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Role Of The State In Employment Relations Economics Essay

Nowadays the role of the state in employment relations should be significant in all countries, as current situation of the sphere of employment and the crisis all over the world demand more attention of the state considering this problem. This interference will help make a certain equilibrium in the employment sphere, as there have been made many changes recently and people were not protected from losing their jobs and reduction of their salary. This should be taken under control to provide the boost for the economy and to support people in difficult times.

Scientific predictions regarding the functions, roles and tasks of the state in society and in particular in the field of labor relations were also described the latest issue of American historiography. There is also a debate about the prospects of trade unionism: unions will remain a critical part of a liberal-democratic state and an effective tool for managing labor relations or lose their value? Predicted and the possible fate of the state regulation is the likely extent of its activity in this sphere.

Separation of American historiography (largely conditional) on the conservative and liberal lines is gradually giving way to consensus - the merging of positions within single liberal-democratic frameworks for understanding problems.

The predominance of consensual trend due to several factors, among which are the following two: The U.S. has a difficult transition from an industrial to a post-industrial phase, and the country seeks to maintain a leading position in the global market.

American researchers recognize that in a deep change in the economy, of society, industrial relations reforms are needed in both the political structures and traditional patterns of state regulation of labor relations. Many believe that the future state as a mega system, as a traditional shock absorber of the socio-economic interests and influences will control (in various forms) the most important vital processes of the country and address fundamental questions of its development. Regardless of the alignment of political forces, economic and ideological environment in the future state will retain an active role in society.

Both conservative and liberal scholars acknowledge that the emergence of post-industrial era requires the establishment of a qualitatively new social contract, the formation of a new concept of collective bargaining, a new level of cooperation between labor and capital, new functions for the government. In this case, however, there are put forward the forms and methods of updating a broad spectrum.

For conservatives, a new social contract is submitted outside the trade union movement, at the level of individual contracts, where employers and workers are united in a single framework for the conduct of affairs in the enterprise. Conservative direction as a whole recognizes the inevitability of the functioning of macro-economic structures of the state for funding and implementation of major projects, guarantees of certain social benefits for workers (health, welfare, unemployment insurance), but with absolute efficiency.

Representatives of the institutional school (liberal) 90-ies, like their predecessors in the late XIX - cc., bring to the fore the need for radical social reforms within the liberal-democratic model of the U.S. Criticizing the current system of governance, they believe that there will be the need to reform labor laws, proceedings, pension and social insurance, education, training and retraining of workers, taxation, including a scheme of the budget allocation of finance, etc.

The model of government in the traditional liberal-democratic scheme is a mixed economy with preservation of competitive markets with strict government regulation of those areas that cannot be managed by the private sector.

The symbiosis of government and business, merging of political and economic structures seems to them the most effective and viable mechanism of corporative regulation. This management principle is expressed in the formula of “government without a business” - tyranny, as a business without the government is piracy.

Researchers in both directions (conservatives and liberals) believe it is essential to achieve economic success of the country’s improved relations between labor and capital. A new era of technological discoveries shifts the emphasis from the individual mind to collective cooperation. An important element of strengthening the economy and labor relations is the expansion team, the integration of labor and capital on a new basis. It is not a tactical (vertical) level (as was the case in the institutionalization of trade unions in the socio-political system of the country) allowing gambling under the terms of wages and social benefits, as a strategic (horizontal), after working out common goals and objectives of the labor and capital in a highly competitive foreign goods, the need for economic survival of enterprises.

To improve the profitability of recommended transfer of the workers, we need a greater share of participation in decision-making not only within the shop, but within the entire enterprise. The gap is the wage and the degree of responsibility for the fate of the company between workers and management is perceived as the destruction of the spirit of the team by splitting the company into “us” and “them. Liberal scholars, of course, go further than their colleagues and conservatives, believing that to change the established order of things can only the government.

A central objective of the state in regulation of the labor relations is the establishment of effective mechanisms of participation of workers in managing production. This is proposed to introduce tax breaks for businesses, where workers are co-owners of income shares, for example investor production.

The unifying concept of conservative scholars and progressive direction for the future of labor relations and functions of the state is to recognize the need to democratize workplaces, management principles to ensure economic growth and productivity, as well as the shift from traditional vertical management systems in horizontal, multi-jobs, acting on based on highly efficient teams.

Such a scheme largely integrates the functions of working with the lower and middle layers of management, combining them into one mobile labor link. Working largely decides production tasks that were previously the sole responsibility of managers. The new principle of organization of labor equalizes the social status of workers, eliminates the previous chain of command, and brings professional interests. Scientists and policy associated expansion of these production systems with the traditional function of the state to provide labor and capital, moral and psychological and financial support.

U.S. researchers believe the best long-term scheme of labor relations corporative model, in which the State allocates funds, are to determine the most important problems of the relationship between labor and capital (using the formulation of medium and lower levels of administration of enterprises). The direct implementation of recommended programs entrusted to the private sector, together with corporations and labor unions or labor collectives.

A number of forecasts and recommendations on the future regulation of labor relations can be attributed solely to the liberal direction. So, as a new scheme is proposed to transform the government from the observer into a participant in negotiations between labor and capital (just as happens in England).

In order to increase the productivity of labor there should be put forward the idea that the state shareholder companies, for example, can purchase of some of the shares. Obtaining the same rights to vote in the Board of Directors in making decisions will protect long-term interests of the region, the effectiveness of agreements between labor and management. This practice already exists in several states, particularly in Indiana. In the future, the state purchased shares must be transferred directly to employees of companies to provide them with greater power, improved regional employment, higher wages, and labor productivity growth. In fact alleged scheme socialization enterprises, which is a more distant prospect than the other projects associated with the expansion of the role of the state.

An important postulate of liberal scholars is to strengthen the State’s responsibility for training and retraining, increased its share in the financing of this process.

The current system of training employees at the expense of companies, trade unions and the state is not very efficient. In the new system of training needed not only the industry but also the service sector. American studies show that a significant portion of employees, despite the availability of education in the traditional school is not capable of quality performance of their duties.

For further training or retraining of staff I. Apelbaum and Beth R., researchers on industrial relations, offered to create a strong local institutional framework, which will provide at the level of employment flexibility in responding to technological change.

To this end, it is expected to introduce a network of preparatory structures based on small firms, social organizations, trade unions, colleges, local labor organizations. This system will combine the preparatory committees of labor and management, existing at the enterprise level.

Its funding should be provided directly from the federal budget. The enterprise must be allocated by the state special grants and to award a contract obligating employer to provide training and retraining of workers. To the public purpose funds are not expended by financial institutions on their needs, recommended that the state administration does control functions for the audits of spending money on the ground. This practice has already been successfully implemented in the states of Illinois and California.

An important mission of the State is the introduction of continuous monitoring of manpower, especially the unemployed and underemployed, in order to change their skills and orderly redeployment into new industries.

With regard to wage and price policy of the state’s liberal and conservative scholars differ widely. The formula is based on a conservative research retrenchment in real wages, coupled with the devaluation of the dollar against foreign currencies in order to improve the trade balance due to American goods which are cheaper on world markets. The scheme, being effective in the short term, in the long term may adversely affect the living standards of most Americans.

According to Robert B. Reich, professor of political economy in the John Kennedy School at Harvard University, the practical consequence of this will encourage corporations to make dilution of labor, dismissal of older workers without benefits and pensions, the reduction in the number of employees, cuts in real wages (due to assignments in the collective bargaining process with the trade unions), the expansion of scope of two-tier wage system, etc.

In the long term reduction in domestic payments Americans will inevitably lead to the equalization of living standards of working the in the U.S., Brazil, South Korea. Reaching competitiveness of American goods, especially the automotive industry products, America as a whole, says Reich, will be much poorer.

Today, some recommendations and forecasts of the U.S. are unlikely. Remember, however, that the model of public administration in general and labor relations in particular, proposed at the end of XIX century. Liberal American intellectuals, too, seemed then the “irrational” and have been implemented only in 30-50-ies of the XX century. State should be more flexible in decisions of its role in employment relations, considering the constant changes in the economy. With this in mind, the concepts and ideas of their colleagues nowadays requires careful consideration. It is also important for countries that are in search of their own schemes and principles for the management of production and social relations.

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