Difference Between Boycotts and Lockouts

1- INTRODUCTION

Human Resource Management (HRM) is the function which works within an organization .It focuses on recruitment of staff, managing them and giving them direction to the employees who work in that organization. Human resource management can be performed by line mangers (Tesco superstores line manger performs the duties of human resource management ).Human resource management function includes several activities and key among them is deciding to use independent contractor or hire employees to get the job done .Ensuring they are high motivating, able to work in a team and dealing with performance issues. Human resources management also include employee benefits and compensation and managing your approach to employees records and personnel activities. Managing human capital means to conquer and to maintain people in the organization, who will work and give the maximum of themselves, with a positive attitude.

The following work will attempt to answer the question Do you think boycotts and lockouts are two other anti-impasse weapons sometimes used by labor and management? An impasse occurs when the parties aren’t able to move further toward settlement. Sometimes, a strike occurs. Responding to the strike involves such steps as shutting the facility, contracting work, or possibly replacing the workers. Third party involvement – namely, arbitration, fact-finding, or mediation- is one alternative. Examine the steps you will undertake as part of the HR management team, in order to answer this question this project will open with a review of the literature that has been written on the issues raised by the question above. It should be noticed that a vast amount of writing has been done on this issues but only a few of them dimmed to provide the most benefit to the purposes and intend of this assignment have been sited.

Those countries their economy is operating full employment the bargaining power of the worker is strong and his employer is weak. When there is short fall of full employment then employer is more stronger than employee. In this case employees are compulsory to accept employer conditions.

It is recognized that the right of workman to strike is an essential element in the principle of collective bargaining.

In a non unionized work place, managers use their discretion in organizing work, selection, promoting and training people and other duties of human resource management but it can be change if the worker join the union. Once the join the union they comes across so many agreement and knowledge about employment relationship. Union main demand is all of its representatives are getting right wages ,no job cuts ,no over load of work They have an interest in work related learning and employee development.

2-BOYCOTT

A group refusal to have commercial dealing with some organization in protest against its policies, usually it happens because of political reason. In other words boycott can be defined as a rejection of an individual, cop ration or nation to give political and social pressure for change.

Example 1: Swadeshi Movement Against British Rulers

In 1905,when India was a part of British empire ,a boycott of foreign goods was declared, which is known as swadeshi movement..Indian’s boycott all British products, to setup local stores where only locally manufactured goods had been sold. They could use British products but it was against their sovereignty. This movement was a good step for their freedom movement.

(www.india_resource.tripod.com)

Example 2: United States Boycott Against French Products

In 2003,France tried to stop bush administration to build international support for a war to depose saddam hussain.In response united states have declared a boycott of French products specially French wine. French wine producers claims their sales are effected in united states because of boycott.

(www.nber.org)

Example 3: Greenwich Council Workers Boycott Against New Office

In Greenwich council six hundred staff reused to work because there was no security screens on

new office entrance .They have boycott to work in new office because of security reason.

(www.personneltoday.com)

Example 4:International Campaign

The international campaign organized against A E Stanly, the corn processing plant in Illinois in early 1990s when 10 – 12 hours four days weekly shift was introduced. The campaign entailed a boycott of important A E Stanley customers like Tate Lyle, Pepsi and miller.

(Scullion and Lineham, 2005).

2.1 TYPES OF BOYCOTTS

There are two different types of boycotts

• Those in which users , consumers, or member register their disappointment through avoidance.
• Those in which an individual or organization takes a leadership position by increasing an active campaign against a product, service, company or organization.

2.2 Silent boycott

Silent boycotts are unorganized boycotts spread by gossips in revenge of number of reasons and hit the company before they realize what is happening.

Example 5: Toys R Us Boycott Toys of Violence

Toys r us, was the subject by silent boycott. Their top management decided not to sell toys of violence like toy tanks, guns, aircraft and similar products. They did not sit with their customers. As a result their market shares never fully recover.

(www.boycottnet.com)

Example 6: IBM Vs Compaq

IBM became target of a successful silent boycott, because of its superiority in which they have treated self-directed distributors. In a result Compaq computers became a very serious threat.

(www.boycottnet.com)

2.3 Focused boycott

Its simplest term, it involves dissecting the problem into its components and then zeroing in on the most vulnerable point.

Example 7: Slaves Boycott Sugar Products

The earliest example of focused boycott was in England when slaves boycott sugar products. In 1791, when parliament refused to eliminate slavery and result of this boycott sugar sales dropped by third and half.

(www.ethicalconsumer.org)

3-Lockouts

When an employer withhold work and denies workers to access their work place. It’s a strike by management to induce settlement to a labor dispute on employer’s terms. when several employers take this action together its called shut down or joint lockouts.

A lockout is defined as being the act of an employer in:

1. Closing the employer’s place of business, or suspending or discontinuing the employer’s business or any branch of that business; or
2. Discontinuing the employment of any employee; or
3. Breaching some or all of the employer’s employment agreements; or
4. Refusing or failing to engage employees for any work for which the employer usually employ’s employees; and
5. Is done with the view of compelling employees, or to aid another employer compelling employees to accept terms of employment or comply with the demands made by the employer.

3.1 REASONS OF LOCKOUTS

There can be many reasons of lockouts such as:

When union goes on strike and employers want to put pressure on union for reducing the number of members who are able to work. employer’s can announce a lockout until the strike ends. Another case is when an employer mat compel a lockout to avoid slow down or irregular work stoppages.

Example 8: Golden Reach Factory Lockout Its Workers

In year 2003, between march and September when the management of golden reach factory in India locked out,1400 of its workers in response to strike called in protest. The golden reach factory is a subsidiary of unilever an Anglo Dutch conglomerate ,unilever has never declared a lock out in Netherlands conglomerate seems to have different policies towards labor, depending on the country which its operates.

(www.britannica.com)

4-STRIKES

Union and labor associates use strike as weapon to get their demands accepted. Its starts when bunch of workers want to push pressure on their employers, they cease work until they get there demands accepted by employers. In an industry when trade unions and labor associates denies to work until they get their demand accepted is called strike.

In a strike people are agreed to stop their work and protest against their employers or government to put pressure on them to pay rise or any other changes they want make on their work place.

4.1REASONS OF STRIKES

Trade union and labor associates calls strike for several reasons such as:

• Salary and incentive problem
• Increment is not up to mark
• Dissatisfaction with company policy
• Dismissal of a staff wrongly
• Withdrawal of any privilege or concession
• Hours of work
• Paid holidays
• Provident and gratuity
• Minimum wage dispute
• Environmental problem on work place

Example 9: Royal Mail Strike For Wages

Royal mail strike called in because of jobs cut, services, wages, benefits and privatization .Strike is hitting postal services. Communications workers union (CWU) said 25,000 workers participated in this strike. That was the biggest strike after 2007.Major cities (London, Edinburgh, Ipswich, Bristol, Birmingham) got effected of this strike.

Workers are protesting against “panic driven” cuts being made at royal mail to pay job and services. It effects customer trust on royal mail. Postal workers are fed up because of lacking ability of management and their behavior. Royal mail has accused the union of reneging a modernization deal that ended the 2007 strike.

(www.guardian.co.uk)

Example 10: RMT Vs TFL

RMT(rail maritime and transport workers) is largest of the four unions which deals with TFL(transport for London).RMT wants to cancel their contract with TFL because they redundant RMT workers. Even they denies to pay rise.RMT wants a guarantee to protect job of its members.RMT workers called a strike because their demands were not accepted. It effects all the people of London who travel by public transport.

(www.guardian.co.uk)

Example 11: British Airways Staff For Redundancies

British Airways chief .executive (Willie Walsh) has given three weeks notice to BA staff to agree job redundancy and pay cuts. He offered his staff to voluntary redundancies because company is fighting for its survival. As a result strike occurred.BA passengers faced difficulties for traveling. Most of the flights were cancelled. That was the worst time for British airways and still not fully recovered.

(www.guardian.co.uk)

Example 12: National Strike Against Economical Policies

19 March 2009,union have called for a strike in France ,to protest against French president Nicolas Sarkozy’s wrong policies in the economic slump. More than 1.2 million people came on the streets. Employees from the private sector and civil servants demonstrated in the cities from Paris to Marseille, schools have been close and transportation have badly effected.

President Sarkozy has offered 2.6 billion euro (3.5 billion dollor) tax cuts and aid to unemployed and law paid workers unions in France demanding for more to protect their workers in the recession time when unemployment has reached 2 million and its expected to increase further.

Bernard Thiboult ,general secretary of the confederation general du travel. The country 2nd largest union have said if the government says we will not change the policies then there should be no surprise if climate gets tougher.

(www.bloomberg.com)

Example 13: Massive Strike In Italy

April 2002, millions of employees have ceased work and went for strike against government plans to giving special powers to the employer to hire or fire employees easily.

The strike was called by three main unions of the country which has brought parts of the country to stand still.

Union said rallies in Rome ,Milan, Bologna ,each rally had a crowd of more than 200,000.It was the first all day work stoppage in 20 years. Schools ,banks were remain closed all day even the public transport ,buses ,rails ,air and sea has stopped. There was no live TV no news paper were published.

Prime minister silvio Berlusconi said after the strike that he is ready to start talks with union leaders but he insisted that reform of the labor laws was necessary.

(www.bbc.co.uk)

Example 14: Protest Against Bridgestone

The international campaign against the Japanese tyre Bridgestone which is subsidiary of firestone. The workers were replaces with their substitute workers.

(www.laborrightsblog.typepad.com)

4.2 TYPES OF STRIKES

There are several different types of strikes such as:

• Sit down strike
• Slow down strike
• Economic strike
• Sympathy strike
• General strike
• Sick out(sick in) strike
• Wildcat strike

4.3 Sit down strike

It’s a strike when workers do not absent from work place. They don’t leave control on production facilities but do not work. This strike is also known as pen drop strike or tool down strike.

In this type of strike employees shown up to their jobs but they refuse to work and refuse to leave, in these circumstances they make it very difficult for their employers to resist against union and take control of area.

Example 15: ACPA On Strike for Pay Rise

In Pakistan(Punjab) more than 2.2 million clerks went on a pen drop strike on call of APCA(all Pakistan clerk association).

According to the press release more 2.2 million clerks protest against government and to support their demands regarding their pay rise. They demanded that government should increase the salaries of lower sub- ordinates to the inflation rate.

(www.dailytimes.com.pk)

4.4 Slow down strike

In this type of strike employees do not stop the work they remain on their jobs but they control the rate of productivity in organized manner to pressure on employers.

Example 16: Chief Justice Of U.S Wants More Salary

Chief justice of united states district court judge (Carl B. Rubin) went on slow down strike when congress refused to increase his salary more than 51% to reply that only he only hear two cases usual ten cases a month.

(www.washingtonpost.com)

4.5 Sympathy strike

When employees of one unit , industry, factory go on strike to support employees of separate but related industry, profession, unit is called sympathetic strike.

Example 17: Renault

1997,French Motor manufacture company Renault announced the closure of its Belgium production plant at Vilboorde, company dismissed almost 3100 workers without consulting with workers representatives. The colure of the company leads another 1000 redundancies among supplies and subordinates.

Unexpected colure of the company in Belgium generated very high level of sympathy action not only in Renault workers across the Europe but also car workers in Belgium were fearful of the same fate.

Representatives of the unions of France, Belgium and Spain met and agreed to seek the reasons of the colure of the plant at Vilvoorde and find all possible legal avenues. They organized one hour strike and involves the union of Portugal and Slovenia .

Car workers in France, Spain and Belgium protest against Renault, Their plants in 3 different countries were hit by one hour work stoppages. workers of related motor manufactures industries like Polo ,Opel and Ford in Belgium staged sympathy actions.

(www.eurofound.europa.eu)

4.6 Sick out(sick in) strike

When all the members of union called in sick at the same day is called sick out strike. They don’t break any rules but sickness of majority of the staff at the same day leaves very strong impact on employer, that if the staff really went on strike.

Example 18 : Air traffic Staff On Strike For Wages

In 1969 when united states air traffic controllers called in sick strike because of wages and condition.

The traffic controllers walked out and stay out of job for three weeks and called in sick, attempting to avoid the legal penalties for striking.

(www.libcom.org)

4.7 Economic strike

In this type of strike labor stop their work and put pressure on their employer to increase their economic needs like wages and bonus.

Example 19:Lublin Strike

In 1980 the workers of eastern city of Lublin (Poland) went on strike for increase of their salaries and cheap prices of food products. July 1980 almost 50,000 local workers from more than 150 companies went on strike. Its also called Lublin strike.

(www.tnn.pl)

4.8 General strike

It means a strike by all members of union in the region or an industry. This strike can called in by all the members of the union in the region for their common interests. In these types of strikes workers intend to put pressure on the government.

Example 20:Union And Non Union Worker On Strike

In the year of 1934 in san Francisco union and non union workers went on strike. They have protest against police and employers tactics that had killed two picketers.

(www.newdeal.feri.org)

Example 21: Trade Union Conflict With Coal- Owners

A general strike had occurred in 1926, By the trade unions of great Britain. they were supporting miner’s federation in their dispute with coal-owners

Government had granted a year subsidy to the coal-owners because of the bad state of coal-mining industry and set up a commission of inquiry under sir Herbert Samuel. the commission suggested a scheme of reorganization the industry as soon as practicable

when government subsidy was due to expire the coal-owners made up their mind that they are not going to employ the miners except lower rate and longer hours, but they did not give them any proposal until after expiry of the notices, and then did not include any plans for considerable reorganization

to result of this trade union congress called a conference of its unions and reported that there is no alternative to a general strike

majority of the organized workers stop their work, essential services partially carried on by volunteers acting upon plans outlined by government in the light of railway strike 1919 and miners strike 1920

(www.historybookshop.com)

4.9 Wild cat strike

This strike takes place by employees with out the authority and permission of union.

Example 22: Prison Officers On Strike

Hundred of prison officers went on strike to support their colleagues in HMP (Liverpool).

The prison staff at Cardiff, Preston and wands worth are expected to stop work unless managers agree to talk with prison officers association Staff at Liverpool are on unauthorized strike.

(www.news.sky.com)

5) Collective Bargaining

The process through which members of management and the union meet to negotiate a labor agreements.

According to Dessler(2005), the good faith refers to the conditions of both partiesto make every reasonable effort to arrive at agreement good faith bargaining may include the following

• Surface bargaining
• Inadequate concession
• Inadequate proposals and demands
• Dilatory tactics
• Imposing conditions
• Making unilateral changes in conditions
• By passing the representative
• Committing unfair labor practices during negotiations
• Withholding information
• Ignoring bargaining items

Example 23:

Northwest Airlines has refused to negotiate with mechanics union representatives because of a reason that their representative have met with mechanics union representatives three times before but they did not respond on their proposal.

(Dessler, 2005).

Example 24:

Employer international union has said that baryant college representative are not fully responsive on the issues of wages, respects and benefits. 134, unfair labor claiming that baryant college negotiators are failed to negotiate with union.

(Dessler, 2005).

6)Intervention of the third party

When the parties fail to handle the situation then they want to refer this matter to third party.

6.1 Types of intervention

1) Mediation:

Mediation is a third neutral party which only arrange a meeting with both parties ,listen both parties issues and try to bargaining common points. Mediation don’t have any authority to come to decision .They just offer a settlement package.

2) Fact finder:

Fact finder is a neutral third party which deals only to study the issue and make public recommendations for settlement.

3) Arbitration :

Arbitration is the only powerful intervention because arbitration has a authority to give them decision for settlement.

4) Conciliation :

Conciliation has no power, their role is only to clarifying the issues and offers advice.

7- Recommendations

These are the following steps to helps company to come out from this situation.

1) Salary:

Company have to make sure employees don’t have any issue with their salaries. Their salaries should be on time. Every six months their contract should be renew and give them a pay rise. That should be good step to make them happy .They will be more productive.

2) Bonus:

Company should give bonuses to their staff. like Christmas bonus. It would be a step to motivate them.

3) Benefits:

If employee are getting benefits like discount card, pensions, insurance and other benefits then employee cannot think for strike.

4) Job guarantee:

Employees should have a job guarantee. IF they have a job guarantee they will be more loyal with company because they know their job is secure and employer fulfills all their demands.

5) Paid holidays:

Employee should have a privilege of paid holidays. Its the extra benefit that employees are getting from company. This way employees have a relief from work and makes them more energetic to work after holidays.

6) Dismissal of the wrong staff:

Company must have rules and regulations for their staff. Do not dismiss any member of staff. who does not deserve to be dismissed. If there is a situation then try to observe then make a decision because wrong decision effects on company” s image.

7) Redundancies:

If company is running with any financial crises and want to redundant staff , then company should give them one month notice , give them redundant pay according to law.

8) Dissatisfaction with company policies:

Employees must be satisfy with company policies. They should not have any problem. If there is any thing which they think is not on the right place they should complaint and give suggestions to the management.

9) Hours of work:

Employees working hour should be accurate. If they are working more than normal hours then they should get their time back or pay them as overtime.

10)APPRAISAL:

Employee should get promotion at work. If they have skills employers should promote them with a good salary package.

8- Conclusion:

The conclusion of this report is that strike, lockout and boycott are not healthy for company, Organization must have proper strategies to run a business . If there is good relationship between employee and employer then company will run fine. and organization will able to achieve its targets If company polices are not meeting staff requirements then they will disappointed and could take a step towards strike. Employer should always prepare to solve these kind of situations.

IF strike occurred then it is a issue for employer, employee and organization. It effects. on everyone related to the company Its better to sit together and resolve the issues.

Overall in labor relations worker should be happy working with their employer and employer should keep an eye on workers needs and their work. IF any of them fail to fulfill their duty then it can become a huge problem and one day worker can go for strike , lockout and boycott. Arbitration can try to solve the situation. Collective bargaining is step where they can control the problem.. They fix a meeting between employee and management and open channel for communication for each other.

If collective bargaining fails then management need to prepare to deal with one of the anti impasse weapon strike. The best way is to resolve it with intervention.

The main causes for strikes are wages, pay cuts, job cuts and wrong policies. If human resource management team properly control these factors then there is no cause for strike.