Professional Documents
Culture Documents
1
Comparative structure of governance influences employee relation and communication in an
organization in some way. Those are discussed below:
• Multi employer bargaining: Even within the established advanced industrialized world
there is dramatic comparative variation in the coverage of collective bargaining. In the
USA it now languishes at not much above 10% of the workforce, and a little more in
Japan, but in Canada and most particularly the countries EU it is typically much higher.
In many European countries trade union recognition for collective bargaining is required
by law, and collective agreements that are reached through negotiations with unions are
extended, either through enterprises, membership of employees associations or by law, to
other employees ensuring a much wide coverage of collective bargaining than trade union
membership figures alone might suggest. Even within the expended EU, though there is a
considerable variation around the average. Generally, coverage rates have shown a
gradual decline over the last few decades. However, in many cases these decline have
been slight and many countries- for example Slovenia and Denmark- have seen increases
in collective bargaining coverage in recent years. High levels of collective bargaining
coverage are secured principally not by multitudinous enterprise-level agreements but by
multi employer bargaining and agreements (Venon 2006a). multi employer bargaining
may occurs at various levels, according to the centralization of bargaining (sectoral,
multi sectoral), and may be more or less closely coordinated across sectors and extended
by law beyond the employees who pay their dues to employee associations.
• Company and enterprise joint regulation: Company and enterprise level employee
regulations or joint regulations concern local collective bargaining, governance,
procedure and company- or enterprise level collective voice. Such company or enterprise
level arrangement is often part of multi level structure of collective bargaining and joint
regulation, particularly within Europe. This multi level structure may be more or less
vertically co-ordinate or articulated. In Northern Europe there is often a formal hierarchy
of collective bargaining or joint regulation, with collective agreements at multi sector or
sectoral level explicitly defining the role of collective bargaining or joint regulation at the
lower company or enterprise level. The union’s movement of many countries has lost
members over the last decades, and in some countries the union movement is struggling
to come to terms with the modern economy. The decline of the traditional areas of union
strength is primary industries and giant manufacturing plants, the unions failure to deal
effectively with internationalization and with the development of flexible working, the
government and employer strength have all led to reduction in union membership and
influence.
• Work councils: Although the term is sometimes used rather loosely, particularly in the
Anglo-Saxon world, in a strict sense work councils are representative bodies of
employees which have a statutory basis as opposed to staff councils or joint consultative
committees established autonomously by employees. These independent employee
bodies, which may exist at several levels of the organization (such as plant or enterprise
level, central level) have certain rights mandated by law, rather than roles prescribed by
particular employers. As is the case in the Nordic countries, work councils or work place
clubs are often formally and explicitly for the local representatives of unions only
(Berggren 1994). Sometimes, however they exist alongside and are formally independent
from union channels, as is the case in Germany, for example, but even here they have in
practice a very close relationship with local union representatives and broader union
structures.
• Board level employee representation: Some public sector organizations in most
countries feature employee directors on their main boards. A degree of employee board
representation also occurs, however, in the private sector in northern Europe, and most
strikingly in the Nordic countries (Jackson 2005). Where present statutory provision for
employee representation on boards or usually provides that between one third and a half
of the board are to be employee representation is less frequent in smaller organizations,
and indeed the smallest-of fewer than say, 25 to 50 employees- are often excluded under
the terms of the legislation. However, although small organization and their medium
sized counterparts together constitute the vast bulk of companies, they almost always
employ a minority of employees. Board level employee representation is near ubiquitous
in the larger organizations of Sweden, Norway and Finland, and in the organizations
employing the vast bulk of employees in these countries (Hagen 2010). Such worker
directors have the same rights to information and to scrutiny of the executive as other
board members.
• Empty national structures of joint regulation: Structure of joint regulation is rather
empty in many respects in some countries. France provides a prominent example, where
there is very high collective bargaining coverage but where the multi employer
agreements which secure it feature rather little content. In other countries, however, he
arrangements are very clearly significant in practice. Typically as Vernon (2006a) shows,
the higher are national unionization rates, the more and substantial is collective
bargaining that is , the weightier is joint regulation. Of course national or aggregate
unionization rates can be only provide an indication of the general situation in a country –
there is typically significant variation in the significance of joint regulation across
sectors. However, in some European countries – such as Sweden, Finland, Norway,
Denmark, Belgium and Slovenia – it is difficult to find a sector where joint regulation is
not a significant consideration for managers of people. Such cross national variation is
indicated in by people management specialist views about the influence of unions in their
organizations. Later comparative chapters elaborate in detail some of the implications of
national arrangements of joint regulation for other arenas of people management.
• .