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INDUSTRIAL RELATIONS
PRESENTED BY:MONIKA
GURPREET
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Labor Relations in theInternational Arena
Labor relations
Process through which management and
workers identify and determine the jobrelations that will be in effect at theworkplace
Specific approaches to labor relations
varies from one country to another
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US APPROACHES TOLABOR RELATIONS
Collective bargaining Process whereby formal labor agreements are reached by union
and management representatives Involves negotiation of wages, hours, and conditions of
employment and the administration of the labor contract Union
Organization represents workers in collective bargaining Has the legal authority to negotiate with the employer andadministrate the labor contract
Unions gain representation rights only after certification Unions can decertify a union with which the members are
dissatisfied Workers may strike to support unions demands
Grievance Complaint brought by an employee who feels that s/he has been
treated improperly under the terms of the labor agreement Settlement of grievance attempted at various hierarchical
steps
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Steps Of Grievance
Procedure Efforts are made to solve problems at the lowest levelof the hierarchy as quickly as possible
First step usually involves a meeting between the union
representative at the operating level and theemployees supervisor they attempt to agree on howto solve the grievance
Unresolved grievances may involve union officials andhigher-level management representatives these
conciliatory approaches usually solve the grievance Sometimes the matter ends up in the hands of a
mediator or an arbitrator.
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Regional Differences In developing and emergingeconomies such as China, India, and
Southeast Asia: Labor is less powerful
Unions are less prevalent
Workers are often compelled to acceptconditions of work set by management
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LABOR RELATIONS INOTHER COUNTRIES
MNCs have to adjust labor relations strategiesbecause host countries differ in terms of: Economic development Political environments
Strike activity Regional differences Great Britain
Labor agreement is not a legally binding
contract Violations of the agreement carry no legalpenalties
Labor agreements are less extensive than inthe U.S.
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SOLVING INDUSTRIALCONFLICT
Strike Collective refusal to work to pressure
management to grant union demands
Lockout Companys refusal to allow workers toenter the facility during a labor dispute
United States Most contracts outlaw strikes Rely on grievance procedure to resolve
disputes
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OTHER COUNTRIES
Great Britain Strikes more prevalent than in the U.S. System is not geared toward efficient resolution
of conflicts
Grievance handling is informal, cumbersome, andcostly
Germany Strikes and lockouts are prohibited while the
contract is in force Contracts have different expiration dates Cooperation between union and management is not
unusual
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The US Labor UnionMembership
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41.30%
24.90%
14.70%12.90%
14.20%
2.00%
Industry
Union Members per Industry
3-D Column 1 41.30% 24.90% 14.70% 12.90% 14.20% 2.00%
local
governmen
major
private
contructio
n
manufactu
ring
information
industries
financial
activities
Source: Adapted from data obtained from the Bureau of
labor and Statistics; www.bls.gov
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Japanese Approach To
Industrial Relations Social custom dictates nonconfrontationalunionmanagement behavior
Provisions in Japanese labor agreements are
usually general and vague, although they arelegally enforceable Agreement disputes are settled in an amicable
manner though sometimes resolved by third-party mediators or arbitrators
Labor commissions have been established bylaw
Japanese unions remain relatively weak.
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JAPAN
Japan Strikes and lockouts are very rare
Few areas of disagreement between
unions and management Developing countries
In countries with military dominated
governments, strikes are illegal & thereis usually a friendly relationship betweenthe authorities & business owners.
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International Structure of
Unions Intergovernmental Organizations International Labour Organization (ILO)
U.N. affiliate, consisting of government, industry,and union representatives, that works to promote
fair labor standards Organization for Economic Cooperation and
Development (OECD) Government, industry, and union group founded in
1976 that has established a voluntary set of
guidelines for MNCs Transnational Union Affiliations International Confederation of Free Trade Unions
(ICFTU) International Trade Secretaries (ITS)
Focus on a particular industry
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OTHER FORMS OF INDUSTRIALDEMOCRACY
Shop Floor Participation Variety of approaches available (e.g., quality of work
life) Financial Participation
Profit and productivity sharing
Collective Bargaining Can be a mechanism to obtain industrial democracy
Industrial Democracy in Selected Countries United States
Collective bargaining is the most common form
Problem-solving teams Employee groups that discuss ways of
improving quality, efficiency, and the overallwork environment
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OTHER COUNTRIES
United States Special purpose team
Employee groups that design and introduce work reforms andnew technology
Self-managing teams Employee groups that take over supervisory duties and manage
themselves
Great Britain Collective bargaining and reliance on teams
Germany Industrial democracy is very strong,Work councils perform
a number of important functions
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OTHER COUNTRIES
Sweden Industrial democracy geared toward ensuring the quality of
work life Workers sit on some boards of directors
China Little known about industrial democracy in China Two policy-making committees within Chinese enterprises
Japan Industrial democracy used to enhance workers
performance Quality circle Enterprise unions
Represent both the hourly and salaried employees of aparticular firm
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WITH THE ADVENT OF
LIBERALIZATION IN 1992 The industrial relations policy began to
change. Now, the policy was tilted towardsemployers. Employers opted for workforcereduction, introduced policies of voluntaryretirement schemes and flexibility inworkplace also increased. Thus,
globalization brought major changesin industrial relations policy in India.
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CHANGES CAN BE
SUMMARIZED AS FOLLOWS Collective bargaining in India has mostly been
decentralized, but now in sectors where it wasnot so, are also facing pressures to follow
decentralization. Some industries are cutting employment to a
significant extent to cope with the domestic andforeign competition e.g. pharmaceuticals. On the
other hand, in other industries where thedemand for employment is increasing areexperiencing employment growths.
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The number of local and enterprise level unions
has increased and there is a significantreduction in the influence of the unions.
Under pressure some unions and federationsare putting up a united front e.g. banking.
Another trend is that the employers havestarted to push for internal unions i.e. nooutside affiliation.
In the expansionary economy there is a clearshortage of managers and skilled labor.
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HR policies and forms of work are emerging thatinclude, especially in multi-national companies,multi-skills, variable compensation, job rotationetc. These new policies are difficult to implementin place of old practices as the institutional set up
still needs to be changed. HRM is seen as a key component of business
strategy.
Training and skill development is also receiving
attention in a number of industries, especiallybanking and information technology.
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