Page 161 - DMGT106_MANAGING_HUMAN_ELEMENTS_AT_WORK

Unit 7: Industrial Relations

be formulated not only at the national level through a tripartite process, but also at the Notes
industry level on a bipartite basis as between employers’ and workers’ organizations.
Whether bipartite policy formulation becomes a part of national policy depends largely on
the respective strengths of employers’ and workers’ organizations. In some of the
industrialized market economies there is a greater likelihood than in developing countries
of bipartite policy formulations being reflected in national policies due to the strength of
the employers’ and workers’ organizations. In Sweden, for instance, in the past, the agreements
between the union and the employers’ organization tend to be translated into national policy
instruments. The policies and methods of training of workers reflected what the two social
partners had identified as appropriate for the industry. Or again, in Belgium the State
recognizes the two social partners as the main formulators of social policy through collective
bargaining; even the social security system is managed by the two social partners. The
pervasive influence of bipartite arrangements is felt only where there is a ‘balance of power’
between the social partners. There is less likelihood of bipartism impacting on national
policy formulation in developing countries due to strong central governments in many
cases, and their assumption of the role of identifying the direction of economic and social
policies. The relative weakness of employers’ and workers’ organizations or of one of them,
or the inability of such organizations to agree on the fundamentals of what the labour
relations policy should be, often prevents bipartism from influencing national policy
formulation.
7.3.1 Freedom of Association
The fundamental premise of a sound industrial relations system is the recognition and
existence of the freedom of association accorded to both employers and workers. This
freedom should include recognition of organizations of workers and employers as
autonomous, independent bodies, subject neither to their domination by each other or by
the government. Observance by states of the basic principles of the ILO Convention relating
to Freedom of Association and Protection of the Right to Organize No. 87 (1948) is often
regarded as the yardstick by which a country’s recognition of this freedom is measured.

In essence, the Convention postulates that workers and employers, without distinction
whatsoever, have the right to establish and to join organizations of their own choosing with
a view to defending their respective interests, subject to national legislation which determines
the extent to which the guarantees in the Convention will apply to the armed forces and
the police. Such organizations have the right to draw up their own constitutions and rules,
to elect their representatives in full freedom, to organize their administration and activities
and to formulate their programmes. Public authorities are required to refrain from any
interference which would restrict this right or impede the lawful exercise of this right. The
organizations are not liable to be dissolved or suspended by administrative authority.
Organizations have the right to establish and to join federations and confederations which
are entitled to the same rights and guarantees, and to affiliate with international organizations.
The acquisition of legal personality by these organizations shall not be subject to restrictive
conditions. In exercising the rights provided for in the Convention, employers and workers
and their respective organizations are required to respect the law of the land, which should
not impair the guarantees in the Convention both in respect of its content and its application.

7.3.2 Tripartism and Labour Policy Formulation
Tripartism is the process through which the foundation for a sound industrial relations
system can be laid at the national level. Ideally, tripartism is the process where by the
government, the most representative workers’ and employers’ organizations as independent
and equal partners, consult with each other on labour market and related issues which are
within their spheres of competence, and jointly formulate and implement national policies
on such issues. However, this ideal situation is seldom reflected in practice, especially in
developing countries or in societies with fairly authoritarian governments which believe

LOVELY PROFESSIONAL UNIVERSITY 155