INDUSTRIAL RELATIONS

MAJOR INDUSTRIALISED & EMERGING

ECONOMIES
Industrial Relations in CHINA
To understand the present IR environment
(ie, issues, priorities and strategies) in Asia
, it is necessary to appreciate the great
diversity of circumstances in the region.

IR are shaped by the political, economic

and cultural context in each country, and are
reflected in the particular policy, legal and
institutional framework and relationships
between government and the social partners.
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In the countries in the region, however, relations
between managers, workers and their representatives
are still viewed from the more limited perspectives of
traditional IR.

Itis a fact that labour legislation and institutions in

many countries in the region have been influenced, to
a greater or lesser extent, by those of a number of
Western countries.

But the IR systems which have developed and continue to

evolve in the region have not been based on the same
circumstances and values as those which shaped these
systems in the West.
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Main Characteristics:
A high degree of economic planning and
coordination by governments to encourage and
facilitate industrialization;

An emphasis on labour relations as a means of

preventing or minimizing industrial conflict;

Reasonably comprehensive (but narrowly

focused) labour protection and relations
legislation,
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Relatively weak IR institutions and
processes;

the lack of strong and independent trade

union organizations;

theneed for stronger employers'

organizations.

A greater attention is now being given

around the region to the development of
labour market institutions and laws.
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Industrial Relations in SOUTH KOREA
The role of the government has been
dominant in determining the basic character
of industrial relations.

Korea had an advantage , and which the

government recognized.

Ithad an abundant supply of relatively

educated labour , but it lacked Capital.

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Thus, the state ‘s economic plan targeted
labour intensive industries with low capital
requirements, such as textiles, garments, and
electronics, which had high export potential.

The success by early 1970’s created an

entrepreneurial class, with profits that could
be reinvested in industries with higher capital
requirements, such as heavy engineering and
chemicals.

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The state invested heavily in education,
providing a high level of education to all persons,
both male and female.

Field of education, especially that is helpful to

industry, such as engineering at the university
level was generously supported.

The government favoured, through various

financial and fiscal measures, industries it had
chosen for development, such as shipbuilding,
automobiles, steel and petrochemicals.
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The major goal of South Korea’s industrial
relations policy has been to provide the
most favourable labour market and
labour relations for rapid economic
growth.

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Industrial Relations in JAPAN
Japan, since the end of World War II, has
consciously followed an approach, which bears a
significant resemblance to liberal corporatism.

The state undoubtedly had a strong guiding role

in socioeconomic developments.

The Japanese government attention to the link

between desired HRM policies and labour
legislations, is unusual.

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Rather than suppressing free collective
bargaining in the 1950’s, the state used the
whole range of measures at its disposal to rein
in what were deemed to be extremist elements
and to encourage the ascendancy of moderate
union leaders.

The state also contributed to the stabilization

of labour relations by establishing procedures
for labour dispute adjustments and
adjudication.

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The emphasis the Japan government placed
on employment security has no parallel in the
policies of other countries.

Government backed Japan Productivity

Center agreed on the following principles
with the National Labour Organization
SODOMEI:
◦ During the Productivity movement, designed to
enhance employment security, displaced workers
will not be made redundant but will be relocated
by the employer;

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 ◦ Labour management consultation must be
promoted in order to determine the concrete
measures to be taken to increase productivity; and

◦ The benefits of increased productivity must be

distributed fairly among management, workers,
and customers.

Japanese IR underwent a transformation

during industrial restructuring after the 1973
Oil Crisis.

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Government strongly encouraged unions and
employers in the major industries to engage in
joint consultation on specific measures to be taken
to achieve large scale employment adjustments.

Three major public enterprises were privatized,

leading to reorganization of Japan’s most militant
unions.

The other Four major union confederations, with

different ideological orientations, were
consolidated into RENGO, the All Japan Trade
Union Federation.
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Industrial Relations in UK
Early developments up to 1920s included the
development of employers associations and
federations.

The development of industry wide collective

bargaining dealing with substantive and procedural
issues.

The growth of trade unions themselves from purely

local organizations representing skilled craft
people.
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Rapid decline in trade union membership
during 1920s, &1930s.

Rapid erosion of industry wide bargaining

during 1950s & 1960s.

Much greater state legislative involvement in

IR starting in 1971 with the IR Act and
continuing during 1980s & 1990s.

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The changing locus of regulation
highlighted the growing influence of local
negotiators – the shop stewards who were
increasingly in conflict with the full time
union officials who still regarded their
role as industry wide negotiators.

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Industrial Relations in US
Not being a parliamentary form of
government, The state does not act with the
clarity and decisive control exercised by
governments headed by Prime Ministers with
Parliamentary majorities

It is quite impossible for the US government

to control the nation’s economic course, or
even to be a strongly guiding force in IR

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Although industrialization began in the early part of
nineteenth century, the federal government did
virtually nothing to restrain the power of
employers.

The federal government’s first important

intervention in private sector labour legislations, in
the 1932 Norris-LaGuardia Act, established no
substantive rights.

Employers still have recourse to state courts, most

of which would have produced results favourable to
the employer, based on contracts or tort doctrines.

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The Wagner Act 1935 came at a time of
unprecedented labour militancy and extremely
severe economic depression.

The act is simply modest. The state compels

the process of bargaining, but it has refused to
contemplate mandating any results.

The ideology at US has never moved far away

from a wholehearted embrace of free market
economics with a focus on individual rights.

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In US there is no federal law of unfair
dismissal;

No federal law requiring sickness benefits;

No federal maternity protection law

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