London Underground Case Study Analysis

This assignment requires you to conduct a comprehensive analysis of employee relations practices at London Underground. You'll examine various aspects such as communication strategies, decision-making processes, conflict resolution mechanisms, and the role of unions. The analysis should delve into how these practices influence operational efficiency, service delivery, and overall employee satisfaction. You are expected to draw upon provided case studies and relevant literature to support your findings and recommendations.

MANAGING EMPLOYEE
RELATIONS

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................2
1) Stakeholders.......................................................................................................................2
2) Power, control and conflict ...............................................................................................5
3) Employee Voice.................................................................................................................7
4) Collective bargaining.........................................................................................................8
RECOMMENDATION AND CONCLUSION.............................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
The employment relationship is the behavior and communication between the employer and
employee (Gomez-Mejia, Balkin and Cardy, 2004). This relationship is especially related to
employees’ right and its emotional state in their jobs. In order words it can be seen as the legal
relationship between an employer and its employee. This arises when an individual performs
work and services in return for remuneration (Blyton and Turnbull, 2004). Similarly, the term
employee relation is interchangeable by industrial relation. Employee relationship involves the
work that is concerned with maintaining the healthy relationship between employer and its
employee in order to contribute towards the satisfactory productivity, motivation and morale.
Therefore, it can be said that employee relationship is concerned with overcoming the various
problems which arises within the business organization (Hislop, 2003). Employees should be
provided with more health and safety measures. Their basic salary as well as different type of
allowances rate should be increased specially for the works who are working late night. Proper
lighting facility should be provided to them. Along with these all safely pick and drop facility
should be provided to the employees who are working late night.
Employee Voice refers to the participation of the employee in every decision making
process of the organization. It can be said that employee voice is the key to a success of every
organization (Gomez-Mejia, Balkin and Cardy, 2004). According to the Clarke, voice of
employee is extremely important because there are many challenges faced by the company. And
at the same time it could be said that there are many business concepts which keeps on changing
and one of the most important one is trust. Thus, listening to the employee voice is very
important (Greasley and et.al, 2005).
The essay will examine the case study of London Underground (LU) after workers went
on strike over conditions offered to them after a strategy put forward by the major of London to
introduce all night- tube service to boost the capitals economy (Sabin, 2015). Almost 20,000
workers went on strike for 24 hours from 6.30 pm on Wednesday 8 July in order to achieve
various benefits for the employees who are working late night. In accordance with the case
scenario 20000 London underground workers were on strike on Wednesday that was budget day.
This was in dispute over all night tube services. The Rail, Maritime and Transport union, Aslef,
Transport salaried staff association and Unite were in dispute in relation with the pay that was
being offered for new services. The chief operating officer of London underground Steve
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Griffiths presents that Full and final offer has been made. This presents that there would be a
£500 non consolidated “launch bonus” to all the staff on night tube lines and, a £2000 “transition
bonus” for the drivers who were working overnight. However, in order to provide the non
consolidated bonus, health and safety of the staff members was sidelined.
Proper employee relation will aid the LU management to manage the healthy relationship
between the employee and employer (London Underground Case Study, 2016). This in turn will
aid the LU to overcome the problem of striking by understanding the needs and demands of the
employees.
The present essay entails to understand the interest of different stakeholders. It includes
the power, control in the employment relationship. Further involves certainty of conflict. In
addition to this it also includes significance of employee voice as well as communication before
decision making. The essay involves discussion major causes that results in situation of conflict
aroused by workers of London underground. Moreover it covers various necessary measures
undertaken in order to resolve the actual cause of strike.
MAIN BODY
This section of the report covers different aspects related with London underground case
study. The part covers the style of management adopted by London Underground. Further it
includes key stakeholders of firm and their varied interests. In addition to this it involves
discussion on where power lies among unions and management at London underground. Main
body also presents importance of employee voice and communication before decision making.
The conflict resolution is also discussed within this section of essay.
1) Stakeholders
Stakeholders are an independent party who are affected by the organization, strategy or
projects (Blyton and Turnbull, 2004). The key stakeholders of London Underground involve
employees, customers as well as authorities/ management. This because they have interest in the
affairs of the organization. Further stakeholders also includes the one who have invested funds in
the organization thus requires appropriate return from the investment. The key stakeholders of
LU have been discussed in the manner stated below:
 Employee: - An Employee is a person who works for the betterment of the company. In
order to achieve the success in their business satisfying the majority of employee is very
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important (Armstrong and Taylor, 2014). Thus, an organization should make an effort s
to satisfy its employees by providing them healthy work environment and job security.
These employees in lieu of LU strike simply want safety of their life and at the same time
relief from late night job or increase in the basic salary or monthly bonus and
remuneration.
 Customer: - Customers are one of the most valuable assets to the company. If customers
does not fell delighted from the services of company then this results is causing
dissatisfaction among them (Snyder and Diesing, 2015). In accordance with the case the
strike by London Underground has affected the customers to a greater extent. The
customer needs value for their money in terms of high quality of services. The services
offered by LU at station got affected through strike which has influenced the satisfaction
level of customers to a significant level.
 Authorities/Management: - Management and authorities are the backbone of the
company. They want to achieve set targets easily by managing all activities (Baarslag
et.al, 2014). Thus, in context of the LU strike, management has made certain offers in
front of the staff members in order to manage all the problems that arose. Management by
forming various strategies is able to overcome the condition of the strike faced by the LU.
This style was followed by the LU management in order to solve the night tube problem
that is faced by the works that are working after 6:30 pm. This strike voted for by
workers was made by the employee in order to get more safety and security along with
bonuses (Daft, 2015).
Thus, in order to satisfy the stakeholders LU management has taken into consideration the
two styles that is consultative style and collectivism style. Consultative style is regarded as one
of the management style that can be used by London Underground. It is considered as the style
which demonstrates the combination of democratic and autocratic. The consultative manager
gain insight to the views and opinions of staff and allows them to feel involved but the authority
to take final decision lies in the hands of management only. This style of leadership which
focuses on using the skills, experiences and ideas of other people in order to solve various
problems that arose out of LU strike by the staff members (Bauer and Lingens, 2014). By using
this style, management can collect various ideas where they can decide to increase average pay
or provide bonuses amongst other (Edwards, 2009). Here, the management consults team
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member or workers before taking final decision. Such can be adopted by LU in order to resolve
the issues that resulted in causing strike. Collectivism style: - It is the style in which an
individual form a group in order to achieve the desire target effectively (Morgan and Zeffane,
2003). In case of LU strike same style was adopted by both the employees and the management.
Employees form a large group of about 20000 individual employees in order to achieve their
desired target, which was increase in pay, health and their safety. A large pressure by the group
of employees forces the London Underground management to accept the demands of the
employees. Similarly, in order to overcome this problem LU management has considered the
following style (Methods/Ways of Participation of Employees in Decision-Making, 2015). They
formed a large association considering the Rail, Maritime and Transport union in order to
overcome the problem of strike. They have considered the various ideas and suggestions given
by different union to satisfy the employees. These suggestions provided by different unions
should be undertaken by the LU to overcome the situation of strike.
There are three types of trade unions that are taking place in the London (Craft union,
industrial union and public employee unions). Craft union represents the workers in specific
occupation. Craft union was developed from the medieval Europe this union main aim is to
represent the workers in the specific occupation, according to their skills (Cullinane and Dundon,
2014). This union tries to develop employee relations by studying each individual behavior and
its related occupation. Industrial Union represents the workers in the industrial sectors like
transportation and food services. This union symbolizes the workers in long-haul trucking which
comprises of a variety of industrial jobs like trucking, construction and warehouse (Muhammad,
2015). One of the largest industrial trade unions in London is International Brotherhood of
teamsters. This union makes an attempt to develop the employee relations by considering the
various activities performed by every individual (Sy, Tram and O’Hara, 2006). Public sector
unions present workers at every level of government. It is regarded as trade union that primarily
demonstrates the interest of employees within public sector (Guest and et.al, 2003). These unions
support workers at urban and industrial job.
Therefore, development of trade union will prove to be beneficial as well as hazardous to
the LU management. If trade union is developed then London Union will be able to easily
overcome the problem of strike faced by them. They can talk and make understand the individual
leader of the union about the solution of the problem. Because making understand a single
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employee is very easily as compared to speaking to the large number of employees (Greasley
and et.al, 2005). Thus, development of these trade unions helps the LU management to easily
overcome the strick problem made by the employees in order to get increment in the salary for
the employees working after 6:30pm and at the same employees also wants health and safety of
their life. By simply offering various offers to the employees against their demand. In the strike
carried out by LU the trade union involved is public sector unions. As the case presents that
workers are fighting for their interest from government organizations. This demonstrates
involvement of public sector trade unions who can work for the betterment of LU's employees.
The union size involved in the strike is 20000 that involve workers of London underground who
commit stop from work due to non fulfillment of their demands.
2) Power, control and conflict
This section of essay presents power and control within employment relationship. Further
it includes inevitability of conflict. The part portraits the nature and origin of conflict and
discussed on where power lies among unions and management at London Underground.
An organization should make efforts to impose various power and control on the
employee in such a way that it does not hurt any employee (Kaynak, 2003). A company can use
this power in order to overcome the problem of strike faced by London Underground.
Employee relationship shows the behavior and communication that take place between
employee and employer (Vinciarelli, Salamin and Polychroniou, 2014). A healthy employee
relationship between the employer and employee will create a healthy working environment in
the organisation (Armstrong and Taylor, 2014). This is because such has ability to increase
satisfaction of the employees at work. Further it boosts their morale to work to fullest zeal which
thereby results in enhancing their productivity to a greater extent. This in turn will assist the
company to achieve its desired objectives. A positive employee relationship will aid the
company to overcome the various conflicts that arises within an organization (Bauer and
Lingens, 2014). Many a time this employee relationship can also prove to be barrier in the
success of the company. It can create groupism in the organization and groupism will lead to the
conflict (Blyton and Turnbull, 2004). This is because groupism results in inter-specific
competition. Further competition is inevitable for growth and success of an individual. Groupism
in term is not considered bad but regular conflicts different group is bad. People in corporate
searches for one having similar behavior. Once they discover then they tend to group together.
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Further they tend to protect the interest of group. But major issue arises in case of dissimilarities
in the ideas of different group which result in creating situation of conflict in the organization.
Pluralism is the theory which says that several veto groups are formed out among the
various political powers in various democracies that should tie in with trade unions (Copeland,
2014). According to this theory only one veto group can win at a time. Thus, taking into
consideration the above mentioned case it can be concluded that two veto group is formed out.
One is of the employee union and other is of LU management.
The situation of functional conflict arises when there is disagreement among the parties
but in a healthy manner (Edwards, 2009). This conflict can be dissolved easily in the general
board meeting. Likewise, on the other hand condition of dysfunctional conflict arises when there
is disagreement among the parties in an unhealthy manner (Rahim, 2015). This conflict results in
strikes and lock-outs.
There are also different types of conflicts that may arise in organization like London
Underground. According to the case study of LU it could be analyzed that organized and
unorganized conflicts arises (Strike by London Underground workers will 'definitely go ahead'.
2015). The condition of organized conflict arises when the parties to the contract thought that
they can successfully be able to counter the other party. Similarly, unorganized conflict arises
when the parties who are the actual cause of the organized conflict are not able to introduce any
solution or change (Jensen, 2015). It can be said that the condition of organized conflict has
arose in the LU because employee wants safety along with an increment in the salary for
employee that work at night. Thus, the condition of strike arises because the LU management is
not at all able to provide security to the employees on their demand before (Cullinane and
Dundon, 2014). Thus, it can be said that the condition of organized conflict has arose in the LU
which in turn has resulted in the strikes of the employees (Cullinane and Dundon, 2014).
In accordance with the case study it can be said that power lies in union. Because; union
is made up large group of people with high power. Therefore, after applying the concept of
pluralism it can be concluded that condition of strike arose in the LU was due to the
dissatisfaction among the employees which in turn has resulted in dysfunctional and organized
conflicts.
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3) Employee Voice
After the section of power, control and conflict that represents the reason due to which
conflict occurred. Another part relating with employee voice has been presented. This acts as a
major that can assist London Underground in resolving its issues to a greater extent. If employee
voice had been taken into consideration than the condition of LU strike would not have occurred.
Management of LU can also resolve this problem by listing to the employee voice as;
undoubtedly employees are the only people who work for the betterment of the company
(Vinciarelli, Salamin and Polychroniou, 2014). Thus, it can be said that its management
responsibility to take care of its employee. In order to resolve the strike chief officer of LU has
announced an average 2% rise in basic salary, non-consolidated bonus to the employees working
late night (London Underground Case Study, 2016). There is certain principle of employee
relationship enumerated below:
 Consultation: - It is the process of formally consulting the expert; therefore, there are
various advantages which LU Association can avail. Consultation with the higher
authority will aid the association to know the various ideas and suggestion which in turn
can result in strict resolution (Guest, 2002). Consultation with the higher authorities will
assist the company to assimilate and communicate to each and every employee
effectively. Moreover, it could be said that use of these principle will prove beneficial for
the managers and Association (Hislop, 2003). However, the use of this method is costly
and if designed poorly can produce the misleading results which in turn can enhance the
condition of conflicts (Guest and et.al, 2003).
 Employee involvement: - Employee involvement exists in the organization that
deliberately establishes work cultures, processes and systems to encourage the employee
input and feedback (Jensen, 2015). Employee involvement is the inclusion of employee
called up by the manager of the organization in decision making (Zukauskas and
Vveinhardt, 2015). Use of these principles will aid the LU Association to generate better
ideas in order to resolve the condition of conflict. Employee involvement will aid the
London Association to increases the employee commitment (Lebbon, n.d. Case studies:
London Underground). The principles of employee involvement will also benefits the
company in managing the manager-employee Boundary (Greasley and et.al, 2005).
However, it could create criticism for the LU Association. It can generate a legal problem
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and at the same time creates capacity for mistakes (Strike by London Underground
workers will 'definitely go ahead', 2015).
 Employee participation: - Employee participation is the participation of the employee
directly. In this case employee goes directly to the management in order to share their
various ideas and suggestions (Kaynak, 2003). Thus, it could be said that the condition
of strike may not occur if LU management in advance had focused on the health and
security of the employees who are working after 6:30pm till late nights. Thus, it could be
said that principle of employee participation will prove to be beneficial for the company
only when LU association will consider the involvement of employee who have came
directly to share their ideas and solutions (Jensen, C., 2015). But at the same time it could
create criticism for the LU Association if the ideas and suggestion given by the employee
are not in their benefit. It will create the securities risks and at the same time it will result
in Union Objections (What Is Employee Relations? - Definition & Concept. 2015).
In accordance with the case scenario the principle used by London Underground relates
with employee consultation. This is because the decision making authority relating with final
decision lay in the hands of top management.
4) Collective bargaining
After taking into account employee voice another crucial aspect of employee relationship
is collective bargaining wherein negotiation is done among the employers and employees in
order to reach at an agreement so as to regulate working situations. Under this interest of
employees are presented by trade unions with which employees are associated. The pay and
conditions of most of the employees in the UK are not negotiated. Collective bargaining is not
only considered across the economy; (Morgan and Zeffane, 2003) however in the public sector,
63% employees are covered by collective bargaining and the ratio is more as compared to the
private sector (Copeland, 2014). In private sector, collective bargaining is only about 16% and
when this ratio increases, impact arise most probably on all the levels of company or on business
entities (Rahim, 2015). There is still industry level bargaining in some sectors like textile and
furniture industry; however in the year 1980, there was a clear move to bargaining at local level
and a number of employer federation found to be involved in collective bargaining (Pozos-
Radillo Blanca and Liliana, 2015). In addition to the same, some workers in the public sector are
covered by pay review bodies rather than collective bargaining (Guest, Michie, Conway and
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Sheehan, 2003). There is no legal requirement for the employer to negotiate with the Union
except in the case when legal obligations are required to be considered under decision aspects. In
such cases, the union has the right to bargain over pay, hours and holidays. Such cases are rare in
nature and generally it is the balance of forces between employee and employer at workplace
that determines all such domains where bargaining can take place (Robson, 2015).
As per the case scenario of the workers of the LU went to the strike in order to fulfill
their demands. Workers demanded for the extra pay if they work after the 6.30pm. In addition to
this, workers were not satisfied with the working condition as well as safety measures which are
adopted by an organization in order to overcome the strike condition faced by the LU. Thus,
better arrangements for the health and safety aspects are also one of the main cause due to which
workers went on strike. In order to remove the problem of lock out or strike LU had undertaken
the collective bargaining as a tool (Lebbon, n.d. Case studies: London Underground [Online]).
Moreover, strike and lock-outs closely impacts the functioning of the business organization.
Thus, company arranged the meeting with the representative or leader of the workers to bargain
the terms and conditions which are imposed by all the workers. In meeting, leader of the workers
presents the demand from the workers side and thereby make efforts to fulfill their all demands
(Vinciarelli, Salamin and Polychroniou, 2014). In addition to this, company also represents their
views and suggestion.
In collective bargaining, company makes high level of efforts in order to find out the
solution of the lock-outs (Zukauskas and Vveinhardt, 2015). Organization had also announced
the £2000 in the form of transition bonus for the drivers who performed their functions overtime
(Pozos-Radillo Blanca and Liliana, 2015). This aspect evolves satisfaction among the employees
and encourages them to perform their best efforts which make contribution in the attainment of
the organizational goals and objectives (Muhammad, 2015). In addition to this, London
underground had announced £500 as a non-consolidated bonus to all the staff of night tube lines
(Atherton, W.N., 2015). Nevertheless, on the behalf of the bonus aspects employees sidelined the
health and safety measures (Hislop, 2003). Through collective bargaining organization achieved
success in removing the lock outs within 24 hours. Thus, by negotiating all the terms and
conditions the organization is able to facilitate the smooth functioning of the business (Blyton
and Turnbull, 2004).
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RECOMMENDATION AND CONCLUSION
Thus, some of the recommendations to the management of LU which they can undertake
in order to overcome the problem of the strike and to see that it does not occur again are as
follows:-
 Management of LU should make continuous effects to build a healthy employee relation
in the organization. Healthy employee relation will assist the management to know in
advance what employees want, what are their needs and wants. (Edwards, 2009).
 Management of LU should develop rules and regulations keeping in mind that the rules
formed do not hurt the employees. It should be in the favor of both the employees and the
management. (Blyton and Turnbull, 2004).
 In order to overcome such type of problem and to see that such problem does not arise
further in the future they should timely consult to the experts and undertake the employee
involvement and employee participation.
 Management of LU should undertake the collective and consultation style in order to
understand what actual employee wants and whether the management is liable to fulfill
their demand or not. (Cooper and Mishel, 2015).
 Employees of LU should have the opportunity to voice any concerns and make
recommendations as employee is vital in the workplace and this may help reduce the
number of strikes taken (Cullinane, N. and Dundon, T., 2014).
The recommendations stated above will in turn aid the LU to overcome the problem of
strike by properly understanding what are the need and demand of the employees.
From the essay it has been concluded that company undertakes collectivism style to
manage the problem effectively and efficiently. It can be seen in the report that it places more
emphasis on working in groups as opposed to individually. Through this, the organization is able
to build and sustain competitive advantage over others. Besides this, it can be inferred that
conflicts arose between the management and staff and they went to strike. Thus, it can be
concluded that maintenance of employee relationship in the organization can assist the
organization to easily overcome the conditions like strike by providing the employee what they
want and what are the reasons for the strike. Moreover, after analyzing the whole situation of LU
strike it could be concluded that management of LU was not able to actually understand what
10

employees wants. This carelessness has resulted into the strike. Thus, in order to overcome this
problem LU has undertaken the collective bargaining style to resolve the conflicting situation.
By negotiating the terms and conditions with the team leader company got success in abolishing
the strike within the 24 hours. However, the negotiations weren’t resolved which resulted in the
strikes re-occurring and thus the strike was back in January 2016 this strike occur again because
trade union was not happy with the proposal given by the management of London Underground.
The four unions that are involved in the LU strike have again planned to do the strike at the end
January 2016 and in mid February 2016. This strike has taken place related with the disputes of
the drivers pay and staff working conditions (Tube strike: Unions set date for three days of
action, 2016).
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