Labor relations

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Vancouver Labour Temple during the general strike in 1918 Vancouver Labour Temple 1918.jpg
Vancouver Labour Temple during the general strike in 1918

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 (implicit or explicit, written or unwritten) 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." [1] 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. [2]

Contents

In the United States, labor relations in most of the private sector is regulated by the National Labor Relations Act. Labor relations in the railroad and airline industries are regulated by the Railway Labor Act. Public sector labor relations is regulated by the Civil Service Reform Act of 1978 and various pieces of state legislation. In other countries, labor relations might be regulated by law or tradition. An important professional association for United States labor relations scholars and practitioners is the Labor and Employment Relations Association.

Labour relations in Canada

Similarities with the United States

Labour relations in Canada and the United States are exceptionally similar, with a 1959 survey of 15 countries describing them as a single system. [3] Until the 1970s, the majority of union members and union organizations had a place with United States-based specialty, modern and industrial associations. In Canada, more than 4000 subsidiaries and branch plants of American corporations exist. [3] In the 1960s, due to institutional and political factors that were shared with the United States, there was an unusually high amount of strikes, as well, the incidence of violence and illegal activities that came out of work and labour disputes has been much higher in the Canada and the United States than in other industrialized countries. Characteristics that would lead to higher aggressive strikes would be the result of mass unionization and the hostility that arose from the widespread employer opposition to unions, organizational and institutional union rivalries, and the absence of a large labour party. [3]

Differences with the United States

Although the United States and Canada share many similarities with modern labour relations, there are definitely a few defining differences between the two nations. In Canada, there is not a set of labour laws followed by all the provinces, instead all provinces have their own set of laws, and although they may be similar they are not federally run. Unlike Canada, the United States has a more centralized system where all states follow the same labour laws run by the National Labour Relations Board (NLRB). [4] Another difference between the two countries is there are many more Canadian workers than there are American workers covered by labour relations laws. In 2008, it was reported that 31.2% of public and private employment in Canada were covered, and only 13.7% in the United States. [4]

Unions

Unions are a significant aspect of labor relations and provide job security to workers and ensure all employees are well compensated for labor. [5] Union negotiators offer high-level pay in exchange for workers to tolerate repetitive job design or unsafe working conditions. Unions are critical in providing security and assurance to employees that their job position will remain unaffected and always compensated for their work. Some of the unions' main objectives are; job security, suitable compensation for labor, job design, retraining and reskilling, and health and safety. [5] No matter how strong the union is, there is often a mismatch between critical company decision-making and the union representatives' demands. However, to provide proper job security and suitable compensation for employees, agreements must be made between union representatives and employers. [5]

Unions have a positive impact on benefits and total compensation in Canada when compared with non-unionized work environments. [6] Results from the Canadian general Social Survey (GSS) in 1998 demonstrate that union work environments increase total compensation by 12.4 percent, and 10.4 percent by wages. [6] In terms of total compensation, the empirical data suggests that unions have achieved larger fringe benefits for their members in comparison to non-union. As for wages, Union-non-union differentials were found to vary across the Canadian labour market. Previous studies on unions' impact on Canadian wages through the use of the GSS indicated that the union-non-union differential was 18 percent. However, a more recent study indicates that the differential is 10.4%. This decline of differential indicates an increase of competitive pressure. [6]

Perspectives on labour relations

Unitary perspective

In a unitary perspective there is an emphasis on employees sharing common objectives and being harmonious with one another. This perspective views strikes as pathological. [7] Labour relations in which trade unions are involved are viewed negatively and labelled unnecessary. Within this perspective there are alternative positions held upon matters such as trade unions. Some view labour relations with unions as an extension to the relationship that exists between managers and employees in regards to communications. [8]

Pluralism perspective

In the pluralistic perspective it is accepted that conflict will arise between employees and organizations as there will be divergent opinions in some situations. In order to deal with the conflict that may arise between those in a labour relationship trade unions are used. [7] Managers view trade unions as an inconvenience but respect the authority of them.

Marxist perspective

Also called radical perspective or conflict model. This perspective is to reveal the nature of the capitalist society. It recognizes inequalities in power in the employment relationship and in wider society as a whole. Consequently, conflict is perceived as a result.

Collective bargaining

Collective Bargaining Press Conference Collective Bargaining Press Conference (20446026094).jpg
Collective Bargaining Press Conference

Collective bargaining is a vital part of labour relations. It is essential to labor relations because it sets the tone for a fair and equal workplace which forms the basis for cordial labor relations. Collective Bargaining is used to ensure all workers are represented equally and fairly. When collective bargaining is exercised within organizations, it is to address working conditions, terms of employment, and work relations. [9] It can even include 'productivity bargaining' agreements between employers and workers in which changes to working practices are implemented in return for higher pay or job security. [10] Such negotiations take place between the employer and the union with the intent of coming to a collective agreement. Negotiations can end in either a strike by workers, a lockout by employers, a boycott, or the primary goal, an agreement. Although collective bargaining can be seen as simple social discussion, it is more substantive than that. It is “a fundamental and principle right at work.” [9] Collective bargaining also provides a sense of equality and equity, and it gives the worker the ability to partake in building a fair and legal work environment. [9]

Equality in collective bargaining

Collective bargaining can be traced back to the industrial revolution in the 18th-19th century. [11] During this time, many jobs were lost to the ability of machines taking over. Because of this, people started to form organizations to protect their jobs and income. [11] Thus, bringing about unions and, in turn, collective bargaining. Collective bargaining is a right for workers and can bring about many benefits, including limiting biases and equity gaps. Thus, ensuring all workplaces are fair. Collective Bargaining has been proven to lower the wage gap and establish more equality in workers and wages. [11] Internationally, countries that use collective bargaining have lower wage inequality such as Denmark, Finland, France, the Netherlands and Sweden, and countries who use collective bargaining less, have higher wage inequality, like Hungary and Poland. [11] Collective bargaining has also played a role in shrinking the gender pay gap. [12] Although collective bargaining has helped the gender pay gap, due to its role in directly affecting wages, there is still unfair equity in benefits and bonuses given out. Developed countries like the UK who practice collective bargaining still have a sizeable pay gap. Developing countries like specific places in Africa, where they do not rely on collective bargaining, have a gender pay gap as well. [12] This shows that although collective bargaining may help, it is not the be-all end all to the problem.

International Labor Organization

An integral part of collective bargaining is the ILO (International Labour Organization). The ILO contains International Labour Standards that ensure equity. "The ILO supports governments to fulfil their international obligation to respect, to promote, and to realize the effective recognition of the right to collective bargaining, and to take measures to encourage the full development of machinery for voluntary negotiations." [9] Technical Assistance (provided by the ILO) including, advisory services and technical cooperation’s, help employers and governments exercise their workers freedom and association and right to collective bargaining. [9] The ILO states, “all member states accept an obligation to respect, promote and realize the effective recognition of the right to collective bargaining.” [9] Therefore the ILO is international so that not only the westernized countries but developing countries as well can strive to get equal and fair treatments for their workers.

Collective bargaining in the United States

Inlandboatmen's Union Members Protesting While on Strike Inlandboatmen's Union 823.jpg
Inlandboatmen's Union Members Protesting While on Strike

To maintain equal and fair treatment for both employees and employers the 74th United States Congress created the National Labor Relation Act ("NLRA") in 1935. [13] They use a federal or national act to create a basic standard for everyone across America. The lack of a state level law makes understanding collective bargaining laws easier. However, a downside is there is a lack of specification by centralizing labor relation laws means that a state is unable to amend the laws to better suit its people. In Canada, each province is given legal jurisdiction over their labor relation laws.

Challenges of collective bargaining

During collective bargaining, unions and employers both have ways to shut down the organization if the bargaining is not resulting in the demands each party wants. A union has the option to go on strike and the organization or employer can use a lockout. Strike authorizations votes are common to influence or threaten their employer in becoming more understanding.[ citation needed ] Whereas lockouts have the same effect on unions. Both parties have extreme ways to influence and can result in costly shutdowns for unions or employer. The Pullman Strike was a major strike in America that cost the Pullman Company millions lost revenue however, over a million dollars was also lost in wages for workers on strike. [14]

Related Research Articles

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.

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">National Labor Relations Act of 1935</span> 1935 U.S. federal labor law regulating the rights of workers and unions

The National Labor Relations Act of 1935, also known as the Wagner Act, is a foundational statute of United States labor law that guarantees the right of private sector employees to organize into trade unions, engage in collective bargaining, and take collective action such as strikes. Central to the act was a ban on company unions. The act was written by Senator Robert F. Wagner, passed by the 74th United States Congress, and signed into law by President Franklin D. Roosevelt.

<span class="mw-page-title-main">Strike action</span> Work stoppage by employees

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.

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.

Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any other entity, pays the other, the employee, in return for carrying out assigned work. Employees work in return for wages, which can be paid on the basis of an hourly rate, by piecework or an annual salary, depending on the type of work an employee does, the prevailing conditions of the sector and the bargaining power between the parties. Employees in some sectors may receive gratuities, bonus payments or stock options. In some types of employment, employees may receive benefits in addition to payment. Benefits may include health insurance, housing, and disability insurance. Employment is typically governed by employment laws, organisation or legal contracts.

<span class="mw-page-title-main">United Kingdom labour law</span> Rights of workers, unions, and duties of employers in the UK

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 £10.42 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".

Featherbedding is the practice of hiring more workers than are needed to perform a given job, or to adopt work procedures which appear pointless, complex and time-consuming merely to employ additional workers. The term "make-work" is sometimes used as a synonym for featherbedding.

<span class="mw-page-title-main">Australian labour law</span> Rights and duties of workers, unions and employers in Australia

Australian labour law sets the rights of working people, the role of trade unions, and democracy at work, and the duties of employers, across the Commonwealth and in states. Under the Fair Work Act 2009, the Fair Work Commission creates a national minimum wage and oversees National Employment Standards for fair hours, holidays, parental leave and job security. The FWC also creates modern awards that apply to most sectors of work, numbering 150 in 2024, with minimum pay scales, and better rights for overtime, holidays, paid leave, and superannuation for a pension in retirement. Beyond this floor of rights, trade unions and employers often create enterprise bargaining agreements for better wages and conditions in their workplaces. In 2024, collective agreements covered 15% of employees, while 22% of employees were classified as "casual", meaning that they lose many protections other workers have. Australia's laws on the right to take collective action are among the most restrictive in the developed world, and Australia does not have a general law protecting workers' rights to vote and elect worker directors on corporation boards as do most other wealthy OECD countries.

<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 US. 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.

<span class="mw-page-title-main">Strikebreaker</span> Person who works despite an ongoing strike

A strikebreaker is a person who works despite a strike. Strikebreakers are usually individuals who were not employed by the company before the trade union dispute but hired after or during the strike to keep the organization running. Strikebreakers may also refer to workers who cross picket lines to work.

<span class="mw-page-title-main">Labor unions in the United States</span>

Labor unions represent United States workers in many industries recognized under US labor law since the 1935 enactment of the National Labor Relations Act. Their activity today centers on collective bargaining over wages, benefits, and working conditions for their membership, and on representing their members in disputes with management over violations of contract provisions. Larger labor unions also typically engage in lobbying activities and electioneering at the state and federal level.

<span class="mw-page-title-main">Union busting</span> Efforts to prevent or hinder unionization among workers

Union busting is a range of activities undertaken to disrupt or weaken the power of trade unions or their attempts to grow their membership in a workplace.

A company or "yellow" union is a worker organization which is dominated or unduly influenced by an employer and is therefore not an independent trade union. Company unions are contrary to international labour law. They were outlawed in the United States by the 1935 National Labor Relations Act §8(a)(2), due to their use as agents for interference with independent unions. However, company unions persist in many countries.

Japanese labour law is the system of labour law operating in Japan.

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.

Labour in India refers to employment in the economy of India. In 2020, there were around 476.67 million workers in India, the second largest after China. Out of which, agriculture industry consist of 41.19%, industry sector consist of 26.18% and service sector consist 32.33% of total labour force. Of these over 94 percent work in unincorporated, unorganised enterprises ranging from pushcart vendors to home-based diamond and gem polishing operations. The organised sector includes workers employed by the government, state-owned enterprises and private sector enterprises. In 2008, the organised sector employed 27.5 million workers, of which 17.3 million worked for government or government owned entities.

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".

References

  1. ↑ Karin Hofmeester et al. (2015) The Global Collaboratory on the History of Labour Relations, 1500–2000: Background, Set-Up, Taxonomy, and Applications (IISH Dataverse).
  2. ↑ John W. Budd (2010) Labor Relations: Striking a Balance, 3rd ed. (Boston: McGraw-Hill/Irwin).
  3. 1 2 3 Stuart, Jamieson (February 7, 2006). "Labour Relations". The Canadian Encyclopedia. Retrieved November 25, 2020.
  4. 1 2 Karabegović, A. "Labour relations laws in Canada and the United States : an empirical comparison". (2009 Ed.). Fraser Institute.: 8–14.
  5. 1 2 3 Alan Gladstone, Russell Landsbury, Jack Stieber, Tiziano Treu, & Manfred Weiss. (2019). Current Issues in Labour Relations : An International Perspective: Vol. Reprint 2019. De Gruyter
  6. 1 2 3 Renaud, Stéphane (1998). "Unions, Wages and Total Compensation in Canada: An Empirical Study". Relations Industrielles / Industrial Relations. 53 (4): 710–729. doi: 10.7202/005297ar . ISSN   0034-379X. JSTOR   23077343.
  7. 1 2 Burchill, Frank (2014-05-01). Labour Relations. Macmillan International Higher Education. ISBN   978-1-137-30700-2.
  8. ↑ Chapman, Richard; Fernandez, E. Ale; Jilberto, Alex; Riethof, Marieke (2002). Labour Relations in Development. Taylor & Francis Group. ISBN   9780203522332.
  9. 1 2 3 4 5 6 ILO (2015). Collective Bargaining: A Policy Guide.
  10. ↑ Ken Jones and John Golding, Productivity Bargaining (Fabian research series, no. 257, November 1966)
  11. 1 2 3 4 Hayter, Susan (2011). The Role of Collective Bargaining in the Global Economy: Negotiating for Social Justice.
  12. 1 2 Pillinger, Jane (2018). Collective Bargaining and Gender Equality.
  13. ↑ Craver, Charles B. (2010). "The National Labor Relations Act at 75: In Need of a Heart Transplant". SSRN Electronic Journal. doi:10.2139/ssrn.1667023. ISSN   1556-5068. S2CID   152694374.
  14. ↑ "Pullman Strike | Causes, Result, Summary, & Significance". Encyclopedia Britannica. Retrieved 2020-11-29.
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