Question

In: Economics

Discuss the extent to which aspects of labor relations in other countries should be adopted in...

Discuss the extent to which aspects of labor relations in other countries should be adopted in the United States. For example, should the United States adopt mandatory works councils?

Solutions

Expert Solution

Germany is the country that I selected for the United States to adopt its labor relation strategy. In Germany, the workers are allowed to form a work council in the organization under the work council system. This council plays an active role in negotiating with the management about the various issues related to the employees. In the opinion of Budd," Germany's labor relation is best known for its system of co-determination". In comparison to the USA's supervisory board, the power of this board in Germany is quite limited but a strong representation and voice are facilitated to the employees and these are considered quite seriously. It is very crucial to make a note of employee's opinions as this will not only boost the positive contributions but also would improve productivity.

In most European countries, the mandatory work council is functioning properly as it is providing them good results. Conflict resolution between the management and the employees is the main objective of this council. This council performs like a bridge between the management and the workers. In fact, this council is quite useful in dealing with the various issues arising from time to time, This council is used by the employees to negotiate their wages when there are strong forces in labor market. In my opinion, if the concept of this council is implemented in the USA, it will yield fruitful results.


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