Deck 16: A Survey of Labor Relations in Market Economies

Question 1

Given the degree of democracy found in U.S. political jurisdictions, why isn't there more democracy in the workplace?

Answer 1

In the labour organizations, there are variations in political activities, negotiation, relationships with management etc. These organizations vary with organization structure and the countries in which they operate.
The reasons for the less degree of democracy in the work place are as follows:
• The power is vested mainly in the national unions organized in industrial basis unlike other nations where the power is with labor federations or at local level.
• Union bargaining coverage is low in the country, which is the main concern of resistance towards unionization.
• The involvement of the unions in strategic dimensions. They have the right to bargain in the core and shop floor. They can also act as advisory in shop floor. The involvement is less when compared to other countries.
• The work cooperatives, which are proved to be more productive, are less in the country U when compared to the Erpn countries.
• The influence of the unions in decision making is less in country U when compared to other countries.
The industrial democracy is more in many countries when compared to the country U. However, the impact of the performance of the organization is similar in both the country U and the Erpn countries

Question 2

Why are there such large differences in the structure of unions and managements for negotiation in Germany and Japan, yet similar levels of consultation in the workplace?

Answer 2

In the labour organizations, there are variations in political activities, negotiation, relationships with management etc. These organizations vary with organization structure and the countries in which they operate.
In country G, most of the firms have work councils, which involve in management decisions and also in the overall strategy. They have the right to know the information and are entitled for consultation.
There is no collective bargaining in strategic and shop floor dimension. The unions can advise the management or involve in codetermination. Collective bargaining is allowed in core dimension along with advising the management.
In country J, the bargaining is at enterprise level, which are affiliated with national. There are no differences in bargaining issues but they have more impact in decision making. The unions are allowed to advise in strategic, core and shop floor dimensions. Collective bargaining is allowed in core dimension.
The similarities is due to the corporatist approach in the country G which considers the labour and management as social partners. So, it requires consultation and codetermination. In country J, as the bargaining is at enterprise level, the consultation is required when the issues are related to the improvement of organization.

Question 3

Could religious or politically affiliated unions have an effective role in labor relations in the United States?

Answer 3

In the labour organizations, there are variations in political activities, negotiation, relationships with management etc. These organizations vary with organization structure and the countries in which they operate.
In country U, the representatives or the individuals chosen by the majority of the union and represents all the members of the bargaining unit irrespective of their membership in the union. This is called exclusive representation.
Some of the Erpn countries have tie up with religious or political based national federation. Therese countries work with several unions which have similar agenda. In these countries exclusive representation is not followed.
Hence, the religious or politically affiliated unions in the unions may not have an effective role. As it follows exclusive representation, it may not work with different agendas.

Question 4

Are the concepts of exclusive representation and mandatory bargaining issues anachronisms in a modern industrial society?