3. Industrial Relations

Learning Outcomes from this chapter

On completion, you should be able to

• Describe a possible industrial conflict and show how the law would be used to solve it
• Outline non-legislative ways of solving conflict within a workplace
• Explain what trade unions are, and outline their role in industrial conflict
• Evaluate negotiation, conciliation and arbitration, as they are used to resolve industrial conflict in the workplace
• Illustrate the impact of trade disputes on different stakeholders
• Illustrate how legislation affects different business relationships
• Illustrate both fair and unfair grounds for dismissal from employment
• Outline the impact of legislation on employment equality
• Evaluate the role of the Workplace Relations Commission and the Labour Court in improving workplace relations and solving industrial disputes

Benefits of good industrial relations

1. Improved employee motivation (Reason for this: Employees work harder when they enjoy work)
2. Lower absenteeism (Absenteeism: People calling in sick or taking sick days)
3. Increased productivity (Reason for this: People work more efficiently when they are happy)
4. Higher retention rates (Less people quit)

Factors leading to industrial disputes

In order of most frequent to least frequent

1. Disputes over pay
2. Redundancy (When your job no longer exists)
3. Disputes over working conditions
4. Unfair dismissal
5. Discrimination
6. New technology
7. Demarcation issues
8. Trade union recognition

Types of pay claims employees can make

Cost of living claim:

• High prices caused by inflation have made it difficult for a person to maintain their standard of living

Comparability claim:

• Employees compare larger salaries of similar jobs in different sectors

Productivity claim:

• Additional pay for employees with increased output/productivity

Relativity claim:

• Linked professions – if one receives a pay increase, the other might also seek an increase (e.g. Gardaí and nurses)

Trade unions

Trade Union:

From Slides:

• An organisation formed to protect the rights and interests of the members it represents, usually employees in a particular industry
• Can be an important source of information for employees
• Can provide employees with protection on employment matters
• Can negotiate with the employer for better pay and conditions

From Class:

• Can provide assistance in legal disputes
• Can represent members
• Can protect members from unfair practise
• Can negotiate on behalf of members
• Provide info to members

Shop Steward:

• An elected union representative and the contact point if a member has any concern in a workplace
• A link between union members and employer

Non-legislative Solutions (Non-legal, no laws govern these methods)

Term	Definition
Negotiation	Offers, counter-offers, compromise to reach a solution
Conciliation	Unbiased third party encourages parties to listen to each other
Arbitration	Unbiased third party encourages parties to listen to each other

Industrial Relations Act 1990

Term	Definition
Defines ‘trade dispute’	Any dispute between employers and workers that is connected to the employment or non-employment, or the terms or conditions of employment of any person (e.g. a dispute over pay or discrimination of a worker or group of workers)
Secret ballot and one week’s notice	A secret ballot of members takes place: if the majority vote in favour of action, seven days notice of the strike is given to the employer
Primary and secondary picketing	It is lawful to peacefully protest outside the workplace with placards (primary) or outside another workplace believed to be frustrating a resolution (secondary)
Immunity	If action is official, employer cannot sue employees for any losses

Industrial Relations Act 1990

• Employer cannot sue for business disruption
• Outlines around for official disputes or strike action
• Lawfully protest without reprisal
• Covers all legal activities around employment
• Have to give 7 days notice to strike (gives chance to employer to resolve conflict)
• A confidential secret ballot must be carried out before a strike can happen

Picketing Terms

Term	Definition
Primary Picketing	Strike action outside the actual premises by the workers there
Secondary Picketing	Outside another workplace by worker supporting colleagues in a dispute
Immunity	Employers can’t sue employees for any losses that the business faces from a lack of sales caused from the action

Types of industrial action

The industrial actions above are legal. Workers are not allowed to engage in a wildcat or lightning strike (an unofficial strike where no notice is given to the employer)

While citizens can legally protest the government, it is illegal for workers to stop work in order to protest a government decision

Types of industrial action (from slides)

Term	Definition
Official strike	Employees do not enter their workplace and do not do any work
Work-to-rule	Employees only do the exact jobs written in their contract, without any flexibility
Overtime ban	Refusal to work extra hours, outside contract hours
Token stoppage	Brief stoppage of work, carrying the threat of further action

Types of legal industrial action (from teacher)

Term	Definition
Official Strike	This is when the employees don’t enter their workplace and refuse to work for their employer. Official strikes has to have a secret ballot, proper notification to the employer (i.e one week’s notice) and it being sanctioned by ICTV
Work-to-rule	When employees only undertake the exact jobs written in their job description or contact of employment, without any flexibility
Overtime ban	When worker refuse to work extra hours outside their normal contracted hours. This can lead to business losing sales
Token stoppage	A brief stoppage of work intended to carry the threat of further, more serious action if an agreement is not reached

Types of illegal industrial action (from teacher)

Term	Definition
Lightning Strike (Wildcat Strike)	It is an unofficial strike, where workers go on strike without giving any warning to their employer
Political Strike	While citizens can legally protest against the government, it is illegal for workers to stop work in order to protest against a government decision

Impact of industrial action on stakeholders

Employees:

• No wage
• Sour relationships
• No work

Customers:

• No service
• Inconvenienced
• May shop elsewhere
• No good to buy

Investors:

• Productivity paused
• Lower profits
• Share price falls
• Money being used to cover strike

Employer:

• Time wasted
• Loses money
• Morale falls
• Strains relationships

Supplier:

• No orders
• Profits fall
• Can cause wastage

Government:

• Don’t receive tax
• Time wasted with negotiation

An official strike must concern legitimate trade dispute, like:

• A dispute over pay and conditions of employment
• Employers not recognizing a trade union
• Discrimination against an employee
• The unfair dismissal or suspension of an employee

Employees can’t take industrial action over management decisions made for the business

Unfair Dismissals Act 1977–2015

This legislation protects employees who are unfairly dismissed

Steps to dismiss a worker:

1. Give counselling
2. Give a formal verbal warning
3. Issue a written warning
4. Issue reasons for dismissal in writing
5. Offer the right of appeal

Grounds for fair dismissal

1. Incapable of doing job
2. Incompetent (no skills)
3. Lacking qualifications
4. Misconduct (stealing, cursing, discrimination)
   • Gross Misconduct (physical violence, etc.)
5. Redundancy
6. Contravenes the law (e.g. work permit expires)

Reasons an employee may have been unfairly dismissed

• Steps for dismissal not followed
• Insufficient evidence for dismissal
• Discrimination against worker for dismissal
• Grounds exist for constructive dismissal

Redress for unfair dismissal

1. Reinstatement
2. Re-engagement
3. Compensation (max. two years pay)

Reasons for Unfair Dismissal:

• Race
• Gender
• Politics
• Sexuality
• Age
• (Being apart of the) Travelling Community
• Religion
• Maternity Leave

Employment Equality Act 1998–2015

Employment discrimination:

• An employee is said to be discriminated against if they are treated in a less favourable way than another person is, has been or would be treated in a comparable situation on any of the nine distinct grounds detailed below
• Advertising that is discriminatory is illegal (e.g. ‘Young staff wanted’)

The nine grounds:

1. Gender
2. Civil Status (Marriage) *
3. Family Status *
4. Sexual Orientation
5. Religion
6. Age
7. Disability
8. Race
9. Membership of the Traveller Community

* = less likely to crop up

Advertisements and interviews are the most frequent places where discrimination can happen in the work place

Steps for resolution:

• Talk it out with employer
• Use a third party
• Advice or conciliation from WRC
• Adjudication services from WRC

Workplace(/Workers) Relations Commission

The WRC aims to promote the improvement of workplace relations, the maintenance of good workplace relations and to encourage compliance with relevant employment legislation

Functions of the WRC

1. Advisory service: Promotes best practice; provides policy, advice and good industrial relations procedures
2. Conciliation service: Appoints Industrial Relations Officers (IRO) to chair ‘conciliation conferences’ to provide an impartial, timely and effective conciliation service
3. Mediation service (Restorative practise): Helps the parties in a dispute achieve a voluntary resolution of a complaint or grievance
4. Adjudication services (court): Holds a hearing during which both parties are given an opportunity to be heard and present any evidence relevant to the complaint
5. Inspection services: Carries out inspections, examinations or investigations to monitor and enforce compliance with employment legislation

The Labour Court

Bullet Points on The Labour Court

• A free service
• Not legally binding
• Hears cases as a last resort
• Arbitration
• Codes of practise
• Register Agreements

A free service that aims to provide high-quality, fair and impartial arrangements to resolve industrial disputes and determine appeals in disputes based on employment law

Investigates complaints as a court of last resort

• Hearings using WRC services can be referred, if no resolution was reached

Arbitration

• While not legally binding, it can make recommendations that are normally accepted in advance by both parties

Codes of practice

• It gives its opinion on any interpretations of the codes of practice in place under the Industrial Relations Act 1990 and investigates reported breaches

Registers agreements

• It registers agreements for parties to refer back to if future conflicts arise