FUTURE DIRRECTON OF TRADE UNIONS
Early emphasis
At its inception the labor market was dominated by the classical economics view which espoused free and unregulated labor markets. This laissez-faire capitalism led to social injustices and inequities since labor did not have the power to bargain with employers. Additionally, the dominant position of the employer in what was formerly termed the "master and servant" relationship prevented labour from enjoying rights. IR therefore came to espouse a degree of labour market regulation to correct the unequal bargaining power.
At its inception the labor market was dominated by the classical economics view which espoused free and unregulated labor markets. This laissez-faire capitalism led to social injustices and inequities since labor did not have the power to bargain with employers. Additionally, the dominant position of the employer in what was formerly termed the "master and servant" relationship prevented labour from enjoying rights. IR therefore came to espouse a degree of labour market regulation to correct the unequal bargaining power.
The causes of labor problems - even those within the enterprise - were thought to need addressing through a range of initiatives external to the enterprise, by
The State through protective labor laws and dispute settlement mechanisms.
Voluntary action on the apart of employees to protect themselves and increase their bargaining strength through freedom of association and collective bargaining, but backed by State interventions to guarantee these rights.
Collective IR operates in three ways. One way is through national or industry level agreements between unions and employers' organizations. A second way is through agreements between a single employer and a union. A third way is through legislative enactments applicable to employers and employees generally, or to particular sectors, or to particular categories of employees.
Asia is a heterogeneous region, characterized by ethnic, cultural, linguistic and religious diversity. Due to substantial increases in investment in Asia by both Asian and Western investors, many employers and unions are dealing with workers and employers from backgrounds and cultures different to their own. Some of the resulting problems and issues fall within cross-cultural management. The problems arise due to differences in IR systems, attitudes to and of unions, work ethics, motivational systems and leadership styles, negotiating techniques, inappropriate communication, consultation and participation procedures and mechanisms, values expectations of workers and interpersonal relationships.
These cross-cultural management issues in turn pose the following problems:
What particular IR and human resource management considerations at the regional, sub-regional and country level affect the development of sound relations at the enterprise level in a cross-cultural environment?
What would be the most effective programs for this purpose?
How can investors in Asia familiarize themselves with the environmental and cultural considerations in the recipient country relevant to their managing people at work?
How could information be collected, analyzed and disseminated?
Industrial Relations/Human Resource Management Training
Since IR has assumed a particularly important role in the context of globalization, structural adjustment and in the transition to a market economy, employers in each country would need to identify what aspects of IR and HRM should be accorded priority, how training in them could be delivered, and what concrete role is expected from an employers' organization.
Since IR has assumed a particularly important role in the context of globalization, structural adjustment and in the transition to a market economy, employers in each country would need to identify what aspects of IR and HRM should be accorded priority, how training in them could be delivered, and what concrete role is expected from an employers' organization.
Balancing Efficiency with Equity and Labour Market Flexibility
Traditional IR view labour problems arising due to employers wish to use resources productively and to generate profit, while employees wish to maximize their return on labour. The State intervenes for a variety of reasons. The setting in which IR developed was conditioned by the national environment - political, economic, social and legal. But today the conditioning environment increasingly includes the international and regional context. Globalization has created pressures on IR for efficiency in the employment relationship, reflected for instance on the emphasis on flexibility (types of contracts, working time, pay, etc.) and productivity. These developments and the pressures for labour market deregulation and flexibility raise the issue of efficiency versus equity. However, the main issue for IR in this regard is not efficiency and equity as antithetic concepts, but how to achieve a balance between the two. This is because while an IR system should facilitate competitiveness, it should also promote equity by ensuring a fair return on labour and a fair sharing of the gains from economic activity, reasonable and safe working conditions, and an environment in which employees can communicate and discuss their concerns and be represented in order to protect and further their interests.
In Asian economies in transition (China, Mongolia, Viet Nam, Laos and Cambodia) the governments are seeking to establish a labour law system relevant to a market economy. Viet Nam already has a Labour Code, and China is in the process of enacting several laws including one covering collective bargaining contracts. There were hitherto no IR in these countries as known in a market economy, as there were no private employers (or employers' organizations), and employees were not expected to have interests different from those of the employer (the State) as they were considered to be the owners of the enterprises. Decisions were made not so much by managers as by the State.
These countries are now seeking appropriate IR 'models'. Employers in these economies will need to develop the expertise necessary to persuade the other two constituents that the labour law framework should not be too regulated so as to deprive enterprises of the flexibility which will be needed to adapt to changes when these economies have to move to the next stage of economic development.
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