Download presentation
Presentation is loading. Please wait.
1
LABOR RELATIONS & INDUSTRIAL DEMOCRACY
Mgt 470 CHAPTER 17 LABOR RELATIONS & INDUSTRIAL DEMOCRACY
2
The U.S. Approach to Labor Relations
Collective bargaining by unions To negotiate wages, hours, and working conditions NLRB strikes Grievance procedure Mediation and arbitration Importance of positive labor relations
3
Labor Relations in the International Arena
Process through which management and workers identify and determine the job relations that will be in effect at the workplace Specific approaches to labor relations varies from one country to another U.S. Approaches to Labor 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
4
Labor Relations in the International Arena (cont.)
U.S. Approaches to Labor Relations (cont.) Union Organization represents workers in collective bargaining Has the legal authority to negotiate with the employer and administrator 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 union’s 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
5
Labor Relations in the International Arena (cont.)
U.S. Approaches to Labor Relations (cont.) Mediator Person who brings both sides together and helps them reach a settlement that is mutually acceptable Arbitrator Individual who provides a solution to a grievance that both sides have been unable to resolve themselves and that both sides agree to accept Labor relations are important because they determine labor costs
6
Labor Relations in the International Arena (cont.)
Labor Relations in Other Countries MNCs have to adjust labor relations strategies because 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 legal penalties Labor agreements are less extensive than in the U.S.
7
Labor Relations in the International Arena (cont.)
Labor Relations in Other Countries (cont.) Germany Unions and management have been cooperative in the past Labor harmony not adversely affected by unification of East and West Union power is still quite strong Rights of workers addressed more carefully by management Japan Unions and management have cooperative relationships Contracts tend to be general and vague Disputes regarding the labor contract usually settled amicably Unions most active during the spring and end of the year
8
Labor Relations in the International Arena (cont.)
How Industrial Conflict Is Handled Around the World Strike Collective refusal to work to pressure management to grant union demands Lockout Company’s refusal to allow workers to enter the facility during a labor dispute United States Most contracts outlaw strikes Rely on grievance procedure to resolve disputes
9
Labor Relations in the International Arena (cont.)
How Industrial Conflict Is Handled Around the World (cont.) Great Britain Strikes more prevalent than in the U.S. System is not geared toward efficient resolution of conflicts Grievance handling is informal, cumbersome, and costly 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
10
Labor Relations in the International Arena (cont.)
How Industrial Conflict Is Handled Around the World (cont.) Japan Strikes and lockouts are very rare Few areas of disagreement between unions and management
11
Annual Average Days Lost Due to Labor Disputes in Economically Advanced Nations: 1990-1999
50 100 150 200 250 300 350 400 Canada Iceland Spain Denmark Finland Turkey Italy Norway Australia Ireland France New Zealand Sweden Portugal United States Belgium Netherlands Britain Germany Austria Japan Switzerland Luxembourg
12
Labor Relations in Europe
European firms typically negotiate agreements on a national level European unions have more political power than those in the U.S. Salaried employees in Europe are often unionized European unions have existed longer
13
Labor Relations Around the World
Great Britain labor agreements are not legally binding labor agreements are not extensive Germany Unions and management have a cooperative relationship Union power is strong Unions set the pay scale for 90% of workers Japan Social customs dictate union behavior Disputes settled amicably Unions most active twice a year
14
Resolving Industrial Conflict
In the U.S. Strikes and lockouts are prohibited while an agreement is in effect In Great Britain, strikes are prevalent In Germany conflict is resolved similarly to the U.S. Strikes in Japan have largely a symbolic meaning
15
Industrial Democracy INDUSTRIAL DEMOCRACY involves the rights of employees to participate in significant management decisions wages vacation work rules plant closings and expansions
16
Common Forms of Industrial Democracy
Codetermination Workers on Boards of Directors Work councils Workers elected to serve (common in Europe) Shop floor participation E.g. Quality Circles Financial participation E.g. Profit sharing (predominantly U.S.) Collective bargaining
17
Industrial Democracy in the U.S.
Problem solving teams Special purpose teams Self-managing teams
18
Labor Costs Around the World
Country Hourly Hours Compensation worked/ Week Germany $ France $ Italy $ U.S $ UK $
19
Real Wages of Low-Paid Workers
-1.5 -1 -0.5 0.5 1 1.5 2 2.5 3 Germany Italy Sweden Norway Australia Canada Denmark U.S Britain Austria France
20
Manufacturing Labor Costs (per unit of output, annual average percentage change: 1990-1997)
-5 -4 -3 -2 -1 1 2 3 4 Norway Japan Italy South Korea Britain Germany Denmark Canada Taiwan Belgium Sweden France United States Local currencies Dollar terms
21
New Labor Force Trends Flexible working arrangements Joint partnering
part-time workers shift work temporary contracts subcontracting Joint partnering virtual corporations
22
Closing thoughts International management will be one of joint partnerships and agreements Virtual corporation Network of companies that exploits fast-changing opportunities and shares costs, skills, and access to global markets Theories of international management must be continually subjected to review An important question: “Why some MNCs do better than others?” Strategic fit - aligning resources to match the environment Strategic stretch - use of resources to achieve more challenging goals
Similar presentations
