Industrial relations (asia pacific)

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industrial relations

2006 Industrial Relations

1 . Introduction

In to increase a country 's or organization welfare , the country 's government may take various policies like tight money policies , policies to obtain full employment , policies that encourage the use of technological to drive more output , and many other policies

Concerning the policy of full employment , it directly relates to industrial relationship in which government works hand-in-hand with corporations to improve the level of full employment including population growth , increasing labor force participation or decreasing frictional and structural unemployment

. This is essential to obtain an increase of the country 's GDP in the long term ( Economic Growth

In this situation , the government may reduce income tax rates to provide increasing take-home pay for labors . This policy , in turn , will provide labor with greater wages and further encourage them to spend more on leisure . From other point of view , this attractiveness of such policy will encourage people to supply more labor (either work longer hours or enter the labor force , which in turn will shift supply of labor to the right , reduce equilibrium wages and increase potential GDP of the country

However , the implementation of such policy does not have to go smoothly as planned . This is because there are many things happens in the relationship between employers-employees /labors , environment force and many others . The case on Enron was more than Accountancy scandals since there include good corporate governance issue . The case tells us amidst the bankruptcy that faces Enron that had sent more than 6 ,100 of Enron employees into unemployment and worker 401 (k ) plans were frozen , the company 's executives still obtain bonus checks for more than 55 million , in addition to 50 million in bonuses just weeks earlier

Concerning the industrial relations , this will elaborate the issue in the U .S . the discussion will include factors they are history environmental factors , labor sector , the parties , and collective bargaining

2 . Industrial Relations in the U .S

2 .1 History

In his article The Irony of State Intervention : American Industrial Relations Policy in Comparative , Larry G . Gerber (2005 ) reveals some stages of industrial relations history in the U .S

He said that in the late 19th century , industrial , labor , and political leaders in the U .S . adopted the anti-statism and individualism approach which in turn produced a somewhat non-intrusive government approach to industrial relations

Moreover , Gerber (2005 ) reveals the absence of state interference in managing industrial relations , coupled with the support of the courts has provided businesses in the U .S with capability to prevent labor unions from gaining power

This condition effectively reduces control of labor 's union since American corporations rely on machines and unskilled labor to achieve economic of scale . This tendency points out American management style to drive labor to deal with individual firms rather than negotiate industrywide agreements this condition highlights American business to pose antiunion activities (Gerber , 2005

Environmental Factors

Gale (2006 ) says there are many environmental factors that shape the industrial...