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Unit 10: International Industrial Relations

2. Employers and their organisations: Employers employ expatriates, pay salaries and various Notes
allowances, provide a variety of benefits, regulate the working relations through various
policies, rules and regulations and by enforcing labour laws of the country. They expect
workers to follow rules and regulations, contribute their resources to the maximum to
achieve organisational goals and mission. The difference between demands of the workers
and employers results in industrial conflict. Normally employers’ power is higher than
that of their workers. But their power is undermined when compared to that of trade
unions. Employers form their organisations to equate (or excel) their bargaining power
with that of the trade unions. These organisations protect the interest of the employer by
pressurising the trade union and the government.
3. Government: Government plays a balancing role as a custodian of the nation. Government
exerts its influence on industrial relations through its labour policy, industrial relations
policy, implementing labour laws, the process of conciliation adjudication by playing the
role of a mediator etc. It tries to regulate the activities and behaviour of both employees’
and employers’ organisations, individual and group organisations.

Definition of Trade Union

A trade union is a continuing long term association of employees, formed and maintained for
the specific purpose of advancing and protecting the interests of the members in their working
relationship. Some argue that it also covers employers’ organisations and friendly societies.

10.1.3 Factors for Differences in Trade Unions Structure

Several factors are identified that may underlie the historical differences in the structure of the
trade unions in various countries:
1. The mode of technology and industrial organisation at critical stages of union development;
2. Methods of union regulation by government;

3. Ideological divisions within the trade union movement;
4. The influence of religious organisations on trade union development; and
5. Managerial strategies for labour relations in large corporations.

Table 10.1: Trade Union Structure in Western Societies

Australia general, craft, industrial, white-collar
Belgium industrial, professional, religious, public sector
Canada industrial, craft, conglomerate
Denmark general, craft, white-collar
Finland industrial, white-collar, professional and technical
Germany industrial, white-collar
Great Britain general, craft, industrial, white-collar, public sector
Japan enterprise
The Netherlands religious, conglomerate, white-collar
Norway industrial, craft
Sweden industrial, craft, white-collar and professional
Switzerland industrial, craft, religious, white-collar
United States Industrial, craft, conglomerate, white-collar

Source: Industrial Relations: Origin and Development (1986) p. 79

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