Industrial/employee relations practice questions.

What is the key difference between conciliation and arbitration in resolving industrial disputes?

• Conciliation always results in a legally binding decision, arbitration never does
• In arbitration a third party decides; in conciliation it only helps them agree
• Conciliation is used only by employers and arbitration only by unions
• They are two names for exactly the same process

Answer: In arbitration a third party decides; in conciliation it only helps them agree

Conciliation (like mediation) facilitates dialogue so the parties settle themselves; arbitration hands the outcome to an independent arbitrator, whose ruling may be binding.

Determine which action is an example of industrial action taken by employees.

• A lockout of workers by the employer
• A go-slow, where employees deliberately work slowly
• The dismissal of a trade union representative
• Employing temporary staff to replace strikers

Answer: A go-slow, where employees deliberately work slowly

A go-slow is employee industrial action to pressure the employer. Lockouts, dismissals and hiring replacements are actions taken by employers, not employees.

Distinguish which statement correctly describes arbitration in dispute resolution.

• A neutral third party helps both sides reach their own voluntary agreement
• A neutral third party listens to both sides and imposes a binding decision
• Employees stop work entirely until demands are met
• The employer unilaterally sets new terms of employment

Answer: A neutral third party listens to both sides and imposes a binding decision

In arbitration an independent third party makes a decision that both sides agree to accept (often binding). Where the third party only assists the parties to agree, that is conciliation/mediation.

Identify an approach an employer might use to reduce the likelihood of industrial disputes.

• Refusing all communication with employee representatives
• Employee participation and collective bargaining
• Cutting wages without notice
• Removing all grievance procedures

Answer: Employee participation and collective bargaining

Involving employees through participation and structured collective bargaining builds trust and resolves issues before they escalate, reducing disputes. The other options increase conflict.

Explain a likely consequence for a business of a prolonged strike by its employees.

• A guaranteed rise in the share price
• Lost output, unmet orders and lost reputation
• An automatic increase in employee motivation
• A permanent fall in fixed costs

Answer: Lost output, unmet orders and lost reputation

Strikes halt production, so orders go unfilled, revenue is lost and customer and public perception can suffer, harming the firm in both the short and long term.

Determine which is an example of an employer-initiated response during an industrial dispute.

• Overtime ban
• Work-to-rule
• Lockout
• Strike action

Answer: Lockout

A lockout, where the employer prevents employees from working until a dispute is settled, is initiated by the employer. Overtime bans, work-to-rule and strikes are employee actions.