industrial relations

Relationship between employers and employees, and their dealings with each other. In most industries, wages and conditions are determined by free collective bargaining between employers and trade unions. Some European and American countries have worker participation through profit-sharing and industrial democracy. Another solution is co-ownership, in which a company is entirely owned by its employees. The aim of good industrial relations is to achieve a motivated, capable workforce that sees its work as creative and fulfilling. A breakdown in industrial relations can lead to an industrial dispute where one party takes industrial action.

Another approach to industrial relations is that of the Japanese and Israelis, who encourage in their workers a feeling of belonging amounting almost to family membership.

When agreement cannot be reached by collective bargaining, outside arbitration is often sought. In the USA, there is a highly developed system for private, third-party arbitration. Unions have long sought such provisions, but employers resisted, agreeing generally only in return for ‘no-strike’ clauses in contracts. Working conditions, unfair treatment, and specific complaints are usually handled through the union grievance system, which requires written complaints from workers. New issues are becoming important in the US workplace, such as provision of day care, parental leave, and flexible working hours.