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Unit 7: Industrial Relations

conditions of work are some of them. Traditional industrial relations systems based on the Notes
concept of a full-time employee working within an enterprise is increasingly inapplicable
to the many categories of people working outside the enterprise. In some countries in terms
of numbers they are likely in the future to exceed those working within an enterprise.
Industrial relations in the public sector, especially in the public service, where negotiation
rights, for instance, are less than in the private sector, is also likely to be an issue in the future.
7.5.8 Women
The increasing influx of women into workforces has raised issues relating to gender
discrimination, better opportunities for them in relation to training and higher-income jobs
and welfare facilities.
7.5.9 Migration
There is a large migration of labour from labour surplus to labour shortage countries in
Asia. Among the issues which have arisen are their legal or illegal status (which may affect
their rights), trade union rights and their access to the same level of pay as nationals. Social
security for migrant workers is one of the major problems as many receiving countries do
not extend the benefits of social security to them.

7.5.10 Human Resource Management
With increasing reliance by employers in Asia on human resource management as a means
of enhancing enterprise performance and competitiveness, important consequences will arise
for industrial relations and for unions. What part unions can and will play in human resource
management and whether industrial relations and human resource management will operate
as parallel systems (if so what their respective roles will be) or become integrated (especially
since the distinction between industrial relations and human resource management is
becoming blurred) are some of the issues which will have to be addressed.
7.5.11 Transition Economies

In countries in transition to a market economy major challenges and issues have arisen,
principally because they are seeking to adapt to an industrial relations system in which, for
instance, employers’ organizations and union pluralism were unknown. Unions in such
economies may play a welfare role, and sometimes a supervisory one, rather than a negotiating
role. Managements and unions in such a system participate not so much in deciding terms
and conditions of employment, but in applying decisions which are largely made outside
the enterprise. There is less scope in a centrally planned economy for tripartite dialogue
between government on the one hand and independent organizations of workers and
employers on the other. In a market economy decisions are for the most part made within
the enterprise, and where they are made externally, they are generally the result of discussions
with workers’ and employers’ organizations representing the interests of their members vis-
a-vis each other and with the government. The government creates the framework in which
the social partners are consulted on matters directly affecting the interests they represent,
and the social partners seek to influence the economic and social policy formulated. Labour
relations are based largely on the principle of negotiation between the two social partners,
and the outcomes are usually recognized by the State so long as they do not conflict with
national laws or with fundamental national policy.
Another reason for the critical role of industrial relations in an economy in transition is the
absence or inefficiency generally, during the process of transition, of safeguard mechanisms
(such as for dispute prevention and settlement) at the national, industry and enterprise
levels, to channel differences and disputes into peaceful means of resolution. The disputes
therefore can involve considerable work disruptions and sour the environment needed to
achieve sound industrial relations, and there by also retard the achievement of overall
development objectives.

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