One of the most significant companies in the global market is the air travel industry. The flight industry is part of your business environment that constantly changes because of swift technical development and the high competitiveness between the airline companies. Despite the fact that the impact of technology is stronger than before it sometimes gets control the energy of the labor force in companies, by changing the work structures and careers descriptions, people will be the principal element in the development of companies due to idea that without people, scientific advantages would not be completely exploitable. That is why employment relationships are so very important to the company's wealth and future development. Advantages of healthy employment relationships are improvement in production, better company performance and also problems in workplaces are better to be resolved. On top of that, extra resources and support are given to management, employers and the unions on situations that arise within the workplace.
One of the most significant companies in the air travel industry that involves mind while talking about employment relations is Uk Airways. BA is one of the greatest Airline companies in the world and the greatest in britain, soaring to over 550 spots worldwide. Since the founding of the company, the increasing degrees of market share and company development have been common to the eye of the owners and the CEO's of the business over time. BA employs about 40. 000 people worldwide. Therefore good work relations are essential if the company desires to avoid professional action that will interrupt its businesses. As we will see in the following chapters, BA hasn't only got problematic employment relations but the current situation of the company might be turned out fatal to the company's future.
It is not really a simple procedure when trying to provide a definition to what employment relations is. Relating to Ed Rose, occupation relations is the"regulation of the work relationship between workplace and staff, both collectively and separately, and the conviction of substantive and procedural issues at industrial, organisational and workplace levels. " (p. 6 Ed Rose. 2001). According to Ed Rose and this is above, we can easily see that employment relationships is vital for companies in order to keep the relationship between your company and the worker in harmony urging the personnel to focus on a high level, in order for the company to have a positive result and fulfil the goals place by the company. A balance between your needs of any employer and worker will conclude into a good romantic relationship and in its flip maximize output, the work area environment will be more pleasant, the opportunity for employees to develop their skills further will be increased as well as job satisfactions and they'll gain more job security if the relationship is good therefore of tone initiatives.
According to Salamon (2000), "a trade union is any firm, whose membership
consists of employees, who seek to organize and represent their pursuits both at work and culture and, in particular, seeks to regulate the employment relationship through the direct process of collective bargaining with management". It could be argued that the above definition represents with some reliability what "Traditional British isles Industrial relations" is all about. In other words British Industrial relationships have customarily been created as revolving round the establishments (company and unions) and steps (collective bargaining).
Nowadays there's been a substantial change in employment relations when speaking of the role and vitality of trade unions. Union memberships have dropped to approximately 7 million in today's work environment, from 12 million associates before. Also, apart from the reduction in the union memberships, the target of unions has also been altered as shown in the Workplace Employment Relations Review. Pay and working conditions are not the basic focus of Unions, which spend almost all of their time encouraging problems and grievances that matter mostly individual employees.
Such developments increase questions about the ability of trade unions to maintain their role as collective bargaining organizations.
It is within this development that "relationship at work" might has a job to play. "Partnership agreements" or Sociable Partnership can be defined as an " an attempt to define a job for trade unionism which amounts its central matter to represent employees' passions with a productivist appeal to employers and administration" (Claydon, 1998). Community partnership, in line with the Trade Union Congress (TUC) is dependant on four main elements. These elements are: 1) employment security in return for popularity of new working techniques 2) collective staff tone of voice in organisational decision-making through wider consultation 3) good financial rewards 4) investment in training (Claydon, 1998, Monks, 1998) The thought of a partnership would be that the concerns of both employers and employees are tackled. Employers and employees may then identify the issues that are normal goals, to make a 'win-win' situation. They can also negotiate issues, for example by personnel acknowledging new working techniques in substitution for higher employment security etc. The greater formalized the partnership deal, the more constrained the trade union impact. The most appealing approach appears to be where an company and a trade union could work through informal relations and cooperations in creating a genuine relationship strategy. (Taylor 2000)
The prime issue for professionals is "focus". Managers should lead their focus on issues that directly affect staff performance. It is a fact, that positive emotional bonding with employees has as an results increase in the financial performance of the business.
British Airways is one of the major airline companies on the globe with a large number of employees worldwide. Staff who have employment with BA have many reps regarding trade unions. An example of the trade unions associated with BA are BALPA, which is the representatives of pilots, BASSA and Unite the Union which symbolizes the cabin crew members and the rest of the employees of the business.
From the medial side of the business, a management committee has been set up in order to handle the employment relationships plan that is developed by the company, by communicating, consulting and negotiating the changes straight with the employees associates from the several trade unions. In order for the consultation plan to be successful the company also makes practice goes to to screen the performance of plans launched by other companies, to allow them to develop the best possible strategy in launching employment relationships issues.
In 2005 British Airways because of some happenings affecting the operations carried out in Heathrow Air port that revolved around the ground support staff, the company launched a structure called Industrial Relations Change Programme to be able to prevent further disruptions. This type of program centered on the relationship between professionals and Trade Unions and had as main objective to reduce the communication barriers between your two sides, in order to boost their romance and increase understanding related to issues that came to the surface. More than 1800 professionals and approximately 220 Trade Union staff attended the workshops to improve human relationships. This acquired all the characteristics of any partnership agreement. As it has been defined previously.
The present BA occupation relations situation is far from good. Constant attacks, disagreements between management and employees have lead the company into a deadlock. The company's romantic relationship with the Unite that presents the cabin staff members has obviously been disrupted because of the fact that the company is making changes to staff contracts and is constantly cutting jobs to be able to cope with the turmoil that the global market is facing without consulting the employees and the unions.
Since the beginning of the attacks on December 22nd 2009, BA had not experienced any similar occurrences for over a decade pointing out the nice romance between employees and professionals until lately. As mentioned in the "Telegraph" online web page, there is profound unhappiness among the cabin crew staff of BA therefore:
Cost slicing, i. e. minimizing the amount of cabin staff from 15 to 14 on long distance flights.
Reduce wages, i. e. The Company argues that the wages of the cabin team personnel in long distance flights is incredibly high as well as pensions because of this time frame when going right through a global monetary crisis.
Re-structuring of deals and the fact that BA have iced pay.
Although strike action is the final resort Unite feels that it's the sole solution. After all, frustrating majorities in two hit ballots remaining no choice. Successful negotiations between the two sides have not yet been accomplished but Unite is positive that the results will be beneficial for both Uk Airways and the employees too.
Most of the companies in the elite of the Global market have been affected by the economic crisis causing into financial difficulties as well as work environment disruptions. Options are been taken from companies such as BA in order to reinforce labour relationships and also re-develop work environment innovation plans to minimise the consequences of the global monetary crisis. Since the company is positioned in the general public sector, BA has developed characteristics of a general population company such as unionized activities and the development of a traditional job relationships strategy increasing human relationships with the federal government and tighter marriage with companies in the public sector. In order for BA to "crawl" out of the crisis they have to develop modern office strategies to top the marketplace and support their brand.
BA should develop powerful work practises to be able to develop a wholesome work environment environment. Practises that the business could adopt are:
High degrees of performance by creating value and applied regarding of new capital and scientific developments.
Development of real human capital which will cause increased worker skills and improved upon customization of services.
Engagement of employees in problem fixing issues and performance advancements.
Building of organisational public capital to ease knowledge showing and coordination off work.
Research in options specifically for airlines have proven the advantages to businesses - in conditions of improved efficiency, quality and financial performance - of work practices that encourage the simultaneous development of human capital and interpersonal capital. Workers benefit from improvements in skills and interpersonal capital, and even more than 70 percent prefer these work systems over either traditional union or non-union systems. Unions are essential for employee tone of voice which enhances the productivity ramifications of High Performance Work Tactics (HPWP). For workers, the combo of union representations with HPWP is commonly associated with higher wages, some of which are achieved through shared gain-sharing or similar reimbursement practices.
As mentioned early on, a marriage of common trust between Trade Unions and management is essential. Especially in BA's current situation, an arrangement with Unite would terminate the turmoil and redeem BA's loss of 531m pounds released by the company's supervisor Willie Walsh.
In fact we can easily see that good career relations will help the company to perform the objectives placed and perform successfully the services the business offers.
"Together with our customers and co-workers, we are decided to lead the industry towards finding progressive solutions. We will constantly review how exactly we fly, that which you fly and that which you buy to ensure we are the most effective and responsible flight in operation" as explained on the firms public website.
It is unreal to see in companies like BA a predicament where the work place will be dominated by the interests of he employees at the expense of the employers. It is also most unlikely o see o non- union situation. It really is true that Traditional British Industrial Relations is almost something of days gone by. It is also unreal to see the role of trade unions as singular "partners of companies in assisting to bring about improvements in output, competitiveness and profitability". What's probably needed is a fresh Partnership Agreement based on mutual trust and also on concepts like having an interesting job, job security, good working conditions, having a feeling that they contribute to something positive at work and to the future of the business.