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Summary Comparative European Industrial Relations
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Summary of the course 'Comparative European Industrial Relations'.
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Comparative Europea $ dustrian Renato sLecture 1
Ideas of industrial relatons started around 1920’s about working hours
- UK and US
- Personnel Management
Since 1980s Human Resource Management
- Employees are the most important asset
- Focus on industry = manufacturing
- Distncton between industry and sericices
- Howeicer, there was a focus on certain parts of the economy
Broader term: Employment relatons who includes also NGO’s and indiicidual employment
relatons (industrial relatons employment relatonss
Edwards
- Employment: all forms of economic acticityy Employee is working in an organizaton and will
receiice a reward for labour
- Organizing HR in the frm which includes the aims of the employer and employeey This is a
complex relatonship: open unded, uncertain and sometmes there is a confict of interesty
Defi i g $R a d ER
- Dunlop 1993: IR system is a distnct insttutonal domain comprising of actors, processes,
context and outcomes
- Edwards 2003: Focus is on employment so all forms of economic acticity in which an
employee works under the authority of an employer and receiice wages for his or her labor
- Edwards: The employment relatonship is about organizing human resources in the light of
the productice aims of the frm, but also the aims of employees
Howeicer, what about self-employed workers?
$R is a i terdiscipni ary study co sists of actors, processes, outcomes a d neivens
1. Actors
- Employers/employer’s associaton (on sectoral/natonal and EU leicels
- Employees
- Goicernment/EU
Tripartte setngs = employers, employees and goicernment
Bipartte setngs = employers and employees
- Works councils
Other rights and dutes than trade unions
No right to strike, trade unions do haice this right
, Source: Edwards, 2009
U io de sity: How many employees are member of the union (ofen in percents
Scope: How broad are the bargaining agreements? Only salary or also child care, fexible work,
trainings and so ony
Mobinizato : How much people will join your bargaining? Only the members or also other people?
Ge eranny appnicabne: Eicery company in sector and all the employees that are bound to the CA
2. Processes: Rune maki g (Cnegg, 1979)
- Joint regulaton collectice bargaining
1y Substantice
Rules that are most appealing to employees, what are we going to agree on?
Pay, working tme, holidays, oicertme
2y Procedural (collectice agreements at local, sector and natonal leicelss
How are these employment relatons formed?
Do we haice a natonal/sectoral/local leicel collectice bargaining system?
How to engage as a party?
Structure the relatonship
1y Formal (company policy, collectice agreeemnt, statutess
2y Informal (norms and icaluess
3. Outcomes
Negotated rules, HR and policy on business performance, but also the impact of IR on
- The decline of unions and collectice bargaining explains some of the rise in wage inequality
- IR insttutons contribute to the making of a good society
4. Leivens
- Micro : company leicel
- Meso: sector leicel
- Macro: natonal or European leicel
- Regional: EU or within country
- Global: internatonal
, Mult-leicel goicerance
EU leicel social dialogue
Three roots of co cept $R
IR is as a feld of study and not a discipliney It has a topic it explores, but borrows theories from other
disciplines to interpret what you see in practcey
1y Roots in economy
- When does a market relatonship becomes an employment relatonship?
- Transacton cost theory: cheaper to haice 1 negotaton/agreement that applies for eiceryone
than to haice negotatons with all employees
- Collectice agreements at sectory leicel: you know that other companies ofer the same wages
no competton for wages
2y Roots in sociology
- How shared standards and expectatons are created between two partes?
3y Roots in psychology
- How do two partes perceiice the expectatons that exist within the employment
relatonship?
- Psychological contract, the subjectice side of the contract
Views o types empnoyme t renato ship (Edwards)
1y Unitary iciew
- Identfy of interest between employer and employee
- Confict is a result of the misunderstanding
2y Pluralist iciew
- Confict is ineicitable, because icarious organisaton partcipate in determining the rules of
employment
- Howeicer by the law and insttutons we can manage a balance
- Stll, there is a risk of confict due to diferent authority sources
- Both the aims of the employer and employee are legitmate
3y Radical iciew
- Critces pluralism
- Major and funademental diferences between employees and employers run deeper than
weakness of insttutons
- Disorder runs much deeper than the weakness of insttutons
- Only the employer’s interest is legitmate
Two routes to orga izato feeibinity
1y Contract
- Relatonship based on hire and fre principle and indiicidual responsibility
- Market principle
- Detailed and specifc obligatons through organizatonal rules
- For example: performance appraisal systems
- External fexibiliazaton if you don’t need the employee anymore, fre them
- Temporary contracts
- Americanizaton
- Taylorist easy, simple tasks easier to hire and fre
2y Status
- Long-term relatonships
- Employees are treated as inicestment rather than a cost
- Employees partcipate in decision-making
, - Internal fexibility when the business is not doing well at a certain department, you start
working at another place within the company
- More permanent contracts
- Europeanizaton
- More team work
Retur to co tract Eete sio of status
Empnoyme t status worker Temporary Permanent
Numerican feeibinity Hire and fre Flexible working tme
Fu cto an feeibinity Hire and fre Job rotaton
Work orga izato Taylorist Team work
Quanificato s sought Narrow Broad
- Might difer per country, per sector, per organizaton
- Migth difer oicer tme
- Might both haice benefts and downturns, alsof or diferent types of groups of employees
Differe ces per cou tryssectorsprofessio
Pnuranist-type moden of $R Etatsme-type moden of $R
- A tago ist empnoyer-empnoyee - Cnass struggne
renato s - State-ce tered $R
- Vonu tarism Stro g state i terive to i $R
State abste to i $R Ma datory works cou cins
Free-connective bargai i g system
Vonu tary works cou cins sytem - Progressiive dece tranisato of
- Dece tranisato i connective bargai i g connective bargai i g
- Abse ce of tripartte a d bipartte - Tripartte socian dianogue
systems - Fra ce
- U ited Ki gdom
Bengium Statutory-type of moden of $R
- Socian dianogue - Social partnership
- Rone of state i socian dianogue ( ot - Social democracy
much auto omy o a i forman basis) - Role of state in free-collectice bargaining
- Tripartte a d bipartte regunato but autonomy of social partners
- Mandatory works councils system
Decentralizaton:
- The trend that you are going to bargain from natonal to organzatonal leicel
- The leicel lower will mean that the group for who you are bargaining for, will get smaller and
smaller
What shapes the future of $R: Goi g from bad to worse?
1y Keune 2015
- Indiicidualizaton of employment relatonships
- Deterioraton of job quality (more precarious workers because of fexible work, zero hours
contract, self-employed workers and so ons
- EU’s market-oriented stance
2y Jackson 2013
- Globalizaton of producton infuences
- Transnatonalizaton
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