Labor relations are generally defined as relations between management and workers. They are also called industrial relations. Workers or group of workers are represented by trade unions. Labor relations may take place on different levels such as regional, national, international.
The main challenge for such relation is ability to adapt to emerging changes. The world and technology develops very fast, so do relations between workers and management.
Trade unions (also called) labor unions are organizations of workers who united to defend their rights, solving problems in the industry such as wages, working hours, bonuses, Union represent workers and negotiate with the management on behalf of the workers.
Such relations are usually accompanied by tensions and conflicts and company owners usually want to earn more and pay less. Workers are willing to work in better conditions for a better salary. Labor unionism in the United States is an expression of the American democratic spirit working itself out in industry is hardly to be doubted. Its beginnings coincided with the period when the free colonies were establishing state governments, and the principles of the federal Constitution were subjects of great political debate. It developed stretch in Jefferson’s administration, and grew to a full-fledged labor movement during the presidency of Andrew Jackson. Workmen’s clubs, unions, were part of the movement of “Republican-Democratic Societies” which marked “the Rise of National Democracy” in the early decades of the nineteenth century.
The American ideal that swept away the vestiges of government by an elite class also freed wage workers of property qualifications for voting, and of court restraints on their freedom of association. The same democratic movements that fashioned the ideas and methods of establishing the nation as a government of, by, and for the people also gave rise to trade unionism as a means by which worker self-government and participation in the government of workplaces might be achieved.
Unions under economic stress and with dwindling membership rolls have often greatly expanded their political activities, raising more money for campaigns and organizing their members more effectively for political action. Reforms in Congress and the presidential nominating process have created new avenues for the pursuit of political power that many unions have eagerly pursued (though some academics have claimed that these reforms are inherently inimical to the exercise of union power).
Actually, the United States has no uniform labor policy, but rather a patchwork of policies, comprehensive but not consistent. There is, for example, no uniformity of treatment among the states; and even at the federal level, railway and air-line employees and employers who come under the Railway Labor Act have rights and duties different from those of their fellow employees and employers who come under the National Labor Relations Act.
That this patchwork of policies has developed is not surprising when one considers that labor legislation is enacted in response to the pressure of public opinion and influences exerted by various pressure groups. At various stages of American labor history, different aspects of labor policy have become matters of public concern and have thus gained the ear of Congress. For example, encouragement of collective bargaining by protecting the right of labor to organize was of prime importance in our labor policy during the thirties because the public looked to the strengthening of the position of organized labor as one means of raising wages, income, and employment, and setting the stage for recovery from the depression. Then, in the post-World War II era, restraints on activities of unions were embodied in labor legislation as the public became concerned with certain alleged excesses of unions during the period of relatively unrestricted union organization.
First, unions can generate impressive amounts of both economic and political power. It is no exaggeration to say that union activity can lead to violence, and even death — sometimes at the hands of striking workers, but at times from hostile employers or government authorities. American history is replete with examples of how unions have provoked intense conflict, and have brought about major reorderings of political and economic power. At a minimum, it is clear that the capacity to disrupt economic production makes unions exceptional: only they, or management itself, can bring important sectors of the economy to a virtual standstill.
The labor policy of the United States has developed slowly and haltingly over the years. Each period of history has made some contribution to the present status of labor legislation and governmental action.
It is very important for the management to know employee’s relation to trade unions and his attitude to the company. It is not only because management fears strikes but also because it affects organization’s performance. When the employee is satisfied with the working conditions and feels that the company he works for does care about his, he would naturally work better. Negative attitude towards the company is contagious because other employees may feel the same. Consequences of the strike are many-million losses and production crises.
Many analysts speak of decline of labor relation and development of trade unions. It is partially true. That is why presidential candidates pay attention to working class problems. Republicans and democrats have different approaches to labor and tax policy. If Barack Obama promises to raise taxes for wealthy people, John McCain promises to lower taxation burden with will ease tension between management and workers. Normally pre-election promises include increase of minimal wages, paying extra for additional working hours, granting social securities etc. Both candidates understand that trade unions represent millions of people. Trade unions also understand their importance which is not so great as it was ten or twenty years ago.
Trade unions in America live through a very difficult period. Economic and labor relations have changed, so did national economy and international markets. On the background of economic crisis, credit crunch, rise of gas prices it is becoming increasingly difficult to companies to offer full social package. Nowadays, people tend to defend their rights themselves through trials public actions. Trade union leaders understand it and attempt to change their policies accordingly.
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