COURSEWORK ASSIGNMENT Academic Year 2018-19 Module Code: BHM 349 Module Name: Employee Relations in Context Module Leader: Dr. Vidu Badigannavar CIPD Skills Portfolio Title: A 750 word individual portfolio based on CIPD skills workshop: Task Details/Description: Students are expected to write a 750 word portfolio based on critical reflection of material covered in the CIPD skills workshop. They are required to carefully examine the performance related pay policy for teachers introduced by the British government and prepare negotiation points for employers, management and the trade unions side. In doing so they should consider the following: 1. Summarize the dispute concerning performance related pay for teachers 2. Summarize key demands of each side 3. Suggest ways to approach the negotiation towards dispute settlement. Module Learning Outcomes Assessed: 1. Demonstrate knowledge of the roles and functions of different actors/stakeholders in employment relationship 2. Develop appropriate skills to manage conflict situations effectively. Presentation Requirements: Word Count: 750 Font Size: 12 Line Spacing: Double Submission Date & Time: 14 December 2018 by 12 noon. Assessment Weighting for the Module: Percentage: 0% This portfolio is assessed as ‘Pass or Fail’. It is compulsory to pass this assessment in order to pass the module. Assessment Criteria 1. Argue analytically, logically and coherently. 2. Wherever possible, support arguments with evidence from published sources 3. Cite and/or quote sources of information appropriately in the main body of the portfolio. Provide full list of bibliographic references at the end of the portfolio. Ethical Requirements Students are not expected to collect primary data for this assignment. However, if they choose to do so, they will be required to follow University’s ethical guidelines and seek written approval from the tutor. Essential Reading for Coursework Task (if in addition to reading provided in the module outline): Please note that this is not intended as an exhaustive or definitive list of readings for this piece of coursework. Instead, the articles/chapters listed below should be viewed as core or essential readings that may act as a start point as you prepare to tackle this assignment: Williams, S. (2014) ‘Introducing Employment Relations: A critical approach’ 3 rd edition, Oxford University Press, Oxford. Marsden, D. (2014) ‘Teachers and performance pay in 2014: First results of a survey’ Centre for Economic Performance Working Paper 2140, London School of Economics http://eprints.lse.ac.uk/57844/ Dundon, T. and Rollinson, D. (2011), ‘Understanding Employment Relations’ 2 nd edition, McGraw-Hill, Berkshire, England. Noon, M., Blyton, P and Morrell,K. (2013) ‘The Realities of Work: Experiencing Work and Employment in Contemporary Society’ 4th edition, Palgrave MacMillan. Website of the National Union of Teachers (NUT) https://www.teachers.org.uk/ Website of the Teachers Union NASUWT http://www.nasuwt.org.uk/ Website of the Department of Education, Government of UK https://www.gov.uk/government/organisations/department-for-education EMPLOYEE INVOLVEMENT AND PARTICIPATION D R . V I D U B A D I G A N N AVA R V. B A D I G A N N AVA R @ A S T O N . A C . U K Why Should Firms Involve their employees in Organizational Decision-Making Process? 1. Economic Reasons – new ideas, sense of ownership towards the decisions, higher level of effort, reduced labour cost 2. Behavioural Reasons – Lower cost and risk of disruption due to employee resistance 3. Moral Reasons – democratic values (Verma 1995) W h a t ’s t h e e v i d e n c e t h a t e m p l o y e e involvement and participation works? • Lawler et al (1998, 2001): Fortune 1000 US companies – information sharing results in better financial performance • Morishima (1991): EIP → ‘Integrative Bargaining’ • Pfeffer and Veiga 1999: employee involvement improves organizational commitment ---> discretionary effort • Peccei et al. (2005): info sharing → labour productivity & product quality (see bibliographic references in Peccei et al (2005) for the other ref. cited here) W h a t ’s t h e e v i d e n c e t h a t i t w o r k s … . ? HR Strategy Literature: Jeffrey Pfeffer (1998), Mark Huselid (1995) • • Huselid (1995): large sample of US companies: Sales levels: $27,000 greater per employee • Shareholder value: 14% higher • Pfeffer (1998): Consultation and negotiation with trade unions results in higher productivity. • WERS 2011 Survey in Britain: 24% of managers reported that Unions help to improve workplace performance E m p l o y e e I n v o l v e m e n t Ve r s u s E m p l o y e e Participation Employee involvement: Management initiated practices Goal is to elicit employee cooperation for firm performance Individualistic and Direct E.g. quality circles, suggestions schemes, ESOPs Employee Participation: Supported by Legislation Goal is to protect workers’ interests Collective and indirect E.g. Union recognition laws, health and safety laws, protection of wages Key issues to consider in Employee Involvement and Participation(EIP) 1. 2. 3. 4. 5. 6. 7. 8. Who initiates the action ? What type of involvement and participation? Who sets the agenda OR on whose terms? Is it ‘Consultation’, ‘Negotiation’ or just ‘Info Sharing’ ? Do employees or their representatives have access to relevant employment related information? How is it linked with rewards? Who gets how much…..? What happens if employees or unions do not agree with management’s decisions? E m p l o y e e P a r t i c i p a t i o n t h r o u g h Tr a d e u n i o n s Workplaces with recognised trade unions: Private Manufacturing: 2004 13% 2011 9% Private Services: 13% 12% Public Sector: 90% 92% Source: Workplace Employment Relations Survey (WERS 2011-12) Non-union forms of Consultative Committees Presence of non-union bodies such as Joint Consultative Committees (JCC) in the UK Private Manufacturing: 2004 11% 2011 5% Private Services: 5% 6% Public Sector: 19% 15% Source: WERS 2011-12 Evidence of Direct Employee Involvement BWRPS (Diamond and Freeman 2001) Level of direct influence workers have on workplace decisions Lot Some Little/None Deciding how to organise work: 53% 28% 20% Setting working hours incl.breaks & OT: 22% 24% 54% Setting pace at which you work: 43% 28% 29% 12% 83% Deciding what kinds of perks 4% Or bonuses are offered to employees What does this data tell you about management’s intentions? W E R S 2 0 11 : % o f e m p l o y e r s w h o n e g o t i a t e w i t h t h e i r s t a ff o r r e p r e s e n t a t i v e s Key Issues Negotiation with Staff or their Representatives Intro of Performance related pay 35% Changes in working time arrangements 22% Product or Service Innovation: 8% Introduction of New Technology: 7% E m p l o y e e D i s s a t i s f a c t i o n w i t h M a n a g e m e n t ’s c o n s u l t a t i o n p r a c t i c e s ( W E R S 2 0 11 ) Management Practice Employee Dissatisfaction (very poor or -poor rating) ---------------------------------------------------------------------------------------------------------Seeks views of employees & Their representatives: 24% Managers respond to suggestions From employees & representatives: 25% Allows employees & representatives To influence decisions: 31% Financial Participation Schemes – gained popularity in the UK since mid -1980s Employee Share Ownership Plans : Management creates an employee trust which holds and manages individual employee shares in the company Save as you earn schemes (SAYE): employee given option to buy company shares at a fixed price after a set period of time. Some proportion of current salary is then put into savings fund to pay for these shares Profit related pay: some proportion of pay is linked to overall profit of the company or business unit Tax incentives for ESOPS and Profit related pay Evidence on Financial participation schemes BWRPS (2001) Type of financial participation Profit related pay or bonus: Employee share ownership: Profs 22% 25% Clerical 12% 13% Operative 9% 8% CIPD (2012) (% of respondents reporting by sector) N =455 Combination of merit pay and bonuses Manufacturing Private Sector Public Sector 53% 45% 8% Profit Sharing 39% 42% 0% Merit Pay rises 64% 52% 49% Total 43% 46% Evidence on Financial participation schemes BWRPS (2001) data set Q: Is financial participation associated with higher levels of worker loyalty to the firm or, satisfaction with influence over company decisions? A: No significant relationship between Employee share ownership and worker loyalty to organisation (r= 0.042) A: No significant relationship between share ownership & satisfaction with influence over company decisions (r= 0.001) How would you explain these results ? Financial Participation Schemes • More common in firms facing stiff product-market competition • More common in larger firms (by number of workers employed) • Less common in unionised firms • Less common in Public sector organisations compared to private sector organizations (Kearsley et al. 2006) Financial Participation Schemes • For Management – reduces fixed wage costs and increases variable wage costs • It also transfers the market risk from employers to employees • Creates ‘shared capitalism’ → increased motivation • Workers are more likely to be de-motivated when profits or share prices fall. I n d i r e c t Wo r k e r P a r t i c i p a t i o n : E u r o p e a n Wo r k s Councils (EWC) 1994 Directive Applies to Multinationals fulfilling two criteria: 1.Employs at least 1000 employees in 28 member states covered by the directive 2. Employs at least 150 in each of two such member states European Trade Union Institute (2012) Total No. of MNCs covered by EWC Directive = 2400 Total No. of Active EWCs = 931 Compliance Rate = 38.79% EWCs are required to consult with worker representatives on issues such as investment, employment trends, redundancies etc H o w e ff e c t i v e a r e E u r o p e a n Wo r k s C o u n c i l s (EWCs)? Waddington, J (2003; 2011): Survey of 840 Worker Representatives on EWCs from six countries on their perception of EWC effectiveness 49% of all worker reps reported that management did not discuss or provide useful info. on employment levels and forecasts 64% of all worker reps reported the same with respect to changes to working methods 72% of all worker reps reported management did not discuss or provide useful info. on vocational training 66% of worker reps reported that management did not even raise the issue of ‘working time’ Indirect Employee Participation in UK Information and Consultation of Employees (ICE) Regulation 2004: April 2005: All organizations employing 150 or more workers must have a Works Council April 2007: All orgnz employing 100 or more worker covered April 2008: All orgnz. employing 50 or more workers will be covered I C E 2 0 0 4 : U K Wo r k s C o u n c i l s Art 4 (c): Information must be given to ‘appropriate’ worker representatives at an ‘appropriate time’ Art 8: Confidentiality clauses and penalties for violation (rather unclear) Ambiguities in the directive (more so in its implementation) • How in the absence of employer initiative, will a request for council or committee be instigated? • Will there be a process of balloting? Who will be deemed to be ‘appropriate’ representatives? • What will be the exact nature of sanctions? Summary • Employee involvement is not the same as Employee Participation. • Most evidence indicates that employers are more enthusiastic about direct employee ‘involvement’ but not employee ‘participation’ • The BWRPS 2001 and WERS 2011 surveys indicate poor uptake of employee involvement and participation by employers in the UK (why should this be the case when research evidence indicates a positive link between EIP and firm performance?) • Financial participation schemes are fairly popular in the UK but their stated objective of ‘shared capitalism’ and employee motivation are questionable. • Employee Participation is legislated both at European and UK levels. However, to what extent do the laws work is a moot question. Suggested Readings Workplace Employment Relations Survey (WERS) 2011 First Findings Waddington, J. (2011) ‘European works councils: the challenge for labour’ Industrial Relations Journal vol. 42(6): 508-529 Beardwell, J. and Claydon, T. (2010) ‘Human Resource Management – A Contemporary Approach’ FT Prentice Hall. Chapter 14 Peccei, R., Bewley, H., Gospel, H. and Willman, P. (2005) ‘Is it Good to Talk? Information Disclosure and Organisational Performance.’ British Journal of Industrial Relations, Vol. 43, No.1, pp: 11-37 INTERNATIONAL LABOUR REGULATIONS Samar Chakraborty OUTCOMES ➢ Understand international laws and labour regulations ➢ Know the sources of international labour laws ➢ Understand codes of conduct in labour standards ➢ Understand how the labour laws are regulated ➢ Understand the key issues that are affecting worker’s right. INTERNATIONAL LABOUR REGULATIONS ✓ International law is the body of international legal norms which regulates issues concerning work. ✓ ILO is the source of international labour law embodied in conventions, recommendations and documents ✓ International labour regulations concern the rights and duties of government, employees, employers, and trade unions in regulating the workplace ✓ The international Labour Organisation and the World Trade Organisation have been the main international body reforming labour markets ✓ IMF and World Bank have indirectly driven change in labour market. ✓ ILO is a specialised agency of the United Nations with the mandate to promote social justice and internationally recognised human and labour law TYPES OF INTERNATIONAL LAWS LAWS can be classified in two types i.e. Hard Laws and Soft laws ➢ Hard Laws: Hard laws refer to legally biding instruments and laws which can be legally enforced before a court - Self-executing treaties or international agreements, customary international laws, United nations security council resolutions etc. ➢ Soft laws- Soft laws refers to quasi-legal instruments which do not have any legally binding force. - Most resolution and declaration of the UN general Assembly, Codes of Conduct, guidelines, and declarations of EU. SOURCES OF INTERNATIONAL LABOUR LAW ✓ ILO forms the majority of the sources of international labour law in Conventions and recommendations - The Objectives of the ILO - ILO Declaration on Fundamental Principles and rights at work ✓ UN Human Rights and Conventions - The Universal Declaration of Human Rights 1948 - The international convention on the elimination of all forms of racial discrimination 1955 - The international covenant on civil and political rights 1966 -The international covenant on economic, social and cultural rights 1966 -The convention on the elimination of all forms of discrimination against women 1979 -The convention on the rights of the Child 1989 -The International convention of the protection of the rights of all migrant workers and memmbers of their families 2003 STRATEGIC OBJECTIVES OF ILO ✓ Set and promote standards and fundamental principles and rights at work ✓ Create greater opportunities for women and men to decent employment and income ✓ Enhance the coverage and effectiveness of social protection for all ✓ Strengthen tripartism and social dialogue INTERNATIONAL LABOUR STANDARDS ✓ International labour standards are primarily tools for governments seeking to draft and implement labour law ✓ International labour standards are legal instruments, drawn up by the ILO constituents(Government, Employers, Workers) that sets out basic principle and rights at works ✓ ILO has 189 conventions and 202 recommendations and 187 member states ✓ The core labour standards are a set of four fundamental, universal and indivisible human rights i.e. freedom of association, forced labour, discrimination and child labour that are enshrined in eight ILO conventions. FUNDAMENTAL CONVENTIONS OF ILO The eight fundamental Conventions are: 1. Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87) 2. Right to Organise and Collective Bargaining Convention, 1949 (No. 98) 3. Forced Labour Convention, 1930 (No. 29) 4. Abolition of Forced Labour Convention, 1957 (No. 105) 5. Minimum Age Convention, 1973 (No. 138) 6. Worst Forms of Child Labour Convention, 1999 (No. 182) 7. Equal Remuneration Convention, 1951 (No. 100) 8. Discrimination (Employment and Occupation) Convention, 1958 (No. 111) HOW ILO WORKS . LABOUR STANDARDS - CODES OF CONDUCT Codes of conduct: A code of conduct lays out an organisation’s expectations and guiding principles for appropriate workplace behaviour. Codes of conduct can be divided into five main types ▪ Company code- Walmart code, Primark code ▪ Trade association codes – BGMEA, Bangladesh ▪ Multi-stakeholders’ codes – Government and Non-government( ETI, FLA) ▪ Model codes – ICFTU, NAFTA, GUF ▪ Inter-governmental - OECD’s guidelines for multinational enterprises - ILO’s tripartite declaration of principles concerning multinational enterprises [ETI- Ethical Trading Initiatives, FLA- Fair Labour associations, ICFTU- International confederation of free trade union, NAFTA- North American Free Trade Agreement, GUF- Global Union Federation, BGMEABangladesh Garment Manufacturers and Exporters Associations] LABOUR STANDARDS ✓ There are 246 codes in OECD inventory of which 60 percent refer to labour standard(148 codes) and 59 percent to environmental stewardship (OECD, 2000: figure 3) ✓ Around 60 percent of the company and business association codes in the OECD inventory do not specify any penalties for non-compliance ✓ The ILO has adopted more than 180 conventions on labour issues, but there is no punishment if counties fail to adopt these conventions. ETI CODES ✓ The Ethical Trading Initiative (ETI) is a leading alliance of companies, trade unions and NGOs that promotes respect for workers' rights around the globe ✓ Based in the UK but have members from Australia, Germany, Spain, Sweden and USA. ✓ ETI agree to adopt the ETI Base Code of labour practice, which is based on the standards of the International Labour Organisation (ILO) ✓ ETI has nine codes but researcher found that there is a breach of code (5, 6, and 9) in the Bangladesh garment Industry. [https://www.ethicaltrade.org/sites/default/files/shared_resources/eti _base_code_english.pdf ] FLA CODES ▪ The FLA Workplace Code of Conduct defines labor standards that aim to achieve decent and humane working conditions. ▪ The FLA provides a model of collaboration, accountability, and transparency and serves as a catalyst for positive change in workplace conditions. ▪ Based in US but have members of 18 countries ▪ FLA has eight codes are most common to ETI but the demand of living wage is ignored. [http://www.fairlabor.org/sites/default/files/fla_code_of_conduct.pdf] MAJOR PLAYERS INFLUENCING LABOUR STANDARDS IN BANGLADESH . Local Global Bangladesh Labour laws Codes of Conduct OECD, ILO, ETI, FLA, CCC, ACCORD, Alliances BGMEA INDUSTRY Labour standards Frameworks IFA, GUF, NAFTA , etc. Standards SA8000, ISO OECD-Organisation for Economic cooperation and Development, ILO- International labour organisations, ETI- Ethical Trading Initiatives, FLA-Fair Labour Association, CCC- Clean clothes campaign, IFA-International Framework Agreement, GUF- Global Union Federations, NAFTA-North American free trade agreement, SA-Social Accountability, ISO- International Organisations for Standardisation, BGMEA- Bangladesh Garment Manufacturers and Exporters associations. BWB-Better Work Bangladesh LABOUR STANDARDS -BANGLADESH ✓ Bangladesh has adopted all eight fundamental conventions of ILO. ✓ Bangladesh did not ratify 62 conventions out of 180 ILO conventions ✓ Employers are the main factor of forming union at factory. ✓ Needs 30 percent support to form Basic Trade Union at factory. ✓ Government supports Employers rather than workers in resolving disputes. ✓ Only 6.3 percent of the entire workforce are union members ✓ Union registration has gradually decreased in the last 3 years ✓ About 95 percent of workers are concerned about poor wages. LABOUR STANDARDS - CHINA ✓ China did not ratify four core conventions of ILO out of eight fundamental conventions. ✓ China did not ratified 64 ILO conventions out of 180 conventions ✓ Workers are not free to form or join trade unions ✓ Legal trade unions have to be affiliated to the ACFTU( All China Federation of Trade Union) and accepts its control. ✓ ACFTU is the part of Government and party bureaucracy ✓ Needs 25 or more employees to form Enterprise Trade Union or can form Basic level trade union committee with less than 25 worker’s support ✓ Once trade union forms, employer needs to pay 2% of total worker wages to ACFTU to support its members ✓ Strike and protests have risen by almost 20% compared to 2015. OCCUPATIONAL SAFETY AND HEALTH ILO estimates that ✓ 2.2 million people die each year from work related accidents ✓ 317 millions people suffer from work related disease ✓ 337 million people are involved in fatal and non-fatal work related accidents per year ✓ 4% of world’s annual GDP is lost as a consequences of occupational disease and accidents ✓ ILO standards on occupational safety and health provides essential tools for governments, employers and workers to establish a safe place to work. THOUSENDS DIED WHILE PRODUCING GARMENTS FOR MULTINATIONAL COMPANIES IN BANGLLADESH Rana Plaza building collapse killed 1,135 people in the country’s worst industrial disaster https://www.youtube.com/watch?v=C25gMQ2Zj3k 3,500 export-oriented factories Employed an estimated 4.2 million workers ACCORD and Alliance formed after the incidents to address Labour Standards Earns $22 billion in exports /year $67 a month wage LABOUR STANDARDS IN APPLE FACTORY CHINA ✓ Apple accused of failing to protect workers ✓ Less than $1 an hour to make iPads ✓ Working 12 hours a day for 6 days a week ✓ 70000 workers are working in one site ✓ Some workers live in dorm where 8 people live together in one room. ✓ In one floor 200 people share one toilet and one restroom https://www.youtube.com/watch?v=kSvT02q4h40 https://www.youtube.com/watch?v=0VOl0WamNSY ACTIVITIES ➢ Students are requested to prepare group presentation based on the video elements and the contents of lecture’s slides. ➢ Students need to focus on the following issues while preparing their presentation 1. Factors that impact on promoting trade unions and labour standards 2. How these factors can be addressed [hint: Students can do PESTEL analysis to explain the above scenarios] References [data monitor] available from http://www.chinabriefing.com/news/chinas-trade-union-law/[accessed on 12 October 2018] [data monitor] available from https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:11210:0::N O::P11210_COUNTRY_ID:103404[accessed on 13 October 2018] [data monitor] available from https://www.chinabusinessreview.com/trade-union-law-andcollective-bargaining-in-china/ [accessed on 12 October 2018] [data monitor] available from ]https://www.ethicaltrade.org/about-eti [accessed on 12 October 2018] Q&A . COURSEWORK ASSIGNMENT Academic Year 2018-19 Module Code: BHM 349 Module Name: Employee Relations in Context Module Leader: Dr. Vidu Badigannavar CIPD Skills Portfolio Title: A 750 word individual portfolio based on CIPD skills workshop: Task Details/Description: Students are expected to write a 750 word portfolio based on critical reflection of material covered in the CIPD skills workshop. They are required to carefully examine the performance related pay policy for teachers introduced by the British government and prepare negotiation points for employers, management and the trade unions side. In doing so they should consider the following: 1. Summarize the dispute concerning performance related pay for teachers 2. Summarize key demands of each side 3. Suggest ways to approach the negotiation towards dispute settlement. Module Learning Outcomes Assessed: 1. Demonstrate knowledge of the roles and functions of different actors/stakeholders in employment relationship 2. Develop appropriate skills to manage conflict situations effectively. Presentation Requirements: Word Count: 750 Font Size: 12 Line Spacing: Double Submission Date & Time: 14 December 2018 by 12 noon. Assessment Weighting for the Module: Percentage: 0% This portfolio is assessed as ‘Pass or Fail’. It is compulsory to pass this assessment in order to pass the module. Assessment Criteria 1. Argue analytically, logically and coherently. 2. Wherever possible, support arguments with evidence from published sources 3. Cite and/or quote sources of information appropriately in the main body of the portfolio. Provide full list of bibliographic references at the end of the portfolio. Ethical Requirements Students are not expected to collect primary data for this assignment. However, if they choose to do so, they will be required to follow University’s ethical guidelines and seek written approval from the tutor. Essential Reading for Coursework Task (if in addition to reading provided in the module outline): Please note that this is not intended as an exhaustive or definitive list of readings for this piece of coursework. Instead, the articles/chapters listed below should be viewed as core or essential readings that may act as a start point as you prepare to tackle this assignment: Williams, S. (2014) ‘Introducing Employment Relations: A critical approach’ 3 rd edition, Oxford University Press, Oxford. Marsden, D. (2014) ‘Teachers and performance pay in 2014: First results of a survey’ Centre for Economic Performance Working Paper 2140, London School of Economics http://eprints.lse.ac.uk/57844/ Dundon, T. and Rollinson, D. (2011), ‘Understanding Employment Relations’ 2 nd edition, McGraw-Hill, Berkshire, England. Noon, M., Blyton, P and Morrell,K. (2013) ‘The Realities of Work: Experiencing Work and Employment in Contemporary Society’ 4th edition, Palgrave MacMillan. Website of the National Union of Teachers (NUT) https://www.teachers.org.uk/ Website of the Teachers Union NASUWT http://www.nasuwt.org.uk/ Website of the Department of Education, Government of UK https://www.gov.uk/government/organisations/department-for-education
Purchase answer to see full attachment