The Dynamics of Employee Relations Essay Example | Topics and Well Written Essays - 2250 words

The Dynamics of Employee Relations - Essay Example Historical Perspective In Britain’s history, three industrial relations systems have dominated during three distinct time periods. The collective laissez-faire system gave rise to trade unionism and industry bargaining, which lasted from about 1890 to 1960; crisis, reconstruction, and technological advances that led to mass layoffs and wage restraints between 1960 and 1980; and the single European market, deregulation, and erosion of economic autonomy, that led to the individualisation of industrial relations after the 1980s and until the present (Howell, 2000). The period 1890 to 1945 saw the most important developments in the role played by collective bargaining and trade unionism. Even prior to the 20th century, there were significant pieces of legislation passed that impacted on the legal obligations between employers and employees, such as the Employers Liability Act of 1880. By the 1900s a â€Å"new unionism† emerged that was characterized by more active union act ivity (particularly the use of strikes and â€Å"picketing†) and an increase in the number of members, accompanied by an increase in the employers’ recourse to the courts to file cases against trade unions. Generally, however, court rulings tended towards relaxation of the law in favour of the labour unions (Brodie, 2003). The entry of Britain into World Wars I and II created exigencies that impacted on government’s labour relations policy. Because of the importance of continued productivity to ensure an unhampered supply of the basic necessities, as well as the implements of war, the government took the stance that restrictive practices that tended to cause friction between employers and employees should be reduced, and cooperation ensured between them. This necessitated heavy government intervention. This was seen by labour as a relinquishment of some of their hard-won concessions. Initially this was left to voluntary means, but when this strategy failed, the state resorted to legislation that controlled profits, froze wages, banned strikes and lock-outs, and suspended restrictive practices. (Brodie, 2003). The post-war period, until the 1960s and 1970s, saw a bid to return Britain to its pre-war socio-economic normalcy. The policy pursued was consistent with the control exerted by the government during World War II, which was seen as highly successful and instrumental in tiding the country through the war. The Keynesian economic theory of state planning and intervention put into effect was accompanied with enhanced power for labour, which was warily greeted by industry. Some capitalists saw some wisdom in the strategy of the Labour government for economic regeneration through increased intervention, but stressed that this intervention must be tempered by â€Å"insulation from working class demands† (Price, 1990, p. 214). For the most part, however, capitalists held little sway over government policy at this time, with trade union ism being accorded