Collective laissez faire is a term in legal and economic theory used to refer to the policy of a government to leave trade unions and employers free to collectively bargain with one another, with limited government intervention and oversight. It is predicated on the idea that parties of equal bargaining strength will agree to optimal solutions for economic production and as a matter of fairness.
Classical liberalism is a political ideology and a branch of liberalism that advocates civil liberties under the rule of law with an emphasis on economic freedom. Closely related to economic liberalism, it developed in the early 19th century, building on ideas from the previous century as a response to urbanization and to the Industrial Revolution in Europe and North America.
A trade union, often simply called a union, is an organization of workers who have come together to achieve many common goals, such as protecting the integrity of their trade, improving safety standards, and attaining better wages, benefits, and working conditions through the increased bargaining power wielded by the creation of a monopoly of the workers. Trade unions typically fund the formal organization, head office, and legal team functions of the trade union through regular fees or union dues. The delegate staff of the trade union representation in the workforce are made up of workplace volunteers who are appointed by members in democratic elections.
Labour law mediates the relationship between workers, employing entities, trade unions and the government. Collective labour law relates to the tripartite relationship between employee, employer and union. Individual labour law concerns employees' rights at work also through the contract for work. Employment standards are social norms for the minimum socially acceptable conditions under which employees or contractors are allowed to work. Government agencies enforce labour law.
A market economy is an economic system in which the decisions regarding investment, production and distribution are guided by the price signals created by the forces of supply and demand. The major characteristic of a market economy is the existence of factor markets that play a dominant role in the allocation of capital and the factors of production.
Laissez-faire is an economic system in which transactions between private groups of people are absent or almost absent of any form of economic interventionism such as regulation and subsidies. As a system of thought, laissez-faire rests on the axioms that the individual is the basic unit in society and has a natural right to freedom; that the physical order of nature is a harmonious and self-regulating system; and that corporations are creatures of the state and therefore the citizens must watch them closely due to their propensity to disrupt the Smithian spontaneous order.
Industrial relations or employment relations is the multidisciplinary academic field that studies the employment relationship; that is, the complex interrelations between employers and employees, labor/trade unions, employer organizations and the state.
Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights for workers. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. The collective agreements reached by these negotiations usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs.
Enterprise bargaining is an Australian term for a form of collective bargaining, in which wages and working conditions are negotiated at the level of the individual organisations, as distinct from sectoral collective bargaining across whole industries. Once established, they are legally binding on employers and employees that are covered by the Enterprise bargaining agreement. An Enterprise Agreement (EA) consists of a collective industrial agreement between either an employer and a trade union acting on behalf of employees or an employer and employees acting for themselves.
A strikebreaker is a person who works despite an ongoing strike. Strikebreakers are usually individuals who were not employed by the company prior to the trade union dispute, but rather hired after or during the strike to keep the organization running. "Strikebreakers" may also refer to workers who cross picket lines to work.
The Industrial Relations Act 1971 (c.72) was an Act of the Parliament of the United Kingdom, since repealed. It was based on proposals outlined in the governing Conservative Party's manifesto for the 1970 general election. The goal was to stabilize industrial relations by forcing concentration of bargaining power and responsibility in the formal union leadership, using the courts. The act was intensely opposed by unions, and helped undermine the government of Edward Heath. It was repealed by the Trade Union and Labour Relations Act 1974 when the Labour Party returned to government.
The Ontario Labour Relations Board is an adjudicative agency of the Ministry of Labour, Training and Skills Development and was established by the Ontario government in 1948. It defines itself as "an independent, quasi-judicial tribunal mandated to mediate and adjudicate a variety of employment and labour relations-related matters under a number of Ontario statutes". Its current (2013) chair is Bernard Fishbein.
Trade unions in Ghana first emerged in the 1920s and played an important role in the country's economy and politics ever since.
Sir Otto Kahn-Freund QC was a scholar of labour law and comparative law. He was a professor at the London School of Economics and the University of Oxford.
Labor relations is a field of study that can have different meanings depending on the context in which it is used. In an international context, it is a subfield of labor history that studies the human relations with regard to work – in its broadest sense – and how this connects to questions of social inequality. It explicitly encompasses unregulated, historical, and non-Western forms of labor. Here, labor relations define "for or with whom one works and under what rules. These rules determine the type of work, type and amount of remuneration, working hours, degrees of physical and psychological strain, as well as the degree of freedom and autonomy associated with the work."
A collective agreement, collective labour agreement (CLA) or collective bargaining agreement (CBA) is a written contract negotiated through collective bargaining for employees by one or more trade unions with the management of a company that regulates the terms and conditions of employees at work. This includes regulating the wages, benefits, and duties of the employees and the duties and responsibilities of the employer or employers and often includes rules for a dispute resolution process.
China Labour Bulletin (CLB) is a non-governmental organization that promotes and defends workers’ rights in the People’s Republic of China. It is based in Hong Kong and was founded in 1994 by labour activist Han Dongfang.
Inequality of bargaining power in law, economics and social sciences refers to a situation where one party to a bargain, contract or agreement, has more and better alternatives than the other party. This results in one party having greater power than the other to choose not to take the deal and makes it more likely that this party will gain more favourable terms and grant them more negotiating power. Inequality of bargaining power is generally thought to undermine the freedom of contract, resulting in a disproportionate level of freedom between parties, and that it represents a place at which markets fail.
Legal abstentionism is a term used in labour law and industrial relations to refer to the policy of a government to not regulate labour markets through statutory means, by relying heavily on minimum standards. This is said to be characteristic of the British industrial relations policy of the early and middle twentieth century. It often complements the concept of "collective laissez faire", involving regulation of work through trade unions and collective agreement.
The Royal Commission on Trade Unions and Employers’ Associations was an inquiry into the system of collective UK labour law, chaired by Lord Donovan and heavily influenced by the opinions of Hugh Clegg. Its report, known as the "Donovan Report", was issued in 1968.
The union density or union membership rate conveys the number of trade union members who are employees as a percentage of the total number of employees in a given industry or country. This is normally lower than collective agreement coverage rate, which refers to all people whose terms of work are collectively negotiated. Trade unions bargain with employers to improve pay, conditions, and decision-making in workplaces; higher rates of union density within an industry or country will generally indicate higher levels of trade union bargaining power, lower rates of density will indicate less bargaining power.