Employers' organization

Last updated

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.

Contents

History

In a free market the rivalry between competing companies naturally tends to preclude combined action for the advancement of common interests. [1] The emergence of trade unions and their efforts to establish collective bargaining agreements on a local or an industry-wide level ultimately paved the way for combined action by competitors employing such labor in common. [1]

The collective entities established by commercial enterprises acting in concert on such matters are known variously as employers' organizations or employers' associations.

Historically, employers' associations were of two general types: those consisting only of employers in a single trade or industry, or those bringing together employers from across a broad spectrum of industries on a local, regional, or national basis. [1]

As was the case for unions, the first employers' organizations emerged in large industrial cities during the first half of the 19th century. [2] Both unions and employers' organizations tended to be localized. [2] As unions began to proliferate and to gain strength in negotiations over wages and conditions through the use of strike actions, employers began to unite in order to restrict wage rates and otherwise fetter the emerging organized labor movement. [2]

International variations

The role and position of an employers' organization differs from country to country. In countries with an Anglo-Saxon economic system (such as the United Kingdom and the United States), where there is no institutionalized cooperation between employers' organizations, trade unions and government, an employers' organization is an interest group or advocacy group that through lobbying tries to influence government policy. In these countries, employers' organizations tend to be weaker, with many of their functions taken over by industry trade groups, which are basically public relations organizations.

In countries with a social market economy, such as Austria, Sweden, Norway and the Netherlands, the employers' organizations are part of a system of institutionalized deliberation, together with government and the trade unions. In tri-partite bargaining the so-called social partners strike agreements on issues like price levels, wage increases, tax rates and pension entitlements. In these countries collective bargaining is often done not between one corporation and one union, but between national employers' organizations and national trade unions.

In countries like Switzerland, the negotiations often take place at the cantonal level, branch by branch. [3] The state is not involved in these negotiations, but can step in if the employers and the trade unions don't reach an agreement in a sector where salary dumping exists.

See also

Footnotes

  1. 1 2 3 F.W. Hilbert, "Employers' Associations in the United States," in Jacob H. Hollander and George E. Barnett (eds.), Studies in American Trade Unionism. New York: Henry Holt and Co., 1912; pg. 185.
  2. 1 2 3 Hilbert, "Employers' Associations in the United States," pg. 186.
  3. Pierre Cormon, Swiss Politics for Complete Beginners, Editions Slatkine, 2014, ISBN   978-2-8321-0607-5

Related Research Articles

A trade union or labor union, often simply referred to as a union, is an organisation 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.

Labour laws, labour code or employment laws are those that mediate the relationship between workers, employing entities, trade unions, and the government. Collective labour law relates to the tripartite relationship between employee, employer, and union.

<span class="mw-page-title-main">Strike action</span> Work stoppage caused by the mass refusal of employees to work

Strike action, also called labor strike, labour strike and industrial action in British English, or simply strike, is a work stoppage caused by the mass refusal of employees to work. A strike usually takes place in response to employee grievances. Strikes became common during the Industrial Revolution, when mass labor became important in factories and mines. As striking became a more common practice, governments were often pushed to act. When government intervention occurred, it was rarely neutral or amicable. Early strikes were often deemed unlawful conspiracies or anti-competitive cartel action and many were subject to massive legal repression by state police, federal military power, and federal courts. Many Western nations legalized striking under certain conditions in the late 19th and early 20th centuries.

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.

<span class="mw-page-title-main">Federation of Dutch Trade Unions</span> Dutch national trade union centre

The Federation of Dutch Trade Unions is a national trade union centre in the Netherlands. The FNV is a significant player in the field of work and income. The trade union consists of a central federation, complemented by several sectoral unions representing specific professional groups and sectors. The FNV aims to safeguard the interests of employees, promote fair labor conditions, and protect workers' rights at the national level.

Finnish national income policy agreements or comprehensive income policy agreements are tripartite agreements between Finnish trade unions, employers' organizations, and the Finnish government. They are policy documents covering a wide range of economic and political issues, such as salaries, taxation, pensions, unemployment benefits, and housing costs. They represent collective bargaining taken to its logical maximum, reaching virtually all wage-earners. Their enforcement is made easier by the universal validity of collective labour agreements. However, they are voluntary agreements and are not considered government legislation, i.e. they do not represent central planning of the economy.

<span class="mw-page-title-main">United States labor law</span> US laws on fair pay and conditions, unions, democracy, equality and security at work

United States labor law sets the rights and duties for employees, labor unions, and employers in the USA. Labor law's basic aim is to remedy the "inequality of bargaining power" between employees and employers, especially employers "organized in the corporate or other forms of ownership association". Over the 20th century, federal law created minimum social and economic rights, and encouraged state laws to go beyond the minimum to favor employees. The Fair Labor Standards Act of 1938 requires a federal minimum wage, currently $7.25 but higher in 29 states and D.C., and discourages working weeks over 40 hours through time-and-a-half overtime pay. There are no federal laws, and few state laws, requiring paid holidays or paid family leave. The Family and Medical Leave Act of 1993 creates a limited right to 12 weeks of unpaid leave in larger employers. There is no automatic right to an occupational pension beyond federally guaranteed Social Security, but the Employee Retirement Income Security Act of 1974 requires standards of prudent management and good governance if employers agree to provide pensions, health plans or other benefits. The Occupational Safety and Health Act of 1970 requires employees have a safe system of work.

Labor rights or workers' rights are both legal rights and human rights relating to labor relations between workers and employers. These rights are codified in national and international labor and employment law. In general, these rights influence working conditions in the relations of employment. One of the most prominent is the right to freedom of association, otherwise known as the right to organize. Workers organized in trade unions exercise the right to collective bargaining to improve working conditions.

Social dialogue is the process whereby social partners negotiate, often in collaboration with the government, to influence the arrangement and development of work-related issues, labour market policies, social protection, taxation or other economic policies. It is a widespread procedure to develop public policies in Western Europe in particular.

Labour unions emerged in Japan in the second half of the Meiji period, after 1890, as the country underwent a period of rapid industrialization. Until 1945, however, the labour movement remained weak, impeded by a lack of legal rights, anti-union legislation, management-organized factory councils, and political divisions between “cooperative” and radical unionists.

<span class="mw-page-title-main">European Metalworkers' Federation</span>

The European Metalworkers' Federation (EMF), founded in 1971, is a federation of 68 metalworkers' unions from 31 countries, representing a combined total of 6.5 million affiliates. It is based in Brussels, Belgium, the general secretary is Ulrich Eckelman and Bart Samyn is the Deputy General Secretary. The organisation was dissolved on 15 May 2012, to become a part - together with EMCEF and ETUF-TCL - of the newly created organisation industriAll European Trade Union on 16 May 2012

<span class="mw-page-title-main">Labor relations</span> Study of work and workers

Labor relations or labor studies 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." More specifically in a North American and strictly modern context, labor relations is the study and practice of managing unionized employment situations. In academia, labor relations is frequently a sub-area within industrial relations, though scholars from many disciplines including economics, sociology, history, law, and political science also study labor unions and labor movements. In practice, labor relations is frequently a subarea within human resource management. Courses in labor relations typically cover labor history, labor law, union organizing, bargaining, contract administration, and important contemporary topics.

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.

A wildcat strike is a strike action undertaken by unionised workers without union leadership's authorisation, support, or approval; this is sometimes termed an unofficial industrial action. The legality of wildcat strikes varies between countries and over time.

A whipsaw strike is a strike by a trade union against only one or a few employers in an industry or a multi-employer association at a time. The strike is often of a short duration, and usually recurs during the labor dispute or contract negotiations—hence the name "whipsaw".

A labor dispute is a disagreement between an employer and employees regarding the terms of employment. This could include disputes regarding conditions of employment, fringe benefits, hours of work, tenure, and wages to be negotiated during collective bargaining, or the implementation of already agreed upon terms. It could further concern the association or representation of those who negotiate or seek to negotiate the terms or conditions of employment.

A master contract or master agreement is a collective bargaining agreement which covers all unionized worksites in an industry, market or company, and which establishes the terms and conditions of employment common to all workers in the industry, market or company.

The labour movement or labor movement consists of two main wings: the trade union movement or labor union movement on the one hand, and the political labour movement on the other.

Israeli labor law provides a number of protections to workers in Israel. They are governed by the Basic Laws, the Hours of Work and Rest Law, as well as various other laws, statutes, and regulations.

Collective agreement coverage or union representation refers to the proportion of people in a country population whose terms and conditions at work are made by collective bargaining, between an employer and a trade union, rather than by individual contracts. This is invariably higher than the union membership rate, because collective agreements almost always protect non-members in a unionised workplace. This means that, rather than individuals who have weaker bargaining power representing themselves in negotiations, people organise to represent each other together when negotiating for better pay and conditions in their workplace. The number of people who are covered by collective agreements is higher than the number of union members, and in many cases substantially higher, because when trade unions make collective agreements they aim to cover everyone at work, even those who have not necessarily joined for membership.