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 Review Notes on  LU 17:  Labor Relations in Market Economies
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  Syllaubs 
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  Resources 
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Outline on LU 17:  Labor Relations in Market Economies 
  
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 Global Labor Relations   
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 The Development of Labor Movements Around the World   
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 Solidarity   
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 The Structure of Labor Movements Around the World   
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 Globalization   
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 Globalization & the Labor Movement Around the World   
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 Organizing & Representation Around the World   
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 Bargaining, Impasses, & Contract Adminstration Around the World   
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 Union Mgt Cooperation Around the World   
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 Comparative Effects of Unionization Around the World   

 
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 Outline on  Global Labor Relations
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  Labor orgs vary in: 
-  collective bargaining
-  their involvement in political activity
-  decision making w/in societies, industries, & enterprises
-  the amt of globalization they experience, &, or react or relate to
 
  The organization & structure of lab mvmts & unions around the world also differs widely
 
  Major labor mvmts can be found in the European Union (EU), Australia, Japan, East Asia, & Eastern Europe
 
  The major differences btwn the No Am lab mvmt & the EU is that: the EU lab mvmt has formed political parties in many nations
 
  Around the world, plant level activities are more likely to embrace union mgt control of the wkplace
 
  Around the world, many govts have laws that are more conducive to the lab mvmt
 
  Around the world, union power resides in labor federations in the EU & Japan
 
  Work councils are most prominent in Germany & Sweden
 
  Wkrs may be represented by more than one union in a wkplace, & recognition is gained through the bargaining process
 
  Trade unions continue to undergo change in Eastern Europe, i.e. the Warsaw Pact nation which were satellites of the former Soviet Union
 
  In some east Asian nations, unions are either outlawed, highly restricted or controlled by the govt & firms
 
  In the EU, bargaining issues are broadly defined because: 
-  bargaining structures are more centralized
-  firms' associations represent many wkrs
-  federations or national unions bargain w/ large firms
-  there is no legislation in most EU countries differentiating btwn mandatory & permissive issues
 
  In Japan, bargaining issues are dealt w/ as are most decision, they are made at the enterprise level
 
  Most EU strikes are short, but strike incidence is higher in Australia, New Zealand, Italy, & Finland
 
  Conciliation is mandated in some countries, & arbitration precedes contracting for wages in Australia  
  Union mgt coop is higher in the EU  
  A common mechanism for cooperation in the EU is the works council which is involved in any decision affecting employment  
  Effects of unions on firm performance is similar in the EU & the US in that union wkrs are more skilled & productive but wage differences btwn union & non union wkrs is smaller in the EU  

 
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 Outline on the  Development of Labor Movements Around the World
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  -  Project:  The General Categories of Social Action & the Labor Mvmt 
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  UNIONS AROUND THE WORLD EMBRACE A WIDE VARIETY OF FUNDAMENTAL PHILOSOPHIES & STRATEGIES OF SOCIAL ACTION   
  In the US, uplift, revolutionary, business, & predatory union strategies were embraced at various times by various types of unions 
 
  Unions may also be classified as utilitarian, embracing rational or instrumental values, idealistic, embracing commitment or identification values, affective, embracing emotional values, or traditional, embracing previous values 
 
  Cultural values, ideologies & political policies influence any approach taken by a union 
 
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 The Table:  Strategies & Categories of Social Action shows that four widely divergent strats for social action are understood to influence Labor Mvmts around the world & that in practice unions may embrace one or several strats at one time or at different times in their development 
 
  Marx advocated the takeover of the state by the proletariat, i.e. the wking class rank & file, & state ownership of the means of production w/ the aim of ending the exploitation of wkrs   
  For Marx & his supporters, the goals of unions & the state are synonymous   
  Anarchists & syndicalist advocated abolishing the state & / or capitalist ownership  
  Fabians in the UK & other socialists favored state ownership & panned econs to equitably distribute wealth according to abilities & not according to the historic ownership of capital by aristocrats & the bourgeoisie   
  Unions in Europe support socialists agendas, but they have also accommodated capitalism & free mkt econs   
  Unions in socialist econs are expected to assist in meeting production goals & maintaining discipline since everyone is expected to conform to statist objectives   
  Changes in unionization in E Europe followed the fall of communism   
  The community of interests of the state & its citizens precludes legitimate goal conflict   
  Pay inequality in socialist econs is smaller than in capitalist societies except the old USSR   
  In econs that have become more capitalist, unionization is high in the state owned sector, but not in the private sector   
  In econs that have become more capitalist, private wages are generally higher   
  Often, when stated owned firms are sold off to private investors, new owners estb wk councils   
  Often, when stated owned firms are sold off to private investors, 1/3 of the board of directors are wkrs' reps   
  Compared to western nations, ex Communists were more egalitarian, express low job  satisfaction, & more strongly supported trade unions   
  As wage differentials increased in E Europe followed in the collapse of Communism, support for egalitarian decreased   
  LABOR RELATIONS DEVELOPED DIFFERENTLY IN DIFFERENT NATIONS BECAUSE OF UNIQUE SOCIO HIST CONDITIONS IN EACH NATION   
 
 1.  The development of the EU Labor Mvmt paralleled the development of the Labor Mvmt in the US w/ variations across nations 
 
 
 2:  Major US Labor Mvmt organizing & conflict began in the mid 1800s, w/ defacto legalization occurring w/ the passage of the Wagner Act in 1935 
 
 
 After the legalization of unions in 1935, violent conflicts continued for 2 decades & then waned 
 
  In the US the NLU & the KOL espoused uplift unionism, the IWW embraced anarchism, syndicalism, & rev   
 
 3.  German unions began to form w/ the 1848 rev but did not gain momentum until after the anti socialist laws passed under Bismarck were repealed 
 
 
 In Germany, Marxist unions move toward acting as intermediaries representing wkr interests & ameliorating the effects of changes in supporting a dynamic econ w/in democratic capitalism 
 
  In Germany, shareholders have less influence in orgs, & therefore mgt & labor have more influence, & mgt is more pluralistically oriented   
 
 4.  British unions began to organize about when the KOL was influential in the US 
 
 
 Only UK lab relations resemble US lab relations in that recognition is obtained at the plant level, while collective bargaining is done at the corporate level 
 
  England & Germany were early spawning rounds for rev approaches to govt & business   
 
 5.  Swedish unions gained ground in the late 1800s & early 1900s 
 
 
 In Sweden in the late 1890s, labor organized into federations forming the Swedish confederation of Trade Unions (LO) 
 
  In 1900 employers responded to the Swedish LO by forming the Swedish Employers' Confederation (SAF)   
  In 1906, the SAF recognized the LO's right to unionize & the LO recognized mgt prerogative, thus formal recognition took place 3 decades earlier than in the US   
  In Sweden, from 1900 to 1910 industry wide agreements were negotiated after major strikes   
  Conflict continued until the 30s when the govt moved into the hands of the Social Democratic Party whose agenda meshed w/ labor separating the political & econ power of business for the 1st time   
  The recognition of the lab mvmt, the end of labor conflict, the election of the Social Democrats, the separation of the pol & econ pwr of business all came together in Sweden to estb an era of consultation & cooperation which continues to today   
  7.  In Poland, a mvmt lead by the union Solidarity catalyzed the breakdown of the communist sys & its leader, Lech Walesa, led the govt after the collapse of martial law   
  Solidarity accepted the consolidation of owner rights during the transformation from socialism to a state capitalist econ   
  In Poland, governance of orgs shifted from wkrs to shareholders   
  In Poland, co governance was seen as a hindrance to the transition to a mkt econ, & capital would not invest if wkrs retained any control   
  Changes in union phil in Poland toward supporting a mkt econ occurred gradually as state intervention became less viable for catalyzing change   
  8.  In the former East Germany, privatization undermined union influence, but extension of the Ger co determination law & centralized bargaining offset the decline   
  After Communism, the E Ger, as compared to Hungarians, had a more centralized union structure w/ already existing Ger unions extended to them   
  E Ger were more committed to their unions while Hungarians had more confidence in their mgt   
  9.  Hungary estbed primarily enterprise based unions & union controlled mandatory wk councils   
  Hungarians are more positive about former Communist unions than the E Ger  
 
 6.  In Japan unions emerged in the 1890s after its industrial rev 
 
 
 Japanese unions remained active before WW II 
 
 
 Unions were encouraged by the US during the martial law period after the war 
 
 
 Following the war, unions exhibited Marxist tendencies when real wages were low, but they became enterprise oriented as productivity & wages increased 
 
 
 Arthur Demming brought the ideas of wkr participation & QCs to J which became central organizing features of their indl system 
 
 
 Japanese unions affiliated into federations 
 

 
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Table: Strategies & Categories of Social Action 
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General Categories of Social Action (Orientations) 
Strategies
  
  1.  Instrumental Rational Strategy 
       (Zweckrational) 		 Rat strats are utilitarian in that they are based on material, i.e. econ, interests & the 'will to power'   
  Rat strats are determined by expectations as to the behavior of objects in the env & other human beings     
  Rat expectations are used as 'conditions' or 'means' for the attainment of rationally pursued & calculated ends     
  2.  Value Based Strategy 
       (Wertrational) 		 Value based strats are idealistic in that they are based on identification & commitment   
  Value based strats are determined by conscious belief in the value for its own sake     
  Values are based on some ethical, aesthetic, religious, political, or other form of behavior     
  Values are chosen independently of their prospects for success     
  3.  Affectual Strategy 
       (Emotional) 		 Affectually based strats are generally not strategic, but sentiments & emotions can enhance value based strats   
  Affectual strats are determined by the specific affects & feeling states     
  4.  Traditional Strategy  The institutionalization of previous decisions of utilitarian, idealistic, or emotional strats creates tradition, but the origin in these strats is unknown   
  Traditional strats are determined by ingrained habituation usually as developed from historic practices of one of the other 3 general categories of social actions     
  While trad strats are developed from historic practices, usually the nature of those practices are long forgotten & thus trad strats appear to be based on trad alone     
  The Table:  Strategies & Categories of Social Action shows that fours widely divergent strats for social action are understood to influence labor mvmts around the world & that in practice unions may embrace one or several strats at one time or at different times in their development   

 
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 Outline on  Solidarity
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  -  Project:  Solidarity & Democratic Movements 
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  -  Solidarity's Website:  http://www.solidarnosc.org.pl/ 
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  Introduction:  Solidarity, an organization of trade unions, helped bring about free elections in Poland & the establishment of a non Communist govt   
  In the 1960s, Polish intellectuals protested against govt limits on freedom of expression, & new disputes erupted between the govt & the Catholic Church   
  In 1970, strikes & riots broke out in Gdansk & other cities, & Gdansk was a center of protest against the Communist govt in Poland   
  Thousands of Poles demanded better living conditions & econ & political reforms   
 
 After days of riots, Gomulka resigned, & Edward Gierek became the Communist Party leader 
 
 
 Gierek's leadership brought better relations between the govt & the Catholic Church 
 
 
 Although Poland remained a loyal ally of the Soviet Union, its govt took steps during the 1970s to improve relations with non Communist countries 
 
 
 In 1978, Karol Cardinal Wojtyla, a Polish cardinal & the archbishop of Krakow, was elected pope of the Catholic Church, taking the name John Paul the II 
 
 
 Wojtyla became the first Polish pope in history & the first non Italian pope since 1523 & he called on Poland's govt to allow greater freedom to its people 
 
  Poland struggled w/ high prices & shortages of food & consumer goods   
  In 1976, Poles rioted after the govt announced big increases in food prices so the govt then deferred the increase   
  Econ conditions worsened in Poland in the late 1970s   
  In 1980, strikes in Gdansk & other cities led to the creation of Solidarity, an organization of trade unions   
 
 
 
 During the summer of 1980, thousands of workers in Gdansk & other cities went on strike 
 
 
 Strikers demanded higher pay, free trade unions, & political reforms & the Communist leaders promised to meet many of the demands 
 
 
 In September, the Central Committee forced Gierek to resign & elected Stanislaw Kania to replace him 
 
 
 In November, the Polish govt recognized Solidarity, an org of free trade unions 
 
 
 This was the first time a Communist country recognized a labor org that was independent of the Communist Party 
 
 
 Lech Walesa headed Solidarity 
 
 
 In 1980, Walesa was chosen as provisional head of Solidarity, an org composed of about 50 Polish trade unions 
 
 
 Walesa's negotiations w/ Poland's govt that year led to the recognition of Solidarity 
 
 
 Walesa was elected chairman of Solidarity in 1981 
 
 
 The Polish labor mvmt faced growing hostility from Poland's Communist Party & the Soviet Union 
 
 
 In December 1981, Poland's govt established martial law & suspended Solidarity's activities 
 
  In December 1981, Jaruzelski  became Poland's leader when he was elected head of the country's Communist Party in 1981 & was the top leader of Poland from 1981 to 1989   
  Jaruzelski faced econ problems & protests against the Communist Party's political monopoly so he established martial law in an effort to restore order   
  The Jaruzelski administration established strict controls over the lives of the Polish people   
  It outlawed independent social orgs such as Solidarity, a free labor union led by Lech Walesa   
  Walesa & hundreds of other union leaders were imprisoned   
 
 In Oct 1982, the govt outlawed Solidarity & Walesa was released in Nov & the other prisoners were freed over the next several years 
 
  Martial law was officially ended in 1983 but the govt kept many controls over freedom   
  In 1989, the govt reached an agreement w/ Solidarity that led to the legalization of the union & to changes in the structure of the govt   
  It also allowed the freest elections to Parliament since the country became a Communist state in 1945   
  In the elections, non Communist candidates backed by Solidarity had the greatest success   
  Almost every candidate who was endorsed by Walesa & Solidarity won a seat in Parliament   
  In June 1990, Solidarity split into several groups & Walesa won a runoff election & became Poland's president from 1990 to 1995   
  After the election, Walesa resigned as head of Solidarity   
  In 1997 elections, Solidarity won the most seats in parliament & defeated the former Communists who had been in control   
  Solidarity formed a new coalition govt with the Freedom Union   
  Also in 1997, the country's new constitution went into effect   
  In 1999, Poland became a member of the North Atlantic Treaty Organization (NATO), a military alliance of Western nations   
  In 2000, Kwasniewski was reelected president   
  Poland's most important political orgs include the Democratic Left Alliance, the Freedom Union, the Polish Peasant Party, & Solidarity Electoral Action   
  The Freedom Union & Solidarity Electoral Action favor a free enterprise econ   
  Solidarity Electoral Action is the political arm of Solidarity, which is an org of trade unions   
  The Democratic Left Alliance is a Communist party, & its members are in favor of more govt control of the economy   
  The members of the Polish Peasant Party want agricultural reform to aid small landowners, and they think Poland should slow its move to a free enterprise econ   

 
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 Outline on the  Structure of Labor Movements Around the World
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  In the US, the primary authority in the Lab Mvmt is vested in the national unions, organized on a craft or industrial basis
 
  Lab Mvmts in most of the free mkt, industrialized world econs do not follow the US model of vesting power in the nationals, organizing on a craft or industrial basis
 
  Around the world, unions concentrate their control in labor federations or at the local level
 
  Swedish unions concentrate power in the Swedish Confederation of Trade Unions (LO), which deals w/ the firms' Swedish Employers' Confederation (SAF)
 
  In Germany, a small number of nat unions do most of the bargaining
 
  In the UK, unions organized into nationals, but locals retain power
 
  Local unions in many nations have geographic relationships (similar to the KOL in the US) rather than corp relationships
 
  Italy, France, & the Netherlands have politically or religiously based nat feds
 
  Netherlands firms organize by religious lines
 
  In the EU, nat unions are merging, similarly to the the US
 
  Leaders in the EU are more entrenched than in the US, esp at local levels, because there are fewer elections
 
  In Japan, while bargaining is done at the local or enterprise level, locals affiliate w/ a national union 
 
  Enterprise unions usually include both blue & white collar wkrs
 
  In the US, union structure is related to the interests & participation of union member in union activities
 
  Japanese union member activity is influenced in a similar to the US in that it is related to interests & participation  
  Participation in Japan is related to:
-  length of membership in the union
-  pay levels
-  dissatisfaction w/ pay & wking conditions
-  interaction w/ others in the wk grp
-  perception of union effectiveness
-  perception of union democracy		  
  In Japan, unlike the US, age & ed attainment reduces participation in unions  
  Union members in the EU have little involvement in contract negotiations, & therefore there is little rank & file participation in union activities  
  Agreements are usually adopted by other employers & so there is less motivation to join unions in the EU than in the US because the free rider problem is even more prevalent  
  Paradoxically, in nations like Fr, union contract coverage is very high, while union membership is even lower than in the US  
  WORK COUNCILS  
  In Germany, most firms are required to have wk councils which advise mgt on employment matters & are consulted in the overall strat of the org  
  There is operational conflict btwn unions & wk councils  
  Wk councils are more interested in preserving plant interests than those of the union w/ which many of its wkrs are assoc  
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 The Table:  Important Participation Rights of the Works Councils shows that wk councils are an effective & powerful form of lab mgt relations that has authority in areas beyond the business unionism of the US  
  In Germany a corporatist approach is taken w/ labor & mgt operating as social partners  
  Ger unions have extensive tech expertise through the dev of a profl admin system which develops proflism in wkrs & then assigns them to wk through a wk hall type of method  
 
 Ger unions are highly consolidated, forming 17 national unions
 
  PUBLIC SECTOR UNIONIZATION  
  See Also:  Public Sector Labor Relations  
  Internationally, collective bargaining in the public sector is akin to the differences found among states in the US  
  The level & practices in the public sector depends on the development of private sector unionism & friendliness of the ruling political power  
  In the UK, during most of Margaret Thatcher's term in the 1980s public sector unions were defensive  
  As in the US, a variety of impasse procedures are used & significant differences exist as to what are considered permissible bargaining issues  

 
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Table: Important Participation Rights of the Works Councils
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Kind of Right
Social Concerns
Personal Issues
Economic Matters
 
  1.  Codetermination rights which can be enforced Beginning & end of wk day Staff files Social planning
 
    Planning of holidays Selection criteria  
 
    Design of pmt systems In firm training  
 
    Piecework & premium rates    
 
    Humane organization of wk    
 
    Organizing wk in accordance w/ estb scientific knowledge    
 
  2.  Veto Rights   Recruitment  
 
      Redeployment  
 
      Assign to wage grp  
 
      Dismissal  
 
  3.  Consultation & info rights Labor protection Personnel planning Info about business plans
 
    Accident prevention Right to be heard before dismissal Info about changes in the firm
 
        Consultation about bldg or extending the plant
 
        Consultation about changing or introducing equip  
        Changes in wk processes  
        Changes in wk places  
        Economic committees  
  The Table:  Important Participation Rights of the Works Councils shows that wk councils are an effective & powerful form of lab mgt relations that has authority in areas beyond the business unionism of the US  

 
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   Outline on    Globalization
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  -  Project:  Globalization & the Standardization of Culture 
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 GLOBALIZATION IS THE INTERCONNECDTEDNESS OF DIFFERENT PARTS OF THE WORLD THROUGH ECONOMIC, ENVIRONMENTAL, POLITICAL, CULTURAL, ETC. CONVERGENCE & CHANGE 
 
 
 Globalization is a trend whereby production, competition, & economic exchange increasingly occur on a worldwide scale
 
 
 Given the impact of globalization, there is almost no remote place on Earth
 
 
 The effects of globalization include the growth of multinational corps., an increase in international trade, the creation & mystification of global content, the internationalization of capital markets, the creation of nascent world govt. & global regulatory agencies, the homogenization of culture, creating a global western culture, and the polarization of culture, creating a clash of cultures aka, cultural wars
 
 
 See Also:  The Effects of Globalization   
  Globalization has been going on since international trade began  
  Wallerstein's world systems theory views world capitalism as beginning in the middle ages as the Europeans began their "Age of Exploration" & such nations as Italy, Spain & Portugal became world powers based on international trade & colonization  
  The trend of international trade & globalization is in a period of unprecedented acceleration  
  Researchers Chase Dunn, Kawano, & Brewer (2000) found that world trade, in relation to domestic production, grew rapidly over a 160 yr. period during the 1800s & 1900s  
  Researchers Chase Dunn, Kawano, & Brewer found that the long term trend of globalization, there are three distinct surges of globalization:  
  - about 1845 to 1880  
  - about 1900 to 1925  
  - about 1970 to present  
 
 Economics & culture are perhaps the strongest globalizing forces
How?
 
 
 The global economy is specializing through locational flexibility
 
 
 The global economy is specializing in some countries or regions through:
- extracting raw materials
- processing raw materials
- mfring the raw materials into parts
- assembling parts
- consuming finished good
 
 
 - Examples of globalized production include the Plastic Hoover vacuum & the Ford "World Car"
 
 
 There are over 800 mm people who are tied directly to global mkt in the US, Europe, & Japan
 
 
 The core nations have totally globalized economies & many other peripheral & semi peripheral countries are partially globalized  
 
 Global culture(s) are rising & falling
Strong cultures are infectious
Which culture is the most well known word in the world? 
 
 
 Global forces are so powerful, they are affecting the global physical env
 
 
 THERE ARE FIVE FEATURES OF THE GLOBAL ECONOMIC & CULTURAL SYSTEMS INCLUDING:  COMPLEMENTARITY, INTL DIV OF LABOR, ECON OF SCALE, TRANSFERABILITY, DIFFUSION
 
  The features of global econ & cultural systems include   
 
 1.  complementarity, which occurs when demand in one place is complemented by supply in another
 
 
 2.  the international division of labor, which is the specialization of labor by country
 
 
 3.  economies of scale, which are efficiencies created by world scale operations
 
 
 4.  transferability, which is the ability to move capital, skills, technology, or products creates deindustrialization in the core & economic development in the periphery
 
 
 5.  spatial diffusion, which is expansion, relocation, hierarchical:  the way things spread through space over time
 
  FACTORS AFFECTING GLOBALIZATION INCLUDE TECH SYS, CONSUMER MKTS, DIV OF LABOR, & FINANCE  
 
 There are FOUR factors affecting globalization & local economic development, including the international 
 
 
 1. technical systems, which today are almost all international in scope
 
  2.  consumer markets, which today are characterized by global patterns of consumption as seen in people around the world who enjoy McDonalds, Coke, etc. 
 
 
 As late as the 70s only a few peripheral nations were open to intl trade & only 33 % of the wkrs in centrally planned econs:  SU, China, etc.
 
  As late as the 70s in the core countries only 33 % of the wkrs were not in the world sys because of trade barriers, etc.  
 
 In the 00s, only 10% of the entire world's wkrs are outside of the global econ
 
 
 3.  division of labor, which today results in complex & simple products being constructed w/ parts from several nations, assembled in another nation, & sold in another  
 
 4.  finance, which operates 24 hrs a day following the business day in Am, Japan, Asia, & Europe  
 
 Americanization is a powerful quality of globalization  
  GLOBALIZATION THEORIES INCLUDE SUSTAINABLE DEV TH, MODERIZATION TH, DEPENDENCY TH, & WORLD SYS TH  
  Sustainable development theory examines how nations can encourage economic growth in a way that will benefit those nations & their people & not just multinational corporations in a manner that can be sustained over the long run w/o further damage of the environment  
  Sustainable development theory asks who really benefits when international corps build plants or extract natural resources in developing countries  
  Modernization theory examines how both the corporations & those who live in developing countries benefit because of the jobs & new markets that are created by the investment of multinational corps.  
  Dependency theory argues that corporations take wealth out of the developing countries & gain control of resources that could otherwise have been developed & benefited from by the people living in the countries  
  World systems theory holds that all of history may be understood as a conflict btwn three sets of nations, the core, the semi periphery, & the periphery, all of whom may form strategic alliances to further their own interests  

 
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 Outline on  Globalization & Labor Movements Around the World
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  THERE ARE MANY LABOR MVMTS AROUND THE WORLD BUT THEY ARE NOT NETWORKED, LINKED OR TIGHTLY COUPLED IN ANY SIGNIFICANT WAY   
  While the global econ has its roots in the Age of Exploration in the Middle Ages, since the early 80s, econ globalization has accelerated 
 
  Regions around the world are experiencing rapid econ development, usually involving extensive investment in mfr either by state directed activities or through investment of foreign capital 
 
  In Asia, China, Indonesia, Korea, Malaysia, Singapore, Taiwan, & Thailand are experiencing rapid growth & globalization 
 
  The Czech Republic, Hungary, Poland, & most other former Soviet satellites are shifting from communism to mkt econs & are experiencing rapid growth & globalization 
 
  Mexico, Latin Am, & most of So Am are also experiencing rapid growth & globalization 
 
  In Africa, So Africa, Egypt, Mozambique & other nations are experiencing rapid growth & globalization 
 
  Starting in the 80s, treaties have been enacted to create econ regions in various areas of the world including: 
 
  -  the EU in Europe
 
  -  NAFTA in No Am
 
  -  Mercosur in So Am including Argentina, Brazil, Paraguay, & Uruguay
 
  -  ASEAN in Eastern Asia & the Pacific rim  
  WHILE CORPS & GOVTS HAVE GLOBALIZED, THE LABOR MVMT GENERALLY HAS NOT MANAGED TO ESTB A GLOBALIZED PRESENCE   
  Regionalization & globalization has put pressure on lab mvmts around the world by reducing their ability to gain wage increasea because of deindustrialization & out sourcing
 
  The lab mvmt has & continues to try to influence the social dimensions of the EU, NAFTA & other treaties, but has had limited success
 
  A major difficulty for the lab mvmt in regionalization & globalization is that national orgs have little ability to coordinate pressure across political boundaries
 
  In Mexico, the division in the lab mvmt, labor's political isolation, undemocratic union structures, & a lack of innovative strats & tactics disabled efforts to influence protective labor regs during the development of NAFTA
 
  In the US, the power of the corporate sector limited the efforts of the Am lab mvmt to influence the development of NAFTA   
  In Mexico, militant responses were likely to come from autonomous & democratic unions who were not part of Mexico's state corporatist labor confederation  
  HISTLY, AS ECONOMIES HAVE DEVELOPED, LABOR MVMTS HAVE HAD DIFFICULTIES ADJUSTING TO THESE CHANGES   
  Transnational orgs & neo conservative political control of econs result in mkt integration & the decline of union power & the decline of a social safety net  
  Semi peripheral & peripheral econs either industrialization via import substitution industrialization (ISI) or export oriented industrialization (EOI)  
  ISI strats have limited growth since there is some limit on the potential level of internal consumption, esp given income levels  
  EOI strats require that output be either substantially cheaper or better quality than the domestic products w/ which they will compete  
Link
 The Figure:  Economic Development Strategies, Industrial Relations Policies, & Workplace IR/HR Practices indicates that nations go through stages of econ dev where they begin competing on cost, but soon move to competing on quality & innovation  
  The Figure: Econ Dev Strats, IR Policies & Wkplace IR/HR Practices indicates that nations in the 1st stages of EOI are competing through their abilities to contain costs  
  Cost competition results from repressive measures such as relaxing labor standards & banning lab orgs  
  In the 2nd stage of EOI requires hi quality & hi value added output  
  Hi quality & hi value added output in EOI requires increases in wkr skills & productivity  
  Repression ceases to b an effective strat as a developing middle class gains the opportunity to exercise power  
  Strikes, even if outlawed, are more likely to be able to lead to change  
  Competition leads employers & the state to look for ways to attract investment  
  One way to attract investment is to enhance labor's effectiveness to the benefit of capital  
  Holding down wages while boosting productivity will make labor more attractive to capital & thus attract investment  
  The willingness of state firms in the process of boosting prod to attract investment is related to exposure to foreign investors, as well as the nation's culture & politics  
  While the method of holding down wages does boost prod, a less conflict oriented method is increase the efficiency of labor either through automation or skill enhancement or both  
  Enhancing the skill of labor is not favored by mgt because it increases the pwr of wkrs in lab mgt relations  
  Enhancing the skill of labor is esp not favored by mgt in repressive nations because it increases the pwr of wkrs & the class consciousness of  wkrs  
  If a nation aims to dev a strong indl base, it must eschew merely holding down wages & focus on increasing automation & the wkr skill base  
  SOME DEMOCRATIC & AUTHORITARIAN NATIONS HAVE HAD POLICIES OF SUPPRESSING UNIONS & WKRS' RIGHTS WHILE SOME HAVE EMBRACED PRO LABOR POLICIES  
  Political regimes, esp in nations w/o a democratic trad make a choice about whether to adopt a repressive or benign policy toward labor unions  
  Where unions are likely to create an opposition pol force, repressive approaches are probably more likely  
  Repressive forces may be used when the state has a strong need, possibly for corrupt reasons, for tapping the results of econ growth  
Link
 The Figure:  State Policy -- Unionization Relationships depicts systematic relationship btwn state & labor components under repressive & benign strats  
  In Fig: State Policy - Unionization Relationships, ellipses relate to state policy variables of labor & wages  
  In Fig: State Policy - Unionization Relationships, the broken arrows show represent long term effects  
  Growth permits wage increases, but rapid wage growth reduces econ growth  
  Dictatorships repress unions & directly influence labor discontent in that, in the absence of unions, wkrs have no expression except to reduce growth  
  In the benign strat, wage growth reduces discontent which reduces unionization  
  Democracy leads to greater opportunities to unionized which raises wages  
  In recent history, such as in Poland & Indonesia, repressive regimes encountered labor unrest  
  Unions have less success in gaining wage increases in non repressive regimes because of global competition  
  Unions in developing econs face multinational firms in a variety of different manners  
  Union reactions to foreign investment in Argentina, So Korea, & Spain view multinationals may be viewed as villains, necessary evils, arm's length collaborators, or partners  
  In dev nations, authoritarian govts & unions initially opposed investment by multinationals  
  Over time, in Argentina the view of multinationals has shifted toward a necessary evil  
  In So Korea, the view of multinationals has shifted toward limited collaboration  
  In Spain, which has taken a modernist approach, the view of multinationals has shifted toward a partnership  

 
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Figure: Economic Development Strategies, Industrial Relations Policies, & Workplace IR/HR Practices

The Figure:  Economic Development Strategies, Industrial Relations Policies, & Workplace IR/HR Practices indicates that nations go through stages of econ dev where they begin competing on cost, but soon move to competing on quality & innovation
SOURCE: S. C. Kuruvilla, "Economic Development Strategies, Industrial Relations Policies & Workplace IR/HR Practices in Southeast Asia," in K. S. Wever & L. Turner, eds., The Comparative Political Economy of Industrial Relations (Madison, WI:  Industrial Relations Research Assoc, 1995), p. 120.

 
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Figure:  State Policy -- Unionization Relationships

The Figure: State Policy -- Unionization Relationships depicts the systematic relationship btwn state & labor components under repressive & benign strats
SOURCE:  R. B. Freeman, "Repressive Labor Relations & Unionism in East Asia, "Proceedings of the Industrial Relations Research Association.  46 (1994), p. 235

 
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 Outline on  Organizing & Representation Around the World 
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  -  Project:  Globalizing & Mainstreaming the Labor Mvmt 
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 FUNDAMENTAL UNION FEATURES OF ORGANIZING, REPRESENTATION, SECURITY, SHOP ACCESS / MEMBERSHIP, & ORIENTATION, ETC. VARY WIDELY AMONG NATIONS ACROSS THE GLOBE 
 
  1.  Organizing & representation outside of No Am is very different than in the US in that except for the UK, few nations have mechanisms for wkrs to vote on representation   
  2.  Only the US has local level representation elections; in most other nations representation is determined at the natl level   
  Outside the US, unions are represented at the natl or federation level by their firm & bargaining over a basic contract occurs at that level   
 
 Exclusive representation is uncommon outside the US & in some EU nations, firms deal w/ several unions in a wkplace, each w/ different agendas 
 
 
 Multiple representation is common in nations where the lab mvmt has religious ties 
 
  3.  Union security differs substantially across the EU
 
  4.  Closed shops can be negotiated in the UK, but in most other countries, union security is not an issue because several unions may represent wkrs in the bargaining unit 
 
  In the UK, representation is possible only when wkrs give voluntary recognition 
 
  Compulsory union membership declined in the UK btwn 79 & 91, but there was no increase in the rate at which firms declined to recognized wkr rep 
 
  5.  Japanese unions have difficulty organizing new firms due to their enterprise orientation which makes it difficult to take wages out of competition 
 
  Japanese unions' impact on wages is small & this makes them unattractive to unorganized wkrs since "voice" issues are not a problem in Japanese firms 
 
  Unions are in decline in Asia & have lower influence than in western nations 
 
 
 GLOBALIZATION IS IMPACTING LABOR MVMTS W/ RESPECT TO:  1. UNION DENSITY  2. WAGES  3. PARTICIPATION  4. MEMBERSHIP, ETC. AROUND THE WORLD 
 
 
 1.  UNION DENSITY IS DECLINING GLOBALLY, BUT MORE NATIONS ARE UNIONIZING & MORE MEMBERS ARE JOINING 
 
  Union density is the % of the wkforce that belongs to unions   
 
 Most nations around the world had a decline in union density in the 90s 
 
 
 Union coverage is the % of jobs that are determined by a collective agreement 
 
Link
 The Table:  Union Density & Coverage Around the World demonstrates that union density varies widely, ranging from 88% density in Denmark & Sweden to 16% in the US, to 9% in France   
 
 The Table:  Union Density & Coverage Around the World demonstrates that union coverage varies widely, ranging from 95% or more in Austria, Finland, & France to 21 & 18 in Japan & the US respectively & that overall 12 of 17 nations had more than 50% coverage 
 
  Union density is much higher in Europe than the US   
  In the 90s, union density in the EU nations w/ lower than 50% declined in 7 of 9 nations   
  In the 90s, union density in the EU nations w/ higher than 50% declined in 4 of 5 nations   
  There are no nations outside of the EU w/ a union density higher than 38%   
 
 Union density is low in the US & has declined here more than around the world because of our more adversarial labor relations & because beginning in 1980, the White House, and then later both Houses of Congress came under Republican control creating a hostile labor relations env 
 
 
 Union density has declined in the UK due to adversarial labor relations, demographic changes, legal & regulation changes, & shifts in occupations 
 
  While the US & the UK lead in the decline of union density, the trend is occurring around the world   
  Union density falls short of union coverage in Europe because mandatory membership is not important since there is no exclusive representation requirement in most nations   
  2.  UNION WAGE PREMIUMS HAVE BECOME MORE DIFFICULT TO MAINTAIN AS CORPS GLOBALIZE & SHIFT PRODUCTION TO LOW WAGE NATIONS TIME & AGAIN   
  Union wage premiums are higher in the US than around the world making anti union strats more profitable for corps   
  The wage premiums decline more in the US than around the world, meaning that the US is coming into line w/ the rest of the world w/ respect to wages   
  The local level is the point at which most wkrs assess whether unionization is to their benefit   
  3.  AS UNIONS HAVE GLOBALIZED, PARTICIPATION / THE VOICE OF THE WKRS HAS INCREASES BOTH TO INCREASE PRODUCTIVITY & AS A PERIPHERAL DEVELOPMENT OF MODERNIZATION   
  Strong local unions & the official institution of wk participation mechanisms are assoc w/ hi union density among EU nations   
  Fr, which has the lowest unionization rate, has unimportant locals w/ little voice in participation although legislation passed in the early 80s encouraging participation has led to more bargaining & wkr involvement   
  The UK & Italy, w/ unionization rates at about 40%, have strong locals but w/ no participation mechanisms assured   
  Ger, Sweden, & Belgium have strong locals w/ participation assured  
  4.  MEMBERSHIP IN ABSOLUTE NUMBERS CONTINUES TO INCREASE (WHILE DENSITY FALLS), & REASONS FOR JOINING A UNION VARY ACROSS THE GLOBE FROM WAGES TO HUMAN RIGHTS   
  The likelihood of joining a union is increasing among recent hires, who: 
-  are male 
-  wk in the public sector 
-  have a pro union attitude 
-  perceive the benefits of joining to exceed the costs 
-  expect to use union services 
-  believe they have limited job mobility 		  
  In Eur, union leavers are more likely to: 
-  be female 
-  older when initially joining 
-  are longer term members 
-  become unemployed 
-  change jobs 
-  come from a nonunion parental family 
-  have a first child 		  
  In the UK desires for unionization are related to have: 
-  job dissatisfaction 
-  left wing views 
-  a perception of the union as instrumental 		  

 
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Table: Union Density & Coverage Around the World 
Nation 
Union Density 
Union Coverage 
Public - Private Ratio
 
1980
1990
1995
2000
1980
1994
1990s
Denmark 
76
81
81
82
69
69
1.2
Sweden 
80
80
83
82
86
89
1.2
Finland 
70
73
80
79
95
95
1.3
Belgium 
56
57
60
58
90
90
1.0
Norway 
57
57
56
54
75
74
1.8
Ireland   
45
41
39
    
1.6
Austria 
56
45
39
35
98
98
2.3
Italy 
49
39
38
37
85
82
1.5
Canada 
36
  
38
  
37
36
  
Portugal   
40
35
30
    
1.2
Australia 
48
  
35
  
88
80
  
New Zealand 
56
  
30
  
67
31
  
Great Britain 
50
38
32
29
70
47
3.2
Germany 
36
33
26
22
91
92
2.5
Greece   
34
24
33
    
3.0
Japan 
31
  
24
  
28
21
  
Switzerland 
31
      
53
50
  
Netherlands 
35
22
22
22
76
81
2.4
US 
22
18
16
16
26
18
  
Spain   
9
13
13
    
2.1
France 
18
9
9
  
85
95
6.3
Union density is the % of the wkforce that belongs to unions 
Union coverage is the % of jobs that are determined by a collective agreement 
The Table:  Union Density & Coverage Around the World demonstrates that union density varies widely, ranging from 88% density in Denmark & Sweden to 16% in the US, to 9% in France 
The Table:  Union Density & Coverage Around the World demonstrates that union coverage varies widely, ranging from 95% or more in Austria, Finland, & France to 21 & 18 in Japan & the US respectively & that overall 12 of 17 nations had more than 50% coverage 

 
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 Outline on  Bargaining, Impasses & Contract Administration Around the World
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  BARGAINING ISSUES AROUND THE WORLD ARE EITHER SPECIFICALLY 'PRE NEGOTIATED' AS IN THE US, OR DETERMINED BY LAW OR CUSTOM IN OTHER NATIONS
 
  Bargaining issues in nations outside the US are both broader & narrower in various respects 
 
  Because most nations do not have a collective bargaining law, bargaining issue & methods are unspecified 
 
  There are no distinction btwn mandatory, permissive, or prohibited issues 
 
  Bargaining issues & outcomes differ from nation to nation depending on the econ policies of the govt & the degree to which they have central planning or income policies 
 
  Except for Sweden & France, there is no legal duty to bargain, although it's implied in union recognition 
 
  Wk rules & seniority issues are seldom found in contracts & evolve from tradition, particularly in the UK 
 
  Mandatory bargaining clauses are less necessary in most EU nations because there is social legislation to deal w/ econ downturns, technological changes, etc. 
 
  Negotiations in the UK have changed trad wk practices & included these changes in contracts 
 
  In the UK, where wk rules were negotiated, wages were higher, resulting in higher productivity 
 
  In Australia, the bargaining power of firms is reduced because arbitration courts have indexed wages to inflation although their influence is weakening in the face of globalization 
 
  In France, contracts are negotiated annually, & of varying lengths in other nations, including the US 
 
  In the US contracts have tended toward longer periods & only some issues are open to change more frequently 
 
  In Japan, unions have no influence on promotion procedures but do control transfers btwn shops or wk grps 
 
  In Japan, a grp supervisor has the greatest influence on promotions & is usually a union member   
  Because there is no distinction btwn classes of bargaining issues in Japan, unions have more influence in mgt decision making than in the US   
  Issues requiring consultation or consent at the enterprise level involve improvement in production methods, the conditions of labor, the shop floor env, safety, & fringe benefits   
  Consultation can occur regarding investments, product development, financial situations, recruiting, mergers, & training policies   
  In contrast to the US, info sharing in Japanese negotiations results in lower wages & shorter negotiations   
 
 BARGAINING STRUCTURES AROUND THE WORLD VARY SO THAT BARGAINING IS DONE AT THE LOCAL LEVEL, AS IN THE US, OR AT THE NATL LEVEL, OR FEDERATION LEVEL IN OTHER NATIONS 
 
  Bargaining in most EU nations occurs at the industry level involving nat unions or federations & employer associations   
  In Italy, unions may bargain w/ the govt on social issues, w/ the firm assoc & industry levels on econ issues, & w/ plant level supervisors on wking conditions   
  Industry level bargaining, coupled w/ wkr councils, enhances tech change when contracts address redundancy   
  Unions look at job security, & firms may be able to take the costs of retraining out of competition since all in the industry would be vulnerable for the same levels   
  The UK negotiates at the enterprise level & this may be why firms are less able to incorporate tech change than other EU nations   
  Because several unions represent wkrs & obtain contracts in UK firms leads to firm & wkr resistance to wkplace concessions involving tech issues   
  While most union mgt relationships occur w/in natl boundaries, the increasing importance of multinational firms may lead to changes   
  Changes in local econ climates increasing global competition make info availability critical for both labor & mgt   
 
 Due to the interest in maintaining nat & geographic pay differentials, firms will resist multinational negotiations 
 
  In multinational, union officials frequently have difficulty getting access to exec who make overall indl policy   
  GLOBALIZATION HAS CAUSED IN MORE LOCAL BARGAINING TO DEAL W/ SPECIFIC ISSUES IN A LOCALE; I.E. BARGAINING HAS DECENTRALIZED  
  As mkts have globalized, labor negotiations have moved from the nat level to the local level to cope w/ diverse production practices & local job security issues linked w/ plant closings   
  The corporatist approach to indl relations in No & Central Europe is beginning to decentralize in response to global competition & some proliferation of occupationally based confederations in Nordic nations   
  In Sweden & Germany bargaining takes place at the firm assoc or nation union level   
  Increasing competition leading to pressures to reduce labor costs is shifting negotiations toward the enterprise level   
  Centralized bargaining in Sweden broke down beginning in the mid 80s after rounds of pay increases higher than in other nations   
  In Ger, a large union & a large indl firm bargained w/ the German central bank's involvement to increase employment of its members   
  The new contract contained incentives for skill development & keeping wages in line w/ productivity & inflation increases   
  Ger & Swedish firms act as cartels to take wages out of competition & sanction whipsaw strikes   
  Contractual wage terms are extended to non represented wkrs, decreasing the incentive to avoid unionization   
  While co unions have little pwr in Japan, unions have combined to implement a "Shunto" approach in which the state pressures firms to improve wages in line w/ productivity & inflation increases   
  Labor relations in Asian nations are widely varied   
  Korean unions developed during the 80s, but firms are large & involved in several ind at once   
  In Taiwan, labor is dominated by firms & the ruling political party   
  Only consultation & constrained collective bargaining are available   
  There is wide variance btwn indl nations relative to: 
-  the level at which bargaining takes place 
-  the degree of coordination btwn unions in bargaining 
-  labor federation involvement 
-  govt involvement 		  
  Bargaining is most centralized in Austria, Belgium, France, & Norway   
  Bargaining is least centralized in Canada, Japan, New Zealand, & the US   
  Bargaining coordination is highest in Austria, Germany, and Japan   
  Bargaining coordination is lowest in Canada, New Zealand, the UK, & the US   
  Federation involvement is highest in Finland, Norway, & Sweden   
  Federation involvement is lowest in German, Italy, Switzerland the UK, & the US 
 
  Govt involvement is highest in Australia & New Zealand 
 
  Govt involvement is lowest in Canada, the UK & the US   
 Link
 The Table:  Characteristics of IR Systems in Developed Economies shows that while there is wide variation among nations on the IR dimensions of bargaining level, bargaining coordination, federation involvement, & govt involvement, there are several patterns in that nations hi one one dimension are often hi in another 
 
 
 CONTRACT ADMIN VARIES WIDELY AROUND THE WORLD, FROM THE METHOD OF UNION / MGT ADMIN TO GOVT ADMIN AGENCIES, TO JUDICIAL ADMIN, TO PRIVATE ADMIN
 
  Around the world, there are large differences in contract admin because there are differences in bargaining structure & because the contract is a basic agreement that, in many nations, individual plants & wkrs may add to   
  In Canada, intra contract strikes are forbidden & bidding arbitration is required for unresolved grievances even in the parties have not negotiated it into an agreement   
  In France, unresolved grievances require conciliation through various methods   
  In Italy, unresolved grievances are referred to the courts   
  In Germany, disputes arise w/in wk councils w/ wkr & mgt reps at odds   
  In Germany, strikes are not permitted to pressure a settlement   
  In Germany, by law disputes must be settled by arbitration 
 

 
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Table: Characteristics of IR Systems in Developed Economies
Country
Bargaining 
Level
Bargaining
Coordination
Federation
Involvement
Govt
Involvement
Australia
1.5
1.5
6
10
Austria
2+
3
2
6
Belgium
2+
2
3
4
Canada
1
1
1
2
Denmark
2
2+
1
5
Finland
2+
2+
7
8
France
2
2
3
3
Germany
2
3
1
3
Italy
2
2.5
1
3, 7
Japan
1
3
2
4
Netherlands
2
2
2
6
New Zealand
1
1
-
10
Norway
2+
2.5
8
5
Sweden
2
2
7
8
Switzerland
2
2+
1
3
United Kingdom
1.5
1
1
2
United States
1
1
1
2
Key:  Bargaining Level:  1 = plant level bargaining;  2 = industry level bargaining, 3 = centralized bargaining 
Key:  Bargaining Coordination:  1 = uncoordinated bargaining, 3 = highly coordinated bargaining
Key:  Federation Involvement:  1 = uninvolved in setting wages in any of the subsequent ways, 2 = participates in formulation of wage demands for all affiliates, 3 = negotiates non wage benefits, 4 = negotiates a part of the wage agreement, 5 = represents affiliates in mediation with centralized ratification, 6 = represents affiliates in arbitration, 7 = negotiates national wage agreement without peace obligations, 8 = negotiates national wage agreement with peace obligation 
Key:  Govt Involvement:  1 = uninvolved in wage setting, 2 = establishes minimum wage(s), 3 = extends collective agreements, 4 = provides economic forecasts to bargaining partners, 5 = recommends wage guidelines or norms, 6 = negotiates wage guidelines with unions, 7 = imposes cost of living adjustments, 8 = formal tripartite agreement for national wage schedule without sanctions, 9 = same with sanctions, 10 = arbitrator imposes wage schedules without sanctions or unions.
The Table:  Characteristics of IR Systems in Developed Economies shows that while there is wide variation among nations on the IR dimensions of bargaining level, bargaining coordination, federation involvement, & govt involvement, there are several patterns in that nations hi one one dimension are often hi in another
Source: Adapted from R. J. Flanagan, "Macro economic Performance and Collective Bargaining: An International Perspective," Journal of Economic Literature 37 (1999), pp. 1152-53

 
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 Outline on  Union / Mgt Cooperation Around the World
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  UNION & MGT COOP INCREASES WKR SATISFACTION & INCREASES PRODUCTIVITY & IS AN EFFECTIVE RESPONSE TO THE INCREASING COMPLEXITY OF THE WKPLACE  
  Many methods will enhance union mgt or wkr / mgr cooperation w/ the aim of increasing productivity, product quality, wkr satisfaction, innovation, etc. 
 
  Un / mgt coop can be involved at three levels of orgl decision making, including the shop floor, the core level, & the strat level 
 
  The shop floor level of the org deals w/ wk methods, production processes, product quality, the quality of wk life, etc. 
 
  The core level of the org deals w/ wages, hours, terms & conditions of wk, etc. 
 
  The strat level of the org deals w/ production levels, product lines, designs, pricing, etc. 
 
  Levels of involvement include col bargaining & codetermination 
 
  Col barg as a method of un mgt coop includes the ability to negotiate & contract on issues 
 
  CODETERMINATION IS A PRACTICE WHEREBY THE WKRS HAVE A ROLE IN THE MGT OF A FIRM, USUALLY AT THE STRATEGIC & MID MGT LEVELS, USUALLY FOCUSING ON STRATS & GOALS  
  Codetermination as a method of un mgt coop includes mutual consensus on goal & or processes 
 
Link
 The Table:  Cooperation Types & Involvement Dimensions indicates that the US has the lowest level of un mgt coop, Japan has a medium level of coop, & Germany & the EU has the highest level of coop 
 
  In the EU there is wide variation in wkrs' access to info, consultation, & participation even though the EU govt is trying to reduce difference in business & other legal areas 
 
  In the EU, only Germany allows unionists on BODs
 
   A WORKS COUNCIL IS A SHOP FLOOR METHOD OF UNION & MGT COOP WHERE WKRS PARTICIPATE IN DECISIONS THAT DIRECTLY AFFECT PRODUCTION  
  A works council is a bipartite board in Germany involving employee & mgt representatives in consultation over issues involving staffing, strat, health, safety, techl change, & other issues of concern to wkrs in the org   
  Wks councils are legislated in most countries, but un involvement in them varies 
 
  In the EU, in col bargaining, firms must disclose info to unions to assist them in preparing their positions 
 
  In Germany wks councils members are appointed by mgt & elected by wkrs 
 
  Wks council members need not be wkrs & are often unofficial   
  Wks councils must be involved in all decision mking that has an effect on employment  
  Many strat decision are included in works council's menu of subjects   
  Some studies find that wks councils help productivity, wages, turnover, dismissal, etc. while other studies find little effect   
  In Germany, any firm of 5 or more may have a wks council & all firms w/ 1000 or more wkrs must have one   
  In Japan, enterprise level labor councils exist in steel & auto where they negotiated profit sharing to make pay flexible & to enhance job security   
  In Japan, plants have large scale job shifts to increase variety & broaden wkr skills   
  Participation in Japan has not led to greater wkplace democracy, though their level of wkplace democracy is higher than in the US   
  Strat decisions are made at higher levels   
  Wk floor suggestions are forwarded to supervisors for possible implementation   
  ESOPs MAY OFFER WKRS THE SAME AMT OF CONTROL AS A STOCKHOLDER, BUT OFTEN VOTING RIGHTS, ETC. ARE STRIPPED AWAY  
  Employee stock ownership plans (ESOPs) are popular in Japan w/ 91% of firms on the stock exchange utilizing them   
  Firms w/ ESOPs were more likely to be more labor intensive, experience high employment growth, & have below average performance   
  ESOPs increase productivity in Japan   
  In the EU, wkr cooperatives are more common than in the US   
  In a wkr coop, wkrs own the firm, hire the mgrs, & direct the firm's strat   
  Italian coops have hi productivity, labor intensive production, low pay differentials btwn wkrs & mgrs, & tranquil labor relations 
 
  Industrial democracy has developed to a higher degree in most industrialized nations than in the US   
  There are more wkr owned coops, input into mgr selections, & other consultations of unions in other nations than in the US   
Link
 The Table:  A Comparative Analysis of the Main Types of Industrial Democracy shows that, internationally, there are 6 types of indl democ including wkrs' self mgt, producer coops, codetermination, wk councils, trade unions, & shop floor programs   

 
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Table: Cooperation Types & Involvement Dimensions
Nation
Involvement
Advisory
Col Bargaining
Codetermination
US
Strategic
No
No
No
 
Core
No
Yes
No
 
Shop Floor
Yes
Yes
No
Japan
Strategic
Yes
No
No
 
Core
Yes
Yes
No
 
Shop Floor
Yes
No
No
Germany
Strategic
Yes
No
Yes
 
Core
Yes
Yes
No
 
Shop Floor
Yes
No
Yes
The Table:  Cooperation Types & Involvement Dimensions indicates that the US has the lowest level of un mgt coop, Japan has a medium level of coop, & Germany & the EU has the highest level of coop

 
Top
  
Table: A Comparative Analysis of the Main Types of Industrial Democracy
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Links
 Type
Defining Characteristic
Structural Properties
Range of Incidence
Key Examples
 
 1.  Workers Self Mgt Wkrs' self mgt occurs in decentralized socialist econs In wkrs' self mgt typical organs of admin include wkrs' assemblies, wkrs' assemblies, wkrs' councils, & representation on mgt committees Algeria, Peru, Poland, Yugoslavia, & various 3rd world & Eastern European nations Yugoslavia
 
  In wkrs' self mgt a hi degree of wkrs' participation on the main decision mking bodies & the overall right of the wkforce to  use but not to own the assets of the firm      
 
 2.  Producer Coops Producer coops occur in a variety of political econs In coops, many wkrs own stock & ownership is widely distributed Coops are wide ranging including many 3rd world nations A key example of a coop is Mondragon which is found in the Basque provinces of Spain
 
  Coops have wkrs' ownership w/ mkt mechanisms In coops wkrs participate in firm mgt & control  Coops are found in France, Italy, Spain, US, & the UK  
 
    In coops wkrs share in the distribution of the profits    
 
 3.  Codetermination In codetermination, wkrs' reps have the right to participate in dec mking on BOD in private sector econs In codetermination single or two tier boards which are supervisory & mgt, have varying rights to veto & decide the proportion of wkrs' reps on BODs Codetermination is widely practiced in W Europe, e.g. Italy, Norway, Sweden, Germany; in Africa, e.g. Egypt; & So Am Germany
 
 4.  Work Councils Wk councils have varying political econs Wk council reps are elected by the wk force Wk councils  are found in Finland, Indonesia, Netherlands, Spain, Sri Lanka, Germany, & Zambia Netherlands, Germany
 
  Wk councils are bodies that regularly meet w/ mgt on firm wide issues Wk councils have varying degrees of rights & obligations which are defined legally or via voluntary agreements    
 
    Wk council rights & obligation extend to committees which are constituted either solely by wkrs or are joint bodies of wkrs & mgt    
 
 5.  Trade Unions        
 
 a.  Disjunctive via collective bargaining W/ disjunctive trade unions, pluralist nations acknowledge conflicting interests Disjunctive trade union have a channel of representation on wkrs' side Disjunctive trade unions are the most common form of participation in pluralist societies US, UK
 
  W/ disjunctive trade unions, conflicting interests are accommodated through trade union mgt negotiations Disjunctive trade unions have varying degrees of legalism & voluntarism & levels at which bargaining is conducted Examples of disjunctive trade unions include Australia, Canada, US, & the UK  
 
 b.  Integrative Integrative trade unions commonly exist under state socialism or corporatism Integrative trade unions have responsibilities for holidays & influence dismissals, safety, welfare, & wking conditions Integrative trade unions are common in socialist or corporatist planned econs  Former USSR
 
  Integrative trade unions have rights to determine issues w/in a framework of harmoniously conceived interests of mgt, the unions, & the state Integrative trade unions are integrated into both mgt & the state Integrative trade unions have the role of planning the econ whether under state socialism or corporatism  
 
 6.  Shop Floor Programs Shop floor programs use shop floor wkrs' initiative & new concepts of wk orgs Under shop floor programs the influence of wkrs depends on the rules of the program, though it is usually task based Shop floor programs vary widely by wkr practices & mgt accommodation techniques in the 1st, 2nd, & 3rd worlds Scandinavia, US  
  Shop floor progs have participation by wkrs in the org of wk in various political econs        
  Shop floor progs include autonomous wk grps & quality of work life programs        
The Table:  A Comparative Analysis of the Main Types of Industrial Democracy shows that, internationally, there are 6 types of indl democ including wkrs' self mgt, producer coops, codetermination, wk councils, trade unions, & shop floor programs  
Source:  M. Poole, Industrial Relations:  Origins & Patterns of National Diversity. (London; Routledge & Kegan Paul, 1986).  pp. 154-56.  

 
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 Outline on  Comparative Effects of Unionization Around the World
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  GLOBALIZATION HAS AFFECTED INDL RELATIONS IN PRODUCTION, THE NATURE OF WORK, SKILLING & DESKILLING, UNIONIZATION & MORE AROUND THE WORLD   
  Many changes in industrial relations follow from globalization including: 
-  a stronger focus at the enterprise level 
-  flexibility in production 
-  flexibility in job assignments
-  skill development 
-  declining unionization 
 
  Some of the decline in unionization can be attributed to globalization, changes in skill mixes, technology, & the political env 
 
  THE US LABOR MVMT IS IN DECLINE AS HEAVY INDUSTRY MOVES OVERSEAS & AS GLOBAL COMPETITION MAKES IT MORE DIFFICULT TO MAINTAIN A 'UNION PREMIUM'   
  Direct investment abroad by US firms reduces union density, decentralizes collective bargaining, makes layoffs easier, & restricts contract extension 
 
  Direct investment abroad by US firms increases ed levels of the wkforce & wk councils 
 
  Investors avoid situations which bargaining power & prefer situations w/ skilled wkforces & institutionalized methods for conflict resolution & problem solving
 
  THE UK LABOR MVMT IS IN DECLINE BUT THEY STARTED IN A STRONGER POSITION & HAVE ALSO MAINTAINED GREATER INFLUENCE THAN IN THE US DUE TO GREATER SUPPORT FROM THE GENERAL POPULATION   
  In the EU, the UK has the most adversarial system & decentralized bargaining 
 
  In the UK, decisions are made at the firm or plant level 
 
  Effects of unions in the UK are close to those in the US 
 
  Investment rates of firms that recognize manual unions were 23% below the rates of nonunion firms 
 
  Taking into acct the reduction in investment due to higher union wages, investments in unionized firms is still 4 to 13% lower in unionized firms 
 
  Dual allegiance among UK wkrs is low, w/ less than 10% being committed to both union & firm & most wkrs have a low commitment to both 
 
  The intro of wkr involvement programs has been linked to improved firm performance in nonunion firms but w/ decreased performance in unionized firms 
 
  Unions in the UK have a positive effect on training 
 
  THE GERMAN LABOR MVMT IS IN DECLINE BUT HAD ONE OF THE STRONGEST LABOR MVMTS IN THE WORLD & BECAUSE OF STRONG SUPPORT FROM THE GENERAL POPULATION, MAINTAINS A RELATIVELY STRONG POSITION   
  In Germany, while unions are cooperative rather than conflictual, unionization is related to slightly lower productivity 
 
  In Germany, unionization does not reduce R & D   
  THE FAR EAST LABOR MVMT IS ESSENTIALLY UNION FREE EXCEPT FOR ENTERPRISE UNIONS  
  In the far east, enterprise unionization in Japan has not influenced wkr satisfaction but has reduced firm commitment   
  In the US, the relationship of higher unionization resulting in lower job satisfaction is related to lower job complexity, less wkr autonomy on the shop floor, lower promotional opportunities, & less quality circle membership   
  Unionized firms in Singapore become more capital intensive & add technology to improve product quality  
  In Singapore, more attn is paid to communications & wk design, tighter control systems, & dominance of the wkplace   
  In Korea, unionization increases wages & reduces turnover, while wks councils are associated w/ increases in wkr satisfaction & productivity   
  Interest in wks councils was increased by demands for increased democracy in Korea in the late 80s   
  Some firms have instituted a bonus policy   
  Labor productivity is positively influenced by the bonus policy; however, unionization reduces the productivity effect   
  Under poorer labor relations since 87, the effect is negative & wkr participation is necessary for the bonus to have a positive effect on productivity   

The End
 
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