Industrial Action (Leaving Cert Business): Revision Notes
📚 Revision Notes
Industrial Action
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Industrial action is when workers stop working or slow down their work. This is usually to protest against their employer. Workers might strike, which means they do not work at all. They might also work to rule, doing only what their job description says. Industrial action aims to make employers listen to workers' demands. These demands often involve pay, working conditions, or job security.
Industrial Relations Act 1990
This legislation safeguards workers' rights during industrial actions by:
- Allowing employees to voice their concerns and protest if their legitimate demands are not met by employers.
- Ensuring that all ballots are conducted in secret, protecting employees from any pressure or intimidation to strike against their wishes.
- Offering protection from arrest and prosecution for those who strike, as long as they follow the proper procedures.
- It sets the rules for industrial disputes and strikes.
Types of Industrial Action
There are various types of industrial action
- Official strike
- Work to rule
- Overtime ban
- Token stoppage
- Official strike: A strike is when employees refuse to conduct their normal work duties. Union members may receive strike pay from their trade union during a strike.
- Work to rule: Workers only complete the tasks outlined in their employment contract. They do not complete any additional work. This slows down services and reduces production output.
- Overtime ban: Workers refuse to work any overtime, which results in work not getting done and the company losing income. At peak times, such as in a toy shop at Christmas, this can lead to significant losses for the company.
- Token stoppage: Workers stop working for a short period, such as one day, to signify that further work stoppages will come in the event management does not reach an agreement with workers.
Official Strikes
Consequences of Strikes
Strikes have various effects on different stakeholders.
- Employers lose revenue and may lose business due to stoppages and work reductions.
- Employees lose income and may feel anxious about their job security.
- Consumers may be forced to switch to a different company as a result of a business not operating due to strike action.
- Investors in the company will receive a reduced dividend due to reduced profits.
- The government will receive less taxes as a result of reduced income and corporate tax receipts. Large and prolonged strikes can impact the governments ability to fund public services.
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A corporate tax receipt refers to the revenue that a government collects from companies based on their profits.
