Employer / Employee Relationship

Trade Union

Trade union is an association of employees formed to improve their incomes and working conditions by collective bargaining with the employer or employer organizations. (Collins English Dictionary copyright Harper Collins publishers)

The origin of trade unions can be traced back to 15^th century Britain, where the rapid expansion of industrial society then taking place, drew women, children, rural workers and immigrants in to the work force in large numbers and in few roles.

There are many opportunities available for the trade union. As an example,

Nestle staff unions threaten to strike over pensions “act of betrayal”

Trade unions representing Nestle workers have warned of strike action if the company decides to close its defined benefit (DB) pension scheme.

The food giant said the proposal would affect 7,600 employees in the UK, switching them to a defined contribution scheme. 

Nestle said the costs of providing a DB scheme “continued to increase substantially in recent years” and it was facing a pension black hole of £850m.

In a joint statement, unions Unite and GMB said the move could be seen by the workforce as “act of betrayal” and urged the firm to think again.

Stuart Fegan, GMB national officer, said: “Over 7,600 Nestle workers in the UK which these proposals will affect will wonder why a company such as Nestle generating significant profit here and in other world markets can justify such detrimental plans. Particularly as these proposals directly affect those Nestle workers who manufacture the products that make Nestle the leading world food manufacturer. Fegan warned there would be industrial action if the firm decided to go ahead with the change.

The firm said it was paying £86m each year to cover the deficit, on top of its normal annual contribution of £37m to the DB scheme. Since 2009 more than £600m has been paid in to cover the deficit, which stood at £850m at the end of 2014.

 “Now Nestle is tearing up their contracts with their future with many workers facing being worse off in retirement. We will not stand by and let that happen and would urge Nestle to think again and honor its past promises.”

References:

(Collins English Dictionary copyright Harper Collins publishers)

 http://www.theactuary.com/news/2015/07/nestl-staff-unions-threaten-to-strike-over-pensions-act-of-betrayal/15.11.2017,09.05am  

http://www.businessdictionary.com/definition/trade-union.html/15.11.2017,8.30am