Trade Unions, Employee Relations, and Wage Premium Analysis Report

This report provides a comprehensive analysis of trade unions, focusing on their impact on employee relations and the wage premium associated with union membership. It defines trade unions and explains their role in assisting companies by fostering positive employee relations. The report incorporates relevant theories and explores concepts like mediation, negotiation, and collective bargaining. A critical case study of Tesco is used to illustrate the need for trade unions and the reasons why many workers choose not to join. Statistical data is presented to demonstrate the wage premium enjoyed by union members. Furthermore, the report examines the reasons behind worker reluctance to join trade unions, including employer exploitation, inflexibility, and reduced motivation. Finally, the report offers recommendations to address these issues, suggesting strategies to improve the appeal of trade unions and increase membership. The report is referenced using the Harvard format and draws on resources from books, journal articles, and websites such as CIPD, TUC, OECD, and the FT newspaper.

TRADE UNION

Contents
INTRODUCTION...............................................................................................................................4
1 What are trade unions and how do they help the company in terms of employee relations............4
2. Include theories and the concept of mediation, negotiation, and collective bargaining where
possible..............................................................................................................................................5
3. Critical analysis of a selected case steady of a company to explain the need for trade unions and
why many do not join........................................................................................................................5
4. Show the statistics that justify the need for trade unions is a wage premium.................................6
5. Reasoning of what many workers are reluctant to join trade unions..............................................6
6 Recommendations are required to improve to the problem.............................................................7
CONCLUSION....................................................................................................................................7
REFERENCES....................................................................................................................................9

INTRODUCTION
Trade union is basically termed as the association of workers or labours formed
together with legal units. It also commonly known as the labour union which developed by
the workers who have common interest and also wants to secure their rights at workplace
(Gomez and Gunderson, ] 2016). This unions basically provides legal supports to the workers
in case they faces any sort of issues in terms of bias activities, non equal or fair pays, ,long
working hours without additional monetary benefits etc. at workplace. In the present report,
detailed description would be provided on trade union and its support in development of
employee relations. It further provides explanation on theories and the concept of mediation,
negotiation, and collective bargaining where possible. Later on, statics data would be used in
order to justify the need for a trade union is a wage premium. At last appropriate
recommendation would be made on the most common issue that is why employees do not
want to join trade union.
QUESTIONS
1 What are trade unions and how do they help the company in terms of employee relations.
Trade unions are acknowledged as the membership based association of workers
which collaboratively work for the welfare of the employees and protects their rights. These
unions simply provide advises to the workers in difficult situation this might also include
legal advises (Berntsen and Lillie, 2016). Also, trade unions also fights for protecting
employees rights by simply communicating with the employer and ask them to improve wage
rate as well as working environment to employees. All of them collaboratively contribute into
development of the better and strong relationship between employer and employee. This is so
because; trade union makes things clear to employer and employee both which ultimately
helps the employees in performing the work as per the expectation of employers. On the
other, it also ensures that employer would definitely provide better working environment to
employees along with the good wage rate which would definitely boost up their confidence in
the organisational work. All of this clearly depicts that the trade union collaboratively support
businesses in developing their relationship with the employees which further supports in
accomplishing their organizational objectives as employees of the company are satisfied with
them and they are placing their hundred per cent efforts in the organisational work.

2. Include theories and the concept of mediation, negotiation, and collective bargaining where
possible
Mediation is termed as the interactive process in which third party is involved in order
to resolve conflicts at workplace with the usage of specialise form of communication as well
as negotiation techniques. In this method, all the participants are motivated to actively show
their participation in the interactive process. Here collective bargaining is also termed as the
formal procedure through which trade union indulges into the negotiation process with the
employer on the behalf of their associated members (Goerke and Pannenberg, 2015). It has
been later analysed that the collective bargaining can only be executed when the employer
has knowledge about their trade union and also have a clear idea that they have wider scope
of negotiation in between them. Here, negotiation theory clearly depicts that it can be seen in
the form of descriptive, normative or prescriptive in nature. It has also been specified that
many of the theorist have mentioned that there are range of approaches which are adopted by
the individuals in order to developed their understanding over the aspect of negotiation.
3. Critical analysis of a selected case steady of a company to explain the need for trade unions
and why many do not join.
Trade union or labours are organisations which formed by employees from related to the
fields which work for common interest of their members. In addition to this, it help
employees in relation of several issues such as good working environment, fairness of pay,
working hours and several other benefits (Hodder and et. al., 2017). Moreover, trade union
represent cluster of employees as well as provide link within the management and staff
members. There is several need of trade union for Tesco Company which is part of retail
industry. Explanations of these are as follows:-
 Unity is strength – Trade Union provides several important elements to workers such
as collective voice for communicating to management about their dissatisfaction as
well as frustration.
 Union negotiate better terms and condition – It is important that all the aspects related
to working life should be discuss and agreed within employees as well as employers
under protection of trade union (Larsson, 2015). Moreover, trained representatives of
union lead such negotiation on behalf of staff members.
 Better job security – Trade union provide better job security as member of union
always want to stay within their job for long term on average of minimum 5 years in
comparison of non-unionized workers.

 Motivates employees –Implementation of trade union within working provide
assistance to Tesco company in motivating their employees (Ibsen and Tapia, 2017).
As their need and wants get fulfilled in effective manner through practices of trade
Union. As it is important for respective company to implement trade Union for
motivating their employees.
From above discussed points it has been determine that it is important for Tesco to
implement Trade Union practices within their working. As it will help in accomplishing
desired goals by conducting operations in effective manner with the assistance of employees
who are motivated through Trade union.
4. Show the statistics that justify the need for trade unions is a wage premium
Trade Union has wide impact on compensation as well as work life of both unionized
and non-unionized workers. Such as union result in raise wages of Unionized approx. 201%
and compensation involving both benefits and wages about 28% (How unions help all
workers, 2020). In addition to this, it also result in reducing wages inequalities because they
generally work for raising wages more of low and middle wage employees instead if higher
wages workers. In other words it can be said that, work more for blue collar rather than white
collar employees as well as also for the workers who don’t have college degree. Along with
this, Strong unions set a pay standard that non-union employers follow. For instance, a high
school graduate whose workplace is not unionized but whose industry is 25% unionized is
paid 5% more than similar workers in less unionized industries. The impact of unions on total
non-union wages is almost as large as the impact on total union wages.
5. Reasoning of what many workers are reluctant to join trade unions
In a business organization trade union play a crucial role as it protect employees’ right
and provide them security at working area. The primary objective of the unions was formed is
to ensure justice as well as the rights of workers. If the management team treats its right
employees for the right way, no union will be usually required. Employees joining the unions
may do have many other advantages (Tassinari and Maccarrone, 2017). The Unions were not
easy to handle. Employers typically do not like the trade unions as much as workers do.
Unions serve as the second-in - command in a business organization and often compel
managers to make decisions in their support. But at the same, it is also not good and mostly
workers are doesn’t like to join the trade union because of various reasons such as:
Exploiting employers: It is considered as one of the major reasons that employees
don’t want to join trade union because it has accumulated power increasingly that is the

reason that employer exploit their workers and also reduce their productivity level at working
area. This may put negative impact over the company and its workers as well.
Companies turn inflexibility: Due to trade union, employees start to feel inflexible
as they are not do their best within the company. It may reduce the involvement of employees
and also reduce their creativity. This will turn it less competitiveness as compare to
organizational competitors.
Workers lose motivation: It is also a major reason that employee get less motivated due to
trade union as they will lose the incentives to improve their performance (Harvey, Hodder
and Brammer, 2017). It is worse for workers if trade union has hassled to not provide any
kind of extra benefits and rewards to employees within the business organization.
6 Recommendations are required to improve to the problem
As per mentioned problems of trade union, it has been recommended that
organization should provide flexible environment to its workers so that they feel more
encouraged towards the trade union and also tries to give their best. Along with this,
employer needs to explain all the benefits of trade union in- front or employees and also
make them comfortable (Crouch, 2017). This can be contributing in increasing the
possibilities of joining trade union as sometime it also effective because it provides fair
supervision and management have turned people oriented. With the help of this, managers
improve employee’s performance by treating them fairly and respectfully. In addition of this,
management should provide healthy and safe working environment wherein workers feel
productive and engaged with the company (Arndt and Rennwald, 2016). It will assist in
increasing workers involvement at working are and at the same time also maintain positive
relations with their manager as well. By joining the trade union, employees improve their
performance as they think that union power can guarantee fair wages and salaries along with
all the necessary benefits such as pensions, medical facility benefits, vacations and many
more extra benefits. It helps in making employees more productive and motivated towards
their job activities and also give their huge efforts for attaining their targets in business
organizations.
CONCLUSION
On the basis of above specified information, it has been analysed that trade unions are
mainly developed for the welfare of the employees and provide them support with the legal
rights. It has been later acknowledged that unity is strength, union negotiate better terms and

condition, better job security and motivates employees are the main need of trade unions at
workplace whereas Exploiting employers, Companies turn inflexibility and Workers lose
motivation are main reason which shows how workers are reluctant to join trade unions.

REFERENCES
Books and Journals
Hodder, A. and et. al., 2017. Does strike action stimulate trade union membership
growth?. British Journal of Industrial Relations. 55(1). pp.165-186.
Ibsen, C.L. and Tapia, M., 2017. Trade union revitalisation: Where are we now? Where to
next?. Journal of Industrial Relations. 59(2). pp.170-191.
Gomez, R. and Gunderson, M., 2016. The experience good model of trade union
membership. The Changing Role of Unions: New Forms of Representation Edited
by: Phanindra V. Wunnava (New York: ME Sharpe, 2005).
Berntsen, L. and Lillie, N., 2016. Hyper-mobile migrant workers and Dutch trade union
representation strategies at the Eemshaven construction sites. Economic and
Industrial Democracy, 37(1), pp.171-187.
Goerke, L. and Pannenberg, M., 2015. Trade union membership and sickness absence:
Evidence from a sick pay reform. Labour Economics, 33, pp.13-25.
Tassinari, A. and Maccarrone, V., 2017. The mobilisation of gig economy couriers in Italy:
some lessons for the trade union movement.
Harvey, G., Hodder, A. and Brammer, S., 2017. Trade union participation in CSR
deliberation: an evaluation. Industrial Relations Journal, 48(1), pp.42-55.
Crouch, C., 2017. Membership density and trade union power. Transfer: European Review of
Labour and Research, 23(1), pp.47-61.
Arndt, C. and Rennwald, L., 2016. Union members at the polls in diverse trade union
landscapes. European Journal of Political Research, 55(4), pp.702-722.
Larsson, B., 2015. Trade union channels for influencing European Union policies. Nordic
journal of working life studies, 5(3), pp.101-121.
Online
How unions help all workers, 2020. [Online]. Available through:
<https://www.epi.org/publication/briefingpapers_bp143/>.