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The purpose of this paper is to explore the value that UK trade unions now place on the living wage.

The author is the TUC’s Pay Policy Officer and examines the issue from a practitioner’s perspective.

The living wage now has a well-established place within the hierarchy of pay demands adopted by UK trade unions. This continues a tradition of unions supporting norms and regulations as an adjunct to collective bargaining. However, support had to be achieved through a process of negotiation with the broader UK living wage campaign.

The paper concludes that there are good prospects for the living wage, and thus for the continued trade union support.

The living wage standard is seen as having a strong moral basis, which often helps to win agreement with good employers. This results in a steady stream of workers out of in-work poverty. The credit for such pay increases is often shared between employers and trade unions.

The paper is written by a practitioner with inside knowledge and experience of the entire course of the living wage campaign in the UK and how it has been adopted and integrated by trade unions.

This paper examines the extent of bargaining concessions in recession through investigating the effects of union bargaining on pay, job security and workforce composition.

Drawing on an original survey (n = 400) of workplace level trade union bargaining units in England, the authors employed latent class analysis to establish three groups of bargaining units on the basis of pay outcomes achieved. Linear regression analysis with moderation effects investigated whether pay rises at or above inflation in conjunction with shifts in bargaining priorities was associated with decreases in perceived job security and changes in the composition of the workforce.

Around a quarter of sampled units, concentrated mostly in decentralised bargaining units in the private sector, achieved pay rises at or above the inflation rate during an economic downturn. Pay rises at or above inflation in workplaces severely affected by recession triggered changes in bargaining priorities requiring some concessions, notably in terms of employees' job security. That said, across the sample, achieving pay rises was associated with improved perception of job security and lesser use of contingent labour.

The findings uncover a subset of bargaining units able to secure positive outcomes for workers against a hostile economic tide, whilst demonstrating that concession bargaining is not inevitable but rather contingent on the micro-environments in which union bargaining takes place.

On 12th June 2015, a strike by contract workers was declared at Rampur terminal, All India Business in oil corporation (ABC) Ltd. The strike had disrupted the normal services of the terminal. Under such circumstances, Mr Ravi Sharma (Head human resources of the eastern region, ABC Ltd.) was unable to decide how to save the company from such a disorderly situation without any increased loss of production and manpower cost liabilities. Could Mr Ravi Sharma resolve the issue of strike through an approach of strategic rapprochement when the disruptions made by workers and local miscreants went out of control?

In-depth interview in the year 2019 was conducted with the protagonist Mr Ravi Sharma and the trade union members at the regional office of ABC Ltd., Kolkata and Rampur Terminal, respectively, to convert the narratives in the form of a fictitious case study. Four rounds of interviews were conducted by the author to complete the data collection procedure. The company™s-related information was sourced through a secondary database furnished by company™s officials. However, the data about the company, the key characters and other recognizable information have been disguised to preserve the confidentiality of information.

The strike was called by the contract workers at Rampur terminal for two primary reasons, namely, wage increase and giving preference to local people for employment whether regular or contract. Mr Ravi Sharma could pacify the unforeseen situation by adopting two-pronged strategies, namely, first, he could successfully gain the confidence of the union leader and secondly, set the environment for the conciliation proceeding so that agreement settled will not be failed to be implemented.

The case uses a system perspective of Industrial relation proposed by Dunlop (1958) to highlight the interplay between employer, government and trade unions influenced by politics and mafia that determine eventually the industrial peace in the organization.