Industrial Relations in Japan, ETC

8/13/2019 Industrial Relations in Japan, ETC

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Comparative analysis of

Industrial Relations in UK,USA,

Japan, Germany and Sweden

By DEVAN GOPAL


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Industrial Relations in Japan


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Main Features

Kaisha system: System of workersparticipation(where individuals are involved indecision making)

Ringi Sido:Method of decision makingGroup decision making where a properdecision making sequence is used

Seamondstriangle of Discretion :InStrategy formulation, discretionary power ofdifferent level of management


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Trade unions The Japanese Trade Union Confederation (Rengo)

The National Confederation of Trade Unions (Zenroren)

Level of wage negotiations

Wage negotiations named Spring Wage Offensivetake placeeach spring as a concerted effort of most labor unions.

Minimum wage Minimum wages are determined through the investigation and

deliberation of the Minimum Wage Council, and differ acrossregions and sectors.

Employers' associations The Japanese Federation of Employers Associations

(Nikkeiren)is the main employers association.


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Promotion of employee participation in profits and enterprisesresults (Pepper)

Employee participation in company results has been increasing andnew benefit structures have been emerging, e.g. a stock option scheme

Formal / official arbitration

The Labour Relations Commission provides conciliation, mediationand arbitrationfor labor disputes. The Prefectural Labour RelationsCommission carries out initial examination and the Central LabourRelations Commissionmanages re-examination

Mediation, Conciliation and Arbitrationvoluntary The Labour Relations Adjustment Law provides for a system of

addressing disputes between labor and management includingconciliation, mediation and arbitration with a strong emphasis on thevoluntary settlement of labor disputes


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General description / Legal framework

The Japanese constitution guarantees fundamental rights:

Freedom of association,

Freedom of collective bargaining

Freedom to act collectively (Art. 29)

The Trade Union Law defines trade unions (Art. 2) and unfair

labor practices (Art. 7). The Labour Relations Adjustment Lawprovides labor dispute settlement procedures

Maximum duration of probationary period

During the probationary period, workers that have beenemployed for more than 14 days must be provided at least 30

days advance notice by the employer in case of dismissal


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Regulations on individual redundancy

Firms are allowed to dismiss workers with 30 days of

notice. Management must demonstrate "just cause" before

discharging employees

Limitations on working time

Special regulations governing the protection of femaleworkers in terms of overtime, rest-day work and work at

night have been abolished


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Industrial Relations in Sweden


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Some charctersitcs features of work place

bargaining in Sweden

There is no uniform structurefor workplacebargaining.

Process is largely fluid and flexibleone rather

than well defined and highly structured. Workplace negotiation is more informal and

unwritten.

Scope of bargaining is limited in terms ofissues. Most common issues are Wage andsalary.


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Relationship between workplace bargaining and

strikes:

The strikes in Sweden metal working Industry was usedas means to force the management to either concede

higher wagesor to extend the scope of workplace

bargaining, especially manning ,hiring/firing issues.

The management rarely brings in third parties to

assess in negotiation.

In Sweden rates of pay, other conditions of employment

of the majority of wage and salary earners are settled by

collective agreements.


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The employees in Sweden are highly unionized

:95% of manual workers, 70% white collar

workersemployed in manufacturing industry belong

to trade unions.

Collective bargainingin Sweden is still basicallydecentralized affairswhich in practice leaves a good

deal of room for negotiation of agreements both at the

level of Industry and in individual firm method.


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Industrial Relations in Germany


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Main features of structure and functions of IR

in Federal Republic of Germany

The trade unions are mostly organized at industry level.

Certain rights have been established enabling every employeeto participate through his elected representatives at plant levelin some areas of management activity.

The trade unions institutionally are not present within theundertaking. Their influence is indirect; operating mainlythrough personal link between works council members andunion members on account of the fact that many Works

Council members hold union office.

Management has to report to the works council about theeconomic situation of the undertaking every three months.


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Collective Bargaining:

In Germany, under Collective Agreements Act, the validity of a

collective agreement is not conditional upon govt. approval.

The German Statute law has nothing to say regarding the actualprocess of collective bargaining or settlement of disputes arising inthat connection. Rules in this respect have largely been worked out

by court decisions mainly by Federal Labor Court and FederalConstitutional Court.

The DGB and BDA organizations have special departments

concerned with collective bargaining matters from which theiraffiliates can obtain information and advice.


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Labour Participation in Management:(Co-

determination)

All the companies in coal, iron and steel industries with over 1000employees are subject to codetermination law of 1951. All other companies

with 500 to 2000 employees are subject to Workers Constitution Act of

1952, and those with over 2000 employees (except coal, iron and steel)

must adhere to the Co-determination Act of 1976.

General Feature of Co-determination;The system is based on three main institutions

Works Council

Supervisory Board

Labour Directors on the management boards Legal rights and obligation of the work councils:

The right to co determination

The right to consultation and participation.

The right to information.


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General description / Legal framework:

The German constitution, the Basic Law (Grundgesetz),guarantees

Right to free collective bargaining

Freedom of association (Art. 9, Section 3;)

There is no uniform regulation under German labour law:

No statutory minimum wage

Nor a statutory right to strike.

The task of the trade unions and the employers' organisations:

To lay down the conditions of employment in comprehensivecollective agreements and

To adjust agreements to the prevailing economic and social

developments.


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Limitations on working time:

Statutory limit: 48 hours/week.

Maximum duration of probationary period:

In general, no more than 6 months. 14 days' notice requiredduring the probationary period .

Regulations on individual redundancy:

The period of notice is 1 to 7 months. It may be shortened orextended by collective agreement or extended on the basis ofindividual contracts. Notice may be given only for objectivereasons. The average redundancy pay is 13 weeks' pay.


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Industrial Relations in United

Kingdom


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Employers' associations

The Confederation of British Industry (CBI)is the main

representative body of employers. Its membership includes

both firms and industry-based associations.

Trade unions

The Trades Union Congress (TUC)is the umbrella

organisation of the trade unions. The TUC has no power tobargain directly with employers; its main functions are the

representation of the trade union movement as a whole and

trade union education. There are over 200 registered unions in

Britain, roughly 70 of which are affiliated with the TUC.


Wage determination in the UK has always been more

decentralized than elsewhere in Europe.


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The legal framework of IR in UK:

The improvement in the functioning and status of

organizations of workers and employers Protection of Trade unions members and officials.

Regulation of terms and conditions of employment.

Streamlining the procedure for settlement of trade

disputes.

Provision to strengthen the process of collective

bargaining

The govt. passed the Trade union act in 1871 torecognize trade unions and their acts as legal.


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The legal position was further strengthened by a series of Actsand these being:

The Conspiracy and Protection of Property Act, 1875 The Trade disputes Act, 1906

The Trade Union Act, 1913

The Trade disputes and trade Union Act, 1927

The Trade Union and Labor relations Act, 1974

The Employment Protection Act, 1975

Along with the trade unions, the govt. has also provided forstatutory recognition of employers association as legal

corporate bodies under the Trade union and Labour RelationsAct, 1974. Under this Act Associations have the same right asTrade unions.


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Security of Employment;Discharges, dismissal or redundancy

serves as the potential cause of trade disputes.

The Act governing security are:

Contracts of Employment act, 1963 and 1973 The redundancy Payments Act, 1965 and 1969

The Trade union and Labour Relations Act,1979 and 1976

The Employment Protection act ,1975

Settlement of Trade

The Govt. has enacted laws if the parties dont settle their disputes

by collective bargaining.

In 1896 the conciliation act was passed to establish the conciliation

procedure. In 1919 another law providing voluntary arbitration

through a statutory industrial court was passed.


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Mediation, Conciliation and Arbitrationvoluntary:The ACAS (Advisory, Conciliation and Arbitration Service ) is the main

body involved in conciliation and arbitration.

Formal / official arbitration:The CAC (Central Arbitration Committee) originally had a wide range of

powers. Most of its functions, however were abolished in the 1980s. Nowits role is limited to voluntary arbitration that is not binding but usuallyaccepted.

Industrial Tribunals:Tribunals normally consist of 3 members: a lawyer as chairperson, arepresentative of employers and a representative of employees. Industrialtribunals have jurisdiction only in so far as it is specifically given to them

by Parliament.

Regulations on individual redundancy:

The statutory minimum period of notice is 1 to 12 weeks depending on theduration of employment. If the length of continuous employment is lessthan two years, the period of notice is one week. For each additional year

of service, it increases by one week up to a maximum of 12 weeks.


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Industrial Relations in USA


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Employee involvementThere is a ban on non-trade-union representation in theworkplace to prohibit companies from setting up companydominated labour organisations and thus excluding trade

unions from their companies.

Employers' associationsSince collective bargaining typically occurs on a company-by-company basis (or even on an establishment-by-establishment

basis within an individual company), there is no nationwidegroup representing employers in collective bargaining.

Trade unionsThere is a nation-wide organization of unions --- the American

Federation of Labor - Congress of Industrial Organizations(AFL-CIO) --- as well as state-level versions of the AFL-CIOthat represent unions in government affairs protection


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Minimum Wages:

Federal law sets a minimum wage covering most employment.

Some states have higher minimum wages, and the number ofstates with higher minimum wages generally increases if the

federal minimum wage is left unchanged for three or more

years


Decentralized system, with negotiations typically occurring

between the "local" of a national union and an individual

employer. Craft union "locals" may negotiate with

representatives of a local employer organization .


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Mediation, Conciliation and Arbitration - voluntary

Federal Mediation and Conciliation Service (a federal

government agency created in 1947) and several state-levelmediation and conciliation services provide contract

negotiation mediation, preventive mediation, arbitrationservices, and alternative dispute resolution on a voluntary basisto union and employer negotiators and to union and

management parties of a labor dispute.

Formal / official arbitration

Mandatory arbitration is rarely imposed.


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General description / Legal framework

The federal government provides a statutory framework for

contracts between employers and employees.

The federal government also sets the statutory minimum wage,although state governments are free to establish a higherminimum wage.

Under federal labor law, non-management workers who areemployed more than 40 hours per week must be paid at anovertime rate of at least 150 % of their standard pay for hoursin excess of 40 hours.

There are no federal and few state laws providing protectionagainst worker dismissal


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Trade Union Density

28.9

24

91.1

32.9

14.2

0

10

20

30

40

50

60

70

80

90

100

GER JPN SWE UK USA

Countries

%ofwageandsala

ryearnersbeing

unionm

embers


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Bibliography Mamoria and Mamoria, Dynamics of Industrial Relations, 14th

revised edition, 2002, Himalya Publishing House, Mumbai.

Bhatia, S.K., International Industrial Relations, 2nd edition, Deep andDeep Publications, New Delhi.

Ahuja, K.K., Industrial Relations, theory and practice, 1stedition,1988,Kalayani Publishers ,New Delhi.

Gower, European Labour Relations Gower publishing, England,Volume I,2001

Gower, European Labour Relations Gower publishing, England,Volume II,2001

Niland R. John, Lansbury D. Russell, The future of IndustrialRelations-Global change and challenges, Sage publications,1994


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OnLine Sources

Carley Mark, Industrial relations in the EU,

Japan and USA, 2003-4, European industrial

relations observatory on-line, published on

10-03-2005 (www.eiro.org)

International Reform Monitor's data-base on

Industrial Relations (www.reformmonitor.com)


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THANK

YOU

Industrial Relations in Japan, ETC

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