CHAPTER 16

COMPARATIVE INDUSTRIAL RELATIONS

Akinbode, J.O.
Introduction
Industrial relations in countries, continents and globally have been influenced by a number of
factors with each context trying to improve upon the practice of the issues in industrial relations
especially at the wake of globalization and competitive advantage. This practice is prompted by
the need to establish an industrial relations system relevant to the emerging business
environment. It is also as a result of the recognition of the necessity to develop an industrial
relations system which will contribute to the social stability and reduce industrial conflict. The
study of comparative industrial relations becomes imperative because of rapid changes in the
economy, industrial unrest and conflicting ideologies in the national and international spheres.
In this chapter effort is made towards juxtaposing issues through the three models presented by
Krislov (1987) and establishing the similarities and differences. We shall also consider the impact
of globalization and competitive advantage on industrial relations practice.
Meaning of Comparative Industrial Relations
Base on our understanding of industrial relations in chapter 1, in a layman's language
comparative industrial relations could be seen as the study of industrial relations in two or more
countries, but at our level we should be able to see beyond this. We should be able to analyze
and juxtapose issues in industrial relations within all contexts - (Comprising issues, organizations,
industries, sectors, regions, continents...) within a locality and outside it.
In a wider term, the subject has been seen from different angles by different academics and
researchers but all seems to meet at a point of agreement. what is so obvious is that the subject
intend to isolate the important features that distinguishes or make the system of industrial
relations similar to those which is obtained in other context.
Each context has its unique industrial relations system with some operating similar system and
others distinct theirs. It is thus clear that a study across the various systems either within a
locality or across the boundaries of a locality or localities for the purpose of juxtaposing ideas and
ideologies is comparative industrial relations.
We conclude that comparative industrial relations is the systematic study or examination of two
or more industrial relations systems in respect to their historical development, theories and
practice, philosophy(ies), objectives, aims,
policies, social-cultural and economic relevance in comparison to others with the view to seeking
solution to inherent problems for improvement.
Aims of Comparative Industrial Relations
With relevance to the existing body of knowledge on this subject, the following aims could be
clearly seen;
• It is to provide impeccable information about the industrial relations system- such information
must include the institutions, processes, activities, problems, prospects, methods, context, issues
etc.
It is to help in providing a comprehensive knowledge of ones system of Industrial Relations.
To widen horizons of students, scholars, managers, researchers...by aiding critical thinking.
It is to assist in understanding what industrial relations is and not.
It is to enable us to understand the forces with Industrial Relations e.g. actors and their varying
roles from one place to another.
To facilitate and promote industrial harmony through the adoption of modern techniques of
Industrial Relations practices in other parts of the world to one country.
• Enable us to gather clues on how to solve Industrial Relations problems
• To reveal differences and similarities that exists in Industrial Relations system throughout the
world.
Approaches to the study of Comparative Industrial Relations
Comparative studies cut across all disciplines; management, history, philosophy etc. it is therefore
necessary for us to clarify the approaches or methods to be used in handling issues in industrial
relations.
Three (3) of such methods are discussed in this text but whatever approach/method is
considered relevant, objectivity in study is very important for effective study.
The following approaches are considered relevant;
1. Historical approach
2. Problem-solving approach
3. Descriptive approach.
Historical Approach
The emphasis of this approach is using historical method to study issues in industrial relations of
a country or continues under study. Looking into what was in place before (past), what is in place
now (present) and providing solutions to guide the future. Thus, the historical development of
industrial relations of different countries is carefully studied in relation to the present time paving
way for future improvement.
For instance, the introduction of wage-employment is symbolic to the development of I.R
practice in Nigeria. Other issues include; the presence of colonial masters, religion, culture etc. is
also important.
No discussion on labour unions in Nigeria will be meaningful today, if the historical development
or the factors that led to its formation in Nigeria is not presented.
Problem-Solving Approach
This involves identification of problems in industrial relations in different context (sections,
organization, industry, countries, etc) with similar hindrances in their I.R. the next stage is to
study how the problems) is/are handled considering ones context. For instance, if the problem is
studied in developed country, solutions may not be absolutely adhered to in developing country
like Nigeria.
Descriptive Approach
In descriptive approach, the researcher collects data and describes what he observes. This
approach is basically fact oriented. The data collected in a particular issue can be compared. For
instance, wages or industrial strike can be studied in this manner.
Models of Industrial Relations
To discuss issues in industrial relations country by country can be too comprehensive for us in this
text, but a relatively stable models that summarize in common are stated below with the work of
Krislov (1987) as our guide.
According to Krislov (1987) extended by Fajana (2000) the following are identified.
1. Developed capitalist model
2. Communist/socialist model
3. Semi-developed capitalist model.
Krislov opine that the first two models are stable while the last one is unstable.
The developed capitalist countries are found in Australia, New Zealand, Japan, Western Europe
and North America. In these countries; actors in industrial relations are independent with limited
government control, technology is advanced, power is widely distributed among the actors with
pluralism, and industrial strike is legalized and private and public settlement of dispute in place.
Under communist/socialist model are countries like USSR, China, and Eastern Europe. The actors
are controlled by the ideology is at unitarism, industrial strike is not allowed and limited public
machinery for dispute settlement.
Semi-developed capitalist is Latin America, Africa, Korea, Singapore and the Philippines. In these
countries; actors are controlled by the government, the use of technology is limited, and market
is dominated by private individuals and government; while all other issues like unionism,
industrial strike are regulated by the government.

Reasons for Variations in the Models

Generally, many factors can be said to be responsible for the variations in the models presented
above among which are differences in historical background of each country, differences in
political ideologies, nature of economy, level of indigrializat i courten, le labor one in age in
layuan, ancie cultural
those related hidden factors.
They are examine as follows
 Differences in historical background: History deals with the past, present and the future.
Historical differences in the development of industrial relations vary from one country to
another. This is because the knowledge of past guide the present and future wage to come.
For instance, before the introduction of wage-employment in Nigeria, the paternalistic has
been in place with mutual effort in production process in the form of ajo and esusu.
 Differences in political ideologies: Political activity cannot be separated from our discourse
as issues are determined by the government whether directly or indirectly. The forms of
government in practice at any point in time have influence on what is obtainable in the
industrial relations systems.
The forms and the practice of government e.g democracy, military ...symbolizes different
ideologies that affect economy and the industrial relations practice
 Nature of economy: No doubt that the workings of industrial relations is influenced by the
economic system in practice and the level in which the economy is in comparison to what is
obtamable elsewhere. For instance the industrial revolution in England brought great
change to the industries and social relations in the work place. Most of the developed
countries really experienced it at their early stage while the developing countries enjoyed
transferred knowledge.
 Level of industrialization: Development and concentration of industries with large scale of
production involving large number of workers is more common in the developed countries
than the developing countries. This factor has made industrial relations of the developed
capitalist model to unique and different from those of communist and semi developed
capitalist.
 Proportion of labour force in wage employment: The proportion of labour force in wage
employment varies in the models and therefore employment matters, issues and practice
varies along that line with the developed capitalist having a larger aspect of its workers in
the wage employment than others.
 Socio-cultural background: Similarly, socio-cultural background of countries that made up
the classified models varies hence the variation in the practice of industrial relations. Issues
in employment relations are affected by the sociocultural values, believers and culture of
the people in that geographical spread.
 Level of technology: The technology in use has serious implications on the nature of
industrial relation. While the developed capitalist countries have adopted in advanced
technology process, the communist and semi-developed capitalist still face the choice of
limited technology.
 Level of education: The level of potential realization in human, social integration and human
capital development is educational. The developed capitalist model is well sensitized with
this reality than the communist and semi-developed capitalist. This factor has really
influenced the activities of parties in industrial relations thereby causing a serious disparity
 in its practice across countries.

Nigeria Model Industrial Relations

Nigeria has a unique but unstable industrial relations system. Although the model portray what
has been the view of this textbook but a distinguishing features of the model are presented
below as highlighted by Fajana (2000).
- The emergence of trade unions before the country embarked on industrialization;
- The inability of trade union leaders to conduct maturity.
- The domineering attitude of employers on issues of common concerns;
- The unique role of the various states;
- The inconsistencies of the state policies;
- The difficulty faced in the quest to separate labour activities from political disturbances;
- Destructive nature of labour disputes with coercive measure of the state in controlling such;
- In cushion of control values in the work place relations with much respect for the elders rather
than on authorities; and
- Reliance on informal machinery for dispute resolution - elders, religious leaders, nationalist etc.

Problems of Comparative Industrial Relations in Nigeria

Students and even researchers do have phobia for comparative analysis in any subject with
industrial relation has no exception. The problems are discussed below:
• Lack of specialist: It is very rare to see specialist in the field in question because it usually
involves extreme effort to be one.
• Non-chalant attitude of students: Students generally have non-chalant attitude toward going
deeper into researches to juxtapose issues. They use only interested in what is within their
jurisdiction.
• Lack of books: Limited materials are available to read from to extract fact to be used in
comparing systems for useful analysis.
• Government attitude: The attitude of government toward comparative study is presently very
poor unlike in the past, government support and encourage has dropped in this aspect. As
facilities to encourage schools are no longer available for thorough research exercise.

Globalization and Industrial Relations

With globalization, the traditional models of industrial relations have been exposed to a lot of
challenges. Market is opened up due to direct foreign investment opportunities in all countries
through globalization of trade and deregulation of financial markets. All there mean limited
intervention of government into businesses.
All this -implies the dominant of the market system facilities by the collapse of alternative
economic (and in many cases political) system. There is also a direct link between globalization
and information technology (IT), rapid technological change and reduction in communication.
Costs have facilitated the globalization of production and financial markets.
The following challenges and impact have been maintained on the traditional industrial relation:
• More advanced and skilled work force;
• Rapid influx into the work force of women who will, in some countries, occupy more than half
the emerging Jobs;
• An increasing number of people who will be working for the organization but not within the
organization;
• Expanding
service sector at the expenses of manufacturing sector, in capitalist developed model; and
• The decreasing number of people working under 'permanent' control of employment, and the
proliferation of other types of work arrangements such as port time and temporary work, home
work and contract work.