Labor relations

Labor relations. Speaking about this topic, first of all I would like to define what the word “labor” means. Labor is an effort, both physical & mental, made by human beings in production. It is the “human” element which is important.Because people have feelings & emotions their response to economic forces is different from that of machines: 1. First, whereas a machine which proves profitable can be reproduced fairly easily & quickly, the overall supply of labor does not depend upon its earnings.

Other factor is more important in deciding how many children parents have. 2. Second, the effort of labor is not determines solely by the reward offered. The method of payment may affect effort, while raising wages may result in less work being offered. Above all, a contented worker will produce more than an unhappy one; thus job satisfaction or loyalty to a firm, rather than a high rate of pay, may be decisive in inducing an employee to work overtime. 3. Third, labor does not move readily, either occupationally or geographically, in response to offer of a higher reward.

Often such “immobility” results from strong human contacts. 4. Fourth, workers can combine together in trade union. 5. Finally, if unemployed for long periods, workers deteriorate physically & mentally. Both firms & government must have politics which take account of these special characteristics.

Training schemes are essential to improve the skills of workers & thus their productivity. Firms must pay particular attention to psychological & social factors in an effort to motivate workers, e. g. by profit-sharing schemes. Furthermore, they must endeavor to co-operate with the workers’ trade-union representatives, with different labor union. Manual & service industry workers are often organized in labor unions.A labor union is an organization of employees, & it’s formed to achieve common goals in the areas of wages, hours worked, & working conditions.

Basically, labor unions exist to influence employers to further the benefits to employees. There are two basic types of labor unions – craft & industrial. A craft union is an organization of workers with specific skills, like carpenters or pilots. An industrial union, on the other hand, is an organization of all workers at all levels within one given industry.But why do people join labor unions? There are can be different reasons.

Let’s pick up some of them: 1. Unions help workers get higher wages & fringe benefits. This is probably the reason that union members would most often cite. Unions are generally seen as means by which workers can get a greater share of profits. 2. Unions help workers improve working conditions. Job safety is an important concern in this area. Through unions workers can often influence management to invest in appropriate safety equipment.

Desirable lighting & temperature could also be included in this area. 3. Unions protect workers from unfair management. Certainly, many employees would like to be shielded from what they consider to be unfair decisions, rules, & rule enforcement.Through unions workers have some such protection. 4. Unions possess political power. Employees may respond favorably to being members of an organization that can be lobby for laws to control such things as minimum wage levels of workers safety. Some degree of political influence can be achieved through unions.

Industrial relations tend to be better in countries, industrial & companies where communications are good, i.e. where management consults workers on matters that will concern them, where neither side treats the over as an adversary, & when unions do not insist upon the preservation of completely uneconomic jobs & working practices.Although some employers & managers (& political parties) oppose the very existence of unions – even though, like doctors, lawyers, accountants & so on, they might themselves belong to a professional association with similar basic aims – many management theorists stress the necessity of unions.

Any power needs restraint & control – or else it becomes tyranny. The union serves as essential function in industrial society.Yet one of the chief objectives of right-wing government in the 1980s (e.g. Britain & the USA) was to diminish the power of trade unions, & to deregulate labor markets in accordance with the ideal of free markets.

As a result of a 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. In fact, a number of politicians & business leaders are beginning to regret the weakness of unions.Some managers actively encourage unionization because they insist that a big company needs someone to represent & articulate the needs of the employees & 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, & choose not to join them. So anyway better or worse labor unions exist & it is obvious that employees try to influence their employers or managers. & there can be different ways in which labor unions try to achieve their goals.

We can talk about peaceful strategy (when employees don’t see the employer as an enemy & try to achieve their goals without using violence methods, for example through negotiating) & adverse strategy (when employees do use violence methods, when they see employer as an adversary, as an enemy). For example collective bargaining – it’s a peaceful strategy.Collective bargaining is the process by which employees, through the union or association representing them, negotiate a labor agreement with their employer.

The three main steps in the collective bargaining process: 1. preparation 2. bargaining 3. tentative agreement Preparation is the first step both union & management negotiators formulate their demands & concessions. The union attempts to pinpoint what it would like to have from management in such areas as wages & job seniority.Management attempts to define limits in giving concessions to the union; limits which is enable the organization to maintain a responsible level of profit.

We can list some areas emphasized by management & unions in preparing to bargain with each other: - union recognition & scope of bargaining unit - management rights (management security) - union security - strikes & lockouts - union activities & responsibilities - wages - working time & time of policies - etc. Each side prepares independently of the other.Once management & labor have prepared their demands & concessions, they begin actual bargaining (the second step). At this stage the two sides come together in a face-to-face meeting, usually around a large table.

In this second step both management & unions attempt to follow the bargain plans they outlines during the preparation phase. Essentially, management & labor, in a spirit of compromise, try to achieve their individual objectives.If both sides bargain satisfactorily during the bargaining phase, they draft a preliminary agreement or statement which describes their settlement (the third step). This means that management can meet enough of the union’s demands to satisfy the union negotiators while still maintaining a responsible level of profit.

This agreement must be then presented to the union membership to vote. If the union membership votes to accept or ratify his settlement, the settlement becomes the collective bargaining agreement or contract under which both management & the union must operate.

If, however, the union membership votes to reject the settlement, both management & union representatives must return to the bargaining table to draft another tentative agreement, which again must be presented for union membership approval. This basic process continues until membership ratifies an agreement which then becomes the contract.But also here we can talk about collective bargaining tactics (adverse strategy). It is actions, taken by either labor or management to pressure the other in a collective bargaining situation.

I’m going to describe both labor tactics & management tactics. Labor tactics are actions taken by unions in an attempt to influence management to adopt the union viewpoint in a collective bargaining situation. The most important labor tactics are: - strikes - picketing - boycotting A strike, or walkout, is a temporary stoppage of work by employees which lasts until management accepts union demands.The strike is probably the most influential labor tactic available to unions.

Unions pay workers from strike funds during the work stoppage & hope that management will decide that a halt in production will be more harmful to the company that the acceptance of union demands. Picketing is a labor tactic generally used in conjunction with a strike. Picketing involves positioning one or more union members at the entrance of a struck workplace to stop or make difficult any entry to the workplace.Picketers inform the public that a strike exists, make deliveries to the workplace difficult or impossible, & discourage other people from working their jobs. & boycotting is a tactic wherein union members refuse to purchase products companies that are giving a union difficult times.

Obviously, the purchasing power of unions can be very influential labor tactic.In fact, the use of boycotting as a modern labor tactic is on the rise. Management tactics are action taken by management in an attempt to influence unions to adopt the management viewpoint in a collective bargaining situation.

The most important management tactics are: - lockouts - injunction - associations A lockout is a refusal by management to allow workers to work by keeping them out of the workplace. Actually, a lockout is a sort of strike called by management. Through a lockout management hopes to create financial pressures for the union which will eventually influence the union to adopt management’s viewpoint.Although not commonly used by management, the lockout can be extremely effective tactic.

An injunction is a court order prohibiting or requiring action on the part of someone. Injunctions are primarily used to restrict such actions as violence & physical damage to company property. Injunctions can also be used to force striking public employees back to work when such strikes are illegal.Certain associations are organizations formed by employers to help neutralize the influence of unions.

Like employees, employers have found added strength in bargaining as a unit rather than individually. It would be much harder for the union to apple pressure & strike against all the employers than against one lone employer.In addition, such organization can provide negotiators for employers, & unions may in the future find themselves facing a better & more experienced negotiator than in the past. As we see labor unions can be a great power, & in this case managers to be successful should pay attention to them.