Where a trade union exists, it influences a number of organisational activities. Strategic human resource objectives also determine how industrial relations are managed. BHP's old industrial relations strategy was built around pragmatic cooperation with trade unions where authoritarian managers never talked to their workers and had a long history of caving in to unions. (Raymond, J. Stone, pg 588). Tannenbaum and Hoxie concluded that unions emerged in response to the psychological needs of workers. Hoxie also claimed that the development of unionism could best be explained in psychological terms. He believed, however, that different groups of workers had different psychological needs and outlooks and that in turn led to the formation of unions with widely varying functions. (Deery, S.J, pg. 216)
Industrial relations tends to have a collective approach in the organisation whereby the need for a trade union is much highlighted. Fox believed that trade unions should be viewed as providing an organised and continuous way of expressing the sectional interests that exists. (Deery, S.J., pg. 10). Human resource management on the other hand tend to have a more unitarist perspective on the importance of trade union in the organisation whereby the need for a trade union in an organisation seems to have less significant effect. This approach is highlighted where human resource encourages individual approach of the employer-employee relations in the organisation.
The nature of the work climate also has a direct impact on the viability of many human resource management activities. Where the climate is negative and the union strong, a company may not be able to perform various activities without the union consent. Such situations can foster a feeling in some managers that workplace relations is 'too hard'. This in turn, produces managers who do not give priority to human resources, who are more reliant on the outside bodies; who hand the initiative to unions; and who adopt a reactive and remedial rather than a pro-active preventive approach to industrial relations. Today, few organisations appear to have developped any pro-active HR strategies to encourage managers to take responsibility for managing their human resources. In fact, for monopolistic, tariff-protected and other industries sheltered from global competition, there is an incentive to ignore inefficient work practices and tolerate union excess because costs can be readily passed on to the customer.( Raymond, R. J., Stone, pg 589) .
In practice, human resource management often supports the idea for employees to become anti-company and pro-union. Management abuse and neglect ensure that the only way for employees to secure dignity and protection at work is by joining a union. For example, a former union official describes a company where the female secretarial and clerical staffs were constantly tearing their stockings on the dilapidated wooden furniture. Management ignored all complaints until one of the clerks caught a splinter under her kneecap. The frustrated staff walked out and sought union help. Management, confronted with a strike and the union, immediately purchased new furniture. Indeed, this case is a clear indication that the continued development of human resource management often fosters the existence of trade union in the organisation. (Raymond, J. Stone, pg. 590).
HRM have stimulated a change from a collectivist and legalistic approach to industrial relations to one emphasising individualism and non-third party involvement. For example, salaried operations, which promote the mutual interests of employees and the organisation, are the natural outcome. In such organisations, all employees are treated as staff and wages (or union) personnel. The aims to remove artificial barriers to cooperative effort and to ensure that all employees are given equal respect and treatment. However, it should also be noted that because a company is union-free there is no guarantee that it will employ sophisticated HRM policies and practices. Research in Britain, for example, show that, with few exceptions,( such as companies that had adopted a strategic HRM approach in greenfield sites), non-union workplaces are characterised by poor communications, little employee involvement, high labour turnover, and high rates of accidents and terminations. Unionised workplaces in contrast show greater in their HR policies and practices. Getting employees to be more productive involves more than the absence of unions. It involves management time, commitment and expertise. The quality of management is the critical element in the successful introduction of sophisticated HRM policies and practices designed to improve productivity and worker satisfaction. (Raymond, J. Stone, pg. 595)
However, the presence of a union does not rule out cooperative partnerships between management and trade unions. The Saturn (General Motors) and United Auto Workers (UAW) partnership involved a radical shift in traditional US labour management relations. Similarly, Toyota's US New United Motor Manufacturing Inc. (NUMMI) is another example of a successful company-union cooperative partnership. This illustrates how innovative HRM, productivity and quality are interrelated and how a pro-active union can simultaneously enhance an organisation's competitiveness and the welfare of its members. This suggests that, given the right industrial relations climate, a dual commitment to both the company and the union is possible. (Raymond, J. Stone, pg 596)
Guests points out, however, this is achieved only in few organisations and at management's initiative. Guests further argues that unions may regret the failure of HRM initiatives because the alternative may be much worse. Consequently, Guests says that unions may be wiser to see HRM as an opportunity rather than a threat. (Raymond, J. Stone, pg 597).
Similarly, Bacon and Storey suggest that trade unions restruture themselves and align themselves with the organisation's strategy. This is justified on the grounds that many aspects of HRM, such as skill development, career enhancement, employee involvement and open communications have been advocated by the unions themselves. Nevertheless, the evidence suggests that it is possible for trade unions to be accomodated within the HRM model if a cooperative rather than an adversarial approach is employed.
Negotiation in industrial relations involve representatives of management and workers bargaining over items such as wages, penalty rates, hours of work and conditions of employment. It is fundamental to union-management relations and a key activity for HR managers. An important characteristic of collective bargaining, that of the ongoing employer-employee relationship has a significant impact on the importance of trade unions in the organisation. According to Cohen, outside consultants reduces the status of the HR manager in the eyes of the employees, union officials and company management. Because HR managers does not accept direct responsibility for the conduct of negotiation, the HR function is perceived as weak and the HR manager as not having the ability, authority or confidence of top management. Interestingly in Japan, where the HR function is very powerful, outside influence in industrial relations is not tolerated. Indeed, when negotiaitions with unions are viewed as a strategic activity within the organisation and not merely a defensive response to union demands, line managers become much more active in the negotiation process.( Raymond, J. Stone, pg 614)
The supporting study of the effect of HRM practices on trade unions clearly indicates that with the HRM policies and practices, trade unions are not bound to cease their significance in the organisation but it is indeed supported with few changes and a new approach to its increasing importance for the equal benefit of both the employer and employees in the organisation.
List of referrences:
Books:
Deery, S.J., Plowman, D., Australian Industrial Relations (3rd edition). Sydney,
Australia: Mc Graw-Hill.
Plowman, D., Industrial relations ( edition).
Raymond, J. Stone, Human Resource Management (4th edition). Queensland,
Australia: John Wiley & Sons Australia Ltd.
Robbins, S. P. et al, Organisational behaviour (3rd edition). NSW, Australia;
Pearson Education Australia.
