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Background to partnership agreement in the UK

Describe about the management activities of a food production organization and also discuss the benefits and disadvantages.

Road map to the report:

In this report, it will discuss about the management activities of a food production organization. Advice to the management of food organization will be given to maintain the partnership with FDAWU. The benefits and disadvantages are also discussed in this paper. A proper suggestion to the management is mentioned in this report.

A food manufacturing organization is that where a variety of food or a particular food item are manufactured. A food manufacturing organization has 70 % represented with FDAWU and the food operators are represented by FDAWU.

FDAWU is the foundation of food drinks allied workers unit that is fourth largest unit affiliated to national trade union Congress (NTUC) established in Singapore. FDAWU is recognized for the bargaining and shop floor reps are also included in the presentation of their members and grievance process. The partnership between management of the food manufacturing organization and FDAWU will discuss in this report.

A partnership exists when two or more than people are the owner of a firm or organization. That term of ownership is known as a partnership. Management of food organization has a membership with FDAWU but they want to ignore the role of a trade union.  So all the strategy are given below which are very necessary to implement such as food quality, production rate, management and the flexibility between workers. These strategies will be very helpful to gain the profit for the food manufacturing organization. All the effects of partnership agreement such as merits and demerits will explain in this paper (Bishop et al 2013).

The characteristics of partnership are given below:

An effective partnership is very necessary for any organization. So an agreement of partnership is also very important. An effective partnership is very helpful to improve the management that will help to improve the productivity. It is very helpful to improve the quality of food and to increase the output (Chong 2013).

A partnership agreement is also a source to improve the understanding between the partners of the company. If there is a partnership agreement then it is also helpful to implement the essential and effective policy (Lang and Heasman 2015). It ensures an ultimate standard of employment practices. It is also beneficial to create the transparency between the management and the workers. A partnership agreement creates a stream line structure for the staff and the trade union (Cheong 2013).

TUC Principles of Partnership

If there is a partnership firm then it is helpful to let the partners contribute their ideas and experience that is very helpful to gain profit.

TUC is trade union center established in the United State of America. Trade union partnership is that where the management and the employees of the company work with a mutual understanding to earn the profit and to increase the productivity, this is called TUC. According to TUC, all employees of the company do not take the sick leave very much and they are fully devoted to do their work, this type of partnership called trade union congress partnership. The management of the company and staff work only for the progress of the company to improve the productivity (Newcomb et al 2013). TUC partnership is very good and the management of the company is advised to make the TUC partnership agreement. 

There is a partnership for the success of the enterprise and all the partners are committed to do their job passionately to the growth of the company. There is shared commitment by all the employees and the higher authorities of the company to earn the profit (Congress 2013). It includes a less employee turnover, so the cost of the salary given to an employee is very less. All the employees come to the office daily; they did not the leave so much. TUC partnership is very important to grow the company in less time span as the rate of innovation is high in this type of partnership agreement (Ache and Wood 2016).

All the partners conduct a survey program and start the analysis of the market to know about the views of the customers for the product and according to the demand and interest of the customers, they manufacture the product.

The management of the company committed for the security of the staff. If there is any incident happens in the company, management took the responsibility for that incident and gives all the expense of the treatment. The management committed to provide the security to every employee. According to the principle of the TUC, higher authorities give the claim money if anything happens to the employees (Congress 2013).

The management as well as the employees focuses on the quality of the product. There is a certain time given to the employees to complete the manufacturing process of the product. All work together to manage the working life and to improve the product quality.  There is a high devotion of the workers and employees for the growth of the company (Newcomb et al 2014).

UK Case Example

A friendly environment also leads towards success.  So according to TUC principles, there must be a friendly working environment. All the management and the employees’ works together, a good relation between the management and the employees is very helpful to increase the productivity. So the management of the food organization is advised to work in a friendly environment.

Adding value is also a principle of the TUC which is helpful for the success of the company.

TUC is established in UK (United Kingdom). There are about 300 workers who are trying to let work together to all the unions of U.K. So they are using some policies so that all the union of the United Kingdom works together for the better result. TUC partnership is very important for the success of the company. The management of the food organization is advised to combine the responsibilities of their work with the TUC so that the great profit can be earned. The employees of trade union center of UK are using some strategies such as international and national seminar and by representing the workers as the public bodies. They analyze the market and make a survey report with the help of employee ideas and then manufacture the product so that a high rate of profit can be earned. In UK, staff can take the leave up to five paid days at any time in a year. If workers have an emergency then they can take urgent leave. The staff also can apply for the part-time work during the office hours and management cannot refuse to give the extra work without any reason. So, this is the UK based example of the TUC (Schlagwein and Bjørn-Andersen 2014).

The organizations in UK played a vital role in the relationship between the employees and employers of any industry.  A very famous organization, CBI did not participate as collective bargaining role. A collective bargaining role is carried out to lobbying at the national level.  According to this, the companies are engaged in joint work and shares a partnership and formulating an employment legislation. Now, CBI is providing a high degree of socialism (Sullivan and Gouldson 2013). 

Partnership in business is when two or more person starts a business in sharing. They share the capital to start the business and they are the owner of the firm according to their shared percentage of capital (Pongrácz 2012).

Characteristics of Partnership

There are characters of the partnership given below:

There is a written or oral agreement between the partners to start up a business. Mostly, the agreement is in written. According to the Partnership Act, The relationship between the partners depends on the contract signed by them. It totally depends on how many shares they have in the firm; profit is also divided between them according to their share part (Tailby 2012).

The partnership is very good idea to start any business in less capital. It is the way to form the business by less capital.

 There is sharing of profit depends on the sharing part of the capital. The main purpose of the partnership is to gain the profit. All the partners of the company share the profit and losses accordingly.

The partnership must be lawful. The proper laws rules should be followed by the partners before starting a company in the joint venture.

There is need of at least two members to start a partnership firm. The minimum number required to set up a partnership firm is two. It is very helpful to earn the profit because all the partners work in proximity with each other and they put their idea and shares experience also that is very helpful to earn the profit.

 If there is a sole partnership between the partners, then they have the same liabilities. And if they share another partnership then they have business liabilities according to their shares (Vertakova and Plotnikov 2013.).

There are advantages given of the business union partnership agreement and business partnership:

If there is more than one partner then it is easy to establish the business at very less cost. The capital will be more so that the business can be easily established. The employees who are performing well and willing to be a partner of that organization. They will be the further partners of the business (Van Pletzen et al 2014).

The income of the union labor is more than the labor who are not involved in any union. Most of the union workers can take benefit more than the nonunion workers. The workers who are not married are also able to take benefit more than the married people. The workers who have joined a union can take the benefit of health insurance. The rate of the health insurance is less given to non-union workers (Evans et al 2012).

The disadvantages of the business partnership and business union partnership agreement are given below: 

There is the main disadvantage of the partnership is the disagreement and the confusion between the partners. The mismatch of the views is the reason for the quarrel between the partners. Another drawback is the taxation law that the partners asked to pay the taxes. They have to return the tax each year that is known as self-assessment tax. The main reason is the profit sharing. The partners share a profit according to their sharing part. This is a reason to break the contract and it may not lead the consistency between the partners. The main demerits are the liability of firm and taxation.

Every person of the union has to pay some certain amount every year. In many of the union, there is the requirement of one-time entry fee. There may be some dues that are helpful for the union to pay the salary and to conduct the business of the union. It may be reason of the quarrel between the union leaders and the union workers.  There is high chance of the loose of autonomy. So these are the pros and cons of the partnership agreement (Gleeson 2013).

Western literature presents the argument that is different from the reality of the life of the people in Singapore. The food organization management is advised that they should not ignore the FDAWU. They can be partner with FDAWU and can improve the productivity rate and quality of the product. If all the workers will work with full devotion, company can grow easily. So the management should start some competitive plan for the worker (Alon et al 2013). There should be some encouragement program to motivate the workers. FDAWU is responsible for the collective bargaining. To reduce the collective bargaining, management should give some extra benefits to the workers so that they did not demand the collective bargaining (Johnson et al 2013). 

Collective bargaining is the main reason or drawback to work in partnership with the FDAWU. But it is the organization for the welfare of workers, there is some limitation. If there are more than two partners of a firm then these problems may happen such as the risk of the assets and the liabilities. Every partner has a number of liabilities of work. The liability of the one partner is not only for the own work done, but every partner needs to pay off for the activities and mistakes of the other partner. If there is loose happen in the business due to the on partner then all the partners have to pay off for that loose. If there is lack of the harmony, then it also may be the reason for the loss (Waring and Lewer 2013). It is very hard to sustain the harmony then there are more than two partners of any organization. There may be dispute between the partners if there is lack of authorities and conflicts in the views. If any of the partners want to withdraw amount then he would not be able to withdraw his amount easily. Limited resources in a partnership firm are the main reason of the drawbacks. Partners can be fading up due to the unlimited liability and the workload to manage the company rules and to increase the productivity.

This section includes tripartite agreement concept. The tripartite actions in the relation of the individuals are defined according to the social dialog in Singapore. The main functions of the labor market governance in Singapore are presented by the manpower ministry at the national level and by the Singapore national employer’s federation (Nair and Paulose H 2014). Less terms and conditions for the employees are set under this Act and also for the frame work of the relationship between employees (Johnstone and Ackers 2014).

Manpower ministry is the government department of Singapore. The policies are implemented and coordinated under this federation for the welfare of the workers. All the issues of the workplace are solved by the officers of this government department. The main aim of this organization is to create a global competitive work force of the world. To create a developed society in Singapore and to earn the high rate of profit is the aim of this organization. Ministry of Manpower is also known as MOM.

There are some strategies of this organization is given below:

To create a workplace where the productivity of the product can be increased easily with the mutual understanding of the staff and the boss.

To create the global market competition to compete the other country’s market.

To provide the physical security and financial security to all the employees of Singapore.

The management of the food organization is advised to give PA and wages o the employees at the time to increase the productivity. According to the Federal Wage System, the management of the food organization should set its system to pay the salary. The company should cover the appropriate fund and non-appropriate fund for the employees who are being paid according to their working hours. The aim of this system is to the same amount for the employees who are performing the same duties. The wages distribution should be according to their job more than according to their qualification (McCambridge 2014). So in simple words, who are performing same duties should get paid the same salary. There should be implementation of the flexible wages according to the job work of the employees. It is very necessary to create the competition between the employees. Less paid employee will work hard to get more paid. The productivity will also be increased. The management conducts a seminar at time to time to encourage the employees. FDAWU conducts the seminar to encourage the companies to use a flexible and competitive salary system. It is very important so that the competitive working environment can create and the productivity can also be increased. The management of the food organization must give extra funds and benefits for the employees to reduce the complexity and to motivate the workers for extra work.

There are many countries which encounter the structural unemployment due the economic progress outcome. Singapore is one of them to structure the unemployment. Only time cannot solve the problem. There is need to elaborate with this problem. When some workers will reach to the retirement, this problem can be solved then. But it is not the solution for the unemployment problem. So there must be skilled redevelopment program to structure the unemployment. Much other process should start to increase the job vacancy so that there would be growth in economy of the company as well as the country.

The implications included in the human resource management remains in the source of controversy. This includes the participations of the workers, and the strategies of the management approaches. In other approaches the implication may include the supplement or prevention of the activities which are independent to the organization of the workers. As the human resource management is referred to the tool for the employees of the management field (Voon 2013). The implications majorly includes: 1) employment growth- it determines the growth of the employment. 2) Workplace closures- it includes the participation of the employees of the workplaces. 3) Scopes of bargaining- explaining the bargaining agendas of the employees. 4) Levels of payment- in represent different types of union pay levels and the recent pay scales of settlements. The recent legislation provides for the trade union corresponds to certain circumstances. Most of the implications work for resolving the problems which shows huge effects on the employees. The implementation also includes the impact of the growth of the workers and the staff levels. As a result this has a direct effect on the sector of the welfare of the employees and the lower level of the staffs. The rate of growth of the employment this sector has gone under negotiations.  


In this paper, all the facts of the work union discussed above. There are many advantage of the union so management is advised not to ignore the FDAWU and work with the union. It is very helpful to earn the profit and to improve the productivity rate. FDAWU responds how to increase the flexibility and the quality for work life and the productivity. There is the drawback and advantages of the partnership with the FDAWU are given above in the discussion. All the facts about the partnership with the FDAWU are given in this report. It will be very helpful for the management to take the decision whether to ignore the FDAWU or to work with the FDAWU. In short we can say that FDAWU is very helpful to solve all the issues of the food organization. 


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