Role of the State in British Industrial Relations Since 1980 - Essay Example

Role of the in British Industrial Relations since 1980 Table of Contents Introduction 3 Discussion 3 Conclusion 8 References 10 Introduction Industrial relations in Britain have been characterized as voluntarism because of low level of legal regulations during 1980s. Since 1979, the industrial relations in the British system have been reformed by continuous interventionist legislation symbolized with labour market attempts and re-regulation to foster a competitive economic environment. Such reforms have had intense effects on British industrial relations from 1979-1997. The reforms were initiated by Conservative Governments during this period. The most important reason due to which the reforms took place was the emergence of socialist movement in the labour market. Before 1970, wage slavery was very prominent in Britain and France. The industrialists and factory owners had the ability to hire and fire workers and managers in order to fulfil their personal interests and benefits. The socialist movements and implementation of Marx’s theory began to spread widely in the industrial sectors after 1979. It is important to understand the reason for interference of the state in employment relations. The changing roles played by government of different political parties in Great Britain have been very important, while shaping the industrial relations. This essay explains about the rules and regulations that have influenced the employment relationship and the role of the state during the interventions. Discussion The state has played many important roles while changing the industrial relations in Britain from 1979-1997. For example, the police and military have been deployed during strikes and courts have passed laws and judgements in order to change the relationships between employees, unions and managers. The state particularly has initiated policies and implemented legislations to control the power of industrialists. The main motive of the state is to preserve workers interest and develop an industrial atmosphere where factory owners and workers both can work peacefully. The workers union have been observed to be aggressive in the 20th century because of emergence of the socialist movements. As suggested by Carl Marx in his theory “there should be equality in the society for betterment of people.” Undoubtedly, Marx’s theory attracted many people along with workers of different organization but the practical implication of the theory is inappropriate. The appeals made by workers union have forced the state to take steps in changing of industrial relationships in past (Williams and Adam-Smith, 2010, p.29). The main objective of the state interventions were maintaining high levels of employment, maintaining balance of payment surplus, ensuring price stability and protection of the exchange rate. In Britain, there has been a similarity between the labour party and the trade union movement in the past. Both the parties recognized themselves as two different wings i.e. political and industrial working-class movement. Since 1979, several laws have been incorporated by the state in order to change the industrial relations. For example, the state intervention provided an opportunity for employers to develop plan for their benefit because it was essential for the country’s financial growth (Smith, 1984, 56). On the other hand the intervention also protected the labours and managers interests working in organizations. This shows that the state played very important role while developing the industrial relations. In the 1970s the state was acting as voluntary, rather than interfering in the perspectives of industries. During this period, the strikes and social unions gathered at a higher level because employees and employers were completely unmanageable (Hayek, 1980, p.78). Both employers and employees did-not have the similar level of understanding, which resulted in occurrence of revolts. From 1979-1997, the state has been acting more like interventionist, rather than voluntary. The state not only looks after the public interest of organizations moreover it acts appropriately, when required. Undoubtedly, the reforms occurred as a result of participation of conservative government, which aimed to reduce the power of unions but the reforms helped in the modernization of industrial relations. The central role of the state in changing the Industrial relations can be explained based on institutional development. In order to overcome the problems associated with industries in the mid-1980s several methods have been implemented by the state. The state took a stand to enforce and systemize institutional changes. The State made attempts to explain authoritative interpretation of crisis related to industries. The state found methods to solve the action problems collectively for employers as well as unions. The state also formulated craft alliance to anticipate among private industrial actors. Based on the problems associated with the industries and employee management the state introduced standard protocols, which were made mandatory for employers as well as unions to follow. Despite the initiatives made by the state, it is important to recognize that there is no single Regulation theory. From a socialist perspective the movements carried-out by the unions were important because it led to implementation of policies that were not in existence previously. Similarly, there are several methods incorporated by the government and the state of Great Britain because there was a need generated by the socialist movements. The conflicts that occurred previously had drastic effects in the industrial developments. Both employers and labours had to suffer due to the difference in purpose while working in the industries. Undoubtedly, the state made some efforts to organize the working environment of the industries with the help of essential actors. The important actors were the employers, workers and their organizations because they work together for the formation of a workplace. The state recognized the problems the industries had faced prior to 1980s and implemented policies that improved the working culture of industries after 1997. Between the years 1979 and 1997 several changes were recorded and it was observed that the interventions by the state occurred as a result of socialist movements carried out by the unions in the favour of left-wing (Clegg, 1979, p.146). The state has not only helped in the changing of the industrial relations but it has also helped in the settlement of several disputes. Since 1975, the services offered by the Advisory Conciliation and Arbitration Service have protected Employment Act. Between 1997 and 2010, the labour government has modified. Initially, the government was introduced by the conservatives. However, the Industrial relation laws introduced by the new government helped in the formation of modern-day industrial policies. As per the new regulations of industries both the employer and employees are required to follow the policies incorporated by the management. The changes helped in reduction of strikes and helped in proper working of industries. The social unions have helped in the development of modern policies for organizations (Undy, 2001, p.12). The socialist movements organized by the labour forces had a different motive in the beginning but with constant interference of the state the movements have been proved to be beneficial for both employers and employees of organizations. Britain was the first country to industrialise; hence it has the longest history of unionism. After the Second World War, majority of the union movements were conducted by the white-collar workers of public sectors. After 1960, most of the unionised movements were conducted by workers, working in the private sectors. After the installation of machines, skilled workers were not entertained in the private sectors. Workers with low-skills were preferred because they had to be paid comparatively lower wages (Miliband, 1973, p.36). The progressions resulted in the occurrence of unionised movements and strikes were the most common results that were observed. The socialistic movements followed by Marx’s theory emerged as a result of economic and social misbalance in the society. The main perspective of the socialistic movements was to get attention of the government. The state played a very important role while reducing the disputes occurred in the industrial sectors. The labour party was at constant increasing distance itself from the unions during the mid-1980s. The labour party attained the distance because it was securing funds from business sectors (Burkitt, 1981, p.27). The scenario became worse when individual unions refused to affiliate themselves with the labour party. The individual unions were the worst sufferers as they were completely on their own and the industrialist had proper chance to relieve them from their work. The labour party helped and supported only those unions that were affiliated with the labour party. Since 1980s, British employers have developed greater managerial power regulated at higher levels. The reduction in unionism and competition in product market became the major changes that occurred during the period. The gradual shift happened in the organizations because of the interventions incorporated by the state. The government legislations also helped in the progression of the industrial changes. According to Russell D Lansbury, the collective bargaining coverage has been reduced on a great scale in 220 compared to 1970. In 1970, the collective bargaining covered 70% of British workers however in 2006, the public sector covered 83% of British workforce and the private sector covered 14% of the workforce (Coates and Topham, 1988, p.38). From the figures it is clear that the collective bargaining is constantly changing. The character and shape of the collective bargaining has also changed largely in the private industries. Single table bargaining of labour unions increased after 1990. In 2004, 60% of the workplaces appreciated single-table bargaining for unions. Negotiations were conducted in many industries with the management and unions in order to reduce the conflicts that previously occurred in the organizations. The socialist movements have helped in the formation of unionism for workers and it has developed the working atmosphere of several industries. In the mid-1980s, most of the private sector industries had different policies for their workers to adhere (Minford, 1982, p.24). After 1997, most of the industries have policies that are common for employees. The common policy adherence has also helped in reduction of disputes because workers do-not have a chance to feel any discrimination after the incorporation of the measures. In 1999, a national minimum wage was introduced according to standard guidelines mentioned by government and the state. The implication of the minimum wage policy was a positive contribution towards fairness in workplace. The disputes that aroused previously as a result of wage discrimination reduced after the introduction of the policy. Gender inequality was one of the work issues that have been taken care in the 21st century but there are some issues that are still required to be focused in order to overcome the problems associated with fairness of work. Workplace bullying and harassment was a major problem in the past in most of the industries. However, the modern policies have been helpful in reducing the challenges associated with harassment. The worst problem in the industries of 19th was racial discrimination. Racial discrimination was not only practised in the industries, it was also effective in the society. The government and the state of Great Britain fought continuously against the ill-effects of racial discrimination (Allen, 1971, p.92). The socialist movements associated with the left wing also focused on the issues associated with racial discrimination. In the year 2004, most of the British industries made attempts to reduce the challenges associated with racial discrimination and with the help of the state intervention the problem has finally come to an end. Conclusion Based on the above discussions, it is clear that the role of the state in British industrial relations since 1980s has been optimum. The Industrial relation system has experienced substantial change from 1979 to 1997. Initially the state acted as volunteer and finally the system changed to state intervention. The socialist movements were important while enhancing the working atmosphere of the industries. The implementation of court jurisdiction during strikes conducted by labour unions was one of the most important efforts made to reduce the conflicts that occurred in the industries, prior to 1980. The labour party and the trade union were two most important wings for workers. Both the wings gradually separated due to difference in their working methods and change in their objectives. The state has helped in reducing the conflicts that occurred between employers and workers of industries. The state mandated some laws and policies that were strictly made to be followed. The most important initiative the government and the state of Great Britain initiated was National Minimum Wage, introduced in 1999. The disputes between workers and employers automatically decreased after the implementation of standardised wage slab. Hence, it can be concluded that the role of the state in British industrial relations has been very important since 1980s. References Allen, L., 1971. The Sociology of Industrial Relations. London: Longman Group. Burkitt, B., 1981. Excessive Trade Union Power - Existing Reality or Contemporary Myth?. London: Penguin Books. Clegg, H. A., 1979. The Changing Systems of Industrial Relations in Great Britain. London: Routledge. Coates, K., and Topham, T., 1988. Trade Unions in Britain. London: Spokesman. Hayek, F., 1980. Trade Unions and Britains Economic Decline. London: Sage. Miliband, R., 1973. The State in Capitalist Society. London: Merlin Press Limited. Minford, P., 1982. Trade Unions Destroy a Million Jobs. London: Kogan Page. Smith, K., 1984. The British Economic Crisis. London: Penguin Books. Undy, R., 2001. New Labour and New Unionism, 1997-2001. London: MCB Employee Relations. Williams, S., and Adam-Smith, D., 2010. Contemporary Employment Relations. London: Oxford University Press. Read More