labor relations essay

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How to Write Cornell’s Essay for the ILR School

This article was written based on the information and opinions presented by Mariana Goldlust in a CollegeVine livestream. You can watch the full livestream for more info.

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The essay prompt, is the school of industrial and labor relations right for me, what to consider when brainstorming.

Understanding the differences between the colleges at Cornell University is essential when applying. Certain schools may have additional essay prompts, and you should tailor your essay to what the college has to offer.

In this article, we will discuss the supplemental essay specifically for the School of Industrial and Labor Relations, whether the school is right for you, and how to start this essay. If you are interested in applying to a different school at Cornell, read our post about how to write the Cornell essays for more guidance on the other prompts.

The supplemental essay prompt for the Cornell School of Industrial and Labor Relations (ILR) asks:

Using your personal academic or volunteer work experiences, describe the different things that you care about and why they’re important to you. Your response should show us how those interests align with the ILR school.” (650 words)

This question is essentially a “ why major ” prompt with an added emphasis on your personal passions, and as a result your response for this essay requires a fair amount of research into the school. Additionally, it is crucial that before, during, and even after your writing process you take the time to reflect on whether or not the ILR school is the right fit for you.

Without a proper understanding of the ILR school, this essay can be particularly tricky for some applicants. The School of Industrial and Labor Relations studies the world of work, and it has broad areas of study applying to business, economics, history, and government. This school is likely a good fit for students with a general interest in humanities.

It is also key to note that the ILR school is devoted to public service. Therefore, highlighting a passion for social service may be a good way to show the admissions office that you are aligned with the school’s values.

When writing your essay, be sure to focus on concrete examples and, as mentioned above, a connection to public service. You will also want to discuss how your past experiences have contributed to your intellectual interests and why you’ll be a strong social sciences student. Here are some questions to consider:

What part of your background relates to the study of ILR?
How does the study of ILR relate to public service?
Why do you find subjects related to social science to be valuable and engaging?

Furthermore, keep in mind that speaking too broadly about society-wide issues is a common mistake. Instead, your essay should be personal and illustrate your answer for the reader through your background and anecdotes. Use your experiences to your benefit while writing this essay to “ show, not tell ” the admissions officer why your values align with those of ILR.

Labor Relations: Contemporary Issues in Human Resource Management

Submitted: 16 October 2016 Reviewed: 17 March 2017 Published: 07 June 2017

DOI: 10.5772/intechopen.68625

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In this chapter, we examine the labor relations through the role of trade unions, collective bargaining, wages and benefits across the European Union. We conclude that labor relations have a direct influence on the labor market, designing the lines for taking decisions in organizations, but also, by governments. Our argumentation explains the relationship between employers and employees through legal rights (established by the law), negotiation process, collective bargaining, ‘actors’ in this process, wage and benefits, social and security protection.

negotiation
collective bargaining
trade unions
wages and benefits
social protection
European countries

Author Information

Ana‐maria bercu *.

Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iasi, Romania

Ana Iolanda Vodă

Department of Interdisciplinary Research—Humanities and Social Sciences, Alexandru Ioan Cuza University of Iasi, Romania

*Address all correspondence to: [email protected]

1. Introduction

Today’s workers want more than a salary, and they want additional benefits to enrich their lives, to increase their importance at workplace and to be valuable for the organization. The labor relations are more than a static interpretation of contract between an employee and an employer. Means a sum of connections between skills, abilities, values and opportunities at work. Employee role in organization has grown in importance and variety over the time. For them, the labor relations become a way to live, to self‐development and to obtain recognition. The employers realize that to keep motivated and committed people in organization need more than a salary. It is about benefits in financial terms, but, also, talking about safety at work, security, rights and duties. Benefits are necessary to assure the job satisfaction.

Labor relations are the term used to define the process between employers and employees, management and unions in order to make decisions in organizations. The decisions taken refer to wages, working conditions, hours of work, and safety at work, security and grievances. Why is an important topic for Human Resource Management?

It is know that wage and other economic benefits for employees represent not only their current income, but also the potential for economic growth and the ability to live comfortable during the active life and after the retirement. Wage is considered as an important economic variable for competitiveness. The world economic crises have shown that the role of wages in sustaining demand in a context of stagnant growth and very low inflation is very important and needs a particular attention from the part of management boards, government and employees, through their representants.

Wages and benefits received by employees for their work represent the compensation or ‘the price paid by employers for their workers services’. This requires a specific analyze due to the fact that the work is realized under a contract and propose and active commitment of the workers [ 1 ]. From this perspective, the wage issues require a specific analytical framework because the work cannot be separated by the human beings, and according to the several studies, the level of payment and economic benefits of employees are positively related to employee satisfaction at work.

Wage and salary are considered as most important and difficult collective bargaining issue. In the employment relationships, the collective bargaining process has several implication at individual levels, for the employers, as a determinant of production and labor costs, among employers on the competition market, between employers and employees as a distribution of added value, for employees, as a key factor for their income and sustainability on a dynamic labor market, among employees, expressing the solidarity through the ‘wage floors’ applying to different group of workers at a given bargaining level.

The parties could negotiate the total package of wage and benefits in individual terms or in collective terms, but reflecting the aim of labor contract: The employees must be paid for their work, and the employers must receive qualitative work.

Also, the negotiations reflect the interest of all the parties involved: managers, employees through their representants and government.

For the policy‐makers to find a balance between assuring the rights and promote competitiveness in their organization, also to make their employers more productive is a key priority, drawing on a range of policy measure. Important aspects cover wage settings, collective bargaining, employees’ representativeness, safety and security needs, working hours and contracts. All these influence the policies and the labor market flexibility. The employees find satisfaction in being able to perform task adequately and are more willing to perform a better job, increasing the involvement at workplace and become more implies [ 2 – 5 ].

2. Data and methodology

The necessary data to conduct our research were collected from various statistics, official reports, databases of the worker‐participation.eu and ICTWSS: Database on Institutional Characteristics of Trade Unions, Wage Setting, State Intervention and Social Pacts . The analyzed countries are EU‐28, grouped in five analytical clusters, defined by European Commission as industrial regimes [ 5 ], namely: (a) North Europe: Denmark, Finland, Norway and Sweden; (b) Central‐West Europe: Austria, Belgium, Germany, Luxembourg, the Netherlands and Slovenia; (c) South Europe: France, Greece, Italy, Portugal and Spain; (d) West Europe: Cyprus, Ireland, Malta and the United Kingdom; (e) Central‐Eastern Europe: Bulgaria; Czech Republic; Estonia; Latvia; Lithuania; Hungary; Poland; Romania and Slovakia.

The main indicators taken into account are collective bargaining coverage, trade union density, collective bargaining coordination index and collective bargaining centralization. The chosen period was 2013–2014 for the analyzed countries, except for Portugal were no data were available for collective bargaining centralization. Also, for Cyprus, we used the data available only for the south part of the county.

Table 1 presents the descriptive statistics for included variables, the number of analyzed countries, the minimum and maximum values for the chosen indicators, the mean and standard deviation.

Table 1.

Descriptive statistics.

Source: Authors’ calculation.

For the sample of 28 EU countries, we studied the bivariate correlations between the variables, using Pearson correlation coefficient and the associated p values. A value lower than 0.05 dictates the significance of the used variables, while the correlation coefficient values are a number from −1 to 1, which determines whether the sets of data are related. The closer to 1 the more confident we are of a positive linear correlation and closer to −1 the more confident we are of a negative linear correlation. The person correlation values closer to zero indicate the lack of any relationship between the variables.

For collective bargaining coverage and trade union density, we calculated the mean for the chosen period based on the data provided by worker‐participation.eu, while, for collective bargaining coordination index, we used the estimated index values based on a five‐point scale [ 6 ]. Collective Bargaining Centralization is an indicator calculated by Visser as: Level—(Frequency or scope of additional enterprise bargaining ( FAEB= 0,3 ¯ ) + Articulation of enterprise bargaining ( AEB= 0,3 ¯ ) )/4(=max value) + (AEB + Derogation ( DER= 0,3 ¯ ) − 1 )/5( = max value), and the index scores are between 0 and 3, in which ‘0’ represents the lower value and ‘3’ the higher value [ 6 ].

3. Wage systems and institutions: unions and management wage concerns

The wage systems and institutions that served the issue are deepening linked by the market, legislation and industrial relations. The market is the factor, which reflects the macro‐ and microequilibrium between the labor force and state, the differences in labor and cost productivity. The legislation has the reglementation role for work and the conditions to made it and put into provisions the relationships between employers, employees and government. Setting the minimum wage is a requirement for a special category of workers, and an objective for the policy of governments.

The total economic package should be negotiated between employers and employees by their representants to estimate accurately the total cost of the contract of work, in term of salary and benefits. The collective bargaining has different dimensions and indicates, in a general way, how the conditions and requirements of the work interact with legal and market regulation. Even if the collective bargaining is independently and autonomous than the legislation, the results of the negotiations should be in accordance with the legal provisions.

The collective bargaining process is the actual negotiations carried out by the parties to reach an agreement. Artful use of this process can improve the relationship between an employer and employees and has as result a contract for both parties [ 7 , 8 ].

The bargaining process implies the representative of employees, the management representatives. Successful negotiations depend on the knowledge and skills of the negotiators, which should prepare their side’s interests in the bargaining issues. They should make realist proposals and within the framework of negotiations. The bargaining items could be: mandatory, as rates of pay, wages, hours of employment, overtime pay, holidays, pensions, insurance benefits, employee security, job performance, management‐union relationship, subcontracting or relocating union members’ work, medical exams and permissive, as indemnity bounds, preferential hiring, pension benefits off retired employees, use of union label, employer child care, plant closings.

Concerning these issues, many changes have been noticed in industrial relations over the last decade due to long‐term development trends caused by an ever‐changing socio‐economic environment. The trends shifts occur especially since the beginning of the recent economic and financial crisis and their impact varied across European Union Member states.

In the table, we group the EU member states in five analytical clusters, defined by the European Commission as industrial relations regimes or arrangements: (a) North Europe: Denmark, Finland, Norway and Sweden; (b) Central‐West Europe: Austria, Belgium, Germany, Luxembourg, the Netherlands and Slovenia; (c) South Europe: France, Greece, Italy, Portugal and Spain; (d) West Europe: Cyprus, Ireland, Malta and the United Kingdom; (e) Central‐Eastern Europe: Bulgaria; Czech Republic; Estonia; Latvia; Lithuania; Hungary; Poland; Romania and Slovakia. These countries are grouped in relation to some collective features related to union density, bargaining coverage rates, employee representativeness and role of the state and social partners in the industrial relations [ 5 ].

The data is available only for the south part of the island, officially recognized by the state government.

The relative change in employees and trade unions trends is a consequence of the recent economic and financial crises impact. These recent developments can be explained through factors like low level of employment of young people, part‐time hiring, together with the higher number of fixed‐term contracts which dropped the number of unionized employees since 2008 in many European countries. Recent developments appear to have slowed, at least for the moment, the downfall of the trade union density.

In European industrial relations or arrangements, collective bargaining represents a fundamental element through which employers and their organizations, on one side, and trade unions, on the other, can typically determine wages and working conditions, and relations between involved parties. Collective bargaining coverage represents ‘an indicator of the extent to which the terms of workers’ employment are influenced by collective negotiation. It is calculated as the number of employees covered by the collective agreement divided by the total number of wage and salary‐earners’ [ 10 ]. The contrast between the European Member states is particularly strong with regard to collective bargaining coverage. In North, Central‐West and South Europe, the coverage rate is above 60%, with the exception of Luxemburg. Between West Europe and Central‐Eastern Europe, only Malta has a coverage rate above 60%. The lower collective bargaining coverage is registered in Poland (10–15%) and the United Kingdom (29%). In the literature, coverage rates are correlated with the employers’ density rates, and in several countries like Germany and the Netherlands, the two concepts are connected and associated one with other. As Carley [ 11 ] noted ‘in these countries, employers who are member of employers’ organization are generally bound by collective agreements. In other cases, coverage rates go beyond employers’ density rates due to statutory extension procedures that are supported and legislated by governments. This is the case in France, where statutory extension compensates for low trade union membership levels [ 11 ].

Table 2 also shows that the level at which collective barraging takes place also differs across EU member states. For instance, while for North, Central‐West and South Europe groups, the sector is the main place where negotiations between the involved parts occur, in the West (with the exception of Cyprus) and Central‐East Europe, different standards are applied and the bargaining processes between employees and trade unions are at company level. Although this is the overall trend in the analyzed groups, some of the EU countries have a mixed level approach (Luxemburg, the Netherlands, Slovakia), and collective bargaining takes place at both industry and company level or other different styles are adopted (in Belgium, negotiations take place at the national level, while in France and Spain, we have three levels procedure: national, industry and company/organization).

Table 2.

Industrial regimes across Europe.

In calculating collective bargaining coverage for Poland, we took the average mean, based on the date provided by http://www.worker‐participation.eu/National‐Industrial‐Relations/Countries/Sweden/Trade‐Unions. Available from Refs. [ 12 , 13 ].

Overall other representatives are not excluded.

No category: Bulgaria, Estonia, Latvia, Lithuania and Romania and yes: state‐owned companies for the rest.

In the majority of the European member states, the employee representation at the workplace is through unions, except the Central‐West area where the workplace structures are represented by works councils (with the exception of Slovenia dominated by union structure, and Belgium and France with both unions and works council).

North Europe, Central‐West and South Europe have employee representation at board level, with the exception of Belgium (not featured at board level, apart from a handful of publicly owned organizations) and Italy (no right for employee representation at board level although a proposal have been included in the Jobs Acts 2002 legislation). In the West Europe, just Ireland accepts employee representation but only in the state‐owned sector. In the Central‐Eastern Group, the extent of employee representation at board level is divided between the countries: While in Czech Republic, Hungary, Poland and Slovakia employee representation do exist, in Bulgaria, Estonia, Latvia, Lithuania and Romania, there is no participation at board level, although is some situations employee representatives can have a consultative role in shareholders’ meetings.

Moreover, the role played by social partners in public policy‐making is different across the five analyzed groups. In the North and Central‐West Europe corporatist clusters, the implication of employers’ organization and unions in designing policy proposals is extensive, and their connection with political actors is highly institutionalized. In Western countries, although social policy‐makers are constantly engaged in social and economic debates, not always their beliefs are reflected in policy outcomes. Distinct practices occur in the other groups involved in the analyses. For instance, in South Europe, the role of social partners in policy‐making depends mostly on the individual governments’ willingness of inclusion. Despite the fact that the engaged policy‐makers are formally involved in the decision‐making policy, the government has the freedom to oppose their participation. In the Central and Eastern Europe, an effective social partnership can be undermined by organization politicization which ‘combined with the overall weakness of organized interest representation, social partners’ politicization seriously limits their influence in the policy‐making sphere’ [ 14 ].

The role of the state and its involvement in collective bargaining differs significantly across EU countries. In North, Central‐West and West Europe, state interventions are limited and in the latter region quite rare. In Southern European countries, although there exist strong pressures toward less state regulation regarding collective bargaining and working conditions, the state assumes an almost exclusive role in governing change, particularly in the recent economic context. Regulatory amendments framework, alongside clientelistic relations with social partners, has mainly limited the governing capacity of trade unions and employer organizations over industrial relations. In Central‐Eastern Europe, the collective bargaining is dominated by the government; meanwhile, the existing legislation remains the only instrument in settling work relations disputes.

In Table 3 , the correlations between different institutions of wage bargaining are described. Pearson correlation coefficients demonstrate the positive relationships among all the variables and strong association between: collective bargaining coverage with coordination (0.746) and centralization (0.774), among trade union density with collective bargaining coordination (0.595), and the both way and powerful relationship between coordination index and centralization. Strong actors are interrelated with centralized and coordinated institutions and high rates for bargaining coverage; meanwhile, fragile and weak players are connected with low levels of coordination and de‐centralization.

Table 3.

Institutional features/linkages of wage bargaining.

Correlation is significant at the 0.05 level (one‐tailed).

Correlation is significant at the 0.01 level (one‐tailed).

Except Collective Bargaining Coverage and Trade Unions Density mentioned already in the analyses, two more indicators appear in Table 3 : Collective Bargaining Coordination Index (CBCI) and Collective Bargaining Centralization.

Collective bargaining coordination represents the combination between the level of bargaining and the range of sectors/organization that are bound by the collective agreement that succeeds negotiations . Collective bargaining coordination index (CBCI) was first developed by Kenworthy [ 15 ] and put in application with some small adjustments by authors like Visser which estimates the indexed values based on a five‐point scale [ 6 ]:

If maximum or minimum wage rates/increases based on: enforceable agreements between the peak association(s) of unions and employers affecting the whole economy or entire private sector with or without government involvement, and/or government imposition of wage schedule/freeze, with peace obligation, then a score of ‘5’ is set.

A ‘4’ score is set if wage norms or guidelines (recommendations) are based on centralized bargaining by peak associations with or without government involvement, informal centralization of industry‐level bargaining by a powerful and monopolistic union confederation and extensive, regularized pattern setting coupled with high degree of union concentration centralized bargaining by peak association(s), with or without government involvement, and/or government imposition of wage schedule/freeze, with peace obligation.

‘3’ score is set if negotiation guidelines are based on limited government involvement on central bargaining by major associations, informal centralization of bargaining at industry level and on government arbitration or intervention.

If we have a mixed sector and firm level bargaining with weak enforceability of industry agreements than a ‘2’ score is considered.

‘1’ for none of the above: fragmented wage bargaining, confined largely to individual firms or plants.

From Figure 1 , we can observe that 7.1% of the analyzed countries (Finland, Belgium) score a ‘5’ value, meaning that economy‐wide bargaining is based either on enforceable agreements or on government establishment of a wage schedule, freeze or ceiling. The larger percent (32.1%) is registered by those countries (Luxemburg, France, Greece, Malta, Cyprus, Bulgaria, Czech Republic, Portugal and Romania), which have a mixed sector and firm level bargaining characterized by weak enforceability of industry agreements. In some cases (14.3%—Slovenia, Italy, Spain and Slovakia), the industry bargaining is characterized by an irregular pattern setting and narrow implication of central organization and limited freedoms for firms bargaining. A 21.4% of the analyzed countries register a ‘4’ value score, while 25% of them register fragmented wage bargaining, confined largely to individual firms or plants (Ireland, the UK, Estonia, Latvia, Lithuania, Hungary and Poland).

Figure 1.

Collective bargaining coordination index (CBCI), EU‐28. Source: Authors’ calculation.

Another used indicator, Collective Bargaining Centralization or the actual level of wage bargaining is calculated by Visser [ 6 ] as: Level—(Frequency or scope of additional enterprise bargaining ( FAEB= 0,3 ¯ ) + Articulation of enterprise bargaining ( AEB= 0,3 ¯ ) )/4( = max value) + (AEB + Derogation ( DER= 0,3 ¯ ) − 1 )/5( = max value) in which:

Frequency or scope of additional enterprise bargaining (FAEB) scores is between 0 and 3, in which ‘0’ represents the value for no additional enterprise, ‘1’ for rarity and, respectively, the frequency of additional enterprise bargaining in large firms and ‘3’ for its regularity.

Articulation of enterprise bargaining (AEB) equals with values from 0 , 3 ¯ , where ‘0’ score means that this concept does not apply; ‘1’ score is applied for disarticulated enterprise bargaining or if exits is reinforced by non‐union bodies; ‘2’ denotes that articulated bargaining is established under union control; and ‘3’ score is applied for disarticulated bargaining abolish or limited by sectoral agreements or existing law.

Derogation is also valued from 0 , 3 ¯ where, ‘0’ value stands for inversed favorability; ‘1’ for the linkage between agreements not subject to existing law; ‘2’ agreements are law enforced but under some conditions derogation is possible; ‘3’ favorability is anchored in law and strictly applied, no derogation [ 6 ].

In the North Europe, the higher is the collective bargaining coverage, the higher are the rates for coordination and centralization. From Central‐West Europe, Belgium has the higher value not only for coverage and density but also for collective bargaining coordination and centralization. The lowest values regarding collective bargaining coordination index (CBCI) and collective bargaining centralization are registered in most Central‐Eastern European countries ( Figures 1 and 2 ).

Figure 2.

Collective bargaining centralization, EU‐28. Source: Authors’ calculation. *** No data are available for Portugal on Collective Bargaining Centralization.

Regardless the importance of coverage and trade union density, the above described indicators, collective bargaining coordination index (CBCI) and collective bargaining centralization represent important assets in association of wage setting with economic and labor market performance measures. For instance, in the literature has been identified that as the extend of union coverage increases from less than one quarter to more than 70%, unemployment more than doubles, but bargaining coordination growth tend to compensate this effect [ 16 ].

The benefits systems are very important for the employees and employers, also. For the employee, the benefits represent that the income needs for necessities of life and is part of the economic package that can receive. For the employers, is a manner to motivate the people, to attract and to sustain their personal development in organizations, to retain the personal and to increase the productivity and competitively on the market.

Another important topic for the labor relations is job security. Today, the security at work became such important as wages and economic incomes and implies rights to work, to be promoted, to perform at work, to be fire or lay‐off.

According to industrial relations research, payment level is positively related to employee satisfaction [ 17 – 20 ], employees considering as a primary indicator of the organization goodwill. The unions’ objectives concerning the level of wages are direct related to negotiation. The unions’ goals in wage bargaining are to achieve a maximum level of wages and benefits for its members and to maintain the jobs as long as possible. Also, the bargaining process follows to assure a structure of wage scales between employees, negotiating for differences in working conditions, skills, seniority, age and job classification.

The establishment of a statutory or collectively agreed minimum wages is an important way of policy intervention in wage setting processes. Most of the European member states have different forms of regulations in determine minimum wages enforcement: statutory minimum wages and minimum wages established through collective agreements. In the first type, the minimum wage levels are fixed either by government legislation or through inter‐sectoral agreements at national level. In the second situation, the wages are established by consultation with social partners or tripartite agreements. Although these are the main minimal wages set approaches, different combinations of these forms of regulations are not excluded.

Visser sets a nine‐item scale to measure the minimum wage setting according to the following statements [ 6 ]: ‘0’ value score is set for non‐statutory minimum wage; ‘1’ represents the case scenario in which the minimal wages are set in consultation with social partners (sectoral collective agreements) or tripartite agreements; ‘2’ values are associated with the hypostasis that minimum wages are set by national agreements, along unions and employers; ‘3’ the minimum wage is established based on an extended agreement enforced by law or Ministerial decree; ‘4’ through tripartite negotiations, the minimal wages is decided; ‘5’ the government sets the national minimal wages, after voluntary tripartite consultations; ‘6’ minimum wage is adjust by judges or experts; ‘7’ the minimum wage is fixed by the state but in accordance with a indexed‐based minim wage; ‘8’ government established minimum wage without fixed rule.

In Figure 3 , we can observe that in the European Member states, there are some forms of establishing the minimum wage settings. In 46.1% of the analyzed countries, the minim wage is set by government and is based either on fixed rule (26.9%) or is bound by index‐based minimum wage (19.2%). In 19.3% of the cases, the minim wages are set by sectoral collective agreements or tripartite wage boards. Only in 11.5% of the countries, the minimum wage is set by national agreements between unions and employers, and in 7.7% of the cases is established based on an extended agreement enforced by law or Ministerial decree. A very small percentage of 3.8% remains for those European countries in which the government sets the national minimal wages, after voluntary tripartite consultations.

Figure 3.

Minimum wage setting in EU 28. Source: Authors’ representation. ***No data are available for Romania on minimum wage setting in 2014.

Human Resource Management is concerned with the development of both individuals and the organization in which they operate. Wage issues, economic benefits, job security and seniority, grievances and possibilities to resolve them are themes with a high impact at the level of organizations in terms of retaining good people, motivating and promoting, hiring and lay‐off. It is a complex world of relations in which people are involved. In this regard, the decisions take reflects the capability of management to respond to the complex requirements and to solve problems.

The chapter reflects the current issues and investigations in this complex and important field of research.

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Employee And Labor Relations

Introduction.

One of the most challenging and disconcerting decisions faced by employers and human resource (HR) managers in establishing a fair and equitable standard for promotion. Many public and private sector organizations are in a dilemma when creating union contract clauses because the HR managers may prefer merit or ability-based criteria while trade traditionally unions prefer allocation of employment opportunities based on seniority (Budd, 2021). Unfortunately, Kim (2020) explains that there is no definite answer consensus to this dilemma because both merit-based and seniority-based criteria are supported by seemingly strong arguments. This presentation develops a case for the contention that the selection of a younger employee in favor of a senior colleague did not violate the existing union contract.

Bases of Allocating Employment Opportunities

The decision regarding the allocation of employment opportunities, including career progression and compensation, are usually made on either the basis of seniority or merit or both (Horak & Yang, 2019). Seniority refers to the length of recognized service or employment with an organization (Yaw, 2017). According to Budd (2021), seniority includes the number of days since a worker was hired. In contrast, merit relates to the ability to do a job or how qualified an individual is for a given job. In the United States, seniority rights are part of the employee rights that are granted in many public and private sector union contracts across the country. Many employers tend to strive to strike a balance between the two criteria to meet the expectations of HR managers and unions.

The HR Manager Role

The Picasso Company’s pain gun factory case presents the HR manager with a management dilemma where the professional has to develop a strong case for the contention that the selection of Mary Younger, the candidate with the shorter length of service at the corporation but with great ability, did not violate the provisions of the union contract. In developing the defense, the HR manager takes into account several factors, including the qualification of the potential candidates for promotion, potentially relevant contract provisions, and enforcement of the contract provisions. In addition to that, considerations for making a fair and equitable selection and potential consequences of the merit and seniority-based promotion will be assessed to inform the HR manager’s position.

Grievance Discussion Case 2: Full Consideration of Seniority and Ability

A group of first shift staff of Picasso Company’s paint gun factory called for a shift manager. The factory Manager, Sharon Murphy, embraced the idea and began establishing the criteria for filling the new position. The ideal candidate should be “a knowledgeable employee to whom others could turn for help and who would troubleshoot and offer suggestions, or do whatever else was necessary to make the operation run more smoothly and efficiently” (Budd, 2021, p. 336). After working for the company since March 1987 and as a second and third shift leader for five years with no grievances, Elder resigned and took a junior position to work during the day in order to spend more time with his family.

Younger had served the firm since July 1991 and progressed to become a qualified mechanist first class but had not been promoted due to lack of opportunity. After interviewing the applicants and consulting with a supervisor, Rich Hatch, the store manager, selected Younger to lead the first shift team. Consequently, Elder filed a grievance claim challenging the decision to promote junior workers on the ground that the company did not give full consideration to his seniority and qualification (Budd, 2021). Analyzing the job applicants’ seniority and abilities to perform the available work provides nuanced insights into the efficiency and fairness of the selection decision.

Relevant Contract Provisions

This slide presents the two sections that are most relevant to the case. The provisions of the two classes outline employee and management rights and obligations that should be adhered to when filling new job openings and vacancies that are covered by the contract.

Section 20.1 details the requirements for awarding a job bid. It states: “When job openings occur…, the corporation shall post on its bulletin boards a notice of such opening or vacancy, indicating the rate of pay for a period of three (3) days, in order to afford employees an opportunity to qualify for such opening or vacancy on the basis of seniority and ability to perform the available work.…” (Budd, 2021, p. 336).

Section 20.4 Stipulates the scope of the contract. It states: “The provisions of this section, however, shall not be construed to prevent the corporation from immediately filling vacancies in order to maintain schedule production requirements … In filling vacancies in leader positions covered by this agreement, the corporation agrees to give full consideration to seniority and the qualifications of employees in filling such vacancies” (Budd, 2021, p. 336).

There are several justifications in support of the contention that the selection of Mary Younger did not breach the collective bargaining agreement. Seniority was just one of the criteria or partly a factor for consideration. According to the agreement, both seniority and qualification ought to be emphasized when filling new vacancies. In this regard, the ability to perform the available work outweighs the issue of seniority because both candidates have almost the same length of service. Furthermore, although Younger had not been promoted to the mechanist first-class position, she was more qualified and able to perform the work of the mechanist first-class leader than her competitor. She performed better on interpersonal and communication skills, which are critical to leadership positions. Empirical evidence shows that effective interpersonal communication skills have a substantial impact on organizational effectiveness (Okoro et al., 2017). Consequently, based on these qualities, Younger was the most qualified candidate.

In addition, Younger outperformed Elder in terms of scheduling flexibility and discipline. Efficiency is one of the primary objectives of the employment objectives of contracts. It helps in averting unnecessary disruption to production and operations (Budd, 2021). Selecting Younger would promote flexibility and productivity because she is more flexible in time of scheduling, which in turn would enhance organizational effectiveness.

Consistent with Yaw (2017), promoting the senior-most candidate might have stifled organizational effectiveness due to age, ability, and efficiency concerns. There is a positive relationship between interpersonal communication skills and organizational effectiveness (Okoro et al., 2017). Concerns such as Elder’s inability to arrive at work early enough to discuss instructions and challenges with the second shift leader could be detrimental to organizational efficiency, productivity, and effectiveness. These observations provide a strong rationale for selecting Younger to fill the new position.

Advantages of Seniority Promotion

Research shows that seniority-based promotion – prioritizing candidates with the longest time of service with the organization when allocating employment opportunities – is more objective and easy to measure compared to other criteria. For example, seniority can be computed by simply counting the number of days since a worker was hired and comparing it with other employees’ records (Budd, 2021).

Furthermore, the seniority-based approach eliminates biased decisions. Unlike merit and ability criteria which are largely subjective, seniority-based systems have no scope for favoritism or discrimination. By eliminating arbitrary treatment associated with subjective criteria, seniority promotions enhance job security and satisfaction, consequently enhancing employee performance and loyalty to the organization (Yamin et al., 2020). These reasons explain why seniority-based systems are widely adopted in many private and public sector union contracts in America.

Limitations of Seniority Promotion

The seniority-based approach has a number of drawbacks related to promotion and other employment opportunities. Seniority is not a measure of an individual’s level of competence or talent (Kim, 2020). Research shows that more seniors tend to be less productive, enthusiastic, and resistant to change, and sometimes lack self-initiative, which may prove detrimental to organizational efficiency and productivity (Horak & Yang, 2019; Siregar, Yanto, & Rozi, 2019).

Moreover, seniority-based systems are premised on entitlement rather than self-improvement. Recognizing and rewarding individual performance, efficiency, and talents prove an incentive for improving individual performance and development (Horak & Yang, 2019). By promoting senior employees, younger employees become frustrated, dissatisfied with the work, and motivated in terms of career advancement, which may prove difficult for a company to attract and retain more talented and hardworking employees (Yaw, 2017).

In addition, drawing on their research in higher education institutions in Italy, Marini and Meschitti (2018) found that the seniority criterion can promote gender discrimination in the allocation of employment opportunities.

Lastly, seniority promotion may stifle innovation because junior employees may be discouraged or less motivated to introduce ideas. These reasons provide a strong case for justifying the selection of Younger in favor of Elder.

Plan of Action

Trade unions mostly prefer seniority as the basis for awarding job bids and other employment opportunities as they are interested in satisfying the interests of the majority of their members. Considering the strengths and limitations of various bases of employee promotions, the corporation should develop a more generic promotion policy that places more emphasis on the parameters of individual ability and performance than seniority. HR managers mostly emphasize merit while giving promotions. This approach aligns with their interest to enhance organizational effectiveness by enriching their human resources (Budd, 2021).

Placing greater focus on merit when making promotions will enable the management to achieve higher organizational effectiveness and encourage substantial improvement in engagement, morale, performance, innovation, and retention of younger, more talented personnel (Okoro et al., 2017; Siregar et al., 2019; Williams & Yecalo‐Tecle, 2020). At the same time, recognizing seniority will help meet the interest of trade unions and employees with longer tenure.

Any decision regarding the career progression of workers is bound to create uneasiness or frustration among staff. Seniority remains a primary consideration when making employment decisions related to employee compensation, training, and promotion. Despite being one of the most important factors that matters relating to the allocation of employment opportunities and widely incorporated in many private and public sector contracts, seniority promotions can be detrimental to junior, hardworking, and more talented employees. In the Picasso Company’s case, the union contract recognizes seniority as one of the bases of promotion. However, the ability to perform the available work outweighs the positives related to promoting a more senior leader or manager. Therefore, the decision to select Younger in favor of Elder did not violate the contract provisions.

Budd, J. W. (2021). Employee relations: Striking a balance. McGraw Hill Education.

Horak, S., & Yang, I. (2019). Whither seniority? Career progression and performance orientation in South Korea . The International Journal of Human Resource Management, 30(9), 1419-1447.

Kim, P. S. (2020). New development: A new principle—The higher the position, the broader the view. Public Money & Management, 40(4), 326-329.

Marini, G., & Meschitti, V. (2018). The trench warfare of gender discrimination: Evidence from academic promotions to full professor in Italy. Scientometrics, 115(2), 989-1006. Web.

Okoro, E., Washington, M. C., & Thomas, O. (2017). The impact of interpersonal communication skills on organizational effectiveness and social self-efficacy: A synthesis. International Journal of Language and Linguistics, 4(3), 28-32.

Siregar, A. S., Yanto, H., & Rozi, F. (2019). The effect of financial compensation, job stress, and job promotion on employee performance through job satisfaction at PT. MNC Vision in Central Java. Journal of Economic Education, 8(2), 104-111.

Williams, M. J., & Yecalo‐Tecle, L. (2020). Innovation, voice, and hierarchy in the public sector: Evidence from Ghana’s civil service . Governance, 33(4), 789-807.

Yaw, W. K. (2017). Investigation on promotional criteria based on human resource practices for better organizational effectiveness . Journal of Contemporary Issues and Thought, 7, 68-78.

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1. Introduction Labor relations deal with the fair, effective, and professional relationship between the management and the employees. The labor relations cover employees union, labor laws, labor history, collective bargaining, settlement, and the contract administration. The labor unions are organizations in which people’s works together to achieve common goals. The unions are democratic bodies of employees. They are legally recognized as representative bodies of workers in many countries. The purpose of these organizations is to maintain and control working conditions in a better way. There are certain goals to organize labor unions that include protection of the rights of workers, improve working conditions, better pay, and other benefits. The focus of this report is to investigate the role of labor unions for the level of their influence on shaping up corporate policies and procedures regarding human resource management. The labor unions are created to accomplish employees’ demands with collective bargaining over salary, wages, employee rights, better work conditions, employee’s security, retirement, and other benefits. The labor unions are playing an important role in most of the countries because workers expect certain standards for basic pay, wages, compensations, training, education, work hours, and skills. If employees’ demands are not met, then trade unions perform general strikes and boycotts (Ryan 1). In this report, different trade unions operating in Spain are discussed for their contribution and role in the labor market. 2. Labor Unions in Spain Historically, the working conditions in Spain were not favorable. Therefore, workers created labor unions to raise their voice collectively for their rights. Later, trade unions were banned, and the use of strike right was not allowed during Franco’s dictatorship in 1939-1975. After the death of Franco, the scope of trade unions was increased. The trade union culture was promoted in the last decade of the nineteenth and the first of the twentieth century. Some trade unions were created during new labor movement in the 1960s (U.S. Library of Congress 2). The workers were not agreeing with working conditions and created trade union to use their democratic rights and meet their demands through collective bargaining with the management of companies. Presently, there are around 2.9 million members of trade unions in Spain (Fulton 2). The trend of trade unions membership increased significantly after the end of Franco’s dictatorship, and they are making efforts together to improve working conditions. All members raise their voice through trade unions to meet their demands, but when their demands are not met then, they go on strikes to negotiate on their terms and conditions. There are leaders or representatives in every labor union who negotiate with the management on behalf of all workers and reach an agreement or settlement. The strike can be finished after reaching the final agreement. Due to a major change in the world resulting from globalization, modern technologies, and innovations the labor unions in Spain have faced various critical issues. The labor union’s memberships have decreased in last few years due to the unemployment crisis in the country. High unemployment level and poor economic conditions are affected directly to trade unions (Hamann 198). Several trade unions are working in Spain out of which two are dominant trade unions including Confederacion Syndical de comisiones obereras CCOO and Union General de trabajadores UGT. Both unions represent workers and hold more than 70 percent of trade union memberships (Fulton 4). Both unions are working at the national level, and their representatives are actively participating in collective bargaining agreements, labor disputes, and share a unity of action. The number of memberships of both labor unions is almost same. There are other unions at the regional level including Union Sindical Obrera USO, Confederacion Nacional del Trabajo CNT, Confederacion General del Trabajo CGT, Confederacion Intersindical Galega CIG, Eusko Langileen Alkartasuna ELA, Langile Abertzaleen Batzordeak LAB and others. (Nikolai and Tietje 371). 3. Confederacion Sindical de Comisiones Obereras CCOO: It is a prestigious, democratic, and biggest trade union in Spain that was founded in 1976. It is affiliated with the European Trade Union and Confederation and the International Trade Union Confederation. With more than one million members it is the most successful union in Spain. The organizational structure of Confederacion Sindical de Comisiones Obereras is based on 11 industrial federations. It defends exploited workers and tries to create a good working condition for all workers. The federations are elected together to organize a general strike against the management policies on many occasions. They are committed to building fair, free and equality-based society. The prime objectives of Confederacion Sindical de Comisiones Obereras are to enhance workers power, protect employees, and promote quality of employment. It is an independent democratic trade union struggling for better employment conditions in different industries of Spain. It is trying to improve health and safety at work, promote sustainable development, and maintain a system of social practices, pensions, and education. Currently, Confederacion Sindical de Comisiones Obereras Union is not able to perform well. It is facing severe membership crisis (Kohler and Jimenez 2). 4. Union General de trabajadores UGT: Union General de Trabajadores is one of largest and oldest Spanish trade unions established in 1888. It is the institution of organized and productive workers with more than one million members who are together for workers’ rights, supporting unemployed people, and maintaining good labor conditions. The union is trying to promote better working conditions and equal opportunities and treatment for all workers. If discrimination takes place against any worker at the workplace, it takes immediate action against the organization or individual responsible for it. It is promoting awareness about women’s role in organizations and preventing cases of sexual and moral harassments. The Union General de trabajadores is a founding member of the European Trade Union and Confederation and International Trade Unions Confederation. It remained committed, democratic, demanding, and kept together for achievements of worker rights. The goal of Union General de Trabajadores is to do settlement and consensus with the management through collective bargaining and negotiations. It has defended workers in many cases and has successfully negotiated over 4,500 collective agreements. It supports and protects workers, provides trade union training, and also helps others trade unions. Currently, the Union General de trabajadores is facing difficulties and problems due to low economic growth. The level of unemployment is increasing which is directly affecting the youth and increasing poverty (Kohler and Jimenez 2). The relationship between Union General de Trabajadores and Confederacion Syndical de Comisiones Obereras remained good. They are working together for the improvement of wages, salary, working conditions, and other benefits for workers. Beside these two organizations, there are several other smaller unions working in Spain (Nikolai and Tietje 372). 5. Union Sindical Obrera USO: Unión Sindical Obrera was a third largest union in Spain that was created in 1961 as a clandestine organization. It has almost 120,000 members and 10,000 union representatives. The Unión Sindical Obrera (USO) is a member of the European Trade Union and Confederation and International Trade Unions Confederation. The objectives of Unión Sindical Obrera are to protect every worker, negotiate with the management, protect rights of workers, and ensure participation of all workers in every activity arranged by USO. Unión Sindical Obrera managed the new workers movement and it participated in the first underground workers’ commission (Goddeeris 1). 6. Confederacion Nacional del Trabajo CNT: National Confederation of Labor is trade union was founded in 1910, which is affiliated with the International Workers Association. The prime objectives of Confederacion Nacional del Trabajo are to build unity among all members, sense of togetherness, confidence to improve works conditions, and make strategic plans. It has strongly focused on improving workers’s confidence, self-management, freedom of expression, and mutual aid (Tom 267). 7. Confederacion General del Trabajo CGT: The General Confederacion of Labor is a Spanish trade union that was created in 1979. It was one of the largest trade unions with around 80,000 members. It is playing an important role in the autonomous community of Spain Catalonia. It is supporting its members working for the state-owned railway company, RENFE, Spanish automobile manufacturer company, SEAT, and other companies in Catalonia. The General Confederacion of Labor is independent labor union and rejected some agreement negotiated by others labor unions through collective bargaining (Kohler and Jimenez 2). 8. Confederacion Intersindical Galega CIG: It is a labor union that was founded in 1993 and is located in Galicia, Spain. The Confederacion Intersindical Galega was created after the merger of two famous trade unions the National Inter Union of the Galician Workers and Confederacion Xeral de Traballadores Galegos Intersindical Nacional. It has more than 80,000 members and also arranged rallies and workers’ strikes on six different occasions when management ignored their demands (Dudek 167). 9. Eusko Langileen Alkartasuna ELA: Basque Workers Solidarity Labor Trade Union was a very effective organization formed in 1911 and was located in the Basque county. It had more than one million members and created very close relationships with the Basque Nationalist Party. Eusko Langileen Alkartasuna was an independent trade union that was banned during Franco’s dictatorship as it was found to be involved in the Spanish Civil War. It was reformed in 1976 with new rules and regulations Kohler and Jimenez 2). 10. Langile Abertzaleen Batzordeak LAB: The National Workers Committees were part of the Basque National Liberation Movement known as the Basque Union that was created in 1970. It has approximately 45,000 members, and it is affiliated with World Federation of Trade Union. Langile Abertzaleen Batzordeak (LAB) has 18 percent workers committee seats in the Basque county and is the most efficient trade union in the region. It is helping all members and participants in collective bargaining agreements with organizations (Kohler and Jimenez 2). 11. Sindicato Andaluz de Trabajadores SAT: It is also known as the Andalusian Workers Union and is present in the autonomous community of Andalusia Spain. Sindicato Andaluz de Trabajadores was created in 2007 on the basis of internationalism, Andalusian nationalism, and anti-capitalism. It has arranged many protests and strikes in Robin Hood style (Pablo 10). 12. Organization Sindical Espanol OSE: Organization Sindical Espanol OSE is a Spanish trade union that was established in 1940. It was once the only legal trade union in Spain. It has played an important role in representing and controlling the labor force. It was dissolved in 1976, and a vertical trade union was created to control the labor relations. The main objectives of the vertical trade union were to control and maintain discipline and unity among workers. 13. Conclusion: The trade unions are playing a crucial role in many organizations because they are working for providing good working conditions, salaries, wages, and other benefits that could help employees fulfill their needs. They are safeguarding workers from discrimination, racism, and sexual and moral harassments at workplaces. The trade unions are providing powers to workers to fight for their rights and meet their demands through collective bargaining and discussion with the management. Currently, the situation of trade unions in Spain is not well because their memberships have reduced. The trade unions are facing very difficult situation in Spain for the last three or four years due to the slowdown in the economy and labor market. The unemployment ratio has increased, and economic growth is low. Some trade unions are also caught and trialed in corruption cases such as Confederacion Sindical de Comisiones Obereras in which their several members are involved. In Spain, the investment by the private sector is not sufficient, and the risk of greater poverty is also increasing. The agreements through collective bargaining are decreased. Overall, the popularity of train unions in Spain is decreasing.

Works Cited

Encarnación, Omar G. Spanish Politics Democracy After Dictatorship. Cambridge: Polity, 2008. Print. Dudek, Carolyn Marie. EU Accession and Spanish Regional Development. New York: Peter Lang, 2005. Print. Fulton, L. 2013. Spain Trade Unions. 2016. Web. 12 Apr. 2016. <http://www.worker-participation.eu/National-Industrial-Relations/Countries/Spain/Trade-Unions>. Goddeeris, desbald. Solidarity with Solidarity. Lanham: Lexington Books, 2012. Print. Hamann, Kerstin. The Politics of Industrial Relations Labor Unions in Spain. New York: Routledge, 2012. Print. Kohler, Holm-Detlev and Jose Pablo Calleja Jimenez. Trade Unions in Spain Organisation, Environment, Challenges. Brussels: EFQM, 2013. Print. Nikolai, Huke and olaf tietje. Spanish trade unions CCOO and UGT during the Eurozone crisis. Germany: Rainer Hampp Verlag, 2014. Print. Pablo, Rabasco. Tierra y libertad. Oxford: New Internationalist, 2013. Print. Ryan, J.Lamare. Union Experience and Worker Policy. Ithaca: Cornell University, 2016. Print. Tom, Corkett. Unity as Rivalry: The Spanish Anarcho-syndicalists and Socialists on the Eve of the Civil War. Abingdon: Routledge, 2012. Print. U.S. Library of Congress. Labor Relations in the Franco Era. 2016. Web. 12 Apr. 2016. <http://countrystudies.us/spain/55.htm>.

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Understanding Employee and Labor Relations in the Workplace

Employee Handbooks
November 21, 2023

Understanding Employee and Labor Relations in the Workplace

Employee and labor relations play a pivotal role in shaping a successful organization. But, how do these relations impact the workplace dynamics? Let’s embark on a journey to explore the critical aspects of employee and labor relations, uncovering how they can transform the workplace environment, foster employee satisfaction, and ultimately improve overall business performance.

Key Takeaways

Employee and labor relations involve the intricate web of interactions between employers and employees.
HR professionals are responsible for managing employee and labor relations, through understanding labor laws, promoting collaboration & providing career development opportunities.
Best practices for maintaining healthy employee/labor relations include open-door policies, efficient communication & training/development opportunities to create a positive work environment.

Employee Definition

An employee definition encompasses the formal identification and classification of individuals engaged in a professional capacity within an organization. The term “employee” refers to an individual who is officially hired by a company, typically under a contractual agreement, to contribute their skills, time, and effort in exchange for compensation. This designation implies a structured relationship between the employer and the employee, outlining roles, responsibilities, and expectations. The employee definition is crucial for legal and organizational purposes, establishing the rights and obligations of both parties. It serves as the foundation for various employment-related matters, including benefits, performance evaluations, and workplace policies. Understanding the employee definition is fundamental for maintaining a harmonious and compliant work environment.

The Core Concepts of Employee and Labor Relations

Employee and labor relations encompass the complex web of relationships between employees and employers, including contractual, practical, and emotional connections. These relations are vital for creating a pleasant work environment, which in turn affects employee loyalty and productivity. A thorough grasp of the delicate balance between employee and labor relations can empower employers to yield higher returns on investments in both production facilities and job satisfaction.

Delving deeper into the distinctions between employee relations and labor relations uncovers their unique roles in shaping the workplace.

Employee Relations

Employee relations focuses on individual relationships between employees and their employer, addressing any work-related issues and concerns. It aims to foster a positive relationship within the organization, acting as an initial resource to help resolve conflicts and maintain a healthy work environment. Trust, a vital component in employee relations, allows employees to:

Exercise autonomy in their decisions
Feel supported and valued in their work
Communicate openly and honestly with their employer
Have confidence in the organization’s leadership and policies

By prioritizing employee relations, organizations can create a positive and productive work environment for their employees.

The Employee Relations unit offers consultation and counsel on various human resources matters, such as performance management, corrective actions, and interpreting policies and procedures. Understanding a company’s long-term objectives improves employees’ ability to align their activities with these goals.

Labor Relations

Labor relations, on the other hand, deal with the collective relationship between employees, their unions, and the employer. This includes the role of labor organizations, such as labor unions, which are formed by employees to safeguard their rights and benefits. Labor relations play a significant role in a company’s success by promoting comprehension and facilitating expeditious resolutions to matters such as arbitrations and grievances.

Labor Relations Managers, also known as labor relations specialists, have a range of duties, including grievance and complaint administration, conflict management, and policy interpretation. A deep understanding of labor relations’ nuances enables managers to traverse the complexities of negotiations and agreements, fostering a harmonious and productive work environment.

The Role of HR Professionals in Managing Employee and Labor Relations

Two HR professionals discussing employee relations in an office

Human resources (HR) professionals play a crucial role in managing employee and labor relations. It is imperative for HR managers to comprehend labor relations and how it influences their responsibilities and the personnel they manage. Their knowledge of labor laws is essential for safeguarding both the organization and the worker during collective bargaining and grievances.

HR contributes to the establishment of positive employee relations by:

Constructing cross-functional teams
Stimulating social interactions
Executing team-building activities
Attending to employees’ needs and concerns

Implementing effective HR strategies enables organizations to foster a harmonious and productive work environment, benefiting both employees and employers.

Building a Positive Work Environment Through Effective Employee and Labor Relations

A group of people smiling and working together in a positive work environment

A positive work environment is crucial for fostering employee engagement, loyalty, and productivity. Employing effective employee and labor relations strategies, such as:

promoting collaboration
encouraging open communication
providing opportunities for professional development
recognizing and rewarding employee achievements

can cultivate a positive work environment. A healthy workplace culture helps prevent workplace disputes and enhances a company’s brand image, ultimately yielding positive customer experiences.

Organizations can enhance employee and labor relations for a productive work environment by:

Establishing a welcoming onboarding process
Providing consistent positive feedback
Enhancing communication
Offering career development opportunities
Making employees feel valued by emphasizing company values and mission

These strategies not only contribute to employee satisfaction but also pave the way for a successful business by helping to create rapid solutions.

Navigating Labor Laws and Regulations

A person reading a book about labor laws and regulations

Understanding and adhering to labor law and regulations is of utmost importance to protect the rights of both employees and employers. In the United States, primary labor laws and regulations include the Fair Labor Standards Act (FLSA), which governs minimum wage, overtime pay, child labor, and recordkeeping. Compliance with these laws ensures equitable treatment and prevents exploitation, as well as avoiding any unfair labor practice.

The Fair Labor Standards Act (FLSA) influences employer-employee relations by instituting minimum wage, overtime pay, recordkeeping, and child labor standards, thereby helping to prevent unfair labor practice charges.

Employee management software can assist organizations in adhering to labor laws by providing pertinent information and data to identify areas of concern and take proactive measures to prevent future difficulties.

The Collective Bargaining Process: Understanding Agreements and Negotiations

Two people negotiating a collective bargaining agreement

Unions play a critical role in the collective bargaining process, acting as representatives of workers and negotiating with employers on their behalf. Through collective bargaining, unions strive to secure higher wages, better benefits, and improved working conditions for employees. This process involves exchanging proposals, discussing ideas, and collaborating to resolve issues, ultimately leading to a written agreement outlining the terms and conditions of employment.

Common tactics utilized during collective bargaining negotiations include:

Making extreme demands followed by small concessions
Utilizing commitment tactics
Controlling the agenda
Employing integrative or distributive negotiation approaches

A deep understanding of the collective bargaining process enables organizations to create collective bargaining agreements that mutually benefit employees and employers.

Recruiting Employees

When it comes to recruiting employees , organizations need to strategically align their efforts to attract the right talent. Successful companies recognize the importance of clearly defining job roles and responsibilities, as this clarity sets the foundation for an effective recruitment process. Understanding the specific skills and qualities required for each position is crucial in identifying candidates who not only meet but exceed recruiting employees expectations. Utilizing diverse channels, from job boards to professional networks, plays a key role in casting a wide net for potential candidates. Additionally, fostering a positive employer brand can significantly enhance the success of recruiting employees , as it creates a favorable impression that attracts top-tier talent to the organization.

Addressing Workplace Disputes and Grievance Processes

Workplace disputes and grievance processes involve addressing conflicts between employees and employers and ensuring equity in the resolution process. A typical grievance process involves the following steps:

Submission of a formal, written complaint
Formal investigation
Meeting to discuss the grievance
Decision based on the findings

Conflict resolution in the workplace involves the following steps:

Understanding the conflict
Examining potential alternatives
Engaging in active communication and listening
Identifying areas of agreement
Discussing possible solutions
Determining methods to achieve shared goals.

Ensuring fairness and transparency in grievance processes fosters trust and maintains a positive work environment within organizations.

The Impact of Unions on Employee and Labor Relations

Unions serve as a means of safeguarding employee rights and benefits. However, unionization can be expensive for companies, as it typically increases the cost of labor substantially and limits companies’ flexibility. Maintaining healthy employee relations and labor relations in non-unionized companies is of great importance, as it can prevent workers from seeking unionization.

Fostering a supportive work environment and offering opportunities for collaboration and concept sharing enables organizations to:

Create a positive atmosphere
Increase employee engagement
Improve employee satisfaction
Increase retention rates

This approach helps to mitigate the potential negative impacts of unionization on employee and labor relations.

Enhancing Employee Satisfaction and Retention Through Effective Relations

Two people discussing employee satisfaction and retention in an office

Employee satisfaction and employee retention can be improved through effective employee and labor relations strategies, creating a supportive work environment. Fostering a supportive work environment allows for chances for collaboration and concept exchange, empowering personnel, and constructing a robust corporate culture. Effective communication plays a significant role in improving employee satisfaction and retention by encouraging open dialogue, sharing company objectives and values, and fostering trust.

Implementing effective employee and labor relations strategies can result in a positive work environment, leading to enhanced employee engagement, satisfaction, and higher retention rates. This not only benefits employees but also contributes to the overall success of the organization.

Training and Development Opportunities for Managers and Supervisors

A manager and supervisor attending a training and development session

Given their crucial role in managing employee and labor relations, equipping managers and supervisors with necessary training and development opportunities is paramount for enhancing their skills. Essential training programs include courses on developing and maintaining productive labor and management relations, supervisor training to deter unionization, and employee relations trainings.

Professional development opportunities, such as training programs offered by the Office of Personnel Management (OPM) and online courses provided by institutions like the University of Massachusetts Global, can help managers enhance their skills in managing employee relations and creating a positive work environment. Continuous professional development assists supervisors in establishing credibility and trust with employees, essential for successful labor relations management.

Best Practices for Maintaining Healthy Employee and Labor Relations

To maintain healthy employee and labor relations, organizations can implement best practices such as:

Open-door policies: promote open communication, feedback, and discussion, creating an environment where employees feel valued and encouraged to share their concerns, ideas, and feedback.
Efficient communication: ensures that all parties have the same information and understand their obligations and duties, fostering trust between management and staff.
Training and development opportunities: provide employees with the skills and knowledge they need to succeed in their roles, while also showing that the organization values their growth and development.

These practices can help create a positive and productive work environment, leading to better employee satisfaction and engagement.

Training and development courses for managers and supervisors can encompass topics such as conflict resolution, communication, and leadership. These courses can provide managers and supervisors with an understanding of their duties and how to effectively manage and motivate their teams. Implementing these best practices allows organizations to foster a positive work environment, ensuring their business’s long-term success.

In conclusion, cultivating healthy employee and labor relations is essential for the success of any organization. By understanding the core concepts of employee and labor relations, leveraging HR professionals’ expertise, and implementing best practices, organizations can create a positive work environment that fosters collaboration, communication, and employee satisfaction. By investing in training and development opportunities for managers and supervisors, businesses can ensure that they have the skills and knowledge necessary to navigate the complexities of employee and labor relations effectively. Ultimately, these efforts contribute to the overall success of the organization and the well-being of its workforce.

Employee Vs Staff

When considering the dynamics of a workplace, it’s crucial to delve into the nuances of “ employee Vs staff .” While the terms are often used interchangeably, they carry distinct connotations within organizational structures. An employee typically implies an individual contracted for a specific role, often on a long-term basis, contributing to the core functions of the company. On the other hand, the term “staff” is broader and encompasses all personnel, including both employees and other support roles. Understanding these distinctions is pivotal in establishing clear communication channels and delineating responsibilities within the organizational framework. In essence, the nuances between employee vs staff play a pivotal role in shaping the dynamics and functionality of any workplace.

Frequently Asked Questions

What are employee and labor relations.

Employee and Labor Relations refer to the contractual, practical, and emotional connection between employers and their employees. They work to prevent and resolve issues affecting employees in work situations, recognize employees for service contributions, provide assistance with professional growth, interpret and implement policies, and investigate and respond to grievances and complaints.

What is the difference between HR and labor relations?

HR management focuses on managing the employee life cycle, while Labor Relations consists of advising and assisting employees on work rules, employment laws and legal issues. HR should train all employees on employment laws, while Labor Relations represent the adversarial positions of employers and union employees in a union workplace.

What are examples of labor relations?

Examples of labor relations include union organizing, collective bargaining, strikes, grievance and complaint administration, conflict management, arbitrations, and policy/contract interpretation.

What is the primary difference between employee relations and labor relations?

Employee relations focus on the relationship between employers and employees, whereas labor relations involve the connection between labor organizations, like unions, and employees.

How can effective employee and labor relations strategies contribute to a positive work environment?

Effective employee and labor relations strategies, such as promoting collaboration and communication, can create a positive work environment that encourages engagement, satisfaction, and productivity.

Tehsin Bhayani

AirMason was born when Tehsin was trying to create a digital culture book, but couldn’t find any solutions in the market that had all the features he needed. In 2016, AirMason officially launched. In five years, AirMason has created thousands of handbooks for more than 1,000 clients around the world.

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The impact of Brexit on UK trade and labour markets

Prepared by Katrin Forster-van Aerssen and Tajda Spital

Published as part of the ECB Economic Bulletin, Issue 3/2023 .

1 Introduction

It has been almost two and a half years since the United Kingdom signed its post-Brexit trade deal with the European Union (EU), which was expected to have multifaceted impacts on the UK economy. The EU-UK Trade and Cooperation Agreement (TCA) was signed on 30 December 2020 and came into effect provisionally on 1 January 2021. Leaving the EU’s Single Market and the EU Customs Union represented a profound change in the economic relationship. This change was expected to have an impact on trade flows between the EU and the United Kingdom, but also on migration flows, foreign direct investment, regulation, the financial sector, science and education, and other areas of the UK economy.

While it will take some time for all the effects to emerge, this article focuses on recent developments in UK trade and labour markets, where the impacts of Brexit have been widely discussed. The coronavirus (COVID-19) pandemic is a confounding factor, but the available data allow a first stocktake of the effects of Brexit. While significant uncertainties regarding the precise magnitudes remain, the available evidence suggests that Brexit has been a drag on UK trade and has contributed to a fall in labour supply, both of which are likely to weigh on the United Kingdom’s long-run growth potential. [ 1 ]

2 Developments in UK trade flows since the implementation of the TCA

While the pandemic and supply chain disruptions have affected trade globally over recent years, Brexit had an additional impact on UK trade. The global recession and subsequent recovery in the wake of the pandemic, together with disruptions in global supply chains, have generally increased trade volatility globally over recent years. For the United Kingdom, the extensive and drawn-out negotiations on the withdrawal arrangements and on the future trading relationship generated even greater uncertainty, as also reflected in a sharp depreciation of the country’s exchange rate, which had already negatively affected investment, imports and exports during the period before the United Kingdom’s formal exit from the EU. [ 2 ] The United Kingdom’s investment growth rate was low long before Brexit, which also underlies the United Kingdom’s stagnating productivity growth. Following the Brexit referendum, a prolonged period of uncertainty about the EU-UK relationship further dampened investment. Exports have also been affected by the reduced attractiveness of the United Kingdom as an investment destination for foreign companies. [ 3 ]

Since January 2021, EU-UK trade has been governed by the EU-UK TCA, which formalised the trade and regulatory relations. The TCA ensures zero tariffs and zero quotas on goods traded between the EU and the United Kingdom. To qualify for tariff-free access, however, UK goods need to meet rule-of-origin requirements, which are set out in detailed annexes to the TCA. Thus, unlike in the Single Market, companies face additional administrative burdens and delays at the border owing to customs and regulatory checks. The United Kingdom and the EU have implemented the agreement at different speeds. While EU countries immediately applied full customs requirements and checks on imports from the United Kingdom, the United Kingdom delayed the introduction of full customs requirements on UK imports from the EU until January 2022, with additional health, safety and security checks delayed until the end of 2023.

UK goods trading volumes with the EU fell significantly after the implementation of the TCA, remaining below their pre-pandemic level until the beginning of 2022. On the import side, despite the delayed application of TCA provisions by the United Kingdom, there was a striking decline in UK imports from the EU over the first months of 2021, which contrasted with a rise in goods imports from non-EU countries (Chart 1, panels a and c). This could point to some substitution between EU and non-EU imports, with goods being redirected away from transits via EU countries. However, different cyclical conditions during the pandemic (owing to differences in case numbers and restrictions) and different exposures to global supply bottlenecks may also have played a major role. As the gap between imports from EU and non-EU partners has closed over recent months, the impact of all these factors appears to have been rather short-lived. [ 4 ] On the export side, UK exports to EU countries fell sharply immediately after the introduction of the TCA, as many exporters were struggling to meet the new paperwork requirements for documenting compliance with EU standards (Chart 1, panel b). Subsequently, UK goods exports to the EU recovered somewhat and have since moved broadly in line with exports to non-EU partners, although they remain relatively subdued compared with pre-Brexit trends (chart 1, panel d). Brexit thus remains a major factor. According to a recent survey by the British Chambers of Commerce of more than 1,100 businesses to mark two years since the TCA was signed, 77% of firms trading with the EU said the deal was not helping them to increase sales or grow their business. More than half of the firms reported difficulties in adapting to the new rules for exporting goods (45% for services). [ 5 ]

UK trade in goods with EU and non-EU countries

Source: ONS. Notes: The post-transition period started in January 2021, when the TCA entered into force provisionally. The latest observations are for January 2023.

Services trade with the EU has remained somewhat weaker than trade with non-EU partners. Most of the initially stronger decline in services trade with the EU appeared to be pandemic-related, particularly given the higher share of the travel and transportation sectors in EU trade than in non-EU trade and the travel restrictions during the pandemic (Chart 2). Together with the recovery in tourism, UK services trade has bounced back, well exceeding pre-pandemic levels. This also reflects the post-pandemic increase in travel prices. Other important categories of services exports to the EU, such as financial services, fell further than, or failed to grow as much as, exports to the rest of the world until the end of 2021 and have remained below their pre-pandemic levels. Brexit thus appears to have played some role, possibly also owing to the lack of agreements covering trade in services. In the area of financial services, which account for around 20% of total UK services exports, the TCA’s provisions were limited. The United Kingdom and EU had agreed that, alongside the TCA, they would conclude a Memorandum of Understanding on regulatory cooperation, but this has still not been signed. Since Brexit, the importance of the EU as a UK trading partner has declined, with the EU accounting for 29% of total UK financial services exports in 2022, compared with 37% in 2019.

UK trade in services and UK services exports for selected sectors

Source: ONS. Notes: The decomposition of services trade into exports to the EU and non-EU partners and imports from the EU and non-EU partners is only available in terms of values. The latest observations are for January 2023 for volumes and the fourth quarter of 2022 for services export values.

The UK current account deficit has widened since the implementation of the TCA, mostly driven by developments in the goods balance. In the first quarter of 2022, the UK current account deficit reached a record high of 7.7% of GDP, which was due to a worsening in both the trade deficit and the income balance (Chart 3). While most of the recent widening of the trade deficit could be attributed to high energy prices, the deterioration of the goods balance since the implementation of the TCA has generally been the main driver behind the developments in the UK current account. The services balance has remained fairly stable since the beginning of 2021, at around 6% of UK GDP, marking an end to the previously observed trend of rising surpluses in the UK services balance.

UK current account

a) Decomposition of the UK current account

(percentages of GDP)

b) Goods and services balances

Source: ONS. Note: The latest observations are for the fourth quarter of 2022.

The post-pandemic recovery in UK trade has lagged behind that of other advanced economies. While the United Kingdom saw a collapse in exports that was similar to other countries at the start of the pandemic, it benefited much less from the subsequent recovery in global trade (Chart 4). By the end of 2021, other advanced economies’ exports had rebounded almost to their pre-pandemic levels, while UK exports remained around 10% below that level. As a result, UK trade as a share of GDP fell by 11% between 2019 and the end of 2021 – a significantly stronger decline than that observed in the euro area or the United States. By the end of 2022, the gap between UK exports and those of other advanced countries appeared to have closed, which may indicate that the disturbances linked to the Brexit transition period are dissipating. However, this needs to be interpreted with caution. Temporary catch-up effects from the pandemic and recent changes in UK trade statistics may also account for this development.

Goods export volumes in advanced economies

(index: 2019=100, monthly data)

Source: CPB Netherlands Bureau for Economic Policy Analysis. Note: The latest observations are for January 2023.

3 Weakness in UK trade compared to other advanced economies: the role of Brexit

Two main approaches have been taken in the literature to isolate the impact of Brexit from pandemic-related effects. Various researchers have used a difference-in-difference approach, using different datasets and specifications. For example, Freeman et al., Du and Shepotylo, and Du et al. compare the evolution of UK-EU trade with UK trade with the rest of the world. Kren and Lawless, by contrast, use EU trade with the rest of the world as a comparison group. [ 6 ] Using high-frequency product-level data on trade in goods, a comprehensive set of product-time and product-partner fixed effects are applied to control for changes in trade patterns other than Brexit, in particular the changes in trade flows as a result of the COVID-19 pandemic. Following an alternative approach, Springford provided several updates of estimates of Brexit impacts using a “doppelgänger” method in which an algorithm selects countries whose economic performance closely matched that of the United Kingdom before Brexit. [ 7 ]

Taking into account the differences in methodologies, the available empirical evidence suggests that Brexit has reduced UK-EU trade in both directions. Table 1 provides an overview of recent results obtained using various approaches. Estimates of the decline in UK trade with the EU range from around 10% to 25%. [ 8 ] As the updates by Springford and Du et al. show, the results also depend on the time horizon being considered. As both UK and EU firms are still adjusting to the new environment, the gap between estimates may narrow again over time. Apart from providing estimates of Brexit effects since 2021, the available studies generally find no evidence of anticipation effects, i.e. a decline in UK-EU trade as a proportion of total UK trade prior to the provisional implementation of the TCA at the start of 2021. Across EU Member States, Brexit has led to a significant decline in trade with the United Kingdom in almost all cases, although at varying magnitudes. The decline has been most noticeable for those countries that historically accounted for a higher share of trade (i.e. trade in both directions with Ireland, exports to Cyprus and Malta, imports from Belgium and the Netherlands). [ 9 ] At the product level, it appears that there has been a substantial reduction in the number of products exported from the United Kingdom to the EU. The same is not found for exports of products from the EU to the United Kingdom. Overall, this is broadly consistent with the increased customs requirements on the EU side having a greater impact on low-value trade flows, often stopping such flows completely. At the same time, there has been an increasing concentration of export sales among fewer, larger exporters.

A selection of recent (i.e. post-Brexit) estimates of Brexit impacts on EU-UK goods trade

Source: Authors’ compilation.

A comparison of these results with those from analyses performed prior to Brexit suggests that the initial impacts following the TCA have been more severe than expected. Ahead of Brexit, many Brexit scenario simulations were performed with different types of models, assuming different levels of tariffs and non-tariff barriers. [ 10 ] For instance, based on a New Keynesian DSGE model, which assumes a free trade agreement scenario for goods trade with the euro area similar to the terms of the TCA, it was typically expected that Brexit would lead to a decrease in total UK exports and imports (in the long run) of roughly 3%, with minor effects on goods exports to the euro area but more sizeable declines in services exports to the euro area. [ 11 ] The available evidence so far suggests that the initial adverse impact on UK goods exports has been more sizeable, indicating that UK exporters, at least initially, have been struggling to meet the increased administrative requirements following the introduction of customs checks at the EU border. As developments in services appear to have been strongly driven by pandemic-related factors, further analyses would be needed to disentangle the impact of Brexit from the impact of the pandemic on this sector. [ 12 ]

4 Recent developments in the UK labour market

The UK labour market has become increasingly tight since the post-pandemic reopening, which also coincided with a fall in the number of EU migrants working in the United Kingdom. Following the post-pandemic recovery in demand in the second quarter of 2021, UK employers faced an unusually tight labour market, with a historically high number of vacancies and a low unemployment rate. Labour market tightness, measured as vacancies per unemployed person, has shown limited signs of easing, while companies have continued to struggle with recruitment difficulties (Chart 5, panel a).

Recent UK labour market developments

a) Labour market tightness and unemployment

(left-hand scale: percentages; right-hand scale: ratio of vacancies to unemployment, monthly data)

b) Labour demand and supply

(index: February 2020=100, monthly data)

Source: ONS. Notes: All series are shown as three-month moving averages. Labour market tightness is measured as vacancies per unemployed person. Data refer to UK population above 16 years old. The latest observations are for January 2023.

Weakness in labour supply has been the main driver of UK labour market tightness, while the surge in post-pandemic aggregate demand has played only a limited role. Many other advanced economies also experienced tight post-pandemic labour markets. In the same way as the initial collapse in aggregate demand at the start of the pandemic reduced recruitment of new workers, the reopening of the economy accelerated demand and encouraged companies to rehire staff. However, the persistence and the extent of labour market tightness make the United Kingdom an outlier, comparable only to the US economy. [ 13 ] One reason could be the sluggish recovery in UK labour supply, which has lagged behind other advanced economies (Chart 6). During the pandemic, many people became inactive, and, unlike the employment rate, the participation rate in the workforce has not reached pre-pandemic levels as the economy has recovered (Chart 5, panel b). A historical shock decomposition using a Bayesian vector autoregression (BVAR) analysis illustrates that the surge in UK post-pandemic labour market tightness can be attributed mainly to a smaller pool of available workers. While a faster than expected recovery was responsible for the initial rise in demand after the reopening of the economy, the analysis suggests that labour supply played a particularly important role. In contrast, aggregate supply constraints and labour mismatches appear to have been less significant (Chart 7). [ 14 ] The tightness of the UK labour market has therefore raised questions about the role of Brexit in UK labour shortages. The next section outlines the potential role of Brexit and changes in immigration policy in explaining these developments in labour supply.

Labour supply in advanced economies

(index: Q1 2020=100, quarterly data)

Sources: Organisation for Economic Co-operation and Development. Notes: Data for all countries refer to the active population between 15 and 64 years old that is either employed or actively seeking work. The latest observations are for the fourth quarter of 2022.

Labour market tightness, BVAR historical decomposition

(percentage deviation from the mean and percentage point contributions, monthly data)

Sources: ONS and ECB staff calculations. Notes: The chart shows the median posterior distribution of the historical decomposition of labour market tightness in deviation from its initial condition. Based on a BVAR estimation with sign restrictions, estimated using a monthly sample between January 2002 and January 2023. Structural shocks are identified using sign restrictions. In particular, aggregate demand shocks are identified by assuming that GDP and the consumer price index (CPI) move in the same direction, while aggregate supply shocks assume that they move in opposite directions. Labour supply shocks are assumed not to affect aggregate variables (GDP and CPI) on impact and to move tightness and wages in the same direction. Mismatch shocks affect wages and labour market tightness. Labour market tightness is measured in levels, while other variables are measured in month-on-month growth rates. The latest observations are for January 2023.

5 Weakness in UK labour supply: the role of Brexit

The Brexit referendum and the pandemic prompted a slowdown in EU employment growth as many EU workers found it less attractive to work in the United Kingdom. Prior to the 2016 referendum, successive EU enlargements had accelerated the movement of people between the United Kingdom and the rest of the EU. [ 15 ] The prospect of the Brexit referendum in June 2016 prompted a decline in EU net migration, as EU citizens found it less attractive to work in the United Kingdom. [ 16 ] The decline in new arrivals was accelerated by the onset of the pandemic in early 2020 and by the implementation of the TCA in January 2021. [ 17 ] The agreement introduced changes to UK immigration policy and ended automatic free movement for EU nationals not already settled in the United Kingdom. When looking at changes in the employment of EU citizens in the United Kingdom, it is evident that growth in such employment has slowed considerably since the Brexit referendum. A sharp fall at the onset of the pandemic was followed by a slow recovery in EU employment levels (Chart 8).

EU employment before and after the Brexit referendum

(index: Q2 2016=100, quarterly data)

Source: ONS. Notes: The chart shows employment of EU citizens in the United Kingdom before and after the Brexit referendum. The series is not seasonally adjusted. Data are shown on a quarterly basis and must be interpreted with some caution as they are based on Labour Force Survey responses weighted according to demographic trends from 2018 that pre-date the COVID-19 pandemic. “Trend 2004-2016” refers to the period between the first quarter of 2004 and the second quarter of 2016. “Trend 2016-2019” refers to the period between the third quarter of 2016 and the first quarter of 2020. The latest observation is for the fourth quarter of 2022.

The rise in UK vacancies and labour market tightness has been greatest in sectors that relied most heavily on EU workers, but this can also be attributed to a sharp recovery in demand in the sectors most affected by the pandemic. In the second half of 2021 there were many reports of UK labour shortages, ranging from lorry drivers to healthcare and hospitality workers. [ 18 ] At first glance, the sharp rises in vacancies appeared to be limited predominately to the occupations and sectors that relied most heavily on EU workers before the pandemic, as increased demand for labour potentially reflected the reduced supply of workers from the EU. These sectors also experienced a sharper increase in labour market tightness (Chart 9, panels a and b). This might imply a decline in matching efficiency in these industries, owing to an increase in skill and sectoral mismatches between those seeking work and available jobs. [ 19 ] The implications of Brexit were underlined by survey data, as, on average, 15% of UK companies cited lack of availability of EU workers as one of the reasons for their recruitment difficulties. This was particularly evident for sectors which had a high share of EU workers before the pandemic, such as accommodation and food services (Chart 10). [ 20 ] However, these sectors were also the ones most affected by the pandemic, since EU nationals were overrepresented in contact-intensive industries, which experienced the largest fall in employment during the lockdowns (Chart 9, panel c). Along with Brexit, the rapid recovery in post-pandemic consumer demand can therefore also explain a rapid surge in vacancies and labour market tightness, as firms in these sectors struggled to rehire previously laid-off staff. [ 21 ]

Labour market developments in sectors with traditionally high shares of EU workers

Source: ONS. Notes: The sectors that had the largest share of EU employees in 2015 were accommodation and food service activities (12.8%); manufacturing (10%); administrative and support service activities (9.8%); and transportation and storage (8.5%). “Other sectors” includes water supply, sewerage, waste management and remediation activities; construction; wholesale and retail trade, repair of vehicles; information and communication; financial and insurance activities; real estate activities; professional, scientific and technical activities; public administration and defence; education; human health and social work activities; and arts, entertainment and recreation. Some sectors are excluded owing to insufficient sample representation. Data for vacancies and tightness are shown as three-month moving averages. Data for unemployment are shown at quarterly frequency. The monthly series are not seasonally adjusted. The latest observations are for February 2023 for vacancies, January 2023 for labour market tightness and the fourth quarter of 2022 for employment.

Recruitment difficulties owing to reductions in EU applicants

(percentages of companies)

Source: Business Insights and Conditions Survey (ONS). Notes: The chart shows responses to the survey, which was performed at irregular intervals, in particular for sector-level data. The series display the share of businesses that reported difficulties recruiting employees and considered a reduced number of EU applicants to be one of the major factors. The latest observations are for 31 December 2022.

The slowdown in EU migration has to some extent been offset by an increase in non-EU migration. International migration was a key element in employment growth in most UK sectors before 2019. [ 22 ] Higher-skilled sectors recruited from both EU and non-EU countries, while lower-skilled sectors typically relied heavily on EU workers, given that lower-skilled workers from non-EU countries were generally not allowed to enter the UK labour market. [ 23 ] Following the Brexit referendum, the size of the EU migrant labour force began to shrink, while the share of non-EU employees was gradually increasing. The changes in total net migration indicate that by end of 2021, migration flows had returned to, or even surpassed, pre-pandemic levels. However, when only migrants seeking work are considered, the flows are much lower, albeit still relevant for labour market dynamics (Chart 11). [ 24 ] This raises the question of whether employers started to switch from EU to non-EU workers or whether the aggregate dynamics conceal asymmetries recorded at a sectoral level.

Net migration to the United Kingdom by nationality

a) Old data collection methodology

(thousands, annual data)

b) New data collection methodology

(thousands, quarterly data)

Source: Centre for International Migration (ONS). Notes: Panel a) displays annual data, while panel b) shows quarterly values since the second quarter of 2020. Each data point refers to year-end values in a particular quarter. Data on non-EU migration for work purposes in panel b) are approximated by ECB staff on the basis of the share of migration for work purposes in International Passenger Survey data. Such data are not available for EU migration under the new data collection methodology. In 2020 and 2021, study (45%) was the main reason for non-EU migration, while work (26%) and other reasons (29%) each accounted for a similar share. The latest available data show that other reasons accounted for a larger share (39%), probably reflecting an increased inflow of people arriving for humanitarian protection. The old estimates are produced using different methods from the new estimates, implying that comparisons between the two panels should be avoided. It should also be noted that the new estimates are experimental and provisional. These estimates are based on administrative and survey data from different sources, supported by statistical modelling where the data are incomplete. The latest observations are for the second quarter of 2022.

While on average the rise in non-EU arrivals has more than offset the fall in EU migration, the new migration policy has reduced labour supply in some sectors. The new migration rules had a particularly negative impact on labour supply in lower-skilled sectors. The reversal in migration flows could be explained by the new immigration system that liberalised access to the UK labour market for skilled non-EU citizens, while requiring visas for EU nationals who had previously faced no restrictions. Work permits have become attainable only for those above a certain skill and salary level. [ 25 ] This made most lower-skilled industries, which had previously relied predominantly on EU workers, ineligible to issue work visas, and prompted an increase in non-EU migration, easing shortages in some sectors and occupations (Chart 12, panel a). Sectors driving the surge in employment of non-EU citizens were, in most cases, not the same as those driving the decline in employment of EU citizens. As new visa conditions made hiring of lower-skilled EU workers more difficult, the absence of these workers became particularly apparent in sectors such as accommodation and food services (Chart 10). Firms in the hospitality industry were thus initially not able to replace workers from the EU, although the industry has observed an increase in non-EU employment over the past year (Chart 12, panel b). [ 26 ] In contrast, some other industries, such as health and social work, have not been negatively affected by the new migration rules or have even benefited from the inflow of skilled non-EU workers (Chart 12, panel c). [ 27 ] While on average the rise in non-EU employment has offset the fall in EU employment, the new migration policy has reduced labour supply in some sectors. [ 28 ] Nevertheless, the evidence available so far suggests that changes in migration flows are only one of multiple factors contributing to an increase in labour market tightness.

UK employment by nationality

(change since December 2019, thousands, monthly data)

Source: HM Revenue and Customs. Notes: The data are not seasonally adjusted and are shown as three-month moving averages. They include only payroll employment under the Pay As You Earn system and do not include other sources of employment, such as self-employment. However, the data do include individuals who were furloughed as part of the Coronavirus Job Retention Scheme. It should also be noted that these estimates are experimental and provisional. Changes in net UK employment are excluded to highlight the changes in employment of non-UK citizens. The accommodation and food sector represents 8% of total UK employment, while the health and social work sector accounts for 14%. The latest observations are for December 2022.

Brexit can only partially explain the weakness in the UK labour supply recovery, while an ageing population and pandemic effects appear to play an important role in explaining the decline in UK labour force participation. Changes in EU migration are not the only factor behind the recent changes in UK labour supply. Labour force growth had already started to decrease before the pandemic, as the United Kingdom’s “baby boomer” generation began to retire (as also observed in many other advanced economies), resulting in a marked shrinkage in the UK-born working-age population. Population ageing was countered to a certain extent by raising both male and female pension ages and through higher educational attainment, but the impact of these measures had largely dissipated by the onset of the pandemic. [ 29 ] Higher inactivity rates among those aged over 50 has contributed considerably to the increase in the inactive population (Chart 13, panel a). Other factors triggered by the pandemic have also contributed to the decline in labour participation. While the pandemic and prolonged waiting times for health services appear to have increased the number of people with long-term health issues among the inactive population, this increase is thought to be predominantly linked to individuals who were already inactive before the pandemic. When looking at flows out of the labour force, early retirement accounts for a much larger share (Chart 13, panel b). [ 30 ]

Other factors driving an increase in labour market inactivity

a) Inactive population by age cohort

(change since February 2020, thousands, monthly data)

b) Reasons for flows into inactivity for people aged between 50 and 70 years

(change compared to average for 2016-2019, thousands, annual data)

Source: Longitudinal Labour Force Survey (ONS). Notes: Data in panel a) are shown as three-month moving averages. Although the UK retirement age is currently 66, the only data available are for everyone above the age of 65. Data in panel b) refer to the change in the number of economically inactive people aged 50 to 70 years grouped by the reason for inactivity compared to the average between 2016-2019. The latest observations are for January 2023 for panel a) and December 2021 for panel b).

6 Conclusions

Almost two and a half years after the United Kingdom’s exit from the EU’s Single Market and the EU Customs Union, there is increasing evidence that Brexit has had negative effects on UK trade and the UK labour market. On the trade side, after controlling for pandemic-related effects, Brexit appears to have caused a significant decline in EU-UK trade in both directions, which, however, may recover to some extent over time, once UK and EU firms have fully adjusted to the new environment. The share of trade in GDP terms has also declined and a number of small and medium-sized UK companies have withdrawn from external trade with the EU. Regarding the labour market, there is evidence that the end of free movement for EU citizens has also contributed to the recent surge in labour shortages, particularly in sectors with lower-skilled workers. However, there have also been other, and potentially more important, drivers of the decline in UK labour force participation. Considerable uncertainty remains regarding the long-run impacts, including the extent to which the slowdown in EU trade and EU migration could weigh on potential labour supply and future productivity.

For further discussion on the impact on potential growth, see “ Monetary Policy Report ”, Bank of England, February 2023.

See, for instance, Graziano, A.G., Handley, K. and Limão, N., “Brexit uncertainty and trade disintegration”, The Economic Journal , Vol. 131, No 635, April 2021, pp. 1150-1185. For a review of developments in UK import demand and the balance of payments since the referendum, see the article entitled “ Understanding post-referendum weakness in UK import demand and UK balance of payments risks for the euro area ”, Economic Bulletin , Issue 3, ECB, 2021. Instead of benefiting from the sharp depreciation of the pound sterling, exports also suffered, given the high uncertainty and firms’ anticipation of the need to decouple.

See Driffield, N. and Karoglou, M., “Brexit and Foreign Investment in the UK”, Journal of the Royal Statistical Society Series A: Statistics in Society , Vol. 182, No 2, October 2018, pp. 559-582.

This development, however, needs to be interpreted with some caution, as data on goods imports from the EU were inflated in the first half of 2022 by delayed customs declarations from the second half of 2021. More generally, when interpreting recent developments in UK trade, it is important to note that in January 2022 HM Revenue and Customs implemented a data collection change affecting data on imports from the EU into the United Kingdom. This followed a similar data collection change in January 2021 for data on exports of goods to the EU from the United Kingdom. The Office for National Statistics (ONS) applied adjustments to 2021 EU imports to compare import and export statistics on a like-for-like basis. The full time series for imports from the EU still contains a discontinuity from January 2021.

See “ The Trade and Cooperation Agreement: Two Years On – Proposals for Reform by UK Business ”, British Chambers of Commerce, 2022.

See Freeman, R., Manova, K., Prayer, T. and Sampson, T., “ UK trade in the wake of Brexit ”, Discussion Paper , No 1847, Centre for Economic Performance, April 2022; Du. J. and Shepotylo, O., “ TCA, Non-tariff Measures and UK Trade ”, ERC Research Paper , No 98, Enterprise Research Centre, June 2022; Du, J., Satoglu, E.B. and Shepotylo, O., “ Post-Brexit UK Trade: An Update ”, Insight Paper , Centre for Business Prosperity, Aston University, November 2022; and Kren, J. and Lawless, M., “ How has Brexit changed EU-UK trade flows? ”, ESRI Working Paper , No 735, Economic and Social Research Institute, October 2022.

See Springford, J., “ The cost of Brexit to June 2022 ”, Insight , Centre for European Reform, December 2022. For more details on the methodology, see Springford, J., “ What can we know about the cost of Brexit so far? ”, Centre for European Reform, June 2022.

Results from a preliminary internal analysis performed in the context of the EU-UK network using aggregate data also lie within this range.

See Kren and Lawless, op. cit., Table 4.

For a summary of results of earlier analyses, see “ A review of economic analyses on the potential impact of Brexit ”, Occasional Paper Series , No 249, ECB, October 2020. Pre-Brexit studies were typically concerned with longer-run steady-state effects and most envisaged some stronger disruptions in advance of the referendum.

See Pisani, M. and Vergara Caffarelli, F., “ What will Brexit mean for the British and euro-area economies? A model-based assessment of trade regimes ”, Temi di Discussione (Working Papers) , No 1163, Banca d’Italia, January 2018.

There has been no recent analysis of Brexit impacts on services trade. Du and Shepotylo studied the impacts of the 2016 Brexit referendum on services trade in the United Kingdom and Ireland for the period up to the second quarter of 2020, finding that Brexit was already having adverse impacts on UK services trade ahead of the end of the transition period. See Du, J. and Shepotylo, O., “ Feeding the Celtic Tiger – Brexit, Ireland and Services Trade ”, Research Paper , Aston Business School, May 2021.

See also Gomez-Salvador, R. and Soudan, M., “ The US labour market after the COVID-19 recession ”, Occasional Paper Series , No 298, ECB, July 2022.

We introduce a BVAR model for the UK labour market that features structural identification via sign restrictions. The model includes four variables: output, inflation, labour market tightness and wages. With this set of variables, we aim to identify four shocks: an aggregate demand shock, an aggregate supply shock, a labour supply shock and a mismatch shock. A positive demand shock represents an upward shift in the demand curve, which pushes up output and inflation. A positive aggregate supply shock reflects changes in productivity or potential capacity in the economy, increasing output and reducing inflation through lower marginal costs for firms. A positive labour supply shock refers to an exogenous increase in labour supply which increases the number of participants in the labour market, leading to an increase in the number of job seekers. This makes it easier for firms to fill vacancies, leading to a decrease in labour market tightness and wages and an increase in output. A positive mismatch shock refers to exogenous changes in the process of matching jobs and workers, shifting the job creation curve upward and increasing both labour market tightness and wages in the economy.

The rapid increase in the movement of people can be attributed to several factors, such as the United Kingdom’s decision to immediately welcome nationals from the new Member States in 2004, the flexibility of the UK labour market, the appeal of London and the English language, and the attractiveness of UK universities. See Sumption, M., Forde, C., Alberti, G. and Walsh, P.W., “ How is the End of Free Movement Affecting the Low-wage Labour Force in the UK? ”, Report , The Migration Observatory at the University of Oxford and ReWAGE, August 2022.

The discouragement of EU workers can mainly be explained by the political and legal uncertainty related to Brexit, but also by the declining value of the pound sterling and the relatively better economic performance of other EU economies.

The pandemic-related exit of EU citizens partially reflected their high share of employment in high-contact services sectors, which were prone to furloughs and layoffs. In addition, the United Kingdom performed comparatively badly in terms of health sector capacities during the first wave of the pandemic.

For instance, severe shortages of lorry drivers affected the supply of retail goods, food products and fuel at petrol stations and restricted the capacity of UK ports. Shortages of butchers and workers in the meat processing industry forced farms to cull thousands of animals. In addition, there have been instances of severe recruitment difficulties in hospitality, construction, agriculture, and business and professional services.

See also “ Monetary Policy Report ”, Bank of England, February 2023.

Other sectors with above-average values were: manufacturing; transport and storage; water supply, sewerage, waste management and remediation activities; real estate activities; and education. For results from the Business Insights and Conditions Survey, see “ Business insight and impact on the UK economy: 9 February 2023 ”, statistical bulletin , ONS, February 2023.

Changes in employment do not reflect the 11.7 million jobs furloughed under the Coronavirus Job Retention Scheme, which applied from 1 March 2020 to 30 September 2021.

Workers from outside the United Kingdom accounted for 70% of the increase in employment between 2004 and 2019. The contribution from EU employment was slightly above 35%.

Some exceptions for employer-sponsored long-term visas were allowed for shortage occupations and for young people under the age of 26, while unsponsored long-term visas were available for “Global Talent”, entrepreneurs and Commonwealth citizens. Some non-EU workers were also eligible for temporary work visas. See Sumption, M. and Strain-Fajth, Z., “ Work visas and migrant workers in the UK ”, Briefing , The Migration Observatory at the University of Oxford, September 2022.

While net migration was positive in 2022, the sharp increase in non-EU inflows also reflects other factors, such as people arriving for humanitarian protection (from Ukraine and Hong Kong) and a post-pandemic surge in international students.

The new migration system introduced in January 2021 allows prospective economic migrants to apply for either a “Skilled Worker visa”, if they already have a job offer above a certain salary and skill threshold, or a “Seasonal Worker visa”, which is intended for short assignments in the agricultural and food-production sectors. The loss of free movement has therefore been offset by the more liberal regime for skilled work visas, primarily benefiting non-EU workers.

Initially, the biggest declines in EU employment were in accommodation and food services and in administrative and support services. In both sectors, employers relied heavily on EU citizens before Brexit and have not resorted to the work visa system since the pandemic, because relatively few of the jobs concerned meet the skill and salary criteria for work visas and because these employers have little experience of using the visa system in the past. See Sumption, M., Forde, C., Alberti, G. and Walsh, P.W., “ How is the End of Free Movement Affecting the Low-wage Labour Force in the UK? ”, op. cit. In 2022 these sectors recorded an increase in non-EU employment, which could be attributed to inflows of non-EU workers through the Youth Mobility Scheme, humanitarian protection visas or as dependants to the main applicants. Their flexible work rights made them likely to seek employment in low-skilled occupations. See “ Migration Advisory Committee (MAC) annual report, 2022 ”, corporate report , Migration Advisory Committee, January 2023.

The increase in non-EU workers was driven primarily by the health sector, as the high share of roles eligible for skilled work visas helped with a switch from lower levels of EU migration towards non-EU recruitment. Health sector employers are also larger on average and have more experience of using visa schemes.

Analysis comparing pre-pandemic counterfactuals to the actual outturns points to a net loss of workers accounting for 1% of the labour force. See Portes, J. and Springford, J., “ The Impact of the Post-Brexit Migration System on the UK Labour Market ”, Discussion Paper Series , No 15883, IZA Institute of Labor Economics, January 2023.

See Saunders, M., “ Some reflections on Monetary Policy past, present and future ”, speech at the Resolution Foundation, 18 July 2022.

See Boileau, B. and Cribb, J., “ The rise in economic inactivity among people in their 50s and 60s ”, IFS Briefing Note , No BN345, Institute for Fiscal Studies, June 2022.

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HOCKEY; Islanders Pick Name With a Ring to It

Does the name Bertuzzi sound familiar to Rangers fans? It should. Larry Bertuzzi was the arbitrator who last summer ruled that Eric Lindros had been traded by Quebec to the Philadelphia Flyers instead of the Rangers.

Another Bertuzzi might soon torment the Rangers. He is Todd Bertuzzi, a grandnephew of the arbitrator, who was chosen today by the Islanders as their first choice in the National Hockey League entry draft.

Bertuzzi, selected 23d over all, is a 6-foot-3-inch, 227-pound right wing. He enjoys crashing into people and doesn't object to occasional fistfighting, an attitude the Islanders think they need. Wants to Play Right Now

Islanders General Manager Don Maloney said he hoped Bertuzzi could play another year with the Guelph Storm of the Ontario junior league and join the Islanders in 1994. Bertuzzi thinks that's too long.

Asked if he was ready to play this fall, he said: "Yeah, I'm capable. I play a physical game. That's what they need. It'll give me a better chance."

Maloney's eyes brightened when he heard about the comment.

"I like that attitude," Maloney said.

The other Bertuzzi is a Toronto lawyer. In addition to working for the league last summer in l'affaire Lindros, he worked on a freelance basis for the Islanders in salary arbitration cases. Bertuzzi masterminded management's victory in the Tom Kurvers case.

"Larry is my dad's uncle," Todd Bertuzzi said. Maloney joked that the Islanders could now get the "family rate" when hiring help in arbitrations.

Maloney said Bertuzzi could be a "project" and might need work on the mental aspects of the game.

"He's got all the raw material to be a real prototype power forward," Maloney said. The Islanders haven't had such a player since Clark Gillies helped them to four Stanley Cup championships from 1981-84. 'Fingers and Toes Crossed'

Maloney said the team "had our fingers and toes crossed" when they saw that Bertuzzi was still available late in the first round.

"I was sweating," Bertuzzi said. "I was getting real nervous."

With Guelph last season, Bertuzzi had 27 goals, 32 assists and 164 penalty minutes. The report on him from the league's Central Scouting Bureau said in part: "Very good skater with powerful stride. Smart around the net. Will take a hit. Finishes his check. Utilizes his size and strength in all facets. Stands up to a challenge." From Medicine Hat to Moscow

On the second round, with the 40th pick over all, the Islanders took Bryan McCabe, a 6-1, 200-pound defenseman from St. Catherine's, Ontario, who plays with Spokane in the Western League after being traded from Medicine Hat. In 60 games last season he had three goals and 57 assists and 217 penalty minutes. The scouting report says McCabe is an "offensive defenseman" who "uses size effectively" and "plays with intensity." On the third round, the Islanders chose Vladim Cherbaturkin, a 6-2, 198-pound defenseman from Moscow's Elektrostal in the second division of the Russian League. He is said to be a good player under pressure, but not one who uses his size and strength against other players.

Inside the World of Sports

Dive deeper into the people, issues and trends shaping professional, collegiate and amateur athletics..

No More Cinderella Stories?: Expansion of the N.C.A.A. men’s basketball tournament has been a popular topic. But adding more teams could push small schools like Oakland, which upset Kentucky, out of the action .

Caitlin Clark’s Lasting Impact: People have flocked to watch the Iowa basketball star on TV and in person. But will her effect on the popularity and economics of women’s sports linger after her college career ends ?

Gambling Poses Risks for Leagues: The situation involving the former interpreter for Shohei Ohtani, the Los Angeles Dodgers slugger and pitcher, shows that when it comes to wagering on games, professional leagues have more than just the players to watch .

Unionization Efforts: How is a football team different from a marching band? The National Labor Relations Board is considering this question as it tries to determine whether some college athletes should be deemed employees .

Delayed Gratification: Doping rules, legal challenges and endless appeals have left some Olympic medalists waiting for their golds .

Woolworths Company’s Labor Relations Essay

Introduction, woolworths’ stance in labor-related issues, strategy for dealing with labor disagreement, collective bargaining position, recommendations of policies for administering and resolving disputes, most likely interest dispute and its resolution, the next step in labor relations management, reference list.

Labor is one of the most important components of a business. Employees are responsible for the production of goods and services. When production targets fail to be met, employees can offer a good explanation for the occurrence. They tend to understand the various aspects of the operations of a company better than even the owners of the respective companies. Managers of any given business entity, institution, or organization are expected to try to avoid disputes among their employees because they understand the role that a satisfied labor force plays in the success of the organizations.

When workers are happy in their various positions as employees of firm or any other organization, they are able to perform their duties to their best. This paper indicates that employees who feel that their employer is keen on their interests are much more likely to be creative in helping their firm to solve various challenges. As a result, they help in boosting the firm’s chances of success in achieving its goals and objectives. Companies can enjoy success if they embrace labor unions and/or strive to negotiate with their employees when they raise their demands. Woolworths is one of the largest companies in terms of staff. It has had its fair share of controversy in terms of labor-related issues. Hence, this paper intends to present labor issues using Woolworths as a case example.

Woolworths strives to uphold human rights in all its endeavors. Its actions in ensuring the observance of human rights are not just limited to its employees only but also to the company’s supply chain. Woolworths has principled supply guidelines that comprise four threatening aspects that it considers central to its business. These areas include employment circumstances, enticement and dishonesty, ecological conformity, and work privileges. The company tries its best to ensure that it meets the requirements of the various regulatory bodies in different jurisdictions from where it operates. Woolworths is a party to The United Nations Global Compact (UNGC), which is a body that requires all its members to hold, ratify, and sustain their relation within areas where they have influence. The body’s main values are in the field of individuals’ privileges, surroundings, honesty, and operational standards.

Woolworths is also a signatory to the Global Social Compliance Program, which has various stakeholders who are aimed at providing a shared approach that is consistent with continued improvement of environmental and working conditions across the supply chains of consumer goods (Shah, 2014). A greater number of merchants and customer are increasingly operating jointly with human civil liberty people and employment institutions to offer a healthier operational environment whilst boosting the lives of their personnel along their supply networks. Woolworths’ guiding principles are anchored on “the International Labor Organization (ILO) conventions and the doctrine of the United Nations Global Declaration of Human Rights” (Woolworths Limited, 2013, Para. 4).

The company expects all its suppliers to comply with the requirements of its policy. This policy has a compliance audit program mainly for the suppliers of its own brands that complement it. To ensure autonomy, qualified intermediary documentation parties carry out the business’s appraisal. The adopted evaluation plan has been appraised in harmony with threat status, which is ranked as elevated, small, or serious in terms of sternness. Critical areas of risks that carry a great significance include criteria relating to bonded or incarcerated employment, inducement and dishonesty, child labor, wellbeing, and security.

Violation of any of the serious decisive factors culminates in a demand for prompt counteractive steps or resolution by service providers who are put into two classes, namely accepted at threat or accepted provisionally based on the upshot of the assessment and conformity to the necessities of its guiding principles. Woolworths’ agenda involves working with its suppliers in bettering their labor practices, regardless of the category in which the supplier belongs. Corrective actions that are considered grave comprise 2.5 % of the company’s corrective actions. Most of them relate to employee accommodation areas that are not clearly distinguished from storage or factory production areas (Shah, 2014).

Disputes between labor and management can handled using a strategy of compromise. Even though it may seem as if the company is giving much power to employees, it is among the most effective ways of dealing with disagreements and avoiding the recurrence of such disagreements in a company. Before beginning the negotiation, there is a need to follow a number of key phases. The first step is planning that is followed by opening. The third step is bargaining while the fourth and final step is closing.

First off, the management of Woolworths should scrutinize, outline, and prepare for a negotiation process that resonates with the company’s policy statement. Afterwards, the company should compile and assess the issues of concern, specifically those that are contributing significantly to the disagreement. The company should include structured roles in the design of its negotiation process for each of the people who are representing its side. It should also put in place a policy that guides the parties to the negotiation. The policy should clearly stipulate the process of choosing people to represent it at the negotiation table during the talks. The spokesperson should be empowered so that he or she feels confident enough to handle the negotiation process successfully to achieve the best deal for both the company and workers (White, 2008).

Further, the strategy should involve an exchange of proposals by both sides to the negotiation. The proposals should be evaluated to determine how they can be harmonized to reach a common ground on the issue. Interest-based methods of solving the dispute should be utilized in the negotiation process. The negotiator should be someone who possesses the qualities of a leader. Hence, he or she should have the ability to influence the direction of the negotiation. He or she should comprehend what his or her role entails. He or she should accelerate bottom-line results.

Woolworths needs to let the labor unions know about the prevailing economic situation around the world. It should use the global recession to make the labor unions understand why it will be hard for the company to raise its workers’ salaries without negatively affecting its business significantly. Given the presence of Woolworths and its retail outlets in different countries and jurisdictions, it is bound to be affected differently by market conditions in the different markets (Shah, 2014). The legal environment also varies from one country to the next. These factors affect the profitability of its outlets differently. Some retail outlets might experience losses at different times while others might record impressive profits.

Profits are redistributed to ensure that each branch of Woolworths is able to finance its operations, regardless of whether it has made great profits or losses. This plan helps to ensure continuity of operations, thus helping to avoid massive layoff of employees. Even though a branch may have made great profits, it may not necessarily hike employee salaries since some of the profits may be diverted to help in boosting its business in other outlets to avoid collapsing (White, 2008). One may ask why the company should be keen on helping branches that perform poorly instead of just closing them down. It is important to understand that the probability of losses is not limited to a given branch and that making a loss in one business calendar does not mean a loss in the next.

The company should put in place guidelines that employees should follow in case they have any disputes that they need to address. This strategy will help the firm to get a chance to learn some of the employees’ pressing issues and help to prevent them from escalating to levels whose impact may be severe and hard to reverse. In-house dispute resolution systems should be implemented to help in preventing such severe effects of employee disputes. Further, Woolworths should put in place personnel under the Human Resources department whose main function is to handle issues that touch on employees who are subjects of repeated disagreement.

The dispute that is of greatest interest that is most likely to occur is the one that will involve demands to raise wages in the phase of hard economic times. This situation will definitely present a big challenge to the company, given that it is not immune to economic downturns. To leverage the economic pressures, I will help to push for a policy that puts into consideration critical company’s interests in negotiating any contract. This strategy will involve analyzing the company’s financial records to ensure that it can handle employee demands. Employees will be advised to understand the company’s situation.

Given the direction of changes with regard to labor relations, the future is quite predictable. In the near future, no firm will survive without ensuring that the interests of its employees are well taken care of. Companies that abide by the various regulations regarding labor will attract the best skills. Employees are continuously being enlightened concerning their rights while at the same time being given greater freedom of expression when it comes to their grievances (Holley, Jennings, & Wolters, 2012). Woolworths will have to observe keenly the various requirements to avoid any disputes and hence experience greater growth.

Clearly, various issues that relate to labor influence Woolworths’ activities. The company has done its best to ensure that it operates within the requirements of the law. It has implemented policies that help in handling issues that relate to enticement, labor rights, compliance with environmental regulations, and corruption among others. The company also strives to ensure that its suppliers along with its various supply chains and retail outlets abide by the company’s policies. However, labor-relations and laws that relate to workers are changing with each passing day. Hence, it is paramount for Woolworths to implement policies that will enable it to compete effectively while setting an example as a company that respects the interests of its staff members.

Holley, W., Jennings, K., & Wolters, R. (2012). The Labor Relations Process . Mason: OH Cengage Learning.

Shah, H. (2014). Transition to Labor Law Reform: State-Level Initiatives & Informal Sector Labor Relations. Indian Journal of Industrial Relations, 50 (1), 33-50.

White, A. (2008). The Crime of Staging an Effective Strike and the Enduring Role of Criminal Law in Modern Labor Relations. Working USA, 11 (1), 23-44.

Woolworths Limited. (2013). Labor Practices in Our Global Supply Chains. Web.

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40 facts about elektrostal.

Written by Lanette Mayes

Modified & Updated: 02 Mar 2024

Reviewed by Jessica Corbett

Elektrostal is a vibrant city located in the Moscow Oblast region of Russia. With a rich history, stunning architecture, and a thriving community, Elektrostal is a city that has much to offer. Whether you are a history buff, nature enthusiast, or simply curious about different cultures, Elektrostal is sure to captivate you.

This article will provide you with 40 fascinating facts about Elektrostal, giving you a better understanding of why this city is worth exploring. From its origins as an industrial hub to its modern-day charm, we will delve into the various aspects that make Elektrostal a unique and must-visit destination.

So, join us as we uncover the hidden treasures of Elektrostal and discover what makes this city a true gem in the heart of Russia.

Key Takeaways:

Elektrostal, known as the “Motor City of Russia,” is a vibrant and growing city with a rich industrial history, offering diverse cultural experiences and a strong commitment to environmental sustainability.
With its convenient location near Moscow, Elektrostal provides a picturesque landscape, vibrant nightlife, and a range of recreational activities, making it an ideal destination for residents and visitors alike.

Known as the “Motor City of Russia.”

Elektrostal, a city located in the Moscow Oblast region of Russia, earned the nickname “Motor City” due to its significant involvement in the automotive industry.

Home to the Elektrostal Metallurgical Plant.

Elektrostal is renowned for its metallurgical plant, which has been producing high-quality steel and alloys since its establishment in 1916.

Boasts a rich industrial heritage.

Elektrostal has a long history of industrial development, contributing to the growth and progress of the region.

Founded in 1916.

The city of Elektrostal was founded in 1916 as a result of the construction of the Elektrostal Metallurgical Plant.

Located approximately 50 kilometers east of Moscow.

Elektrostal is situated in close proximity to the Russian capital, making it easily accessible for both residents and visitors.

Known for its vibrant cultural scene.

Elektrostal is home to several cultural institutions, including museums, theaters, and art galleries that showcase the city’s rich artistic heritage.

A popular destination for nature lovers.

Surrounded by picturesque landscapes and forests, Elektrostal offers ample opportunities for outdoor activities such as hiking, camping, and birdwatching.

Hosts the annual Elektrostal City Day celebrations.

Every year, Elektrostal organizes festive events and activities to celebrate its founding, bringing together residents and visitors in a spirit of unity and joy.

Has a population of approximately 160,000 people.

Elektrostal is home to a diverse and vibrant community of around 160,000 residents, contributing to its dynamic atmosphere.

Boasts excellent education facilities.

The city is known for its well-established educational institutions, providing quality education to students of all ages.

A center for scientific research and innovation.

Elektrostal serves as an important hub for scientific research, particularly in the fields of metallurgy, materials science, and engineering.

Surrounded by picturesque lakes.

The city is blessed with numerous beautiful lakes, offering scenic views and recreational opportunities for locals and visitors alike.

Well-connected transportation system.

Elektrostal benefits from an efficient transportation network, including highways, railways, and public transportation options, ensuring convenient travel within and beyond the city.

Famous for its traditional Russian cuisine.

Food enthusiasts can indulge in authentic Russian dishes at numerous restaurants and cafes scattered throughout Elektrostal.

Home to notable architectural landmarks.

Elektrostal boasts impressive architecture, including the Church of the Transfiguration of the Lord and the Elektrostal Palace of Culture.

Offers a wide range of recreational facilities.

Residents and visitors can enjoy various recreational activities, such as sports complexes, swimming pools, and fitness centers, enhancing the overall quality of life.

Provides a high standard of healthcare.

Elektrostal is equipped with modern medical facilities, ensuring residents have access to quality healthcare services.

Home to the Elektrostal History Museum.

The Elektrostal History Museum showcases the city’s fascinating past through exhibitions and displays.

A hub for sports enthusiasts.

Elektrostal is passionate about sports, with numerous stadiums, arenas, and sports clubs offering opportunities for athletes and spectators.

Celebrates diverse cultural festivals.

Throughout the year, Elektrostal hosts a variety of cultural festivals, celebrating different ethnicities, traditions, and art forms.

Electric power played a significant role in its early development.

Elektrostal owes its name and initial growth to the establishment of electric power stations and the utilization of electricity in the industrial sector.

Boasts a thriving economy.

The city’s strong industrial base, coupled with its strategic location near Moscow, has contributed to Elektrostal’s prosperous economic status.

Houses the Elektrostal Drama Theater.

The Elektrostal Drama Theater is a cultural centerpiece, attracting theater enthusiasts from far and wide.

Popular destination for winter sports.

Elektrostal’s proximity to ski resorts and winter sport facilities makes it a favorite destination for skiing, snowboarding, and other winter activities.

Promotes environmental sustainability.

Elektrostal prioritizes environmental protection and sustainability, implementing initiatives to reduce pollution and preserve natural resources.

Home to renowned educational institutions.

Elektrostal is known for its prestigious schools and universities, offering a wide range of academic programs to students.

Committed to cultural preservation.

The city values its cultural heritage and takes active steps to preserve and promote traditional customs, crafts, and arts.

Hosts an annual International Film Festival.

The Elektrostal International Film Festival attracts filmmakers and cinema enthusiasts from around the world, showcasing a diverse range of films.

Encourages entrepreneurship and innovation.

Elektrostal supports aspiring entrepreneurs and fosters a culture of innovation, providing opportunities for startups and business development.

Offers a range of housing options.

Elektrostal provides diverse housing options, including apartments, houses, and residential complexes, catering to different lifestyles and budgets.

Home to notable sports teams.

Elektrostal is proud of its sports legacy, with several successful sports teams competing at regional and national levels.

Boasts a vibrant nightlife scene.

Residents and visitors can enjoy a lively nightlife in Elektrostal, with numerous bars, clubs, and entertainment venues.

Promotes cultural exchange and international relations.

Elektrostal actively engages in international partnerships, cultural exchanges, and diplomatic collaborations to foster global connections.

Surrounded by beautiful nature reserves.

Nearby nature reserves, such as the Barybino Forest and Luchinskoye Lake, offer opportunities for nature enthusiasts to explore and appreciate the region’s biodiversity.

Commemorates historical events.

The city pays tribute to significant historical events through memorials, monuments, and exhibitions, ensuring the preservation of collective memory.

Promotes sports and youth development.

Elektrostal invests in sports infrastructure and programs to encourage youth participation, health, and physical fitness.

Hosts annual cultural and artistic festivals.

Throughout the year, Elektrostal celebrates its cultural diversity through festivals dedicated to music, dance, art, and theater.

Provides a picturesque landscape for photography enthusiasts.

The city’s scenic beauty, architectural landmarks, and natural surroundings make it a paradise for photographers.

Connects to Moscow via a direct train line.

The convenient train connection between Elektrostal and Moscow makes commuting between the two cities effortless.

A city with a bright future.

Elektrostal continues to grow and develop, aiming to become a model city in terms of infrastructure, sustainability, and quality of life for its residents.

In conclusion, Elektrostal is a fascinating city with a rich history and a vibrant present. From its origins as a center of steel production to its modern-day status as a hub for education and industry, Elektrostal has plenty to offer both residents and visitors. With its beautiful parks, cultural attractions, and proximity to Moscow, there is no shortage of things to see and do in this dynamic city. Whether you’re interested in exploring its historical landmarks, enjoying outdoor activities, or immersing yourself in the local culture, Elektrostal has something for everyone. So, next time you find yourself in the Moscow region, don’t miss the opportunity to discover the hidden gems of Elektrostal.

Q: What is the population of Elektrostal?

A: As of the latest data, the population of Elektrostal is approximately XXXX.

Q: How far is Elektrostal from Moscow?

A: Elektrostal is located approximately XX kilometers away from Moscow.

Q: Are there any famous landmarks in Elektrostal?

A: Yes, Elektrostal is home to several notable landmarks, including XXXX and XXXX.

Q: What industries are prominent in Elektrostal?

A: Elektrostal is known for its steel production industry and is also a center for engineering and manufacturing.

Q: Are there any universities or educational institutions in Elektrostal?

A: Yes, Elektrostal is home to XXXX University and several other educational institutions.

Q: What are some popular outdoor activities in Elektrostal?

A: Elektrostal offers several outdoor activities, such as hiking, cycling, and picnicking in its beautiful parks.

Q: Is Elektrostal well-connected in terms of transportation?

A: Yes, Elektrostal has good transportation links, including trains and buses, making it easily accessible from nearby cities.

Q: Are there any annual events or festivals in Elektrostal?

A: Yes, Elektrostal hosts various events and festivals throughout the year, including XXXX and XXXX.

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Things to Do in Elektrostal, Russia - Elektrostal Attractions

Things to do in elektrostal.

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Things to do ranked using Tripadvisor data including reviews, ratings, photos, and popularity.

1. Electrostal History and Art Museum

2. Statue of Lenin

3. Park of Culture and Leisure

4. museum and exhibition center.

5. Museum of Labor Glory

7. Galereya Kino

8. viki cinema, 9. smokygrove.

10. Gandikap

11. papa lounge bar, 12. karaoke bar.

Statue of Lenin
Electrostal History and Art Museum
Park of Culture and Leisure
Museum and Exhibition Center
Museum of Labor Glory

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1. Electrostal History and Art Museum. 2. Statue of Lenin. 3. Park of Culture and Leisure. 4. Museum and Exhibition Center. 5.