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Labor Law/Coll Bargaining - Term Paper Example

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Various issues including legal, cultural, political, and institutional mechanisms affect labor markets, like any other markets (Arup, 2006). Regulation of labor…
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Labor Law/Coll Bargaining
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Labor Law/Coll Bargaining

Download file to see previous pages... Labor market regulation is a difficult process because it is such a polarizing debate with two main opposing viewpoints, one which supports collective bargaining and regulation policies, and the other which lays emphasis on the benefits of promoting market processes such as demand and supply to control the labor market. The main objective of labor market regulations, however, is to ensure that the different approached used lead to improved social and economic outcomes.
Regulation of labor markets is an important process because of the direct impact that the labor markets have on the welfare of employees and their significant others. Various reasons for regulating labor markets include exploitation of employees, injustice, and market failures (Arup, 2006). There are both formal and informal ways of intervening in the labor market. Informal mechanisms include cultural processes that seek to maintain justice and eradicate exploitation. However, as societies grow and adopt complex economic and social systems, labor market regulation tends to lean towards formal approaches. There are two main mechanism of formal regulation in the labor market. These include direct intervention by the government and collective voice. Direct government intervention entails enacting statutes that control market processes in the labor market while collective voice involves two main approaches namely voluntary collective bargaining and representation of employees and employers trough unions (Hayter, 2011).
In the US, various political and economic forces have shaped labor market regulations over the years. Political ideologies and movements that have contributed to the development in labor market regulations include human rights movements, civil rights movements, the fight for equality, and feminism among others. It was not till the 20th century that developments in regulation of labor market began to take ...Download file to see next pagesRead More
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