John Thomas Dunlop's Theory Of Industrial Relations

Register to read the introduction… For example, when the employer fixes wages for its employees, government’s legislation makes sure that there is a minimum wage clause taken into consideration and when unions bargain on collective agreement, they not only decide on the wages but also the extra benefits that the employees will get from the employer. This situation is affected by the environment it is dealt in. Suppose, there is recession in the market, the employer ends up making no profits, which effects the relations between the employer and its employees. That’s when the concession bargaining comes into play and the employer gets a relief by either deducting certain percentage of the employees’ wages or by laying off few employees, as discusses in the collective agreement with the union. But in case the employer was making huge profits because of the favorable environment, then the union steps in and negotiate on the collective agreement or for increased wages. Similarly, in case there is advancement in the technological environment (as everything is becoming tech savvy), and the employees can be replaced by the technology, then the employer becomes powerful, and the unions cannot negotiate much.
Last year, Sears cut down 245 jobs, outsourcing IT positions to India and the Philippines. This an example of how environment plays a role in the industrial relations. Due to globalization, new cheaper markets of untapped potential were discovered, which helped employers to make decisions like outsourcing the jobs as a cost efficient step. As a result, employers have the power in such scenarios and sometimes may yield in paying lesser compensation and recruiting employees in the home …show more content…
Works Cited

Suffield, L., & Templer A. (2012). Labour Relations, PH Series in Human Resources Management, 3rd Edition
Thomas, P.,(1959, December 19), Towards a General Theory of Industrial Relations, The Economic Weekly, p1729
Maimona, M., (2013), Sears Canada cuts 245 jobs, outsourcing IT positions to India and the Philippines, Retrieved August 20, 2009, from http://business.financialpost.com/2013/08/20/sears-canada-layoffs-india/
Ingram, D., (n.d), The Relationship between Systems Theory & Employee Relations, from http://smallbusiness.chron.com/relationship-between-systems-theory-employee-relations-22465.html
Dunlop, J. D., (1958), Industrial Relations Systems, p.