LABOUR RELATIONS THEORY

AND COMPARATIVE
PERSPECTIVE
CHAPTER 1
FINNEMORE
 INTRODUCTION
• Labour relations may involve a simple interpersonal process involving two people or between
groups at a workplace such as between management and a group of shop stewards.
• A much broader interaction may develop between an employer organisation and trade unions,
both of may bargain collectively for their members within a specific sector of the economy.
• At a national level the process concern labour as a broad interest group in consultation with
peak employer organisations and the state.
• On global scale trade unions and employer organisations are linked to international bodies such
as the International Labour Organisation and involved in the development of regional and
international agreements and standards.
• Labour relations are greatly concerned with collective relations between trade unions and
employers and their organisations.
• Labour relations can involve physical and emotional confrontation such as when workers down
tools to show their dissatisfaction with a supervisor.
• May also be more political and wide-ranging such as intense debates between trade unions and
employers organisations concerning the most appropriate framework of labour legislation for the
country.
• Labour relations are mainly concern with strikes but informal discussions and formal procedures
used to solve problems and to reach agreements on employees’ conditions of employment.
 COMPARATIVE PERSPECTIVE OF
INDUSTRIAL/LABOUR RELATIONS
1. UNITARISM
• Unitarism was proposed by Fox that most employers favoured the autocratic unitarist
approach which retained power and total control in the hands of the owner or management
group. Unitarism is based on the belief system that:
 There is no room for opposition groups or factions in the workplace;
 The controlling ‘boss’ role is perceived as legitimate and is coupled with the perceive right of
management to unilaterally control all decision-making without the need for consultation or
negotiations with any groups;
 Commitment to the organization and loyalty to its leaders are expected from employees;
 Conflict is perceived as unnatural and dysfunctional;
 Where conflict does occur it is perceived as the outcome of a breakdown in communications or
the result of the work agitators; and
 The presence of the trade union in the workplace is seen to be intrusion that creates confusion
among otherwise satisfied employees who are encouraged to make unreasonable demands
and to strike when these demands are not acceded to.
 COMPARATIVE PERSPECTIVE OF INDUSTRIAL/LABOUR
RELATIONS
2. PLURALISM
• Pluralism is broad political terms accepts that society is composed of diverse competing interest
group, and extends to each of these the right to free association and further the interests of their
constituents by any legitimate means. According to pluralism:
 Conflict is accepted as a natural and fundamental part of the relationship between employer and
employee;
 Trade unions and employer organisations are seen as legitimate and functional organisations
through which workers and employers protect and further their interests within a framework of
rules provided by the state;
 Collective bargaining is regarded as a generally decentralised, dynamic and democratic process
for expressing and controlling conflict. Parties negotiate not only on issues of difference that may
arise but also on the institutions and procedures through which conflict will be channeled.
 The existence of countervailing powers supported by the employees’ right to strike and the
employers’ right to lock-out is seen as ultimately conducive to maintaining some balance of
power between the parties.
 Pluralism does not imply that an equal power balance must exist or that every conflict can be
settled by compromise. Compromise may not always be possible and there will be tests of
strength resulting in the emergency of winners in the overall stability of the relationship.
 COMPARATIVE PERSPECTIVE OF
INDUSTRIAL/LABOUR RELATIONS
2. PLURALISM
• In practice, pluralism is encouraged in countries that have certain characteristics, namely:
 A cultural commitment to freedom of association;
 The ideological support for a society where opposing constituencies are allowed;
 The freedom to test contrary viewpoints and democratic elections which are contested by
more than one political party;
 An economic system that has a history of operating on market-driven principles;
 Substantial powers vested in independent trade unions;
 A commitment by all parties to the rules and outcomes of collective bargaining; and
 An adequate material base so that all parties can at least achieve some of their interests.
 COMPARATIVE PERSPECTIVE OF
INDUSTRIAL/LABOUR RELATIONS
3. RADICALISM
• The radical view is that pluralism continues to enhance rather than limit management’s
capacity to exercise considerable power over their employees and unions. Furthermore, the
unions’ representatives often become co-opted into the system and become ‘soft’ on
management.
• Radicalism focuses on the conflict between the classes, namely the capitalist and labour which
is seen as inevitable. The underlying assumption of radicalism is:
 Conflict beteen employers and employees is a result of the huge imbalance of power in society
and the workplace and the unjustified accumulation of capital by the owners of the means of
production at the expense of the working class;
 Labour relations conflicts are seen as an expression and extension of this class conflict;
 Strikes serve as ‘school of war’ and serve as lesson for employees that strengthen awareness of
the fundamental class divisions between capital and labour and the need for radical
transformation;
 Unions must avoid being co-opted into institutions and ideology of capitalism and need to
respond to the conflict with strategies that enhance the powerbase of the working class with the
ultimate aim of overthrowing capitalism and replace it with socialism and worker control.
COMPARATIVE PERSPECTIVE OF INDUSTRIAL/LABOUR RELATIONS
4. SOCIETAL CORPORATISM
• Societal corporatism promotes and alternative through dialogue and coordination between competitive groups.
• Together with the state involvement, this dialogue seeks to ensure that conflict is minimized and better managed.
• Public policies that support societal corporatist institutions and procedures arise from negotiation between the
government and a few powerful interest groups. These groups normally include ‘peak’ associations representing
employers and trade unions.
• ‘Peak’ association means an organisation that is organizationally strong and represents the majority of employees
or employers nationally.
• Societal corporatism is sometimes referred to as tripartite co-operation, as it involves social dialogue between
three parties such as the state, employer organisations and trade union federations. The following values are
fundamental to societal corporatism:
 Conflict is regarded as natural in employment relationships and it is best managed through centralized
negotiations between strong union and employer organisations together with the state;
 Relationships between the state, employers and labour are institutionalized in tripartite structures and a strong
interdependence among all the parties is acknowledged;
 Consensus-building as opposed to confrontational relations is valued;
 Centralised negotiations on basic issues such as wages and working conditions remove the potential for numerous
destructive conflicts in workplaces;
 Societal corporatism is perceived as to produce a less strike-prone society;
 The parties may reach agreements that not only satisfy the immediate needs of their own constituencies but
frequently take into account the needs of broader society
 COMPARATIVE PERSPECTIVE OF
INDUSTRIAL/LABOUR RELATIONS
5. STATE CORPORATISM (AUTHORITARIAN AND PATERNALISTIC)
• A common form of labour relations system found in many underdeveloped countries is based on state
corporatism.
• This involves an authoritarian or paternalistic response by the state to labour mobilization, with the consequence
that trade unions are either repressed or co-opted by the government.
• In Africa, countries have their own features. Generally, state has sought to control and direct the labour
movement into serving the ruling party’s own political interests.
• Authoritarism is especially fostered where one-party state or military governments have been in power.
 Conflict between employer and employee is considered undesirable and contrary to state and employer interest;
 After independence, trade union leaders are given positions to ensure their loyalty. Unions that which supported
the nationalist struggle for independence are drawn under the state umbrella.
 Union movements are generally weak and relatively small since industrial development in these countries is
limited and a very high proportion of the labour force either works in the agricultural and public sector or is
unemployed.
 Trade unions are controlled by a variety of means. The formation and structure of unions may be dictated by the
state and involvement in political activities is forbidden. Where trade unionists cross the politically correct line
and challenge the state, state paternalism very quickly transforms into state authoritarianism and oppression.
Trade unionists under such conditions are severely harassed, jailed and in many instances, murdered.
 Collective bargaining is strictly regulated, the state is able to veto any agreements and strikes may be prohibited.
COMPARATIVE PERSPECTIVE OF INDUSTRIAL/LABOUR RELATIONS
6. SOCIAL DIALOGUE AS A TOOL OF CHANGE
• Social dialogue may be defined broadly as all types of negotiation, consultation or simply
exchange of information usually between the representatives of government, employers and
workers on issues of common interest relating to economic and social policy.
• It may take the form of tripartite bipartite engagement.
• It is not only focused on national consultation or negotiation between the state and peak
organisations of employers and trade unions but includes all forms of engagement at
international, national, regional, sectoral and workplace level.
• It is seen as key to ensuring the improvement of conditions of work for employees in what is
termed global drive for “Decent Work”.
 Gives a voice to society by channeling societal needs and expectations peacefully and
constructively;
 Detects problem areas in time and helps address them swiftly;
 Proves knowledge and brings together the protagonists of the world of work;
 Promotes dialogue through facilitating transparency, constructive exchange and reconciliation;
 Gives legitimacy by reinforcing a sense of ownership of and identification with ruling institutions;
 Builds trust by helping restore confidence in ruling institutions, so society may consent to
sacrifices and efforts with the assurance that they are necessary and equitably distributed;
 COMPARATIVE PERSPECTIVE OF
INDUSTRIAL/LABOUR RELATIONS

6. SOCIAL DIALOGUE AS A TOOL OF CHANGE