ROLE OF GOVERNMENT IN IMPROVING INDUSTRIAL RELATIONS
The topic description provided by the organizers of this roundtable wishes the discussions to be “centered on how the government can assist in providing more efficient welfare for labor which will essentially reduce the possible sources of friction between labor and management.” The “new” approach suggests to achieve industrial peace through social protection and promotion of social welfare of labor. It means that, aside from acting as the arbiter of social conflict, the government should take a proactive role in reducing social and industrial conflicts by acting on its source, that is, by improving the institutional arrangements to welfare of labor and its share in the wealth of the nation, The FFW has a list of proposals in this respect contained in its most recent Policy and Program of Action, which it offers as a basis for entering into a social dialogue with the social partners. 2 Two concepts may be useful in discussing this objective. The first refers to the framework of “decent work”; the other to the principle of subsidiarity. The framework of decent work defines what should be done to promote the welfare of labor. The principle of subsidiarity shows how and what can be done by the social partners for the same purpose.
Decent Work The concept of decent work is now adopted by the ILO as the main guiding
principle of its action. According to the ILO, decent work has four main pillars. These are promoting respect core international labor standards; generating decent and productive employment; improving social protection and encouraging social dialogue
Principle of subsidiarity This is where the principle of subsidiarity becomes a useful concept. This principle states that each or a combination of the social partners should be doing what best they do. For example, determining what firms and industries can afford in terms of labor welfare and social protection can best be left to collective bargaining between employers and trade unions. The role of government is to see to it that the two social partners do not destroy the common good or go out of bounds of commonly agreed policies or, even more precisely, to promote an environment where free collective bargaining can operate.
Industry management is one of two key players in the realm of industrial relations. Industrial relations describes the relationship between management (often top-level management) and employee organizations (like unions). Top-level management Top-level management must communicate and negotiate with employee organizations to avoid strikes, law-suits and protests. This level of management interacts with employee organizations on a large-scale, as opposed to lower tiers of management which mostly rely on human resources to conduct employee interactions. Low-level management Low-level (or local) management interacts with employees on an individual basis (often through a human resources department). All levels of management are involved in industrial relations, but lowlevel management has little or no say in big-picture decisions (employee compensation and benefit alterations). Managements purpose in industrial relations In an industrial relations negotiation, management represents the interest of the company (and shareholders if applicable). Management must work with employees to develop compensation packages and policies that are acceptable for both parties. Problems for management in industrial relations When the relationship between management and employees sour, management may be forced to develop a crisis-management plan. If an employee organization initiates a large-scale strike or protest, management must act quickly (either give-in to employee demands or find an alternate solution) to avoid crippling profit losses. History of management's involvement in industrial relations Historically, management is depicted as a foe of employees and their organizations. While this stereotype is not entirely true, the media often portrays management as the "bad guy" of the two organizations (unions are usually cast as the hero of the "little guy"). This negative media attention (and historical stereotype) can lead to extremely damaging public relations, which can eventually cripple an entire industry.
doc_293639057.docx
The topic description provided by the organizers of this roundtable wishes the discussions to be “centered on how the government can assist in providing more efficient welfare for labor which will essentially reduce the possible sources of friction between labor and management.” The “new” approach suggests to achieve industrial peace through social protection and promotion of social welfare of labor. It means that, aside from acting as the arbiter of social conflict, the government should take a proactive role in reducing social and industrial conflicts by acting on its source, that is, by improving the institutional arrangements to welfare of labor and its share in the wealth of the nation, The FFW has a list of proposals in this respect contained in its most recent Policy and Program of Action, which it offers as a basis for entering into a social dialogue with the social partners. 2 Two concepts may be useful in discussing this objective. The first refers to the framework of “decent work”; the other to the principle of subsidiarity. The framework of decent work defines what should be done to promote the welfare of labor. The principle of subsidiarity shows how and what can be done by the social partners for the same purpose.
Decent Work The concept of decent work is now adopted by the ILO as the main guiding
principle of its action. According to the ILO, decent work has four main pillars. These are promoting respect core international labor standards; generating decent and productive employment; improving social protection and encouraging social dialogue
Principle of subsidiarity This is where the principle of subsidiarity becomes a useful concept. This principle states that each or a combination of the social partners should be doing what best they do. For example, determining what firms and industries can afford in terms of labor welfare and social protection can best be left to collective bargaining between employers and trade unions. The role of government is to see to it that the two social partners do not destroy the common good or go out of bounds of commonly agreed policies or, even more precisely, to promote an environment where free collective bargaining can operate.
Industry management is one of two key players in the realm of industrial relations. Industrial relations describes the relationship between management (often top-level management) and employee organizations (like unions). Top-level management Top-level management must communicate and negotiate with employee organizations to avoid strikes, law-suits and protests. This level of management interacts with employee organizations on a large-scale, as opposed to lower tiers of management which mostly rely on human resources to conduct employee interactions. Low-level management Low-level (or local) management interacts with employees on an individual basis (often through a human resources department). All levels of management are involved in industrial relations, but lowlevel management has little or no say in big-picture decisions (employee compensation and benefit alterations). Managements purpose in industrial relations In an industrial relations negotiation, management represents the interest of the company (and shareholders if applicable). Management must work with employees to develop compensation packages and policies that are acceptable for both parties. Problems for management in industrial relations When the relationship between management and employees sour, management may be forced to develop a crisis-management plan. If an employee organization initiates a large-scale strike or protest, management must act quickly (either give-in to employee demands or find an alternate solution) to avoid crippling profit losses. History of management's involvement in industrial relations Historically, management is depicted as a foe of employees and their organizations. While this stereotype is not entirely true, the media often portrays management as the "bad guy" of the two organizations (unions are usually cast as the hero of the "little guy"). This negative media attention (and historical stereotype) can lead to extremely damaging public relations, which can eventually cripple an entire industry.
doc_293639057.docx