Industrial Action (SQA National 5 Business Management): Revision Note

Exam code: X810 75

Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

Updated on

Forms of industrial action

  • Industrial action happens when employees protest against their employer to show disagreement over pay, working conditions, or other employment issues

    • The action is usually organised by trade unions when discussions between management and employees break down

The main forms of industrial action

Form of action

Description

Strike

  • Workers refuse to work for a set period of time

  • It is the most serious form of action that can stop production completely

Work to rule

  • Employees follow rules and procedures exactly, slowing down work and reducing efficiency

Overtime ban

  • Workers refuse to do any overtime, limiting production or service during busy times

Go-slow

  • Employees deliberately work more slowly than usual to reduce output

Sit-in

  • Workers stay at their workplace but refuse to work or allow others to take over

  • It aims to stop the business operating normally

The employer/employee relationship

  • Good relationships between employers and employees help prevent industrial action

  • Businesses can build these relationships by

    • Communicating openly and keeping employees informed about business decisions

    • Consulting staff or unions before major changes, such as restructuring or redundancies

    • Recognising and rewarding effort, both financially and through praise or promotion

    • Offering training and development, which shows long-term investment in employees

    • Encouraging teamwork and respect between managers and workers

    • Using fair disciplinary procedures and treating everyone equally

  • Strong working relationships increase trust, motivation and cooperation, reducing the risk of disputes

Causes and consequences of industrial action

  • Employees or trade unions may take industrial action for several reasons, such as:

    • Pay disputes, when workers believe wages are unfair or have not risen with inflation

    • Poor working conditions, such as unsafe or stressful environments

    • Job security concerns during redundancies or business closures

    • Disagreements over hours or contracts, such as changes to shift patterns

    • Lack of communication or respect from management

    • Failure to recognise a trade union or respond to staff concerns

  • Industrial action is usually a last resort, taken after attempts to negotiate or resolve issues have failed

Impact of industrial action

Impact on employees

Impact on the business

  • Workers lose pay during strikes or overtime bans

  • Long disputes can damage relationships with managers

  • Employees may feel empowered if they stand up for fair treatment

  • Some staff may experience stress or tension during disputes

  • If action succeeds, workers may gain better pay or conditions

  • Production and sales may stop or fall sharply

  • Reputation may suffer if customers face delays or poor service

  • Can lead to lost profits and higher costs

  • May cause long-term loss of trust between workers and management

  • The business may face future recruitment problems if seen as unfair

Case Study

In 2023, rail workers across the UK went on strike to demand better pay and conditions.

Protesters holding signs like "Rail Workers Unite" and "Protect our right to strike," advocating for better pay and workers' rights.

The strikes disrupted travel for millions, highlighting both the power of organised action and the financial cost to businesses

Examiner Tips and Tricks

A common misconception is that industrial action only harms the employer. In reality, it affects both sides - businesses lose productivity, and employees lose income or goodwill. Strong answers recognise these shared consequences and explain why resolving disputes quickly matters

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Lisa Eades

Author: Lisa Eades

Expertise: Business Content Creator

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

Steve Vorster

Reviewer: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.