| Author | Sidney Webb, Beatrice Webb |
|---|---|
Publication date | 1897 |
Industrial Democracy (1st edn 1897; [1] 9th edn 1926) is a book written by British socialist reformers Sidney Webb and Beatrice Webb, concerning the organisation of trade unions and collective bargaining. The book introduced the term industrial democracy to the social sciences, which has since gained a different meaning in modern industrial relations. [2]
Industrial Democracy was published in 1897, three years after the Webbs published History of Trade Unionism , an account of the roots and development of the British trade union movement.
Industrial Democracy is divided into three parts. The first part concerns the structure of trade unions and concludes that "Trade Unions are democracies; that is to say their internal constitutions are all based on the principle 'government of the people by the people for the people.'" [2] Part II focuses on the function of trade unions and specifically the method of collective bargaining. The third part delves into the theory of trade unions. [3]
Part I explores how unions are representative institutions, and provide the basis of fair governance of the workplace.
Part II explores how unions developed systems of mutual insurance for minimum standards and collectively bargained for their members.
Chapter I explains orthodox theories of economists at the time, and their "verdict" against the need for labour regulation. Chapter II sets out a theory of the "Higgling of the Market" where labour has a persistently unequal position. Chapter III explores what trade unions typically do to improve wages and conditions, through a national minimum and collective bargaining.
Chapter IV explores trade unionism and democracy, and looks toward the future of regulation. The imbalance of behaviour between employers and employees was described by the Webbs as follows. [4]
The capitalist is very fond of declaring that labour is a commodity, and the wage contract a bargain of purchase and sale like any other. But he instinctively expects his wage-earners to render him, not only obedience, but also personal deference. If the wage contract is a bargain of purchase and sale like any other, why is the workman expected to tip his hat to his employer, and to say 'sir' to him without reciprocity?
Industrial Democracy had a profound impact on the British labour movement, and socialism worldwide. It was translated into multiple languages, including a translation into Russian by Vladimir Lenin. [5] [6]
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A trade union or labor union, often simply referred to as a union, is an organization of workers whose purpose is to maintain or improve the conditions of their employment, such as attaining better wages and benefits, improving working conditions, improving safety standards, establishing complaint procedures, developing rules governing status of employees and protecting and increasing the bargaining power of workers.
Sidney James Webb, 1st Baron Passfield, was a British socialist, economist and reformer, who co-founded the London School of Economics. He was an early member of the Fabian Society in 1884, joining, like George Bernard Shaw, three months after its inception. Along with his wife Beatrice Webb and with Annie Besant, Graham Wallas, Edward R. Pease, Hubert Bland and Sydney Olivier, Shaw and Webb turned the Fabian Society into the pre-eminent politico-intellectual society in Edwardian England. He wrote the original, pro-nationalisation Clause IV for the British Labour Party.
Martha Beatrice Webb, Baroness Passfield, was an English sociologist, economist, feminist and social reformer. She was among the founders of the London School of Economics and played a crucial role in forming the Fabian Society. Additionally, she authored several popular books, with her most notable being The Cooperative Movement in Great Britain and Industrial Democracy, co-authored by her husband Sidney Webb, where she coined the term "collective bargaining" as a way to discuss the negotiation process between an employer and a labor union. As a feminist and social reformer, she criticised the exclusion of women from various occupations as well as campaigning for the unionisation of female workers, pushing for legislation that allowed for better hours and conditions.
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. A collective agreement reached by these negotiations functions as a labour contract between an employer and one or more unions, and typically establishes terms regarding wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs. Such agreements can also include 'productivity bargaining' in which workers agree to changes to working practices in return for higher pay or greater job security.
United Kingdom labour law regulates the relations between workers, employers and trade unions. People at work in the UK have a minimum set of employment rights, from Acts of Parliament, Regulations, common law and equity. This includes the right to a minimum wage of £11.44 for over-23-year-olds from April 2023 under the National Minimum Wage Act 1998. The Working Time Regulations 1998 give the right to 28 days paid holidays, breaks from work, and attempt to limit long working hours. The Employment Rights Act 1996 gives the right to leave for child care, and the right to request flexible working patterns. The Pensions Act 2008 gives the right to be automatically enrolled in a basic occupational pension, whose funds must be protected according to the Pensions Act 1995. Workers must be able to vote for trustees of their occupational pensions under the Pensions Act 2004. In some enterprises, such as universities or NHS foundation trusts, staff can vote for the directors of the organisation. In enterprises with over 50 staff, workers must be negotiated with, with a view to agreement on any contract or workplace organisation changes, major economic developments or difficulties. The UK Corporate Governance Code recommends worker involvement in voting for a listed company's board of directors but does not yet follow international standards in protecting the right to vote in law. Collective bargaining, between democratically organised trade unions and the enterprise's management, has been seen as a "single channel" for individual workers to counteract the employer's abuse of power when it dismisses staff or fix the terms of work. Collective agreements are ultimately backed up by a trade union's right to strike: a fundamental requirement of democratic society in international law. Under the Trade Union and Labour Relations (Consolidation) Act 1992 strike action is protected when it is "in contemplation or furtherance of a trade dispute".
In Canadian labour law, the Rand formula is a workplace compromise arising from jurisprudence struck between organized labour and employers that guarantees employers industrial stability by requiring all workers affected by a collective agreement to pay dues to the union by mandatory deduction in exchange for the union agreement to "work now, grieve later."
The European Trade Union Confederation (ETUC) is the major trade union organisation representing workers at the European level. In its role as a European social partner, the ETUC works both in a consulting role with the European Commission and negotiates agreements and work programmes with European employers. It coordinates the national and sectoral policies of its affiliates on social and economic matters, particularly in the framework of the EU institutional processes, including European economic governance and the EU Semester.
The History of Trade Unionism is a book by Sidney and Beatrice Webb on the British trade union movement's development before 1920.
An employers' organization or employers' association is a collective organization of manufacturers, retailers, or other employers of wage labor. Employers' organizations seek to coordinate the behavior of their member companies in matters of mutual interest, such as during negotiations with trade unions or government bodies. Employers' organizations operate like trade unions and promote the economic and social interests of its member organisations.
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.
The Court of Arbitration was the first court in New South Wales, Australia, which dealt exclusively with industrial relations disputes in the early twentieth century. Justice Lance Wright claims that it perhaps was the first court of its type in the world. The court was unique at that time as it was the first court of its type to deal with labour relations between employer and employees on a compulsory basis. Previous arbitration measures between employer and employee had been on a voluntary basis or had been based on the criminal justice system through the use of criminal penalties. The conventional economic model is that both employer and employee enjoy equal bargaining power to set wages and conditions. This asserts that both parties are able to agree on a fair market price for the cost of labour free from distortions. However, where employers or employees group together, these outcomes can be distorted particularly in “boom” or “bust” economic conditions. The purpose of the court was to change the manner in which employers and employees negotiated pay and conditions. It was an attempt to reduce the power imbalances between employer groups or employee unions that arose from using collective bargaining, and the resulting use of that market power to influence wages, and also to reduce the threat of lockout or strikes to achieve those ends.
The Trade Boards Act 1909 was a piece of social legislation passed in the United Kingdom in 1909. It provided for the creation of boards which could set minimum wage criteria that were legally enforceable. It was expanded and updated in the Trade Boards Act 1918. The main provision was to set minimum wages in certain trades with historically low wages, often due to a surplus of available workers due to the widespread employment of workers or lack of skills needed for employment.
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.
Thomas Joseph Dunning was an English bookbinder and trade unionist.
Principles of Labor Legislation (1916) was a foundational US labor law text, written in the United States by John R. Commons and John Bertram Andrews.
Industrial democracy is an arrangement which involves workers making decisions, sharing responsibility and authority in the workplace. While in participative management organizational designs workers are listened to and take part in the decision-making process, in organizations employing industrial democracy they also have the final decisive power.
The labour movement is the collective organisation of working people to further their shared political and economic interests. It consists of the trade union or labour union movement, as well as political parties of labour. It can be considered an instance of class conflict.
Worker representation on corporate boards of directors, also known as board-level employee representation (BLER), refers to the right of workers to vote for representatives on a board of directors in corporate law. In 2018, a majority of Organisation for Economic Co-operation and Development, and a majority of countries in the European Union, had some form of law guaranteeing the right of workers to vote for board representation. Together with a right to elect work councils, this is often called codetermination.
Allan Flanders was a British academic, author, and founding member of the Oxford School of Industrial Relations, along with Hugh Clegg, Alan Fox, Lord William McCarthy, Sir George Bain and Otto Kahn-Freund. The school was a developer of the idea of collective bargaining and overall proponents of bargaining power, legal contracts, normative regulation and institutionalized conflict resolutions as issues of significance and focus in the field of industrial relations.
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