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Labor relations and collective bargaining
Theory in industrial relations
Collective bargaining in my own words
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Recommended: Labor relations and collective bargaining
Introduction
A proposed change in contract law yields discussions as to why employment laws should possibly override contracts between employers and employees. The premise of this argument is the fact that employees lack bargaining power and resources that can help them fully secure their interests through contracts. There is need to abandon the existing precedent in courts where employment agreements and collective bargaining agreements override major sources of the employment law. If implemented, organizations will be keen to align all the employment contracts with the existing laws and avoid grievances and court cases that are brought up by disgruntled employees. Billions of dollars, every year, are lost due to inconsistencies in the pure nature of industrial relations in the country. Industrial relation disputes have increasingly become a significant issue for business organizations. According to Adams (2017), about 10% of all registered business entities in America have at least one case related to
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This means that if the contract, whether verbal or written, is clear and concise, all the parties are required to abide by it (Yamada, 2015). However, there are many other issues lead to legal suits between the employer and the employee. Matters such as health benefits, the process of addressing employee grievances, sick leave, vacation, employee behavior after terminating the contract, overtime compensation, discrimination, representation of employees, and industrial relations are the most common. Legal suits also involve concerns as they relate to the protection of data and employee privacy. Many of these issues are handled collectively by the employees, but there is no guarantee that the demands of every employee are met through collective bargaining. Nonetheless, once worker sign agreements with the employers, they become binding to each employee (Fossum,
Marshall, Shelley, 2004. Enterprise Bargaining, Managerial Prerogative and the Protection of Workers Rights. An Argument on the Role of Law and Regulatory Strategy in Australia under the Workplace Relations Act 199, Vol.22(3), , p.299.
To conclude this analysis on the basis of the labor’s extensive history, Sloane & Witney (2010) propose, “it is entirely possible that labor’s remarkable staying power has been because of the simple fact that to many workers, from the nineteenth century to the present, there really has been no acceptable substitute for collective bargaining as a means of maintaining and improving employment conditions” (p.80). In the end, it is important to anticipate unions and employers presently work together to find solutions that will enhance collective bargaining strategies and practices to serve the interest of both parties.
Factories were known for their ill treatment of their employees, long hours and dirty and unsafe conditions. In 1866, unions started to form to improve working conditions for the workers. A fundamental problem faced by democratic societies is as long as people live their lives individually and go their separate ways and be selfish individuals, they are unlikely to meet collectively to resolve issues. There needs to be meaningful unity among people to alleviate this problem to get people obliged to one another, so there is a willingness to sacrifice for shared goals. Bonding of its citizens creates a democracy. Unions seemed to offer the middle class a chance to become a crucial part of fostering institutions of constitutional democracy. The unions have went through several transitions, but have always worked for the working force. I will discuss the history of the various unions, their wins and losses, and the struggle of the employee to achieve democracy in the workplace.
The purpose of this paper is to analyze a specific, hypothetical employment situation encountered and to include the information regarding employment conflicts, questions, grievances, lawsuits, etc., in terms of how the situation was handled or resolved. Employment conflicts are a constant issue everyday in any organization; it is how you handle them both legally and professionally that counts.
The collective bargaining rights of the worker are disappearing at alarming rates. Data from the...
In Australia, industrial relations system has been shaped by diverse legislative Acts and political forces coupled with judicial decisions at both the state and federal level. This evident in the sense that there have been diverse amendments of the 1904 Act in light of increased pressures in the industrial sector. This elicited mixed reactions from the employees and employers, among other stakeholders in the industry. However, due to the disadvantages and/or drawbacks of the centralized system of collective bargaining in comparison to the advantages or positive aspects of the decentralized approach of collective bargaining, employers have favored departure from the centralized wage-fixing. Against this backdrop, it behooves us to explore the reasons as why employers have favored the decentralization of Collective bargaining in Australia.
Bennett-Alexander, D.; Hartman, L (2012) Employment Law for Business 7th Edition. New York, NY. McGraw-Hill Companies Inc.
A collective bargaining agreement collectively sets the terms on which an employer offers individual work contracts to each of its employees in the bargaining unit. A bargaining agreement, also herein referred to as a labour agreement, is a legally enforceable written commitment, which states the rights and duties of all parties involved. The labour agreement should be made in good faith and is intended to be observed and not violated. The National Labour Relations Act obligates employers and unions to bargain in good faith concerning terms and conditions of employment, including hours and wages. Like any normal contract, competent parties must enter into a labour agreement. However, a labour agreement is unique from other legal contracts in that there is no consideration involved and nothing tangible is exchanged. Many, but not all, unions require formal ratification of a new labour contract by a majority membership acceptance, which is determined through vote by the members. Until majority approval of those voting in a ratification election is received, the proposed labour contract is not final. While each labour agreement is unique to the needs of an organization and its employees, most agreements include five issues: (1) Management Rights, (2) Union Security, (3) Wages and Benefits, (4) Individual Security (Seniority) Rights, and (5) Dispute Resolution. Management Rights “Management” is the process of working with people and resources to accomplish organizational goals by making the best possible use of money, time, materials and people. The management process, when properly executed, involves a wide variety of activities including planning, organizing, directing and controlling. It is management’s role to perform all of these functions in order to maximize results.
Dunlop(1958) argues that in the system of industrial relations, there are 3 major components in the system. There are the actors, the context and the common ideology. The actors consist of the employers and their organizations and employees and, if present, the groups that represent them and the state or government agencies. The second major component, the context, is the situation or environment that influences any decision or activity, this is usually technology, market constraints or distribution of power in the wider society. The common ideology, under which the purpose of this essay falls, can be seen as a binding idea or theory which the actors share for the purpose of stability in the system. Under the common ideology component, there are various conflicting theories or frames of reference.
Legal considerations play an important role in how employers and employees interact in the workplace. Common-law doctrines regarding this relationship have been established from many legal decisions made over the course of centuries (Reed & Bogardus, 2012). Common-law doctrines lay the foundation for best practices in employment which provide for both employer and employee safeguards.
The laws and regulations surrounding Industrial Relations since the 1900’s have, at each reform, placed tighter constraints on the amount of power unions are able to exert. The reforms have also radically increased managerial prerogative, through an increased use of individual bargaining, contracts and restrictions imposed on unions (Bray and Waring, 2006). Bray and W...
Traditional literature in the field of labor relations has focused immensely on its benefit towards the employer and in the process equating it to working rules. This has been so despite the field being expected to cover the process of, labor management, union formation, and collective bargain; all which are anticipated to create a positive employer-employee relationship. This relationship is said to be positive if there exist a balance between employment functions and the rights of the laborer. Also important to note, is that this relation is equally important to the public sector as it is to the private one. Therefore, to ensure a mutually conducive labor environment exists, effective labor management process and inclusive negotiation program should be adopted (Mulve 2006; Walton, 2008).
When it comes to contract negotiations, labor unions may differ from one and another throughout the different industries, but they usually share the same goals when it involves contract negotiations (Sloane & Witney, 2010). During these procedures, demands are usually made by from both parties, the employer and the union; this processes main goal is to negotiate a written agreement between each other covering a multitude of issues and concerns (Sloane & Witney, 2010). These talks are typically the most confrontational part of the relationship between labor unions and management, especially when it comes to wage issues (Mayhew, n.d.). This author will take a look the wages and wage-related issues, employee benefits, institutional issues, administrative clauses, and make recommendation that will would prevent wage-related grievances from happening.
The role of the government on industrial relations is very important as it sets the legal framework that industrial relations operates in. Appropriate industrial relations legislation should recognize the requirements of both employers and employee’s. Both the employee and the employer want to profit from each other but are also reliant on each other. This means that the equal bargaining power of employers and workers must be recognized (Peetz, David. 2006). Appropriate industrial relations laws should address any imbalance of power and give both groups an equal degree of control. Appropriate industrial relations should not only allow a mixture of both collective and individual bargaining but also facilitate employee participation in day to day workplace decisions. After all it’s the structure and framework of the employment relationship, which is governed by legislation that leads to good Industrial Relations.
The theory holds work to be governed by a wide range of formal and informal rules and regulations, which cover everything from recruitment, holidays, performance, wages, hours, and a myriad of other details of employment. It asserts that these rules are what industrial actors try to determine, that their establishment is influenced by the wider environmental context in which the actors operate, and that the actors themselves share an interest in maintaining the processes of negotiation and conflict resolution. On the back of these assertions four elements are held to make up the system of industrial relations rule-making. The first is industrial actors, which consists of employers and their representatives (i.e., employer associations), employees and their representatives (i.e., trade unions), and external agencies with an interest in industrial relations (i.e., government departments and labour courts). The second is the environmental context, which