Учебно-практическое пособие для III курса направление подготовки

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Read and translate this text:

Industrial relations

  • Essentially industrial relations are concerned with the relations between management and production workers and concentrates very largely upon the conditions of service, the working environment and wages.

  • In the 1960s and 1970s the power of the trade unions grew considerably and its influence was evident in all issues concerning worker-management relations; often it seemed to be greater than that of the employers. Various legislation was passed, some to strengthen and some to mitigate the strength of union power which, while it might be beneficial to workers generally, was seen to be damaging to the economy as a whole. In the 1980s, however, the power of the trade unions in Britain was significantly curtailed by Government legislation, with the result that there is now less anxiety on the part of employers and Government over the strike threat.

  • Industrial relations were historically the concern exclusively of the trade unions and the employers’ organizations. As a general rule national level negotiations were carried out this set the pattern for pay and conditions throughout a particular industry. This formed the basis for separate negotiations between individual employers and union representatives, and the results of these negotiations were further modified by agreements at local plant levels. Two circumstances caused modifications to this general pattern. The first was a greater direct intervention of Government into industrial negotiations through imposed pay policies and consequent legislation, and the second was the growth of the demand among trade unionists for comparable pay and conditions throughout the different plants of an organization or throughout an industry. The Government itself is also now a large employer of direct labour which forces is to be a party to industrial relations negotiations.

  • In order to reduce disruption through industrial disputes it was historically the practice to resort to joint consultation. Government supported the creation of joint industrial councils (JICs), consisting of equal numbers of members from employers’ associations and relevant trade unions. JICs dealt with a wide range of matters including conditions of work, welfare and training. In many cases there was an undertaking by the industry that matters of dispute had to be submitted to the joint industrial council before any strike action was taken. A further device to endeavour to solve industrial disputes is the Advisory, Conciliation and Arbitration Service, known as ACAS. These attempts to mediate between the parties in dispute are generally very successful.

  • At local level disputes are often dealt with by joint consultative committees composed of representatives from management and workers. All manner of topics may be raised with such committees from safety to discipline, from welfare to training. Such committees do not have executive powers but are able to report and recommend. To ensure that they are trusted by the workers, which is a major requirement for their success, they should be composed of members from both sides who are knowledgeable and competent, whose integrity is unquestioned and whose judgement is dependable. It is also essential that the reports and recommendations made by these joint consultative committees are seen to be given due weight by management.

Worker participation

Neither method involves workers financially, but a third proposition does that of co-ownership. It proposes that workers become actual shareholders in their companies, thus participating in the distribution of profits and having the power to vote at annual general meetings. The actual acquisition of shares by workers poses a problem, especially as they can, if they work for a public company, purchase them through the stock market if they really desire to become co-owners.

  • Two solutions have been successfully applied in practice. The first is to offer shares to workers at attractive prices and the second to award shares as bonus payments. The opportunity to share in the profits of their company is considered to encourage loyalty and co-operative attitude in the workers and to provide a positive incentive for greater productivity.

  • Although it is assumed that shares will have voting rights, some managements may view this with apprehension and in some cases shares issued to employees have no voting rights so that control remains firmly in the hands of the existing shareholders and management. In such cases it is considered that the fact of profit-sharing is sufficient participation and incentive. Perhaps such managements have learnt a lesson from the experience of an American company which lost control to its work-force through the issue of shares with voting rights as bonuses, where the number of shares subsequently held by workers exceeded those held by the original owners.

      1. Match the equivalents:

        1.Casual job

        a) Временная работа

        2. Collective bargaining

        b) Дерегулирование рынка труда

        3. Fair wages

        c) Забастовка

        4. Free market

        d) Забастовка, при которой замедляется темп работы

        5. Go-slow

        e) Неквалифицированная работа

        6. Industrial action

        f) Отношения между администрацией и работниками

        7. Industrial relations

        g) Переговоры о заключении коллективного договора

        8. Labour market deregulation

        h) Пикетировать

        9. Labour union

        i) Представлять нужды работников

        10. Picket

        j) Промышленный конфликт

        11. Professional associations

        k) Профессиональное объединение

        12. Represent the needs of employees

        l) Профсоюз

        13. Social partner

        m) Профсоюз

        14. Strike

        n) Работа строго по правилам

        15. Trade union

        o) Рабочая сила

        16. Unskilled job

        p) Рабочее время

        17. Work force

        q) Свободный рынок

        18. Working conditions

        r) Социальный партнер

        19. Working hours

        s) Справедливая оплата труда

        20. Working-to rules

        t) Условия труда

      2. Match up the words on the left with the definitions on the right:

        1. Collective bargaining

        a) a general term for strikes, o-slows, work-to-rules and so on

        2. A strike

        b) a deliberate reduction in the rate of production, as a protest

        3. A go-slow (GB) or slowdown (US)

        c) a stoppage of work, as a protest against working conditions, low pay and so on

        4. Working-to rule

        d) negotiations between unions and employers about their members’ wages and working conditions

        5. Industrial action

        e) to protest outside a factory or other workplace, and try to persuade workers and delivery drivers not to enter

        6. To picket

        f) deliberately obeying every regulation in an organization, which severely disrups normal operations

      3. Answer these questions:

  1. What are industrial relations concerned with?

  2. What happened to the power of the trade unions in the 1960s and 1970s?

  3. Was this power beneficial to workers? To economy?

  4. What changed to the power of trade unions in 1980s?

  5. Whose concern were historically industrial relations?

  6. How were national negotiations carried out?

  7. How did Government make a direct intervention into industrial negotiations?

  8. Why were joint consultations created?

  9. What did JICs deal with?

  10. Why was ACAS created?

  11. How do disputes take place at local level?

  12. What topics may be raised at these disputes?

  13. Do joint consultative committees have any power?

  14. Why do employees obey them?

  15. Can workers be co-owners of a company?

  16. Why did companies offer shares to workers?

  17. What problem can appear here for management?

Text B

Who needs unions?

  1. Read and translate this text:

Manual and service industry workers are often organized in labour unions, which attempt to ensure fair wages, reasonable working hours and safe working conditions for their members. British unions are known as trade unions because, as in Germany, they are largely organized according to trade or skill: there is an engineers’ union, an electricians’ union, a train-drivers’ union and so on. In other countries, including France and Italy, unions are largely political: workers in different industries join unions with a particular political position .Industrial relations tend to be better in countries, industries and companies where communications are good, i.e. where management consult workers on matters that will concern them, where neither side treats the other as an adversary, and when unions do not insist upon the preservation of completely uneconomic jobs and working practices. Although some employers and managers (and political parties) oppose the very existence of unions – even though, like doctors, lawyers, accountants and so on, they might themselves belong to a professional association with similar basic aims – many management theorists stress the necessity of unions. In the 1970s, Peter Drucker wrote that ‘Management is and has to be a power. Any power needs restraint and control – or else it becomes tyranny. The union serves an essential function in industrial society’. Yet one of the chief objectives of right-wing governments in the 1980s (e.g. in Britain and the USA) was to diminish the power of trade unions, and to deregulate labour markets in accordance with the ideal of free markets.

As a result of deregulation, working conditions in many industries in many countries have worsened, leading to the creation of a great many casual, part-time, unskilled jobs done by non-unionized workers. France, for example, has the lowest number of workers in trade unions in the industrialized world. The unions now represent less than 10% of the French work force, and most of those are in the public sector. The vast majority of French workers seem to have rejected the confrontational politics of the main unions, notably the communist-controlled CGT. Consequently, when the largely non-unionized French lorry-drivers blocked all the motorways in the summer of 1992, striking over the introduction of a new driver’s licence with a penalty-point system (and over their working conditions in general), the French government found no one to negotiate with.

In fact, a number of politicians and business leaders are beginning to regret of the weakness of unions. Some managers, including Antoine Riboud, the former head of the huge DANONE food conglomerate, actively encourage unionization because they insist that a big company needs someone to represent and articulate the needs of the employees and act as a social partner to the employer. But there is clearly a problem if workers believe that the unions are incapable of doing this, and choose not to join them.

  • Peter Drucker: An Introductory View of Management

II Answer these questions:

  1. For whom and why were labour unions created?

  2. Why are British unions known as trade unions?

  3. What unions are there in France and Italy?

  4. In what countries are industrial relations better and why?

  5. Why should management be restrained and controlled?

  6. What is the result of deregulation of labour markets?

  7. What was the problem in negotiations with French drivers?

  8. Why do some politicians and leaders regret the weakness of unions?

  9. Why do some workers try not to join unions?

    1. Find the words in the text which mean the following:

  1. people who work with their hands

  2. a union for workers with a particular type of job

  3. to ask someone’s opinion before making a decision

  4. an opponent or enemy

  5. too expensive, wasteful, loss-making

  6. unlimited and unfairly used power

  7. ending or relaxing restrictive laws

  8. areas of the economy run by the local or national government

  9. hostile, almost aggressive, seeking conflicts

  10. a large corporation, made up of a group of companies

    1. Do some research and write a 100-200 word history of unions in your country. (For example: When were they first founded? Have they always been legal? Have there been periods in which they have been more or less powerful, or important, or necessary, than today?)

    2. Match the equivalents:

      1. Remuneration

      a) Оплата, вознаграждение

      2. Cost of living

      b) Прожиточный минимум

      3. Worth of job

      c) Стоимость труда

      4. Bonus scheme

      d) Система поощрений

      5. Minimum wage

      e) Минимальная заработная плата

      6. Wage schedule

      f) Шкала заработной платы

      7. Tip

      g) Плата сверх принятого уровня

    3. Translate into English:

  1. Отношения между администрацией и работниками всегда являлись сложным аспектом трудовых отношений.

  2. Активную роль на предприятиях играют профсоюзы, которые ведут переговоры о заключении коллективного договора, регламентирующего рабочее время, условия труда и справедливую оплату труда.

  3. Профессиональные объединения необходимы в условиях свободного рынка, так как они представляют нужды работников.

  4. Существует мнение, что профсоюзы способствуют дерегулированию рынка труда, однако именно они являются инструментом защиты прав рабочей силы от привлечения специалистов на временную и неквалифицированную работу.

  5. Профсоюзы являются важной частью социального партнерства в управлении предприятием.

  6. Существует много стратегий поведения работников во время промышленного конфликта: забастовка, замедление темпа работы, работа строго по правилам, пикетирование.

  7. Вознаграждение за труд зависит от ряда факторов, таких как стоимость труда и прожиточный минимум.

  8. Правительство устанавливает размер минимальной заработной платы.

  9. В шкале заработной платы определяются ставки оплаты за сдельную и повременную работу и ставка оклада.

  10. В платежных ведомостях указывается оклад до удержания налогов и оклад после удержания налогов.

  11. Существуют различные системы поощрений: премии, плата сверх принятого уровня, продажа работникам акций по льготной цене.

  12. Предприятия обязаны оплачивать очередные отпуска работников.

  13. Существует несколько способов пенсионного обеспечения на рынке труда: коллективный пенсионный вклад, специальный сберегательный счет, освобожденный от налогов, программа продажи акций служащим компании.

Text C

Article 9. Events of default

The occurrence of any of the following events shall constitute the event of default (hereinafter called ‘the Event of default’) hereunder;

  1. If the Borrower fails to pay on the due date any sum which is expressed to be due and payable hereunder (unless such failure is due solely to technical reasons and does not last for a period of more than fifteen (15) days following the date of notice thereof from the Lender.

  2. If the Borrower commits breach of or fails to observe any of its obligations or undertaking under this Agreement (other than 1.above) and such breach continuous for thirty (30) days after notice thereof has been received by the Borrower from the Lender.

  3. If any representation, warranty, resolution or transactions made by the Borrower in or pursuant to this Agreement or in any document or statement delivered or made pursuant hereto is or becomes incorrect in any material respect and, if subject to cure, is not cured within fifteen (15) days from date of receipt by the Borrower of notice given by the Lender of such incorrectness.

  4. If the Borrower fails to pay within fifteen (15) days as from its Letters of Credit, Letters of Guarantee and Loan Agreements with the Lender, the Lender’s affiliates or subsidiaries, the Lender’s parent company, Nisso Iwa Corporation, a Japanese corporation (‘NIC’) or NIC’s affiliate or subsidiaries, and such failure does not result from the introduction of any law in the country of the currency where the payment is to be made and making it unlawful or impossible for the Borrower to make such payment in such country.

  5. If any order is made or an effective resolution is passed or analogous proceedings are taken for the liquidation or dissolution of the Borrower or if any event occurs which under the laws of Russia shall have an equivalent effect.

  6. If the Borrow fails to observe any material term of any and all Letters of Credit, Letters of Guarantee and Loan Agreements with the Lender, the Lender’s affiliates or subsidiaries, the Lender’s parent company, Nisso Iwa Corporation, a Japanese corporation (‘NIC’) or NIC’s affiliate or subsidiaries to be performed or observed by the Borrower and if the effect of such failure is it permit the acceleration of any payment under such agreement.

Then, in any such event and at any time hereafter if any such event then continuous

the Lender may by notice to the Borrower;

a. If no drawing has been made hereunder, declare that the Agreement shall be cancel-

led whereupon the same shall be cancelled forthwith and all amounts payable and

hereunder shall become forthwith due and payable.

b. Declare the outstanding amount under this Agreement to be immediately due

and payable together with accrued interest and all other sums payable hereunder

whereupon the same shall become forthwith due and payable.

Unit 7

Text A

Preparation for negotiations


Abbreviated account

Краткий отчет

Attract additional capital

Привлекать дополнительный капитал

Capital costs

Затраты основного капитала (инвестиции)

Capital structure

Структура капитала

Consolidated accounts

Сводный отчет

Contribution ratio

Валовой коэффициент

Current assets

Текущие активы

Current liabilities

Текущие обязательства

Current ratio

Отношение оборотного капитала к краткосрочным обязательствам





Digressive variable costs

Снижающиеся переменные издержки

Direct costs

Прямые расходы




Стоимость капитала

Extraordinary item

Статья непредвиденных расходов


Отношение капитала компании к заемным средствам

Labour costs

Расходы на зарплату



Loan capital

Ссудный капитал

Long-term debts

Долгосрочные обязательства

Overtime work

Сверхурочная работа

Owner’s capital

Собственный капитал

Pretax income

Доход до уплаты налогов

Profit and loss account

Счет прибыли и убытков

Profit margin

Чистая прибыль

Progressive variable costs

Прогрессивные переменные издержки

Proportionally variable costs

Пропорциональные переменные издержки

Quick ratio

Отношение ликвидности фирмы к долговым обязательствам



Regressively variable costs

Регрессивные переменные издержки

Return on capital employed

Доход на используемый капитал

Short-term debts

Краткосрочные обязательства

Total assets

Общая стоимость имущества

Trading income

Доход от коммерческой деятельности

Unit contribution

Единица прибыли

Volume of production

Объем производства


Материальные ценности


Незавершенное производство

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