There are seven industrial relation foundations outlined by John W.Budd, which include legal environment, economic environment, technical environment, political environment, social environment, business context and institutional context. These industrial relation foundations help us determine the employment outcomes which result from interactions between “employees and employers in the sociopolitical strategic, functional and workplace tiers of the employment relationship shaped by the environment”. (Budd, 2011, 47) According to statistics Canada there has been a long term decline in union density, which Is the percentage of the workforce that is unionized. There are many factors that can contribute to the decline of union density in Canada
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The economic environment involves the labour market, market of employer’s product and services, market for other factors of production and the overall macro-economy.(Budd, 2011, 51) This means the quantity demanded or supplied is unaffected when the price of the goods or service change. This occurs when the labour skills are difficult to replace and when demand for products and services is less responsive to price. When the labour market is constricted by employees who have special and unique skills, the unions will have higher bargaining power. In contrast, when unemployment and layoffs are high, the labour supply is more likely to be more elastic, which would allow the employers to benefit from smaller wage changes and lower the union bargaining power. (Budd, 2011, 51) Therefore, due to the economic environment with ample amounts of jobs arising, the bargaining power of employees has become high, which will cause the labour supply of the workers to be more inelastic and employers to compensate higher wages. (Budd, 2011, 52) Union density has declined throughout the years as employers do not want employees to strike and demand for higher wages, thus, they intend to keep specialized employees employed with fair wages and …show more content…
The government has created laws that provides protection to the workers such as non-discrimination law and minimum wage laws. With the help of these laws and regulations workers are less likely to be targeted and unsatisfied in the workplace which would lead to less unions. Also, the United States National Labor Relations Act has a specific steps the United States employees must follow in order to be recognized as a union. Due to these long and detailed procedures, workers may have given up on trying to become a union and rather negotiate for their wages, working conditions and labour hours individually as it would be a faster approach and less of a hassle. Additionally, common law regulations determine balance between efficiency, equity and voice of the employees. (Budd, 2011,50) Regulations such as tax law which affects business and employment decisions will impact how much the employees are paid and how the working conditions. Also, law judgements placed to lawfully treat employees right while they are picketing, allows workers to freely picket without worrying that employers will fire them in a limited amount of time. This negatively impacts the employers as they would be losing valuable time of production and labour to meet demands of consumers. Thus, with the help of the legal environment of Canada and United States the employees now feel more
The economic environment involves the labour market, market of employer’s product and services, market for other factors of production and the overall macro-economy.(Budd, 2011, 51) This means the quantity demanded or supplied is unaffected when the price of the goods or service change. This occurs when the labour skills are difficult to replace and when demand for products and services is less responsive to price. When the labour market is constricted by employees who have special and unique skills, the unions will have higher bargaining power. In contrast, when unemployment and layoffs are high, the labour supply is more likely to be more elastic, which would allow the employers to benefit from smaller wage changes and lower the union bargaining power. (Budd, 2011, 51) Therefore, due to the economic environment with ample amounts of jobs arising, the bargaining power of employees has become high, which will cause the labour supply of the workers to be more inelastic and employers to compensate higher wages. (Budd, 2011, 52) Union density has declined throughout the years as employers do not want employees to strike and demand for higher wages, thus, they intend to keep specialized employees employed with fair wages and …show more content…
The government has created laws that provides protection to the workers such as non-discrimination law and minimum wage laws. With the help of these laws and regulations workers are less likely to be targeted and unsatisfied in the workplace which would lead to less unions. Also, the United States National Labor Relations Act has a specific steps the United States employees must follow in order to be recognized as a union. Due to these long and detailed procedures, workers may have given up on trying to become a union and rather negotiate for their wages, working conditions and labour hours individually as it would be a faster approach and less of a hassle. Additionally, common law regulations determine balance between efficiency, equity and voice of the employees. (Budd, 2011,50) Regulations such as tax law which affects business and employment decisions will impact how much the employees are paid and how the working conditions. Also, law judgements placed to lawfully treat employees right while they are picketing, allows workers to freely picket without worrying that employers will fire them in a limited amount of time. This negatively impacts the employers as they would be losing valuable time of production and labour to meet demands of consumers. Thus, with the help of the legal environment of Canada and United States the employees now feel more