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Labor relations

 
Labor Relations

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Labor relations



 
 
The field of industrial relations (also called labor relations) looks at the relationship between management
Management

Management in business and human organization activity is simply the act of getting people together to accomplish desired goals. Management comprises planning, organizing, staffing, leadership or directing, and Control an organization or effort for the purpose of accomplishing a goal....
 and workers, particularly groups of workers represented by a union
Trade union

A trade union or labor union is an organization run by and for workers who have banded together to achieve common goals in key areas such as wages, hours, and working conditions....
.

Labor relations is an important factor in analyzing "varieties of capitalism
Capitalism

Capitalism is an economic system in which wealth, and the means of producing wealth, are private property and controlled rather than commonly, publicly, or state-owned and controlled....
", such as neocorporatism (or corporatism
Corporatism

Corporatism is a political culture in which adherents believe that the basic unit of the society is some corporate group, rather than the individual....
), social democracy
Social democracy

Social democracy is a political philosophy of the left-wing politics or centre-left that emerged in the late 19th century from the socialism movement and continues to exert influence worldwide....
, and neoliberalism
Neoliberalism

Neoliberalism is a political philosophy, actually a continuance and redefinition of classical liberalism, influenced by the neoclassical economics....
 (or liberalism
Liberalism

Liberalism is a broad class of political philosophy that considers individualism liberty and equality to be the most important political goals....
).

Labor relations can take place on many levels, such as the "shop-floor", the regional level, and the national level.






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The field of industrial relations (also called labor relations) looks at the relationship between management
Management

Management in business and human organization activity is simply the act of getting people together to accomplish desired goals. Management comprises planning, organizing, staffing, leadership or directing, and Control an organization or effort for the purpose of accomplishing a goal....
 and workers, particularly groups of workers represented by a union
Trade union

A trade union or labor union is an organization run by and for workers who have banded together to achieve common goals in key areas such as wages, hours, and working conditions....
.

Labor relations is an important factor in analyzing "varieties of capitalism
Capitalism

Capitalism is an economic system in which wealth, and the means of producing wealth, are private property and controlled rather than commonly, publicly, or state-owned and controlled....
", such as neocorporatism (or corporatism
Corporatism

Corporatism is a political culture in which adherents believe that the basic unit of the society is some corporate group, rather than the individual....
), social democracy
Social democracy

Social democracy is a political philosophy of the left-wing politics or centre-left that emerged in the late 19th century from the socialism movement and continues to exert influence worldwide....
, and neoliberalism
Neoliberalism

Neoliberalism is a political philosophy, actually a continuance and redefinition of classical liberalism, influenced by the neoclassical economics....
 (or liberalism
Liberalism

Liberalism is a broad class of political philosophy that considers individualism liberty and equality to be the most important political goals....
).

Labor relations can take place on many levels, such as the "shop-floor", the regional level, and the national level. The distribution of power amongst these levels can greatly shape the way an economy functions.

Another key question when considering systems of labor relations is their ability to adapt to change
Change

selfref|For Wikipedia uses, see...
. This change can be technological (e.g., "What do we do when an industry employing half the population becomes obsolete?"), economic (e.g., "How do we respond to globalization
Globalization

Globalization in its literal sense is the process of transformation of local or regional phenomena into global ones. It can be described as a process by which the people of the world are unified into a single society and function together....
?"), or political (e.g., "How dependent is the system on a certain party or coalition holding power?").

Governments set the framework for labor relations through legislation
Legislation

Legislation is law which has been promulgation by a legislature or other governing body. The term may refer to a single law, or the collective body of enacted law, while "statute" is also used to refer to a single law....
 and regulation
Regulation

Regulation refers to "controlling human or societal behaviour by rules or restrictions." Regulation can take many forms: law restrictions promulgated by a government authority, self-regulation, social regulation , co-regulation and market regulation....
.

In Australia
Australia

Australia, officially the Commonwealth of Australia, is a country in the southern hemisphere comprising the Australia of the world's smallest continent, the major island of Tasmania, and numerous list of islands of Australia in the Indian Ocean and Pacific Oceans....
 industrial relations is the commonly used term, though in recent years the term workplace relations has also become common. This was a prominent issue in the defeat of the centre-right
Centre-right

The centre-right is a politics term commonly used to describe or denote individuals, political party, or organisations whose views stretch from the centrism to the right-wing on the Left-Right politics, excluding far right stances....
 Howard
John Howard

John Winston Howard, Order of Australia was the 25th Prime Minister of Australia from 11 March 1996 to 3 December 2007. He is the second-longest serving Australian Prime Minister after Robert Menzies....
 Liberal
Liberal Party of Australia

The Liberal Party of Australia is an List of political parties in Australia.Founded a year after the Australian federal election, 1943 to replace the United Australia Party, the centre-right Liberal Party competes with the centre-left Australian Labor Party for political office....
 government at the 2007 federal election, who with a Senate
Australian Senate

The Senate is the upper house of the two houses of the Parliament of Australia. The lower house is known as the Australian House of Representatives....
 majority had introduced the WorkChoices
WorkChoices

The Workplace Relations Act 1996, as amended by the Workplace Relations Amendment Act 2005, or WorkChoices, which came into effect in March 2006, was the most comprehensive change to industrial relations in Australia in over a century....
 policy.

The academic discipline of labor studies is closely related to and often studied and taught in conjunction with the study industrial and labor relations in english language universities.

Perspective theories

When studying the theories of industrial relations, there are three major perspectives that contrast in their approach to the nature of workplace relations. The three views are generally described as the unitary, pluralist and Marxist perspectives. The Marxist perspective is sometimes referred to as the Conflict Model. Each offers a particular perception of workplace relations and will therefore interpret such events as workplace conflict, the role of trade unions and job regulation very differently.

Unitary perspective

In unitarism, the organization is perceived as an integrated and harmonious whole with the ideal of "one happy family", where management and other members of the staff all share a common purpose, emphasizing mutual cooperation. Furthermore, unitarism has a paternalistic approach where it demands loyalty of all employees, being predoominantly managerial in its emphasis and application.

Consequently, trade unions are deemed as unnecessary since the loyalty between employees and organizations are considered mutually exclusive, where there can't be two sides of industry. Conflict is perceived as disruptive and the pathological result of agitators, interpersonal friction and communication breakdown.

Pluralistic perspective

In pluralism the organization is perceived as being made up of powerful and divergent sub-groups, each with its own legitimate loyalties and with their own set of objectives and leaders. In particular, the two predominant sub-groups in the pluralistic perspective are the management and trade unions.

Consequently, the role of management would lean less towards enforcing and controlling and more toward persuasion and co-ordination. Trade unions are deemed as legitimate representatives of employees, conflict is dealt by collective bargaining and is viewed not necessarily as a bad thing and, if managed, could in fact be channeled towards evolution and positive change.

Marxist/Radical Perspective

This view of industrial relations looks at the nature of the capitalist society, where there is a fundamental division of interest between capital and labour, and sees workplace relations against this history. This perspective sees inequalities of power and economic wealth as having their roots in the nature of the capitalist economic system. Conflict is therefore seen as inevitable and trade unions are a natural response of workers to their exploitation by capital. Whilst there may be periods of acquiescence, the Marxist view would be that institutions of joint regulation would enhance rather than limit management's position as they presume the continuation of capitalism rather than challenge