Employers association

From CEOpedia | Management online

Employers association is a group of employers who operate in a similar or the same segment or sector of the economy. Its goal is to develop and care for the interests of member companies. Among other things, they give advice and they meet with trade unions. According to the sentence, employers association is "as an organization, whether temporary or permanent, that consists, wholly or mainly of employers whose main purpose includes the regulation of relations of between these employers and workers or trade unions. Associations in particular industries operate as both trade and employers' organizations, so that their functions cover commercial representation as well as the regulation of the employment relationship." (P. Lewis, A.Thornhill, M. Saunders, 2003, p.150). Employers association have given different business services, commercial information, support and advices. It's also an education services.

Types of Employer Associations

The main purpose of employer associations is to speak on behalf of employers collective negotiations. Below there are samples of different types of employer associations. They vary depending on the public policy.

It is like a business network. It also can be a local network, the purpose of which is to support the interests of enterprises. Such local communities are created by owners of small, medium and large enterprises, in cities and small towns. They do this to act on behalf of the business community. The board of directors or the executive board is chosen by community members (local companies). It sets out the rules and policy of the Chamber. The entire organization is managed by the president, general director or executive director and staff. They are employed by the management. A chamber of commerce is an optional association of business companies (V. I. Fedotov, 2007, p.3).

  • Better Business Bureau

This is a private non-profit organization. The mission is the development of confidence in the market. It consists of 106 members. The organization is non-governmental and impartial. This employer association mainly evaluates the company in terms of integrity and business practices. On this basis, accreditations are granted to companies. Better Business Bureau also mediates disputes between the company and the consumer. BBB members must meet certain conditions. If they do not meet them, the accreditations may be withdrawn.

  • Associated Builders and Contractors

It is an association of employers, which includes about 250,000 companies. These companies are related to construction, mainly in the field of trade and industry. The organization's mission is to encourage open competition on the market. The association provides accreditation for companies that pay attention to safety, social relations, training and benefits.

Examples of Employers association

  • The Confederation of British Industry (CBI): The CBI is the UK's premier business lobbying group, representing the interests of employers and business organisations in the UK. It has over 190,000 members, ranging from small and medium-sized enterprises to large multinationals. The CBI works to ensure that businesses have the right framework of rules, regulations and taxation to operate in, and to improve the UK economy and business environment.
  • The U.S. Chamber of Commerce: The U.S. Chamber of Commerce is the largest business federation in the United States, representing the interests of more than three million businesses and organizations in all 50 states and more than 200 countries and territories. The organization is dedicated to advancing the interests of businesses of all sizes, as well as advocating for free enterprise, economic growth, and job creation.
  • The Canadian Federation of Independent Business (CFIB): The CFIB is a leading business lobby group in Canada, representing the interests of independent small and medium-sized businesses. It has over 110,000 members and works to ensure that businesses have the necessary tools and resources to operate in a competitive environment. The CFIB also advocates for lower taxes, better access to capital, and other measures to support small businesses.

Advantages of Employers association

Employers associations have many benefits to offer to their members. These advantages include:

  • Increased bargaining power: By joining together, employers have a larger voice and can act as a unified front when negotiating with trade unions. This can help them to achieve better terms and conditions in collective bargaining agreements.
  • Access to expert advice: Employers associations provide their members with access to experts in legal, financial and other areas of business. This can help employers to make informed decisions and ensure compliance with employment laws.
  • Shared resources: Employers associations often facilitate the sharing of resources between members. This can include providing access to shared training facilities, materials and other resources.
  • Networking opportunities: Employers associations can provide members with valuable networking opportunities, enabling them to build relationships with other businesses in the same industry.
  • Reduced costs: By joining together, employers can benefit from reduced administrative costs. This can help them to save money and remain competitive.

Limitations of Employers association

  • One of the main limitations of the employers association is that they often do not represent the interests of all types of employers, such as small business owners or minority employers. This can lead to policies that do not reflect the needs of a diverse workforce.
  • The employers association may also be limited in their ability to negotiate with trade unions, as the employers may not have the financial resources or the political power to do so.
  • Employers associations can also be limited in their ability to provide advice to their members, as they may not be familiar with all of the latest laws and regulations that affect the industry they operate in.
  • In addition, employers associations may be limited in their ability to influence public policy, as they may not have the resources or political clout to do so.
  • Finally, employers associations may be limited in their ability to respond to changes in the economy or in the business environment, as they may not have the resources or the expertise to do so.

Other approaches related to Employers association

In addition to its primary goal of developing and protecting the interests of member companies, employers associations can also pursue a variety of other approaches to benefit their members. These include:

  • Negotiating with trade unions on behalf of members to establish terms and conditions of employment. This includes not just wages and salaries, but also working hours, holidays, pensions, and other benefits.
  • Negotiating collective agreements with trade unions that are binding on members.
  • Representing members in disputes with trade unions and other workers.
  • Acting as a conduit for the exchange of information among members, providing a forum for discussion and debate about industry issues.
  • Providing advice and support to members on a wide range of issues, including legal, regulatory, and taxation matters.
  • Running training and development programmes for members.
  • Providing research and analysis of relevant industry trends and developments.

In summary, employers associations can provide a valuable service to their members by advocating for their interests, providing advice and support, and helping to facilitate the exchange of information.


Employers association — recommended articles
Chamber of Commerce — European Coal and Steel Community — Global bank — Advantages of cooperatives — Charitable foundation — Land banker — Types of stakeholders — World Packaging Organisation — Public tasks of local government

References

Author: Edyta Krzyczman

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