The purpose of the paper is to discuss some of the labor-related issues and labor relation in the market economies. The paper will analyze that how public sector affects labor relations, and it will analyze the process of contract administration grievance arbitration. There are contract negotiation impasses and their resolution issues that will be highlighted in this paper. Furthermore, the paper will discuss wage and benefits issues as well as non-wage issues in bargaining.
1. Wage and Benefits Issues in Bargaining
Wage and benefits issues are the mandatory subjects of bargaining and it is the center of attention at the bargaining table. There are few wage issues that are increasingly important as bargaining items, and those are wage and efforts, overtime rates, benefits and premium pay. Employees are more interested in their benefits and their basic wage rates. It is the reason due to which employee turnover rate is increasing because employees continuously seek for better opportunities to gain maximum premium pay (Chaison, 1986). However, the management is more concerned that the employees must be giving their maximum services. Thus, on the bargaining table wage issues become most important and greatest attention for both employees and company. It is because the company wants that the employee they are hiring will stay long with them and perform its best, but the cost of the employee remains low. On the contrary, an employee seeks for job security and benefits along with high premium pay. It is the point when problems start for both employees and companies as well (Rabin, 1988).
2. Non-Wage Issues in Bargaining
The issue arose when the non-wage benefits demands are not communicated well in bargaining. It is a matter of fact that non-wage benefits are not separated from living wage. To sustain a basic standard of life, workers’ demands for non-wage benefits as well. Therefore, in non-wage benefits safe and fair working conditions, health care coverage, paid vacation time and the right to organize work is included. It should be noted that non-wage benefits are not a privilege for the workers; however, it is a right to which workers are entitled, and they deserve to get the benefits (Holley, Jennings, & Wolters, 2011).
Within, it must be noted that the non-wage benefits issue is not highlighted as heavily as the demand for an increase in wages is getting upturn. Therefore, it will not be incorrect to state that the non-wage issues in bargaining ask for consideration for all those resources that both workers and their families need. It is the right of the workers and labors to get their non-wage benefits. It is the reason due to which this issue is raised in bargaining while asking for the living wage because it is according to the law that the labor should get the living wage. Living wage is in which the families of the labors can also get the living wage and other benefits to sustain the basic life necessities. To solve non-wage issues, there are labor unions that are concerned with the equality, ability to pay, and standards of living. These unions bring non-wage issues in bargaining for other labors (Chaison, 1986).
3. Contract Negotiations, Impasses, and Their Resolutions
Contract negotiation is a process in which a single spokesperson from two contracting parties negotiates on the contract provisions. It is the responsibility of the management of any agency that they develop the contract provision considering the long and short term effects on the agency, in which labor rights are also considered. However, the contract negotiators are the responsible persons who strive to bargain on their side’s interest (Rabin, 1988).
In contract negotiation process, there is an impasse that is a breakdown that happens when a conflict starts between labor and management. When on the proposed contract provision labor or labor unions disagree, then it becomes necessary that to resolve the disagreement a contract negotiation must be done. To do that discussion, persuasion and compromises are required between management and labor unions. There are few impasse resolution procedures that can be used for contract negotiation process (Holley, Jennings, & Wolters, 2011). Those are mediation, fact-finding, and arbitration. Within, it should be noted that Mediation is the intervention, which involves the third party to persuade another party to agree on the contract provisions. The third part is known as a mediator who proposes alternatives. Then, fact-finding step involves a hearing process in which arguments from both sides are considered, and a formal decision is taken by offering a compromise between them (Rabin, 1988). After applying these resolution techniques, the last step for contract negotiation is arbitration. It involves submission of the disputed provision for the binding decision to a third party. The reason to apply these steps to the contract negotiation is that labor and management must have to live according to the negotiated contract. Therefore, both make every effort to agree on the contract provisions without resorting to impasse their resolution (Holley, Jennings, & Wolters, 2011).
4. The Process of Contract Administration Grievance Arbitration
In the process of contract administration, both parties handle their contract administration. To conduct personal policies and practices according to the contract provision, it can be said that proper administrative tools are required. Sometimes conflicts arise due to the contract language because if it is unclear to another party then the clarification will be needed. Within, it should be noted that the arbitration applies to the contract administration process for public agencies, but the contract negotiation process is not (Rabin, 1988). When it comes to grievances, it can be said that it is filed by employees who are not satisfied with the contract provisions by the organization. Those employees who feel that their rights are violated in the negotiated contract file grievances against another party usually against the organization (Holley, Jennings, & Wolters, 2011).
5. How Public Sector Affects Labor Relations
The topic of public sector labor relations has become one of the major issues that have been discussed in a country where approximately half of the population works in the entities of a public sector. In that regard, relations of public sector labors needs a great level of attention comparing past years.
There are some regulations on the relations of a private sector in the United States. A federal legislation has been passed to regulate the relations of labor management in the private sector whereas the labor management regulations in the public sector are at mainly at a state level. Federal laws that regulate the labor management in the private sector have not been extended to the public sector and there is no separate federal law announced for the public sector (Holley, Jennings, & Wolters, 2011).
On the broader perspective, labor relations in the public sector in many regions in the world are in a state of continuous change, and the changes occur in new patterns in the manner of labor relations. The public sector is mostly influenced by the political factor of the country and politics plays a major role that affects the labor relations (Holley, Jennings, & Wolters, 2011).
6. A Survey of Labor Relations in the Market Economies.
The labor relations in the market of economies are discussed after every day in the economies. It is also believed that European countries occupy a wrong type of institutions of the labor market for the modern global economy. And, as a result, it is found that the outdated institutions raise the rate of unemployment and lower the rates of growth (Holley, Jennings, & Wolters, 2011). The policy that needs to be focused to handle the poor situation includes establishing unions and social security systems. Product market competitions are required to minimize the negative effects of unions.
Within, it should be noted that labor relations are also called industrial relations. The reason is that employers, workers and all other representatives of any organization are responsible to follow governmental rules to fulfill the governance of work relationships. Therefore, it will not be incorrect to state that the labor relations and the industrial relation are necessary for the growth of any company. After a survey, it can be said that labor relations system incorporate different values in which societal, traditional and other organizational values are included (Holley, Jennings, & Wolters, 2011).
Chaison, G. N. (1986 ). When Unions Merge. New York: Lexington Books.
Holley, W., Jennings, K., & Wolters, R. (2011). The Labor Relations Process. New York: Cengage Learning.
Rabin, J. (1988). Handbook on Human Service Administration. Pennsylvania: CRC Press.