Introduction

By the end of this chapter you should be able to appreciate

the subject matter of industrial relations is fundamentally about conflicts of interest between labour and capital

the reasons for such conflicts can be approached from three perspectives conflicts arise over issues of control (managerial relations) and reward

(market relations) conflicts are resolved through bargaining and the application of power there are differences in national systems as to how the issues of industrial

relations are approached by different parties there are debates as to the relative efficacy of different systems for

economic growth and the management of change in societies

In recent years many authors, especially in the United Kingdom (Basset and Cave, 1993) and the United States (Kochan et al, 1986) have pointed to an actual or potential crisis of industrial relations. A particular manifestation of this has been the focus on the weakening power of employee collectives vis-a-vis management and the declining influence of the voice of labour in state policy. This has been highlighted for Asia, Africa, Latin America (Thomas, 1995), although both change as well as continuity has been in evidence in Western Europe (Ferner and Hyman, 1998). As abroad generalisation these trends have been largely unquestioned, but many national studies indicate considerable diversity within regions. Past, and current, interest in studying diversity may have been out of intrinsic interest, however, for many, the focus on particular employment systems has been to appreciate how different systems affect economic growth and or social integration. As a consequence there have been particular models of employment relations that have been considered to be exemplary in promoting growth. Such model models have included Britain, Sweden, Germany and Japan and more recently some have argued that the best model for growth andjobs is the American model.

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Deregulation and flexible labour markets together with the application of micro level new managerial initiatives, including Human Resource Management, have been heralded as the new paradigm for national and corporate competitiveness.It has been argued that such approaches, with their potential to encompass change and offer co-operation in employment relations can enhance productivity and/or reduce unit labour costs and thereby contribute to domestic and international economic growth. Co-operative employment relations together with greater acceptance of the logic of competition are necessary to attract inward investment from multinational corporations (see Ohmae, 1994, 1995). Such logic has fuelled debates as to whether we will see convergence to univeral, `best practice’ model or whether we continue to see diversity in national business and industrial relations systems as well as in workplace practices. The position of the divergence school in an age of corporate globalisation is summarise by Whitley who asserts that

Indeed, in so far as the international economy doescontinue to become more integrated, it can be argued that societies with different institutional arrangements will continue to develop and reproducevaried systems of economic organization with different economic and social capabilities …(1999:1)

If we accept the declining capacity of the state to manage national economies, it is nevertheless important to recognise that the state has not withered away but continuesto be significant not least in its role in the cultural and political sphere. For some, the inability, or unwillingness,of the nation state to manage the national economy can potentially give rise to increasing coercion as large sections of immobile populations become discontent with the material insecurities arising from deregulated markets and acapital that has become globally free (see Bauman, 1999). However, this may not be the case for all nations.

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Nevertheless many governments, are re-orientating their roleto ensure that national labour forces and their representatives (in the form of trade unions) at best appreciate, and at worst do not undermine efforts to adjust to, the realities of the global marketplace. Through the pressure of globalisation, supra national institutions such as the World Bank, IMF etc or through a belief in the efficacy and irreversibility of the new global economic architecture the new imperative for governments is said to be to ensure a relatively smooth passage characterised by minimal resistance in the inevitable and desirable processesof economic globalisation (The Economist, 1997).

The imperatives of change, which commenced with the world economic crises of the 1970’s intensified in the subsequent decades owing to a variety of economic, political and technological upheavals (Munck, 2002). This has led to a common scepticism of the relevance of studying industrial relations. However the extent to which there is a single international trend in the relationships between trade unions, employers and governments is highly debatable, and the different arrangements and how they are responding to change is worthy of study. This not only allows us to appreciate why certain systems may be more enduring than others, but we can also consider the social, economic and political impact of different systems in responding to change.

Despite the indisputable change that continues to engulf many of the nations on this planet, it cannot be assumed, a priori, that the new pressures have dissolved old processes. Workplace change does not necessarily equate with the demiseof trade unions, indeed a `partnership’ with employers and the state may be deemed essential to manage issues concerning relative job security, and maintenance, if not increases, in real income and the social wage. Indeed such processes of the development of joint policies for managing change in difficult times may assist in consolidating the social partner approach rather than dissolving it (for

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discussion of the situation in European corporatist states see Visser, 1996, Ferner and Hyman 1998, European IndustrialRelations Observatory online). National industrial relationssystems may continue to exert significant influence on organisational employee relations practices. Furthermore, with increasing concern over corporatisation of the world, social movements and some trade unions rather than being instrumentally orientated towards national and organizational economic success, are raising `voices’ which questions the meaning of `success’ (for Brazil see Beynon and Ramalho, 2000). Yet in other nations (for Taiwan, South Korea, South Africa, and Eastern Europe see Lee, 2000, Kim et al, 2000; Bezuidenhout, 2002; Dovydeniene, 2002) democratisation forces may have opened up new avenues for labour influence. For `older’ industrialized economies the new pressures of change may be necessitating the need to develop an employment relations infrastructure that can process change, and the associated potential conflict to manage the challenges ahead (France, Italy).

We cannot assume a common response to common pressures. After completing a course on comparative employee relations it may be possible to appreciate the nature of diversity andhomogeneity of nation states, and the reasons and arguments for such. This requires not only that we investigate the changing role and response of trade unions, state and management but appreciate the fact that these three actors are not separate entities but interrelated, and constituted from particular national institutional structures which ensure the whole is more complicated than the sum of its parts. Clearly we cannot view or investigate the strategies of, and relations between, labour, states and management without due consideration of the nature and structures of labour markets, the business strategies pursued by national firms, the financial system, the political system as well asnotions of national identity and the meaning of citizenship.All these in turn have historical roots, which themselves have shaped the trajectory of different national formations.This raises the possibility that in some national formations

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trade unions are under threat, in others that they are defensive yet in others they are, or attempting to be, offensive. The exact nature of the direction, and potential power, of such response is uneven not solely due to the power and aims of organized labour but also how organized labour is interpenetrated in the societal system itself.

The aim of this chapter is not to provide detailed or rich country studies, this is rightly left to individual country experts. The summary of industrial and employee relations indifferent nation states is represented in numerous edited collections (eg Ferner and Hyman, 1998, Bamber and Lansbury,1998; Bamber et al 2000, Ruysseveldt and Visser, 1996). Thisis not to deny that there is a general paucity of English language material covering Latin America, parts of Asia and almost the whole of Africa and the Middle East. As the interest in the field of international and comparative industrial and employment relations and international HRM grows this gap is being filled (eg consider the recent special edition of the International Journal of Human Resource Management which was devoted to Africa). Rather this chapter aims to introduce students to employee relations and then to provide a broad coverage of the theoretical material and approaches that can assist in developing an appreciation of different systems of employee relations. The aim throughout will be to develop a conceptual apparatus for comparative analysis that may go some way to assist out understanding as to the sources of divergence and the potential pressures for convergence in national systems of employee relations.

No prior knowledge of the subject matter is assumed. Although each chapter commences with basic concepts and knowledge this is developed into a more nuanced and complex treatment of the subject. The following introduces the reader to the core concepts of employee relations as they appear in the Anglo-Saxon industrial relations literature.

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Core concepts in employee relations

Employee relations as a unit of study has been offered by many institutions of higher and further education, and it has been a core discipline for students on professional human resource programmes. Tutors generally report that students are averse to the subject and subject matter; many students question the contemporary relevance of the subject and find the subject matter difficult and demanding. It is important to deal with these issues at the outset.

What is the relevance of employee relations as a field of study? If we step back for a moment and consider that human beings are both the recipients (as consumers) and providers (as employees) of goods and services, many of which are provided by large organisations. While we as consumers expect reliability, quality and value in the goods and services we purchase, as producers we have other expectations not least of which is that we earn an income that will satisfy our basic needs (food, housing, clothing, energy) and those we have come to assume are basic (television, video, washing machine etc.). As producers we need to earn to satisfy our consumption needs, as consumers we expect that the goods and services will be provided. Froma management perspective this raises two issues.

Relevance of Employee Relations

Buyers and sellers of labour: convergent and divergent interests

First, employees hope to earn what is perceived as a `fair wage’ (however that is defined), but increases in wages can have a knock on effect in terms of the ability to compete (issue of prices) and generate a return to the owners of theenterprise (issue of profits). Second, managers need to ensure that the public they serve not only receives the goods and services, but reliability, quality and value are sufficient to ensure consumers do not take their custom elsewhere, or in the case of monopolistic industries,

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management issues do not enter into the political domain (e.g. in the reliability of transport, staffing of hospitalsand schools). So how does this very simplistic notion of theeconomy relate to employee relations? As sellers of labour we need to ensure we get, at least, a `felt fair’ return on the labour we provide to employers. On the other hand the buyers of labour (employing organisation) need to ensure that they can offer a rate which is sufficient to attract and retain labour whilst ensuring that accounting targets and expectations are met (budgets, return to shareholders etc). This is essentially a market exchange, and in the terminology or jargon of employee relations it is referred to as concerning `market relations’.

The issue of the rate for a job however can be established in a number of ways and these can be either unilateral, bilateral or trilateral. Unilateral setting of wages would include where the employer decides what to pay (probably based on how the employer wishes to place the organisation in relation to the market). A failure to pay a rate to attract and retain sufficient numbers can result in an inability to provide the goods and services which is the prime purpose of organisations. The government can also set pay unilaterally, though in cases other than minimum wages it rarely does, though it may attempt to control the level of increases that employee receive (through incomes policies). Bilateral would include where pay is decided between the employer and employee, and this can be negotiated individually between the employer and each employee (individual pay) or the between the employer or a group of employees (collective pay). In the former case differences in individual pay rates can give rise to dissatisfaction if individuals discover this. In the case ofcollective pay the employer need to discuss and negotiate the matter with representatives of employees, however in theevent of a failure to agree sanctions can be brought to bearand this can affect the ability to deliver goods and services effectively. In trilateral pay setting the government, employers and employee representatives are

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involved in pay setting and this can occur where the issue of wages is deemed to require central management to attempt to manage the competitiveness of the economy. However where there is a failure to agree and sanctions are being applied this can have a wide coverage, possibly bringing a whole economy to a standstill.

Managerial Relations

Human beings have a sense of dignity and self-respect. As a consequence it is important how employees are treated when at work. Most people do not dispute management’s `right to manage’, however the exercise of managerial authority needs to pay attention to employees expectations as to the manner in which such authority is applied – how workers are treatedat work matters. Thus the style management adopt to manage the employment relationship is important. Beyond the issue of management style is the fact that management cannot simply rule by decree but require to manage by consent. While there are areas where employee would generally consentto unilateral management decision making e.g. over issues regarding marketing, pricing etc. one could expect that where employees have a vested interest in management decisions that affect them they expect some form of acknowledgement, forewarning and certainty that their interests would not by adversely affected. This is perhaps clear in issues such as redeployment, redundancy, which affect their job rights. Organisation may decide which situations management must seek consent through communication (information dissemination), consultation (seeking views, and if necessary acting on them) and negotiation with employees. These issues have less to do with market relations but more to do with distinguishing between those matters where management has a right to manageand where management need to manage with consent. This non-wage area that defines the scope (what management can do without agreement from employees) and nature (how managementis expected to undertake their right to manage) of

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managements right to manage is referred to as that aspect ofemployee relations that deals with managerial relations. Thepoint at which management’s right to manage stops and the management with consent begins is defined as the `frontier of control’ and this can be depicted as below.

Figure 1: The frontier of ControlManagement right to manage Management with consent

Frontier of control

Figure 1 indicates that the arena of managerial relations isnot unproblematic in as far as a shift in the frontier wouldimpact upon the relative balance of unbridled management decision making. The exact point in the frontier then is determine, and is determined by, the relative power of each of the parties. Such power can derive prom the power resources that management and employees can command. Clearlythe power resources are a factor of the independent strengthof management and labour i.e. are employees formed into a collective, does the collective have unity or is it divided and fragmented and comprising factions that dilute its solidarity. Are management reliant on labour or is labour easily substitutable either through other labour or through labour replacement technology. Other factors, such as legislation also affect the power resources. This is not just a question of whether the management- labour is regulated but more an issue of who benefits from the nature of regulation. Other factors that need to be considered are the effects of the economy on power – is unemployment high or low? to what extent are there scarce skills? What is the current state of demand for goods and services? Finally we need to consider what social expectations are of legitimate management-employee rights and behaviour. All these factors can affect the balance of power between management and employees, between the state and employers and between stateand labour, which in all societies comprises the largest single group in society.

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The above show that there are many choices in the simple matter of setting wages, and creating the context within which an employer attempts to gain employee consent. The important point for the study and practice of employee relations is to appreciate two things. Firstly, the choices made can give rise to different impacts upon employee morale, organisational effectiveness and national competitiveness. Secondly, such choices can have an impact upon the degree of cohesion and integration at the level of the workplace, industry and indeed society. The analysis of choices raises interesting areas of enquiry into why particular paths has been chosen at a particular moment in aparticular workplace, organisation industry and indeed country. For a rich understanding one has to appreciate the constraints and opportunities informing decisions at a particular moment, and such an appreciation requires that the legacy of history of workplace, organisational, industryand national employee relations is taken into consideration.It is these three considerations that has sparked an interest in employee relations as an important area of activity and field of study.

Demanding and Difficult?

The above, which started from some straightforward propositions has become more complex, and it is here that weshould reflect upon the above and surface the themes that may comprise the subject matter of the field as a subject ofstudy. First we have raised the issue about conflicts of interests and how they can be managed. Second we have suggested there are a number of `actors’, and these have been referred to as management, employers, employees, trade unions, the state, government. Third we have suggested the prevalence of levels – workplace, organisational, industry, national, and supra (above) national.

Problem of Multidimensionality.

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This multi-dimensionality is not unique for the study of employee relations and indeed any study worth undertaking requires that we develop tools that enable deep understanding of dimensions. The demanding aspects of the subject are twofold. First, we need to develop knowledge andunderstanding of particular dimensions and then appreciate the inter-links between these elements. Second we need to apply such understanding in evaluating and analysing employee relations, which by the very nature of being a social activity premised on conflicting, and co-operative, interests is rather `messy’. To overcome this, as in all social science, we need to be able to make broad assertions,develop broad understandings and not expect that such understanding will address every real life employee relations encounter, but rather the understanding will allowus to interpret it.

Task 1.1

Consider you have obtained paid employment as a sales assistant. You go to work and your supervisor shouts at you, gives you the worst jobs, -you feel you are being picked upon.

Consider you have obtained paid employment as a sales assistant butyour supervisor asks you to clean the toilets, and then go and assist the cook with the cleaning of dishes.

Both the above issues are related to the issue of managerialdiscretion. This is not only about what rights should managers have to deploy staff but also about their style of management. The issues for students of employee relations relate to questions such as

What should be the limits of these rights?On what basis do we decide what is/is not acceptable?Who should be involved in defining the area of acceptability – other managers? The government? Employees’ representatives? A combination of all three? How do you account for what you think?

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Problem of InterpretationAs students and scholars, interpretation requires us to lookat and attempt to explain and understand what we see. This, whether we recognise it or not, requires us to apply theories. However, whichever theories we use we cannot escape the fact that theories are premised on assumptions, which may or may not be `correct’. The fact that the plural theories as opposed to the singular, theory, is utilised, indicates that there may be competing theories that attempt to inform our interpretation and understanding. One of the difficulties for students relatively new to the topic are essentially they do not appreciate that much literature theywill be referred to will be written from different perspectives and will utilise theories deriving from these perspective.

Task 1.2. Before proceeding complete the following forced choice questionnaire.

The following represents typical statements made by managers, trade unionists, workers and members of the public. They are arranged in four groups, each containing three statements. Tick the statement that is nearest to your opinion in each group. Even if you agree with two statements, select only one from each group.

Group A1. Firms are composed of competing groups each who differ in terms of their interests,

perceptions and expectations.

2. The firm in the final analysis is the exploitation of the powerless by the powerful.

3. The firm is like a sports team in that teamwork means success and success is to everyone’s advantage.

Group B1. Employees are socialised into accepting beliefs, assumptions and institutions that

limit their scope for conscious, collective choice and therefore change.

2. It is valid for employees to engage in action in order to achieve further their interests. Indeed conflict is to be expected in industrial organisations.

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3. The demands of employees are mostly founded on false beliefs, short-term thinking, which lacks an appreciation of the complexities of business. Indeed employees frequently act contrary to their true interests and sometime under the influence of the politically motivated.

Group C1. The role of management is to make decisions within a complex set of constraints,

and competing interests. This can only be achieved through orderly procedures and communication, consultation and negotiation with employees and their representatives.

2. Management are employed to make decisions, and indeed are the best people to make decisions for the benefit of all, including employees.

3. Management will only acknowledge different interest groups if these groups accept the fundamental aims of the organization

Group D1. Legal Regulation in industrial relations is acceptable, necessary and neutral.

2. Labour law is fundamentally aimed at avoiding industrial unrest, from which the only people that gain are the employers.

3. If enough people are determined to challenge, and not conform to the law; the law isredundant.

Exercise: Compare, contrast and discuss your answers with others.

Each of the statements are derived from a particular perspective – the unitary, pluralist and radical perspective. Such perspectives form the basis of our understanding of not only what the world is like but how different people would like the employment relations world to be. While the perspective are usually applied at the level of the firm one could also apply them in assessing howstates and populations view the area of employment relationsin societies.

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The unitary perspective sees society as one unit, which is, or should be, integrated and harmonious. This implies that people need to share common values as well as accepting their place in the whole. Thus those that have authority do so by virtue of their greater capacity to provide guidance and allocate resources for the benefit of all. In this conception the order and hierarchy of society and its organizations rational and functional to achieve agreed uponvalued outcomes. Management manage by virtue of their ability and their authority is therefore legitimate. Conflict in this conception is either due to miscommunication or misunderstanding, personality clashes ordue to irrational `troublemakers’. All is this is dysfunctional and for the proper functioning of the organization and society these dysfunctions need to be eliminated. Trade unions are therefore seen as undermining the right of managers to manage and subverting the authorityand loyalty structures necessary for co-operative endeavour.

The management style possible under a unitarist approach canbe either authoritarian or more paternal. In the case of managerial relation the implication is that management has the right to manage and employees the obligation to obey orders. The degree to which employers inform and consult depends however may vary according according to the extent to which employees are viewed as the organisational community or seen as an instrumental resource to be deployedat the whim of te employer in his/her pursuit of wealth and profit. In terms of market relations it may be argued that employers ought to share the fruits of wealth through a formof paternalism which may include numerous benefits includingpensions, leave schemes, loan schemes, housing, health care etc. Alternatively some may argue that employers’ only obligation is to pay the agreed rate (the market rate), beyond which they have no obligations to employees, indeed such obligations may even be seen as detrimental in as far as they increase costs and reduce competitiveness.

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The unitarist perspective is associated with political systems that do not countenance opposition, which may be metby repressive or benevolent authoritarianism. The essential difference between the two is the degree to which the state retains control through the repressive apparatus of the state (eg police or army) or maintains control through appeals to some idea of a mandate derived from traditional religious or cultural values

The Pluralist Perspective, the pluralists see society and indeed organization comprising of many rather than one interest group. From this perspective it is only natural that groups will have differing interests, values and goals,and indeed not only is this legitimate but is to be expected. The objective of management (organisational or societal management) is to manage these tensions and competing claims through a variety of roles institutions andprocesses to ensure that the structures continue serving theneeds of most. Conflict is viewed as natural, inevitable andtherefore to be managed. It may even be seen as functional in as far as conflict propels competing claims to be settledthus ensuring a state of change. For pluralists where conflict threatens the survival and continuity of the systemitself, as in an attempt at revolutionary change, it is seenas dysfunctional. In this context trade unions, providing they pursue the interests of their members within the systemand do not attempt to fundamentally alter it are seen as necessary and desirable organisations. Thus in the case of managerial relations employees have a legitimate right to constrain unbridled managerial action which may work againsttheir interest, while in market relations employees are acting rationally in seeking to negotiate better terms and conditions attached to their employment.

The pluralist perspective is closely associated with the notion of liberal democracy where the pursuit of differing interests in society is seen as legitimate providing such interests are advanced through democratic processes of voting representatives to the legislature and government and

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also by forming into associations that may act as pressure groups with the ability to monitor, campaign and lobby.

As Reid (2002:1) argues in relation to Britain

“it is…time …to re-examine the case for the value of strong trade unions in liberal democracies. .. The assumption which still underlies much public discussion, that all power should lie with the national legislature, would be seen by political pluralists as a dangerous doctrine likely to lead to parliamentary dictatorship… However, another fundamental feature of liberty in a large-scale society is the effective representation of the diversity of interests it contains. At this point the negative emphasis of political pluralism on checking the power of the central state turns over to reveal a positive emphasis on the importance of constructive conflict and negotiation between different points of view and different ways of life ...One major guarantee of this process normally expected in a liberal democracy would be a dynamic opposition party, but …with massive parliamentary majorities….pluralists would argue, other sources of power outside the immediate domain of party politics have become even more vital: for example, independent mass media and effective voluntary associations…. Thus, far from being sinister threats, trade unions are an increasingly vital guarantee of all our liberties and of the possibility of a genuinely democratic public life.

The radical Perspective

The radical sees society as composed of a class structure inwhich societal divisions are based on those who works the productive apparatus of society and those who own them. The workers clearly need to be paid, kept acquiescent and healthy but the principal purpose is to ensure that the goods and services produced by workers, as efficiently and effectively as possible, can be exchanged in markets for prices that cover costs and ensure profits. Such profits (orsurplus) is reinvested to repeat the accumulation cycle, as well as being consumed by the owners of the means of production, and their agents, to support their lifestyles.

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Competition gives rise to the need to extract ever more productivity from workers and to ensure that wages do not affect profitability, This means that conflict is intrinsic to such societies. Indeed conflict at workplace reflects wider societal structures of differential power and wealth. Until workers realise their position in such a system there can be no change, and realisation can only come through politicisation. The main bodies through which such politicisation can be realised are through workers’ organizations, and thus trade unionism should be a politicalactivity associated with developing class consciousness. In this view the role of activists is to raise political consciousness as well as to mobilisation and agitate

Table 1.1 Main features of Industrial relations perspectives.

Frame of Reference

Unitary Pluralist Radical

View of Society/ organisation

Integrated Multi-structured/competitive

Conflict intrinsic owing to societal divisions

Authority/Conflict

Single authority/loyalty structure

Conflict owing to poorcommunication/trouble makers

Conflict leads to dynamism – functional/dysfunctional conflict

Conflict at workplace reflects wider societal structures. Therefore ought to be politicisedto achieve social change.

Integration Set of common values interests and objectives

Different interests, possibly common values

Trade unionism as political activity associated with class consciousness

Management Prerogative legitimate, rational and accepted

`Management by

Need to manage via roles, institutions, processes –

`Management by

Trade unionism at workplace part of political process to achieve change. Role of activists consciousness raising,

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right’ consent’ mobilisation & agitation

Assumption ofnatural state

Harmonious Inevitability and rationality of conflict

Conflict arising from structural basis of society that is essentially exploitative

Operating Code

Conflict unnecessary Conflict controllable Conflict structural

Few authors will explicitly state what their predilections are, and for the new student unaware of the contested natureof analysis in this field, reading and understanding is unsurprisingly difficult, if not confusing. However, a recognition and appreciation of the contested nature of analysis and interpretation is the first step to gaining success in your endeavours. However, it is the hope of many tutors than an engagement with the area will enable you to understand and develop a `voice’ on contemporary debates about the direction of employment and its impact upon us andfuture generations who inhabit the world of work.

Exercise

The following examples are selected statements from the web sites of the main employers organisations and trade unions in three continents- Africa, Asia and Europe. To appreciate the significance of perspectives in international study you should compare and contrast the extent to which the statements represent unitarist, pluralist and radical views.Use the criteria identified in table 1.1.

DGB (Peak German Trade Union Centre) Policy and Influence of Members

Action by the trade unions means primarily negotiating withemployers and politicians. The DGB, however, sets its own

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initiatives in motion, such as the recent national compulsory insurance scheme for chronic nursing care. It devises regional and job-creation programmes, acts as a moderator in traffic initiatives, assists in Third World projects and supports cultural centres, youth cafés and child care initiatives. Recently, it has increased its involvement in campaigns against racism and xenophobia and initiated demonstrations of its own.

The DGB´s members are unified trade unions and have no allegiance to political parties or religious denominations.They are politically independent but not neutral. They fight for democracy and human rights and are opposed to political extremism.

BDA (German Employers’ Federation) Orientation

Today, employers' associations as well as German trade unions are institutions recognised by the Constitution, thesociety and the public. This recognition calls for a responsible collaboration with the State and in society on the part of these organisations. Whilst their function remains the effective representation of the interests of their respective members, they should not forget the general interests of the society of which they form part.

The BDA is dedicated to the free democratic order, to free enterprise and to social justice. Such a system relies on afree market economy, on private ownership and on competition between entrepreneurs as well as on the responsible co-operation between free organisations of employers and trade unions. BDA is convinced that, under the conditions in which we live, this system satisfactorily fulfils the needs of consumers and secures for the individual the highest measure of personal freedom achievable in our technical age.

Singapore’s national Trade Union Congress’ five pillars

Enhance Workers' Employability for Life

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Our workers must strive to be employable throughout their working life. Through skills upgrading, workers will become multi-skilled, highly productive and adaptable to changing work environments, so that they can take on better paying jobsof the future. Strengthen Competitiveness The labour movement, employers and the government must strengthen tripartite partnership to meet greater challenges in the 21st century. Then our economy can grow, our companies can be profitable, and our workers can be fully employed. The tripartite partners will have to harmonise the interests of workers with the needs of employers. Build Healthy Body, Healthy Mind Our workers must not only work hard, but must also have a fulfilling and healthy lifestyle. We will improve on our rangeof social and recreational facilities and develop new locations Care More, Share More We care for the welfare and well-being of retired workers and senior citizens who have contributed to our economic development. We also care for the less fortunate in society byadopting welfare homes and raising money for charity. Develop a Stronger Labour Movement We must remain strong so that we can continue to play a meaningful role in the economic and social development of Singapore in the 21st century. We need to enlarge our membership and at the same time, spot talented unionists and groom them for leadership positions.

SNEF (Singapore National Employers Federation)

Our Mission To help employers achieve excellence in employmentpractices and strengthen the employers' role in the tripartitepartnership.

Our Vision To be the Employers Vanguard in preserving industrial harmony in Singapore so as to enable employers to enhance their workforce competitiveness, improve the quality of worklife of their employees, and fulfil their obligations to their shareholders, employees, consumers and Singapore.

SNEF provides services to employers in these key areas:

1. Industrial Relations (IR) consultancy on employer-employee relations, union management negotiations and employment

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issues such as labour legislation, wage systems, medical and social benefits.

2. Human Resource Management (HRM) consultancy on compensationscheme designing, cost-effective benefits programmes development, performance appraisal system and talent management.

3. Benchmarking of occupational wages, service increments, bonuses, employee benefits, and other employment terms and conditions.

4. Providing executive development programmes, in-center and in-company training programmes on human resource development, industrial relations, safety & health, qualitymanagement, and Critical Enabling Skills Training Programme(CREST).

5. Funding of SMEs for HRM Consultancy under the Standards, Productivity and Innovation Board (SPRING)/ SNEF Approved-In-Principal (AIP) Local Enterprise Technical Assistance Scheme (LETAS).

Our core services help both unionised and non-unionised companies to enhance harmony in union-management relations, employer-employee relations, productivity and competitiveness at the enterprise level.

COSATU ( Congress of South African Trade Unions)

Cosatu was launched in December 1985 after four years of unity talksbetween unions opposed to apartheid and committed to a non-racial, non-sexist and democratic South Africa. At our launch we represented lessthan half a million workers organised in 33 unions. We currently havemore than two million workers, of whom at least 1.8 million are paid up.Even by international standards we have been among the fastest growingtrade union movements in the world. Today when most trade unions arefacing a decline in membership, we have continued to grow.Our main broad strategic objectives have always been:

To improve material conditions of our members and of the workingpeople as a whole

To organise the unorganised To ensure worker participation in the struggle for peace and

democracy 1. Principles

From its inception, the federation is based on the following coreprinciples:

Non-racialism - COSATU rejects apartheid and racism in allits forms. We believe that all workers, regardless of race,

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should organise and unite. Now more than ever before we needto bury the apartheid legacy.

Worker control - COSATU believes that workers must controlthe structures and committees of the federation. Thisapproach aims to keep the organisation vibrant and dynamic,and to maintain close links with the shop floor. We haveprogrammes to develop worker leadership, especially women,within the trade unions and the country as a whole. Throughtraining we have been able to build and empower ordinaryworkers. We try to develop the skills and abilities of thosemost disadvantaged by apartheid. We want workers to beequipped to determine their own future in the country and inthe economy. In a country where women have been highlyoppressed, we are determined to strive for gender equalityand women leadership.

Paid-up membership - COSATU and its affiliated unions strivefor self sufficiency. This means that while we receive moneyfor specific projects from other trade unions, we remainable to take our decisions without interference fromfunders. While it has not been easy, we remain committed toits full realisation.

One industry, one union - one country, one federation - Inorder to unite workers across sectors, we have grouped ourunions into industries. Our 6 th National Congress resolvedto merge unions into cartels or broad sectors such as publicsector and manufacturing (see list of unions). We alsoremain committed to unity with all unions and federationsthat are committed to, among others, these principles. Atthe same time, for as long as there is no single federation,we have no choice but to recruit even those workers whobelong to other unions and federations.

International worker solidarity - International solidarityis the lifeblood of trade unionism - particularly in the eraof multinational companies. COSATU maintains links with arange of national and international centres. We arecommitted to building links with unions in the newlyindustrialised countries. New international conditions openpossibilities for a unified union movement.

2. Political PolicyCOSATU believes in a democratic society free of racism, sexism andthe exploitation of the working class. We believe in a societywhere workers have full control over their lives. We aredetermined to work with other democratic forces to do away withall forms of oppression and exploitation.

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Business South Africa BUSINESS SOUTH AFRICA (BSA) is a confederation of employer and business organisations in the country and currently has nineteen members. BSA acts on behalf of these organisations on national issues where it is believed that collective action will be to the benefit of employers. Decision-making on policy is reached by consensus, with all members having equal status.In terms of the criteria for membership of BSA, an organisation can joinif it:

is exclusively comprised of businesses (including business organisations) and/or employers (including employer organisations);

stands for and defends the principles of free enterprise; is a free and independent voluntary organisation which is not

subject to control or interference of any kind from any governmental authority;

is non-racial; has national significance, inter alia, in terms of the national

income and the organisation's impact on the economy as a whole; and

is able to obtain mandates from its affiliates. BSA policy and positions are developed by means of a committee system. The Governing Body, on which all members are represented, is BSA's highest policy-making structure, while a smaller Executive Committee deals with the day-to-day operations of the organisation. Both these structures are headed by the BSA Chairman who is elected by members for a one year term of office. A Board of Trustees, comprising senior business leaders in the country, offers guidance and advice to the Governing Body when necessary. In addition, BSA has two Standing Committees which deal with matters of social and economic policy and three specialist Committees which consider education and training, SADC-related issues and ILO activities and regional labour affairs.BSA represents the views of its members in the National Economic, Development and Labour Council (NEDLAC) and its representatives are members of all the NEDLAC structures.BSA's activities are not limited to the national arena, and the organisation is a member of the International Organisation of Employers (IOE) and the Pan-African Employers' Confederation (PEC). BSA is also involved in the activities of the International Labour Organisation (ILO).

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BUSINESS SOUTH AFRICA operates on a non-profit basis and represents the collective interests of business in South Africa in respect of economic and social policy. BSA pursues this objective by:

Acting for and on behalf of its members; Promoting the development of an economic and social system based

on the principles of justice, the market economy, individual entrepreneurship and equal opportunities;

Initiating and influencing legislation in the interests of members;

Acting as a caucus for its membership in appropriate forums and bodies;

Arranging representation on behalf of member organisations, or nominating representatives of member organisations, to commissions, committees or other institutions in accordance with decisions taken by members;

Affiliating with relevant international organisations and bodies and representing member organisations in international bodies;

Acting for its members at national and international levels; Communicating and consulting with members on important

international affairs which may impact on South African business interests; and

Giving attention to the role of small and medium business enterprises in all sectors and to the development of linkages between large, medium and small businesses to the benefit of the economy as a whole.

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3. Bauman, Z. (1998), Globalization: The Human Consequences. Oxford: Polity Press.

4. BDA accesses February, 2003 at http://www.bda-online.de/www/bdaonline.nsf/EnglishFrameSet.

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5. Beynon, H, and Ramalho, J. (2000), `democracy and the organisation of class struggle in Brazil’ in L. Panitch and C. Leys (eds), Working Classes: Global Realities. London: The Merlin Press.

6. Bezuidenhout, A. (2002), `towards global social movement unionism? Trade union responses to globalization in SouthAfrica’ in A. Jose (ed), Organized Labour in the 21st Century. Geneva: ILO.

7. BUSINESS SOUTH AFRICA accessed February, 2003 at http://www.nedlac.org.za/about/bsa.html

8. COSATU accessed February, 2003 at http://www.cosatu.org.za/docs/aboutcos.htm.

9. DGB accessed February, 2003 at http://www.dgb.de/sprachen/englisch/work_and_structure.htm#02.

10. Dovydeniene, R (2002), `trade union responses to globalization in Lithuania’ in A. Jose (ed), Organized Labour in the 21st Century. Geneva: ILO.

11. Ferner, A and R. Hyman (1998), Changing Industrial Relations inEurope (ed). Oxford:Blackwell.

12. Global economy, local mayhem? Rioting workers in South Korea, France, Argentina and elsewhere make it look as ifglobalisation must be a disaster for jobs, The Economist , 1997 Jan. 18.

13. Kim, D, Bae, J and Lee, C.(2000), Globalization and Labour Rights: the case of Korea. Asia Pacific Business Review Vol. 6 Spring/Summer 2000, Nos 3&4. Pp. 133-153.

14. Kochan, T., Katz, H and McKersie, R. B. (1986), The Transformation of American Industrial Relatios. New York: Basic Books.

15. Lee, J. (2000), `changing approaches to employment relations in Taiwan’ in Bamber, G, Park, F.; Lee, C.; Ross, P. and K. Broadbent (eds), Employment Relations in the Asia Pacific. London: Thomson Learning.

16. Munck, R (202), Globalisation and Labour: the new `Great Transformation’, London: Zed Books.

17. National Trade Union Congress (Singapore accessed February, 2003 at http://www.ntuc.org.sg/myunion/5pillars/5pillars.html.

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18. Ohmae, K. (1994), The Borderless World. London: Harper Collins.

19. Ohmae, K. (1995), The End of the Nation State. London: HarperCollins.

20. Reid, A, (2002), Trade unions: a foundation of political pluralism, accessed March 2003 on History and Policy home page at http://www.historyandpolicy.org/main/policy-paper-05.html

21. Ruysseveldt, J and Visser, J. (1996), Industrial Relations in Europe: Traditions and Transitions. London; Sage.

22. Singapore National Employers Organization accessed February, 2003 at http://www.sgemployers.com/.

23. Whitley, R. (1999), Divergent Capitalisms: The social Structuring and Change of Business Systems. Oxford: Oxford University Pres.

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