Industrial Action: Causes, Consequences, and Strategies for Resolution

Introduction

A vital aspect of employee relations is industrial action, which arises when workers gather to protest management decisions, salary, or working conditions. It represents the difficulties that develop when discussions between employers and workers fail, disrupting harmony and productivity at work (Blyton & Turnbull, 2021). Despite being frequently viewed as a last resort, industrial action is nonetheless a potent weapon for workers to demand equitable treatment. Fostering a fair and productive workplace requires an understanding of the causes behind, effects of, and methods for resolving industrial action.

This blog offers insights into how companies can minimize labor conflicts while guaranteeing equitable treatment of workers by examining the causes of industrial action, its effects on economies and organizations, and successful mediation techniques.

 

Reasons for Industrial Action

Workplace problems can lead to industrial action, and the root causes are frequently related to discontent with wages, working conditions, management practices, or general economic situations. The following are some key causes:

1. Wage disagreements

Employees may demand better compensation through strikes or work slowdowns as they feel underpaid or consider their pay is not keeping up with inflation (Gennard & Judge, 2016).

2. Unfavorable Working Conditions

Employees may initiate industrial action as a result of unsafe or hazardous working conditions. Problems including insufficient security protocols, long workdays, and poor resources can cause widespread disappointment among workers (Brewster et al., 2016).

3. Conflicts Regarding Employment Conditions

Concerns about job security, disagreements over benefits, and modifications to employment contracts can all lead to industrial action. Employees may oppose changes they believe to be unjust or undesirable, such as pension reductions or layoffs without adequate notice (Katz & Kochan, 2018).

4. Leadership Styles and Management Policies

Unfair treatment of staff members, a lack of transparency, and authoritarian management techniques can all build dissatisfaction and prompt industrial action. Conflicts are frequently made worse by a breakdown in trust between employees and management (Heery, 2018).

5. Recognition of Unions and Their Bargaining Power

Disagreements over collective bargaining agreements or a lack of union recognition can occasionally lead to industrial action. Employees may use strikes or protests to voice their demands when management refuse to engage in union negotiations (Farnham, 2015).

 

The Repercussions of Industrial Action

Organizations, employees, and the economy are all significantly impacted by industrial action. Although it is an essential tool for employees to raise their complaints, it also causes disruptions that may have unfavorable effects.

1. Impact on the Economy

Companies and the economy may suffer significant financial losses as a result of strikes and other types of industrial action. Economic stability may be weakened by production stops, income losses, and supply chain interruptions (Purcell, 2019).

2. Financial Challenges for Employees

Industrial action can put employees in financial hardship even though its goal is to improve working conditions, especially if salaries are withheld during strikes. If companies choose to shrink as a result of prolonged industrial action, jobs could be lost (Lewicki et al., 2019).

3. Negative Effects on Employee-Employer Relations

Prolonged conflicts between employers and employees might result in enduring hostility. Employee morale and productivity can suffer in an environment where there are unresolved grievances and dissatisfaction (Dundon & Rollinson, 2011).

4. Damage to Reputation

A key factor in the success of a firm is public perception. Repeated industrial action can harm a company's reputation, which could result in a decline in customer confidence and the loss of investors or clients (Ackers, 2014).

5. Effect on Service Delivery

Service delivery may suffer significantly as a result of industrial action in vital industries like public services, healthcare, and transportation. Millions of people may be impacted by strikes in these industries, which could spark political action and public dissatisfaction (Budd, 2020).

 

Resolution Strategies

Organizations must implement efficient resolution techniques in order to reduce the adverse effects of industrial action and foster workplace harmony. The following strategies can be used to resolve disagreements and avoid protracted conflicts:

1. Proactive Negotiation and Communication

It's critical that employers and employees keep the lines of communication open. Early negotiations and open communication can assist in resolving complaints before they become the subject of industrial action (Fisher & Ury, 2012).

2. Group Bargaining

Mutually beneficial agreements can result from acknowledging unions and participating in equitable collective bargaining. Employers should be prepared to engage in sincere negotiations and quickly resolve any issues raised by staff members (Gennard & Judge, 2016).

3. Arbitration and Mediation

Third-party mediation can offer an unbiased forum for conflict resolution. An efficient substitute for protracted industrial action is arbitration, in which a neutral person renders a legally binding ruling (Blyton & Turnbull, 2021).

4. Employee Involvement and Engagement

Encouraging employee participation in decision-making lowers grievances and cultivates a sense of ownership. Industrial disputes are less likely to occur in organizations that appreciate employee input (Brewster et al., 2016).

5. Frameworks for Law and Policy

Fair employment practices and adherence to labor regulations should be guaranteed by employers. Clear standards for resolving disputes that balance the interests of companies and their staff should be provided by governments and labor organizations (Heery, 2018).

 

Case Studies: Lessons from Workplace Activities

1. The UK Rail Strikes (2022)

Due to disagreements about pay and working conditions, there were numerous strikes in the UK rail industry in 2022. Millions of people experienced travel disruptions as a result of the strikes, underscoring the significance of early agreements and equitable employment conditions. The government's intervention and new pay talks were key components of the outcome (Katz & Kochan, 2018).

2. The General Motors Strike (2019)

In 2019, United Auto Workers (UAW) went on strike against General Motors for six weeks, which led to better benefits and higher wages. But it also caused GM and the workers to suffer large financial losses. The necessity of proactive collective bargaining was highlighted by the strike (Purcell, 2019).

 

Conclusion

Employees are able to raise their complaints and demand fair treatment through industrial action. Its effects on companies, workers, and the economy, however, can be serious. Organizations must use fair bargaining procedures, proactive communication tactics, and efficient dispute resolution procedures in order to achieve equilibrium. Employers and employees can collaborate to establish a just and efficient workplace by cultivating an atmosphere of respect and openness.

 

References

• Ackers, P. (2014). Trade Unions and Workplace Democracy: Exploring the Civilizing, Pluralist, and Demotic Logics of Union Voice. Economic and Industrial Democracy, 35(3), pp. 557-579.
• Blyton, P. & Turnbull, P. (2021). The Dynamics of Employee Relations. 5th edn. London: Palgrave Macmillan.
• Brewster, C., Chung, C. & Sparrow, P. (2016). International Human Resource Management. 4th edn. London: Routledge.
• Budd, J. W. (2020). The Thought of Work. Ithaca: Cornell University Press.
• Dundon, T. & Rollinson, D. (2011). Understanding Employment Relations. London: McGraw-Hill.
• Farnham, D. (2015). Human Resource Management in Context: Strategy, Insights and Solutions. 4th edn. London: CIPD.
• Fisher, R. & Ury, W. (2012). Getting to Yes: Negotiating an Agreement Without Giving In. London: Penguin Books.
• Gennard, J. & Judge, G. (2016). Managing Employment Relations. 6th edn. London: CIPD.
• Heery, E. (2018). Trade Unions and Employment Relations. Oxford: Oxford University Press.
• Katz, H. C. & Kochan, T. A. (2018). An Introduction to Collective Bargaining and Industrial Relations. 5th edn. Boston: McGraw-Hill.
• Lewicki, R. J., Barry, B. & Saunders, D. M. (2019). Negotiation. 7th edn. New York: McGraw-Hill.
• Purcell, J. (2019). Conflict, Cooperation, and Regulation in Employment Relations. London: Routledge.