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