Chapter 1: Labour
Relations Theor and
Comparative
Perspectives
IND S RIAL PS CHOLOG 314
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, 1: I O
Learning outcomes
After completing this theme you should be able to:
explain the different levels where labour relations take place
explain the term "labour relations"
explain the nature of labour relations
explain the contribution of the different labour relation's theories to the field of
study
explain the field of study of labour relations by using an open systems
framework
L R :
o The mutual t o- a relationship bet een emplo er and emplo ee in the
orkplace
o It includes both formal and informal relations
o The relationship also involves a third and more silent partner: the state
Labour relations happens at man levels:
o Interpersonal level: bet een t o people (supervisor and orker) and the
state (labour la s) in the background
o More comple level: the relationship bet een organised groups at a
orkplace ith the state providing rules of the relationship and acting as
an intermediar
o Industr level: broader interaction bet een emplo er organisation and
trade unions, ith the state pla ing a similar role as the lo er level
Therefore, labour relations doesn t just focus on the individual relationship
bet een an emplo er and a single emplo ee, but is greatl concerned ith
collective relations bet een trade unions and emplo ers and their organisations
Labour relations encompasses all aspects of the dynamic and diverse relationship between
employees, employers, and the state. A relationship that arises from their ongoing interaction at
the workplace and the use of various strategies and tactics, especially power, to shape
outcomes to their own or mutual benefit.
Labour relations is a broad, interdisciplinar field of stud that encompasses all
aspects of the emplo ment relationship
Labour relations also encompasses a stable, on-going activit at the orkplace
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, Nature of labour relations:
o Confrontational
Confrontation can be visible direct ph sical and emotional - hen
orkers la do n tools
o National debates
When confrontation is more political and ide-ranging (debates
bet een trade unions and emplo er organisations regarding
legislation)
o Subconscious societal d namics
Such as racism, discrimination and se ism are covered b labour
relations
o Interdisciplinar
Economics, politics, ps cholog and la are some disciplines that
support the stud of labour relations
o Orderl and Constructive / Disorderl and Destructive
Emplo ers and emplo ees have divergent interests and objectives,
et, the also have a strong interdependence
o Co-operation and conflict; po er and interdependence
Understanding the d namics of po er bet een emplo ers and
emplo ees is critical in labour relations:
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, Ho did it start?
o Labour relations developed out of the first industrial revolution due to the
need for mass production
o Factories required people to operate machines leading to the emergence
of orkers
o Emplo ees ere placed in ha ardous situations for long hours
o This process as met ith resistance due to the appalling orking
conditions
A brief description of the main influences in shaping the understanding of labour
relations:
L R :
1. F M E
Emphasised natural la s of economics, hich shaped the conditions under hich
labour and capital interacted in the emplo ment relationship
Labour = commodit , subject to the la s of suppl and demand
No justification for special treatment for orkers, intervention b government also
criticised
The invisible hand (Adam Smith) of the market as seen to be orking in the
best interests of orkers and societ
2. M ,C C
Mar sa capitalism as leading to povert and alienation through e ploitation
In order to make profit out of orkers, capitalist forced orkers to ork long
hours at lo ages to produce goods hose market value e ceeded this value
this e cess as termed surplus value
Because surplus value could onl be produced b labour, Mar believed it
belonged to orkers, not to capitalists
During this process of e ploitation, orking conditions = intolerable. Workers
became alienated from the product of their labour and ultimatel from
themselves (stifling creativit )
Because of this e ploitation and alienation, Mar believed a
ould develop to unif the orking class against the capitalist
class
He thus supported the formation of trade unions. Mar and Engels felt that trade
unions ould mobilise the masses and pave the a for the revolutionar
overthro of the capitalist s stem b the orking class
Lenin felt trade unions ran the risk of being co-opted into capitalist institutions
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