Question

In: Economics

What is meant by labor relations and what does it entail? What does collective bargaining entail?...

What is meant by labor relations and what does it entail?

What does collective bargaining entail?

Is it advantageous in an organization or not?

Solutions

Expert Solution

1. Labor relations includes the management of unionized employment situations and their practice. Labor relations are often a sub-area within industrial relations, in practice labor relations are often a sub-area within the management of human resources. In the United States the National Labor Relations Act governs labor relations in the private sector. The 1978 Civil Service Reform Act and various pieces of state legislation govern public sector labor relations. Other countries might regulate labor relations by law or tradition.

2.Collective bargaining, the ongoing negotiation process between workers' and employers' representatives to lay down conditions of employment. Not only wages, but hiring practices, layoffs, promotions, job functions, working conditions and hours, worker discipline and termination, and benefits programs may be covered by the collectively determined agreement.

An effective specialist in labor relations may dismantle what was historically an adversarial relationship between organized labor and management. They have a similar purpose, which is to ensure that management upholds its rights and that workers are treated equally, all in one fell swoop. That says it all – the expert in labor relations is not just about employers to defend union workers, nor is he there to see that management is taking over. The role of a labor relations professional is to protect the company and its employees. And when union representatives see that that is a labor relations specialist 's goal, you have the foundation of a relationship of mutually respectful labor-management.

The degree of centralisation in the negotiating process and the roles of the collective agreements differ. Depending on the structure of industry within a country, contract negotiation can take place at national , regional or local level. National agreements, more common in smaller countries , usually settle general issues, leaving more detailed issues to be considered at the local level. For example, an agreement can set actual salary rates, or it could simply set minimum wage rates.


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