Trade Unions and Importance of Human Capital

As opined by Pelling (2016), human capital forms an integral part of the various business enterprises because of the fact that the majority of the labor within the framework of these enterprises are being done by these individuals. Blanden, Machin and Reenen (2006) are of the viewpoint that the prospects of an organizations depends profoundly on the effectiveness as well as efficiency of the human capital that it has at its disposal. However, since the traditional times it is seen that the various business enterprises have focused on the aspect of profitability or financial growth and the net result of this is the fact that the human capital of these organizations have been relegated to the background (Doughty 2015). The resultant effect of this is the fact that despite performing all the hard labor and contributing towards the growth of an organization in the best possible the very basic psychosocial needs of these employees are not being fulfilled by the organizations (Butler 2005). It is precisely here that the construct of trade unions come into prominence since they not help the employees to articulate the problems that they face or their needs in the most effective manner but at the same time champion their cause as well. However, within the United Kingdom it is seen that over the years some British trade unions have gained a substantial boost in terms of their membership whereas others have not. This essay will explore the reasons for the growth in membership of some British trade unions whereas decline in the membership of others.

Charlwood (2004) has stated a trade union can be seen as an organization or body of employees which aspire to achieve in collaboration with the employees some of the common goals or targets of the employees. As opined by Gall (2007), these common goals can be something as simple as a change in the shift hour, approval of leaves and others to something as complex as formulation of new work policies, strategies, increment of salary or wage and others. This aspect or the job roles of the trade unions is important because of the subjugation that the employees of different organizations had been subjected to since the commercialization of the business world. The nation of Great Britain is usually credited as the place wherein the notion of trade unions took birth during the time of the “Industrial Revolution” of the 19^th century (Pelling 2016). For example, during this age it was seen that the different organizations which has just been formed as part of the Industrial Revolution were not only being able to manage different employees of their organization in an effective manner but at the same time their demands were not being met by the organizations (Kelly 2004). In the 21^st century, it is seen that there are many trade unions operational in the United Kingdom like Trades Union Congress, Transport Salaried Staffs’ Association, Union of Shop, Distributive and Allied Workers and others which try to address the different problems faced by the employees of the nation (The Guardian 2018). In addition to this, these trade unions have at the same time played a significant role in the improvement of the working condition of the human capital of the United Kingdom as well.     

Role of Trade Unions in Addressing Employee Needs

Fairbrother and Stewart (2003) are of the viewpoint that the congenial working condition which the modern day employees are being able to enjoy within the nation of UK is a clear indication of the benefits or the advantages offered by the different trade unions of the nation. As opined by Charlwood (2002), in the contemporary times it is seen that different kinds of trade unions have emerged which intend to cater to the individuals of some specific profession or some specific needs. Furthermore, it is seen that the membership of these trade unions depends to a great extent on the kind of services that they offer to the individuals and also the effectiveness with which they help in the improvement of the working condition of the employees (Charlwood 2004). Some of the major benefits that the trade unions like like Trades Union Congress, Transport Salaried Staffs’ Association, Union of Shop, Distributive and Allied Workers and others offer to the employees are collective bargaining power on the wages that are being offered to them by the organizations and also on the working conditions or the terms of their employment (Fairbrother and Yates 2003). In addition to this, it is seen that these trade unions at the same time help the employees with different kinds of legal advices and similar kinds of services which help the employees to understand the rights or the benefits that they are entitled to (Gall 2007). More importantly, these unions at the same time ensure the fact that the condition or the work environment in which the employees are congenial for work and does not harms their health.    

Gospel and Wood (2003) argue that a common feature among the major trade unions of UK which has the largest memberships is the collective bargain power as well as services that they offer to their members. For example, it is seen that the different business enterprises in order to reduce their operational costs and thereby to earn a higher percentage of profit offer as low a wage to the employees who are associated with them as possible. However, one of the major job roles of these trade unions is to negotiate on behalf of the employees to ensure the fact that they are getting the kind of wage which will help them to maintain an effective standard of living (Heery and Simms 2008). As a matter of fact, it is seen that the employees who are a member of the different trade unions get 19.8% more salary than the ones who are not a member of any trade union. In addition to this, it is seen that the trade unions also help the employees to get an equal amount of salary or wage on par with the other employees of the nation (The Guardian 2018). For example, it is seen that more than 120 women of the nation under discussion here got a pay rise of more than £8,000 a year in 2017 (The Guardian 2018).

The trade unions with maximum members also help the employees to get better pension plans from the organization that they are working for and also from the national government as well. More importantly, if there is an issue regarding these pension plans or other benefits that have been promised to the employees by the national government or the organizations then these trade unions intervene on behalf of the employees for the resolution of the issue (Heery and Adler 2004). In this regard, mention needs to be made of Transport Salaried Staffs’ Association which is one of the largest trade unions of UK in terms of members and offers help to the employees related to the transport and other industries to negotiate with the organizations regarding the terms of their employment, disputes and others (Tssa.org.uk 2018).    

Factors Explaining Variations in Membership Growth

As opined by Kelly (2004), an effective trade union also needs to offer legal advice as well as related services to the employees who are a member of their union. For example, it is seen that these trade unions with maximum members help the employees regarding matters of employee tribunal claims. Furthermore, it is seen that the national government has restricted the ability of the individuals to make valid claims by imposing high fees for the same. The net result of this is the fact that many employees who are a victim of discrimination, sexual assault, inequality and other similar kinds of unfair practices within the workplace are unable to complain regarding the same because of the high fees (Pelling 2016). As a matter of fact, it is seen that in the year 2017 itself “59% reduction in the number of employment tribunal claims” were noticed (The Guardian 2018). These trade unions with boast of maximum membership are needed to intervene as well as negotiate on behalf of these employees for the effective resolution of these problems that they face within the framework of the workplace of which they are a part of. Moreover, they are also required to offer assistance to employees regarding matters of personal injury schemes, non-work matters and others.      

Blanden, Machin and Reenen (2006) are of the viewpoint that one of the major benefits that the different trade unions offer to the employees is the benefit of personal representation. For example, it is seen that the employees are given the choice to elect their own representatives who would represent them before the management team or the higher authorities of the organization that they are working for (Doughty 2015). This actually makes the work much simpler not only for the employees but at the same time for the organizations since it is seen that the elected leader places the grievances, problems or the expectations of the different employees of the organization before the management team or the higher authorities. The net result of this is the requirements or the expectations are being addressed by the organizations in a peaceful manner rather than the use of methods like strikes, protests and others which were used in the earlier times for the attainment of the same end (Charlwood 2002). As a matter of fact this is one of major aspects distinguish an effective trade union from an ineffective one.     

Fairbrother and Stewart (2003) are of the opinion that the job productivity of the individuals depend to a great extent on the kind of working conditions in which they are working. For example, it is seen that a congenial working environment wherein the safety or the security of the employees are taken into effective consideration can enhance the performance of the employees in a significant manner and vice versa. In this regard, it needs to be said that the trade unions with maximum members are required to regularly analyze the conditions in which the employees are required to work and on the basis of their assessment are even required to suggest ways through which the safety or security of the employees can be safeguarded (Gospel and Wood 2003). More importantly, it is seen that these trade unions are also required to convey information regarding the safety policies or measures that they are entitled to. In addition to this, these trade unions are also required to help the employees in case they become the victims of workplace accidents or hazards (Kelly 2004). In the recent times in UK it is seen that the trade unions which offer the safety or security related services to the employees have more membership than the ones which does not.   

Benefits of Trade Unions in Improving Working Conditions

As argued by Pelling (2016), The UK Equality Act of 2010 states that all its citizens are entitled to the same kind of treatment as well as rights and there should not be any kind of discrimination on the basis of gender, age, cultural or social background or others among its different citizens. The different business enterprises of the concerned nation are also required to follow these precepts however often it is seen that not the same kind of treatment is being offered to all the individuals within the workplace because of favoritism and other issue (Kelly 2004). One of the major job roles of the different trade unions thus is to ensure the fact that all the employees of an organization are entitled to the same wage, amount of work and other similar entities and inequality does not exists within the workplace (Heery and Simms 2008). These trade unions which have the maximum membership not only educate the workers regarding the need to maintain as well as practice equality within the workplace but at the same time intervene on behalf of the workers in cases of breach of the right to equality of workers. In this regard, mention needs to be made of “Trades Union Congress” which has more than 5.6 million members from the different parts of the nation (Tuc.org.uk 2018). Furthermore, one of the major reasons why the trade union under discussion here has such a large number of members can be attributed to the fact that it actively upholds the equality rights of the employees who are working for the diverse organizations of the nation. These in short are some of the major job roles of the trade unions and it is seen that the trade unions which have the maximum number of members have been able to fulfill these job roles of theirs in the best possible manner.  

To conclude, the construct of trade union although evolved in the nation of the United Kingdom yet it is seen that with the span of two centuries they had become an integral part of the business world. It is seen that they offer various kinds of benefits to the different workers like they help the workers to articulate their grievances, problems and expectations before the organizations in a much effective manner and at the same time help in their effective fulfillment as well. More importantly, it is seen that effectiveness as well as efficiency of the different trade unions depends to a great extent on the extent to which they are being able to address the issues of the workers and also help in the process of resolution of these issues. This is perhaps one of the major reasons why some of the trade unions in the nation of UK had a high membership of workers whereas other does not have a substantial member base.

References

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The Guardian 2018. Five reasons why public servants should join a union. [online] Available at: https://www.theguardian.com/public-leaders-network/2014/sep/09/trade-union-why-join-public-servants [Accessed 6 Dec. 2018].

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