Role of Trade Unions in HRM

Role of Trade Unions Overview

Trade Unions are organisations that represent the interests of workers or employees in a particular industry or occupation.
They play a significant role in Human Resource Management (HRM), influencing various aspects like wage negotiation, working conditions, and dispute resolution.
The key objective of a trade union is to protect and advance the economic, social, and working conditions of its members.

Key Functions of Trade Unions

Collective Bargaining: Negotiation on behalf of members with employers over employment terms and conditions.
Legal Representation: Providing advice and representation to members in legal matters related to their employment.
Member Services: Offering benefits to members such as training, education, and social activities.
Lobbying and Advocacy: Campaigning for changes in legislation and public policy that benefit members and workers more generally.

Influence of Trade Unions on HR Policies

Working Conditions: Trade unions ensure safe and healthy work environments in compliance with established laws and regulations.
Wage Policies: Unions negotiate better salary packages and benefits for workers, thus influencing the company’s pay scale and compensation policies.
Grievance Handling: Trade unions play a key role in resolving employee disputes in a fair and just manner.
Equality: Unions fight to overcome discrimination in the workplace and strive for equal opportunities for all employees.

Trade Unions and Industrial Action

Strikes, work to rule, overtime bans, and go-slows are various forms of industrial action that trade unions may resort to if negotiations with employers fail.
Such action is aimed at exerting pressure on the employer to resolve the issue and meet the union’s demands.
However, industrial action can disrupt business activities and lead to financial and reputational losses for the company.

Implication of Trade Unions on HRM Strategy

HRM strategy must factor in the influence of trade unions in shaping various HR policies and procedures.
Companies need to maintain a healthy relationship with trade unions to ensure a motivated workforce and a harmonious working environment.
Negotiations and consultations with unions need to be conducted in good faith and any agreements reached should be adhered to, to maintain trust and credibility.
A proactive approach in dealing with trade unions can contribute to improved worker-employer relationships, better productivity and increased employee job satisfaction.