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Labor Relations and Industrial Democracy - International Comparative Management - Lecture Slides, Slides of International Management

This course focuses on the challenges and opportunities associated with organizational management and business strategy in the global environment. This lecture includes: Labor Relations and Industrial Democracy, International Structure of Labor Unions, Nature of Industrial Democracy, Philosophical Views and Strategic, International Arena, Collective Bargaining, Union, Organization, Grievance Procedure, Management Representatives

Typology: Slides

2012/2013

Uploaded on 08/31/2013

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Labor Relations and Industrial
Democracy
The specific objectives of this chapter are:
1. DEFINE labor relations, and examine the approaches
used in the United States and other countries.
2. REVIEW the international structure of labor unions.
3. EXAMINE the nature of industrial democracy, and
note some of the major differences that exist
throughout the world.
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Labor Relations and Industrial

Democracy

The specific objectives of this chapter are:

1. DEFINE labor relations, and examine the approaches

used in the United States and other countries.

2. REVIEW the international structure of labor unions.

3. EXAMINE the nature of industrial democracy, and

note some of the major differences that exist

throughout the world.

Labor Relations and Industrial

Democracy

The specific objectives of this chapter are:

4. DESCRIBE the philosophical views and strategic

approaches that MNCs use to manage international

industrial relations and future strategies.

International Arena  Efforts are made to solve problems at the lowest level of the hierarchy as quickly as possible  First step usually involves a meeting between the union representative (shop steward) at the operating level and the employee’s supervisor – they attempt to agree on how to solve the grievance  Unresolved grievances may involve union officials and higher-level management representatives – these conciliatory approaches usually solve the grievance  Sometimes the matter ends up in the hands of a mediator or an arbitrator

The U.S. Approach to

Labor Relations

Steps of a Grievance

Procedure

International Arena

 Mediator

A person who brings both sides (union and management

representatives) together and helps them to reach a settlement

that is mutually acceptable.

 Arbitrator

An individual who provides a solution to a grievance that both

sides (union and management representatives) have been

unable to resolve themselves and that both sides agree to

accept.

The U.S. Approach to

Labor Relations

Mediation and Arbitration

International Arena

 They directly determine labor costs, productivity, and

eventually, even profits

 Labor costs in the United States are lower in recent years than in most other major industrial countries.  Thanks to union–management cooperation, U.S. companies have been able to introduce high-tech, efficient machinery.  Much of this outcome is a result of effective labor relations strategies.

The U.S. Approach to

Labor Relations

Importance of Positive

Labor Relations

International Arena

 Labor relations strategies vary greatly from country to

country—the strategy used in one country is sometimes

irrelevant or of limited value in another.

 A number of factors can account for this:

 Economic development of the country  Entry strategies must often be modified  Changes in the political environment  Strike activity  Other differences are more regional

Labor Relations in Other

Countries

International Arena

 In developing and emerging economies such as China,

India, and Southeast Asia:

 Labor is less powerful

 Unions are less prevalent

 Workers are often compelled to accept conditions of work

set by management

Labor Relations in Other

Countries

Regional Differences

0 20 40 60 80 100 Percentage of Trade-Union Members, 2001 Adapted from Figure 15–1: Percentage of Employed People Who Were Trade-Union Members, 2001 Denmark Sweden Ireland Austria Italy Germany Britain Netherlands Japan Spain United States France

International Arena  Germany  Rights of workers are addressed more carefully by management  Union power in Germany is still quite strong  Union membership is voluntary—generally one union in each major industry  A minority of the labor force is organized  Individual workers are free to negotiate either individually or collectively with management to secure wages and benefits that are superior to those spelled out in the agreement even when covered by a labor contract

Labor Relations in Other

Countries

Differing Approaches to

Industrial Relations

International Arena  Japan  Social custom dictates nonconfrontational union–management behavior  Provisions in Japanese labor agreements are usually general and vague, although they are legally enforceable  Agreement disputes are settled in an amicable manner though sometimes resolved by third-party mediators or arbitrators  Labor commissions have been established by law  Japanese unions remain relatively weak.

Labor Relations in Other

Countries

Differing Approaches to

Industrial Relations

International Arena  China  The Chinese economy has shifted from a command economy to a more market-led one  An increasing emphasis is being placed on the role of the collective contract system  Integration of trade unions into workplace management continues to prevent collective consultation from providing an adequate framework for the full freedom and regulation of labor relations  Labor relations in China has become a point of contention in international trade and human rights discussions

Labor Relations in Other

Countries

Differing Approaches to

Industrial Relations

International Arena  Southeast Asia including Brunei, Cambodia, East Timor, Indonesia, Laos, Malaysia, Myanmar (Burma), Philippines, Singapore, Thailand, and Vietnam  Many states are still focused on keeping labor movements in check, whether in the name of economic development, national unity, or social stability  Labor movements are fragmented or constrained due to the political environment  Labor relations in Southeast Asia have been influenced by market- based policies of international competition

Labor Relations in Other

Countries

Differing Approaches to

Industrial Relations

Annual Average Days Lost Due to Labor Disputes 1993 - 2002 Adapted from Figure 15–2: Annual Average Days Lost Due to Labor Disputes in Economically-Advanced Nations, 1993– 2002 554 250 200 150 100 50 0 Iceland Spain Canada Denmark Italy Finland^ France Norway^ Ireland Australia United States Sweden New Zealand Belgium Britain Portugal Netherlands Germany Switzerland Japan Austria

International Arena  United States  Most U.S. labor contracts have a specific provision that outlaws strikes; thus, sudden or unauthorized strikes (commonly called ―wildcat strikes‖) are uncommon.  The grievance procedure is used to resolve the disagreements peacefully  Once the contract period is over and if a new one is not successfully negotiated:  Workers may strike or continue to work without a contract while threatening to walk out  Management also may lock out the workers—very rare

Industrial Conflict

Around the World