such bargaining, it has a role in monitoring the performance of local government services. In this role the AC has a clear potential, in the context of the government's ‘modernization’ agenda – as manifested in its ‘Best Value’ regime, for influencing both the content of collective agreements, and the process of collective bargaining, where these are seen to conflict with other Best Value objectives – particularly in relation to external competition. The research conducted involved a content analysis of AC inspection reports on human resource services and longitudinal case studies of two local authority union branches' experiences of Best Value and the role of the AC. The findings from the inspection reports indicate that, while the AC is actually acting to promote activities that could be seen as supportive of union bargaining agendas, notably in relation to equality type issues, they are also supporting service externalisation and thereby acting to limit the scope of their impact. The reports also indicate that, despite there being prescribed ‘best practice’ for local government employment relations (‘social partnership’ with unions), the AC is not promoting any such engagement with unions. Evidence from the case studies add weight to these observations: the AC, in one case, was deeply suspicious of an attempted union management agreement on procurement, while in the other, the AC made no criticism of the costly effects that externalization had on union-management relations.     

Opportunity,fair process and relationship value: career development as a driver of proactive work behaviour

In line with recent findings from organisational justice theory, we hypothesised that employee proactive behaviour and careerist orientation is predicted by the interplay of perceived favourability of career development opportunities, the perceived fairness of the procedures used to decide them, and employee organisational commitment. Employees (N = 325) of a large financial services organisation responded to a self‐completion questionnaire. As predicted, when career development opportunities were viewed unfavourably, perceived procedural justice was significantly and positively related to individual proactive behaviour and significantly and negatively related to careerist orientation but only when organisational commitment was high. It appears that high procedural justice may only ‘offset’ the negative effects of unfavourable career development opportunities when employees identify with, and are committed to, their organisation. Further support is presented for a relational, rather than instrumental, model of procedural justice when reflecting on employee reactions to their employers’ policies and decision‐making. Implications for theory and practice are discussed.     

Is there a bigger and better future for employer branding? Facing up to innovation,corporate reputations and wicked problems in SHRM

Employer branding is becoming an increasingly important topic for research and practice in multinational enterprises (MNEs) because it plays directly into their corporate reputation, talent management and employee engagement agendas. In this paper, we argue that the potential effects of employer branding have yet to be fully understood because current theory and practice have failed to connect this internal application of marketing and branding to the key reputational and innovation agendas of MNEs, both of which are at the heart of another strategic agenda – effective corporate governance. However, these agendas are characterised by ‘wicked problems’ in MNEs, which have their origins in competing logics in strategic human resource management (SHRM). These problems need to be articulated and understood before they can be addressed. This paper proceeds by (1) setting out a definition and model of employer branding and how it potentially articulates with corporate governance, innovation and organisational reputations, (2) discussing and analysing the ‘wicked problems’ resulting from the sometimes contradictory logics underpinning innovation and corporate reputations and SHRM in MNEs and (3) evaluating the potential of employer branding as a contribution to the third SHRM approach – HR strategy-in-action – as a way of resolving three particularly wicked problems in MNEs. We conclude with some ideas for research and practice on the future for employer branding.     

Representation at Suncorp – what do the employees want?

It is apparent from existing research that little is known about the effectiveness of non‐union employee representation (NER) voice arrangements in Australian firms. This article examines both the non‐union Suncorp‐Metway Employee Council (SMEC) and union voice arrangements at an Australian financial services firm, Suncorp, and assesses their effectiveness in representing the needs of employees. This study is unique because it is one of the few examples of dual representation channels at a single firm. Overall the findings suggest that the effectiveness of union and NER arrangements is dependent on the union and NER voice channels being perceived by the workforce as both representative and able to act effectively or independently. However, while trade unions may provide greater voice than non‐union arrangements, the strength of voice is dependent on the legitimacy and effectiveness of trade unions in representing employees' interests at the workplace. The findings also suggest that the marginalisation strategy used by the union in excluding SMEC from its industrial campaigns, coupled with employees' perception of a lack of effective union voice, could impact negatively on the influence that unions may have on management decision‐making. This could also be perceived by employees as an inappropriate response by the union to management substitution strategies. As a consequence, any changes to industrial relations policy or trade union strategies regarding NER should be considered in the light of these findings.     

The reluctant bargainers? McDonald’s,unions and pay determination in Germany and the UK

There is growing evidence that multinational enterprises (MNEs) increasingly develop organisation-based employment strategies, which promote the transmission of employee relations practices across national borders. This article provides an analysis of one MNE’s employee relations practice and what appears to be its preference for operating, where possible, independently of national industrial relations systems. The findings, which draw on a UK/German comparison, raise a number of questions about the adequacy of even highly juridifed national systems to protect workers rights in practice.     

Examining the ‘black box’ of human resource management in MNEs in China: exploring country of origin effects

We examine the impact of HPWS on the attitudes and retention of Chinese employees in multinational enterprises (MNEs) operating in China. More specifically, we examine the extent to which the degree of HPWS and the impact of these practices differ according to the country of origin of the MNE. We surveyed a sample of 410 Chinese employees currently working in Western and Asian MNEs. The findings indicate significant ‘country of origin’ effects, where employees of Western and Asian MNEs perceive different levels of HPWS are in operation in their respective organisations. Employee trust, job satisfaction and affective commitment are all important factors in the retention of Chinese employees of MNEs, with high levels of commitment being the most significant factor. However, the relative impact of these factors on employee retention differs by country of origin of the MNE.     

Managed activism: two union organising campaigns in the not‐for‐profit sector

Two union recognition campaigns are contrasted: one focusing on developing workplace activism but with little sectoral focus (a ‘bottom‐up’ campaign), and the other with a sectoral strategy and less emphasis on workplace campaigning (a ‘top‐down’ campaign). The outcomes indicate the need for approaches, which allow both a strong workplace activism and a clear sectoral strategy as both the ‘top‐down’ and ‘bottom‐up’ strategies present difficulties. Although there are positive outcomes in both campaigns, the cases show that unions seeking to represent the interests of previously unorganised groups of workers need influence at both the sectoral and workplace levels if they are to demonstrate their effectiveness.     

Corporate sustainable actions through United Nations sustainable development goals: The internal customer's response

Designing sustainable corporate social responsibility (CSR) strategy utilizing the United Nations sustainable development goals (SDGs) framework to deal with consumption in a sustainable and responsible fashion is increasingly a requirement in emerging economies. This paper examines sustainable social initiatives (SIs) via a CSR model and social lens as part of the SDG framework for multinational enterprises (MNEs), to determine the perception of the internal customer and stakeholder (i.e., the employee) alongside their identification and voluntary engagement in their organization's SIs. The study examines internal customers (as the employee) of two MNEs who reside in a developed country and two developing countries from emerging economies. The findings indicate that identification with the SDG‐based SIs selected by MNEs for this study mediates the relationship between perception of their organization's perceived CSR and engagement in these initiatives, for employees in developing countries (and emerging markets) but not the developed country. This suggests the importance that internal employees “identify” with SDG‐based SIs in emerging markets in particular and builds on significant managerial implications for MNEs in these markets alongside their voluntary work with nonprofits as part of their SIs and CSR strategy. The findings also confirm the importance of MNEs adopting SIs that are not only relevant to the global United Nations SDG framework but also relevant to the actors, collaborators, and nonprofit organizations involved in these SIs, including stakeholders and in particular the internal customer (i.e., employee) who volunteer their time to implement these SIs in the communities where MNEs reside.     

Trade unions,collective bargaining and macroeconomic performance: a review

Coordination through collective bargaining is recognised as an influential determinant of labour market outcomes and macroeconomic performance. This article provides a systematic review of the empirical literature on the subject. What emerges from the review is that it is different types and coverage of bargaining coordination, rather than cross‐country variation in trade union density, that matter for economic performance. High levels of bargaining coverage tend to be associated with relatively poor economic performance, but this adverse relationship can be at least mitigated by high levels of bargaining coordination. In the absence of formal bargaining arrangements, economies often develop informal bargaining mechanisms whose effects are similar to those arising from formal bargaining provided they both operate at similar levels of coordination. The consequences of labour market coordination or absence thereof depend on the monetary policy regime as non‐accommodating monetary policy can eliminate some of the adverse unemployment consequences otherwise associated with industry‐level collective bargaining. Finally, bargaining coordination seems to matter most in times of rapid economic change rather than under more stable conditions. Overall, we conclude that it is the total ‘package’ of (formal and informal) labour market institutions that matters for the performance of the economy rather than unionisation as such or individual aspects of unionism.     

Performance and reward practices in foreign multinationals in the UK

This article examines variability in pay and performance management systems (PPMS) across foreign multinational companies (MNCs) in the UK, using a representative survey. It examines factors shaping PPMS for two groups, managers and the largest occupational group (LOG). It finds that US MNCs tend to have more PPMS practices in combination than do non‐US firms, but that for individual items nationality has relatively low influence, particularly for LOG. Other key factors in PPMS vary by employee group: for managers, international HR structural mechanisms for networking, organisational learning and the transmission of a global HR philosophy are important. For LOG, collective bargaining coverage is crucial. The article discusses the implications of the findings for ‘contingency’ approaches to HR ‘architecture’.     

The dark side of solidarity: social norms and social relations in the aftermath of strikes

This paper studies how employees anticipate change in social relations after a strike in their organisation. We hypothesise that two group norms affect employees' fear that a strike deteriorates the social relations with their colleagues. We distinguish between two different norms associated with a collective action problem such as a strike. A ‘solidarity norm’ prescribes that workers should participate in collective protest when called for. A ‘free rider punishment norm’ describes whether and how violators of the solidarity norm should be treated. While the former itself theoretically does not impact intra‐group social relations, the latter one does. We test our hypotheses on a data set of 468 Dutch union members. Adherence to the free rider punishment norm significantly increases a fear for deterioration of social relations with colleagues after a strike, while adherence to the solidarity norm does not. We also find a moderating effect of expected proportion of strikers. The results are discussed with reference to industrial relations theory and mobilisation theory, further probing into mechanisms that relate social norms to the (anticipated) costs of participation and the quality of social relations after a strike.     

Employment protection regulation,trade unions and tenure of employment: An analysis in 23 European countries

This article focuses on the relationship between employment protection regulation (EPL), trade unions and tenure of employment. A main hypothesis is that EPL strictness tends to prolong tenure, because rigorous rules imply that remaining with the same employer gives more job security. The role of unions can be expected to be similar. These assumptions are related to issues regarding dualisation in the labour market. Data used are the European Working Conditions Survey 2010—including 23 countries and more than 18,500 employees—combined with national‐level data on EPL, unemployment, union density and collective bargaining coverage. The analyses reveal that EPL strictness and bargaining coverage are associated with longer tenure. The same goes for having an employee representative in the workplace. The institutional variables work through interactions with individual‐level variables. For example, the impact of age, which is strongly linked to tenure, increases with stricter EPL and higher bargaining coverage.     

Using enterprise architecture to analyse how organisational structure impact motivation and learning

When technology, environment, or strategies change, organisations need to adjust their structures accordingly. These structural changes do not always enhance the organisational performance as intended partly because organisational developers do not understand the consequences of structural changes in performance. This article presents a model-based analysis framework for quantitative analysis of the effect of organisational structure on organisation performance in terms of employee motivation and learning. The model is based on Mintzberg’s work on organisational structure. The quantitative analysis is formalised using the Object Constraint Language (OCL) and the Unified Modelling Language (UML) and implemented in an enterprise architecture tool.