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Lecture An introduction to collective bargaining and industrial relations (4e) – Chapter 14: International and comparative industrial relations

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Chapter 14 - International and comparative industrial relations. The main contents of the chapter consist of the following: Industrial relations in Germany, industrial relations in Japan, industrial relations in multinational firms, NAFTA, the European union, industrial relations in developing countries, should the U.S. import industrial relations practices from abroad? | Chapter 14 International and Comparative Industrial Relations McGraw Hill Irwin An Introduction to Collective Bargaining amp Industrial Relations 4e Copyright 2008 The McGraw Hill Companies Inc. All rights reserved. 1 3 14 3 International and Comparative Industrial Relations The U.S. has one of the lowest rates of unionization of any advanced economy and the rate of unionization has fallen faster in the past 30 years than any other industrialized country American management opposes unionism more than most other countries U.S. unions are less tied to politics than other western nations The trade deficit has emerged as a critical policy issue in light of regional trade pacts in recent years 1 4 14 4 Industrial Relations in Germany The distinguishing feature is codetermination Mandated by German law and applies to all enterprises whether or not they are union Two key parts to codetermination Employee representation on company boards and work councils Provides a parallel form of representation to employees that is in addition to the union representation 1 5 14 5 Board Representation German law mandates employee representation on supervisory boards The number of representatives varies by the size of the firm and industry with special provisions for coal and steel industries German firms have a two tiered board structure The supervisory board Aufsichtsrat is the higher ranked board It has the responsibility to control managerial performance and appoint top managers The lower managing board Vorstund runs the firm on a day to day basis Employee representatives to the supervisory board are elected proportionately from the blue and white collar workforce The law reserves two or three seats for unions 1 6 14 6 Work Councils Work councils are the second major component of the German codetermination structure Mandated by law for private firms with five or more employees Work councils have rights to information consultation and codetermination The law requires negotiation with

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