The article also talks about ‘the direction that industrial relations is headed’. I have interpreted this as meaning that other companies within the particular industry have already, or are planning to make similar moves and, Dixons does not want to be seen as being the odd one out which may lead to negative press about the company as in the TUC report, Denied a Voice at Work, from the year before.
Economic
I think the main economic factor that Dixons have had to consider is the implications if they do not have some involvement with trade unions. As mentioned above, Dixons was mentioned in the TUC report, Denied a Voice at Work, from the year before, as being one of the employers that had ignored votes from staff in favour of union representation. I think that fears over negative publicity and the effects this may have on consumer’s perceptions of Dixons are important to the company in terms of the trade that could be lost.
The company are obviously highly aware of how their brand image may be affected by any further bad press and would not want to experience a slump in sales and loss of market share as a result.
Social
By choosing to recognise the AEEU, of which 51% of Mastercare employees are members, Dixons is allowing them to take action (before being recognised, the AEEU could have been sued for this) and also opening up the opportunity for a small representative group of AEEU members to negotiate and consult with Dixons on any decisions they make. This is called collective bargaining and removes the need for Dixons to consult each employee individually.
The AEEU will provide a channel of communication between the employees and the senior managers, allowing worker opinions and grievances to be heard. The workforce will become confident that management decisions are made properly and thoughtfully due to the trade unions ability to offer advice and or objection during the decision making process. Overall, this leads to a more consultative management approach where there is increased awareness of mutual interests.
I think that Dixons may have chosen to recognise the AEEU, for positive management reasons as well as the above. By including a no-strike clause in the partnership deal with the AEEU, Dixons is attempting to limit the union’s possible actions while at the same time increasing their involvement and consulting them on important issues. From a social point of view, the partnership deal is a very positive step in the right direction. Although only a limited sections of the Dixon groups repair and service arm, Mastercare is covered by the agreement, this should be seen as a trial that could lead to further union representation throughout the company.
Technological
There are not any immediate technological changes that will be of significance due to the partnership deal with the AEEU. However, in the future, Dixons will have to consult with the union in decisions about the use of technology and the union may be able to put forward its ideas on how technology could be used to benefit both the employees and Dixons.
Legal
The legal implications of Dixons’ new partnership deal with the AEEU are that the trade union will now be able to take action without it being illegal. Dixons and their employees will now also be able to use the Advisory, Conciliation and Arbitration Service (ACAS) to resolve any industrial relations disputes before they develop into confrontation.
Either or both parities are able to contact ACAS although, they will want to see that union officials are involved and that the company’s disputes procedure has been followed. ACAS will offer conciliation to each party and if this is unsuccessful, ACAS can offer arbitration, by providing an independent arbitrator who will examine the case put forward by each party and judge the right outcome of the dispute. If both sides agree in advance, the arbitrator’s decision can be legally binding.
As well as the above, ACAS can also provide free advice to employees and employers.
Environmental
As far as I can see, Dixons and their employees will not be subject to any environmental change issues as a result of the partnership deal with the AEEU.
Conclusions
I think it is fair to say that Dixons have chosen to form a deal with the AEEU because of a number of reasons. I believe this is a big step for the company and positive steps are being taken by them when they choose to recognise the AEEU. By doing so, they are recognising that the staff need a voice and, are making moves to counterbalance the ownership, economic and legal power of the employers.
The partnership deal is a very positive move for a company in Dixons’ position to make. They are acknowledging that union representation is what the staff want and, by being the first to strike a deal since the publication of the Fairness at Work white paper, they are setting a positive example to other companies.
TASK TWO
Short-term benefits
Long-term benefits
The above benefits will come about through careful planning between the senior management and the union officials. By consulting with staff and union officials over decisions made effecting employees, Dixons will be able to achieve the above. Any disputes that do arise, will be dealt with swiftly and efficiently and will limit any disruption to working activities.
TASK THREE
I believe strongly that equal opportunities are imperative to the success of a business. A modern business that ignores issues relating to equal opportunities does so at its own peril.
Equal opportunities within the work place are legal entitlements for employees and the employer is responsible for ensuring that employee’s rights are not breached. It is illegal for an employer to discriminate against someone on the grounds of sex, age, race, ethnic origin, sexuality and disability. Organisations must abide by the following legislation:
This Act states that men and women should be treated equally in relation to employment, meaning that men and women should be paid the same for carrying out the same job.
- Sex Discrimination Act 1975 and 1986
This Act makes it illegal to discriminate against somebody on the grounds of sex in relation to recruitment, dismissal, promotion, benefits, facilities or services. This legislation is enforced by The Equal Opportunities Commission.
This Act makes it illegal to discriminate in relation to employment, against men or women on the grounds of colour, race, nationality or ethnic origins. The legislation applies rules to the recruitment of staff as well as to the way they are treated once they are employed. This legislation is enforced by The Commission for Racial Equality.
- Disability Discrimination Act 1995
This Act makes it illegal for an employer to treat a disabled employee less favourably than others and requires that employers make reasonable adjustments to working conditions and environment to help overcome any practical difficulties the employee may have.
It is essential to an organisation to take notice of equal opportunities to avoid being sued by employees and in order to create a fair working environment. If a company fails to observe the importance of equal opportunities, they may find themselves involved in a court case, bought about by the aggrieved employee.
As well as the conditions imposed by the aforementioned legislation, employers may choose to include a more inclusive equal opportunities policy to the contract of employment. For example:
The Company will fulfil its commitment to equal opportunity by:
- Recognising its legal obligation under the Race Relations Act, The Sex Discrimination Act, The Equal Pay Act, and the Disability Discrimination Act
- The periodic review of its selection criteria and procedures to maintain a system where individuals are selected, promoted and treated on the basis of their relevant aptitudes, skills and abilities
- Ensuring that all future policies and procedures regarding employment issues are developed in strict accordance with this policy
- Distributing and publicising this policy statement throughout the Company
By including the above in a company handbook, the Company is effectively reiterating its position in relation to equal opportunities. This serves to install confidence in the staff that they will be treated fairly and to warn staff that it is unlawful for them to engage in any sexual, racial, or other kind of harassment or discrimination against another person. If the Company has taken all necessary acts to prevent discrimination, the employee responsible may find that he or she is liable instead.
In the article entitled A macho culture meets its match, it talks of the male dominated IT industry and the work of Margaret savage a Human Resources director for British Telecom. In a company such as BT, where there is no relevant reason why a woman cannot carry out the same role as a male employee, it is vital that there is an equal opportunities policy. Margaret Savage has attempted to increase the number of females employed, by altering the working environment to include more part-time positions, remote and flexible working. By taking these positive steps to make the recruitment process more inclusive, Margaret Savage has managed to improve staff retention figures and re-educate senior management in relationship management which she says, has encouraged them to innovate and take pride in their work.
I believe that BT has gained by having a more inclusive recruitment policy in the following ways:
- More flexible working environment (more part-time positions, remote and flexible working)
- Improved staff retention figures and bottom line
- Improved employee motivation and morale due to there being a more equal working environment and better opportunities for women
- Better working relationships through increased understanding of the different needs of female staff members
- Decrease in the number of sexual discrimination claims from female employees.
- Increased awareness of equal opportunities among existing staff members.
BIBLIOGRAPHY
Books
- Marcouse, Gillespie, Martin, Surridge, Wall - Business Studies for AS - Hodder & Stroughton - May 2001
- Smith & Vigor - People in Organisations - Oxford University Press – 1991
Internet
Other material
- Hugh Symons – Employee Handbook
- Lecture notes and handouts provided within business management lesson.
