HRM231 S1 2024 Employment Relations & Industrial Relations PDF

Employment Relations & Industrial Relations Unit Learning Outcomes Describe the key principles of Singapore’s legal employment framework. Discuss the statutory employment laws in Singapore. Explain how legislations has been used to improve standards for...

Employment Relations & Industrial Relations Unit Learning Outcomes Describe the key principles of Singapore’s legal employment framework. Discuss the statutory employment laws in Singapore. Explain how legislations has been used to improve standards for workers. Illustrate how the legal employment framework is used to resolve employer-employee concerns and disputes. Demonstrate the role of the Ministry of Manpower in labour market policies. Analyse how the practice of tripartism in Singapore affects employment relations. © 2024 SUSS. All rights reserved.  HRM231 Study Unit 1 Perspectives and Evolution of Employment and Industrial Relations © 2024 SUSS. All rights reserved. S1 - 2  Introduction By the end of this unit, you should be able to: Define and understand the meaning of employment and industrial relations. Describe the three employment relations SU 1 perspectives Understand and apply the Dunlop's model to explain employment and industrial relations in Singapore Explain the origin of the industrial relations system in Singapore – tripartism. © 2024 SUSS. All rights reserved. S1 - 3  Employment vs. Industrial Relations Employment and Industrial Relations look at the interactions between labour and management to establish the conditions of employment. The employees are generally viewed as an asset, capable of generating value for the organisation and in doing so, it is the responsibility of management to actively engage and empower the employees to realise their potential. This does not mean that there is no conflict of interests between the employer and employees. These conflicts can be reduced through crafting effective human resource policies and procedures and ensuring its consistent implementation across the organisation. © 2024 SUSS. All rights reserved. S1 - 4  Employment vs. Industrial Relations Some ambiguity ER → much broader & exists in both unionised and non- unionised companies – human resource management IR → used more from a unionised perspective involving collective bargaining and is seen to be a subset of ER – work rules - substantive and procedural in nature © 2024 SUSS. All rights reserved.  Employment Relations Perspectives Perspectives are like a frame of reference Refers to a person’s perspective on the world Comprises the assumptions, values, beliefs and convictions we draw on to interpret and understand the way things are and why they happen. Important tool for understanding why people behave the way they do in employment relations Managers’ frames of reference shape the way they approach ER, workers’ frames influence how they respond to authority, governments’ frames shapes laws. © 2024 SUSS. All rights reserved. S1 - 6  The Three Frames There is no one way of viewing the world of work - rather, people will make judgements on the basis of their own assumptions and beliefs’ – Unitarist – Pluralist – Radical/Marxist Are you a unitarist, pluralist or radical? © 2024 SUSS. All rights reserved. S1 - 7  A unitarist perspective: HRM What is the unitarist perspective? – Assumption of a common purpose and shared goals, with no fundamental conflict of interest between labour and capital. – Conflict is an aberration, the result of: poor communications poor management – Unions are seen as an unwelcome intrusion: compete for the loyalty of employees – Role for strong management © 2024 SUSS. All rights reserved. S1 - 8  A unitarist perspective: HRM Unitarism Assumptions about workplace relations - management and employees share common interest - one source of legitimate authority (management) Assumptions about workplace conflict - aberration, destructive, to be avoided - caused by poor management, dissidents, agitators or poor communication Assumptions about trade unions - a competing with management for employee loyalty - an unwarranted intrusion in the workplace - create conflict where none would otherwise exist Assumptions about collective bargaining - creates and institutionalizes unnecessary divisions of interest - serves to generate workplace conflict rather than resolve it © 2024 SUSS. All rights reserved.  Approaches Approaches within unitarism: – scientific management (Taylorism / scientific management): work study / one best way establishment of work rules. – human relations (Mayo / Hawthorne experiments) emphasis on work groups and social relations at work less importance given to economic incentives. © 2024 SUSS. All rights reserved. S1 - 10  The analytical tools of HRM HRM is the modern form that a unitarist approach to ER typically takes, that is: – the management of the employment relationship primarily from the perspective of the employer. This can be seen in the main focuses of HRM: – plan human-resource requirements – recruit and select employees – train and manage employee performance – reward employees – dismiss or retire employees. © 2024 SUSS. All rights reserved. S1 - 11  What are the criticisms of unitarism? A narrow approach that neglects causes of conflict. Fails to explain the prevalence of conflict within organisations. Does not account for uneven distribution of power among employees and employers in the decision- making process. © 2024 SUSS. All rights reserved. S1 - 12  A pluralist perspective First, what is the pluralist perspective? – Conflict is inevitable: competing interests between the parties. – Power is diffused among the main bargaining groups within the employment relationship: no-one group dominates. – Trade unions are viewed as providing a mechanism that legitimates employees’ rights to bargain within the workplace. – The State is regarded as an impartial entity, whose primary function is to protect the ‘public interest’. © 2024 SUSS. All rights reserved. S1 - 13  A pluralist perspective Pluralist Assumptions about workplace relations - managers and employees have different objectives - multiple sources of legitimate authority Assumptions about workplace conflict - inevitable, caused by different opinions and values, benefit to an organisation - avoid by accepting trade unions, include in decision-making Assumptions about the workplace role of trade unions - not the cause of conflict - are expression of diverse workplace interests that always exist - a legitimate part of workplace relations Assumptions about the role of collective bargaining - deals with problems on a collective basis - most efficient means for institutionalizing employment rules - fairer outcomes by balancing employee and management power © 2024 SUSS. All rights reserved.  What are the criticisms of pluralism? Power is not evenly diffused: – it is typically weighted towards management in the workplace. Emphasis upon rational approach to conflict management – that conflict can be readily managed through rules, regulations and processes © 2024 SUSS. All rights reserved. S1 - 15  A radical [Marxist] perspective What are the common features of radical perspectives? – Fundamental and inherent conflicting interests between management and workers. – Uneven distribution of power between bargaining groups, within the workplace and society. – The role of trade unions - to challenge managerial control. – The State protects the interests of capitalists. © 2024 SUSS. All rights reserved. S1 - 16  A radical [Marxist] perspective Trade unions are seen both as labor reaction to exploitation, as well as a weapon to bring about a revolutionary social change. Marxists regard State interventions via legislation and the creation of industrial tribunals as supporting management’s interests. Consequently, employee participation, cooperative work culture and the like are not acceptable to the Marxists. © 2024 SUSS. All rights reserved.  A radical [Marxist] perspective Marxist Assumptions about workplace relations reflects a wider class conflict between capital and labor and the coercion of working class into a dominant capitalist values Assumptions about workplace conflict - inevitable, capital seeks to reduce costs, workers seek fairer price for labor – conflict can only cease by revolutionary change in distribution of property and wealth. Assumptions about the workplace role of trade unions – should raised the revolutionary consciousness of workers – should not limit action to improving material lot of workers – union leaders who accommodate management betray the workers. Assumptions about the role of collective bargaining – merely offers temporary accommodations – leaves important managerial powers intact. © 2024 SUSS. All rights reserved.  What are the criticisms of a radical perspective? Preoccupied with conflict: – obscures any cooperation or shared goals between management and workers. Class struggle not part of modern capitalism. Capital is not homogenous: – competition among capitalists. Under-estimates the independence of the State. © 2024 SUSS. All rights reserved. S1 - 19  Industrial relations Practical focus Generally pluralist in orientation Focus on rules Systems approach popular in IR. © 2024 SUSS. All rights reserved. S1 - 20  Systems approach to ER / IR Dunlop (1958). Derived from wider systems approach, i.e. actors, contexts, inputs, outputs Central function of IR is the determination of workplace rules System comprises: actors, contexts, ideology, web of rules Actors interact in various contexts to produce rules that enable the system to keep functioning. © 2024 SUSS. All rights reserved. S1 - 21  Dunlop’s ER / IR System Model 1-22 Four key features: 1. Actors specialized government agencies managers and their representatives non-managerial employees and their representatives 2. Shared Ideology set of ideas and beliefs held by the actors helps to bind or integrate the system together © 2024 SUSS. All rights reserved. S1 - 22  Dunlop’s ER / IR System Model 3. Contexts environmental factors that influence actors technology market/budgetary constraints distribution of power in the larger society 4. Rules the regulatory framework, developed by a range of process and presented in variety of forms which expresses the terms and nature of the employment relationship. © 2024 SUSS. All rights reserved. S1 - 23  A simplified version of Dunlop’s Approach to IR Environmental Forces Outcomes Participants in the System 1. Market or Budgetary Restraints Workers Rules of 2. Technology Management workplace 3. Distribution Government of power in society Feedback © 2024 SUSS. All rights reserved. S1 - 24  More on Actors We must pay attention to the parties in rule-making in employment relations – People All have different values, motives and past experiences Because they are all different, would probably make different choices in the same situation – Organisations Are also all different from each other Different purpose, history, governance, goals All these factors impact on what response to a given situation will be chosen To explain patterns of employment relations, we must therefore understand people and their organisations © 2024 SUSS. All rights reserved. S1 - 25  More on Contexts Dunlop identified three interrelated contexts: 1. Technology 2. Market or budgetary constraints 3. Power relations and status of the actors These three ‘contexts’ have emerged and re-emerged many times as being important explanatory factors in the quest to understand patterns of employment relations in different nations, industries and enterprises © 2024 SUSS. All rights reserved. S1 - 26  Technology, markets and power The nature of the technology, markets and distribution of power in society generally impacts on employment relations: – fixed or variable workplace – stability of workforce and operations – job content – schedules and shifts of the workplace – number of competitors – availability of substitute products – sources of supply – consumer demand The nature and distribution of power, e.g. role of the State determines the relative power and status of the actors © 2024 SUSS. All rights reserved. S1 - 27  The Tripartite GUM Model Dunlop’s model has been extended and re- labelled GUM model (government, union and management) to reflect Singapore’s tripartite situation. 6 key features: -- Strong informal and formal networks of communication - The government playing the central role as policy maker -- Outcomes: economic growth, political stability, harmony -- A single federation of trade unions -- Symbiotic relations: government and union leaders -- Win-win problem-solving approach © 2024 SUSS. All rights reserved. S1 - 28  Reflection Question Is tripartism a unique feature of employment relations in Singapore? Is the Singapore situation an "ideal" one? This may be discussed by using Dunlop's model. ("Ideal" from whose perspective and expectation: workers? management? government?) © 2024 SUSS. All rights reserved. S1 - 29  Origin of the ER / IR System ▪ Achieved self-government in 1959 and task of developing the economy was defined by a number of limiting factors: ✓ Few natural resources to support either primary industry or an industrial sector ✓ Little local capital for development ✓ Small size of population meant a dependence on external rather than a domestic market for goods and services produced © 2024 SUSS. All rights reserved. S1 - 30  Origin of the ER / IR System ▪ Two basic and interdependent pre-requisites emerged for success in economic development: ✓ The need for capital, and ✓ The necessity of a stable and attractive workforce to attract such investments to Singapore © 2024 SUSS. All rights reserved. S1 - 31  Origin of the ER / IR System ▪ From the outset, Government has played the central role in creating and expanding the industrial base and, it follows, in developing the IR system of Singapore ✓ Deliberately defined the concepts, legislation, institutions and procedures to achieve a peaceful and stable IR climate attractive to investors © 2024 SUSS. All rights reserved. S1 - 32  Origin of the ER / IR System ▪ Imperative that the Trade Union Movement be incorporated as a co-operative rather than an adversarial force ✓ Government determination to develop a close working relationship with union leaders with the understanding that the worker's well-being was inextricably linked to the development of the nation © 2024 SUSS. All rights reserved. S1 - 33  Origin of the ER / IR System ▪ Imperative that the Trade Union Movement take a non adversarial approach toward employers: ✓ The creation of jobs depended on attracting investors to set up companies in Singapore © 2024 SUSS. All rights reserved. S1 - 34  Origin of the ER / IR System Labour Management Government Thus the necessary foundation of the IRS was defined: Cooperation among the three parties, labor, management and government for mutual gain © 2024 SUSS. All rights reserved. S1 - 35  Summary A new spirit of tripartism was thus born, with the government, a responsible labour movement, and enlightened employers adopting a consultative problem-solving approach to address the challenges of industrialisation for the mutual benefit of employers, workers, and society. © 2024 SUSS. All rights reserved. S1 - 36  Singapore’s ER / IR transformations Transformations have been in response to the state of the world economy, although partly precipitated by immediate local and regional crises. ▪ The first was a result of commitment to industrialisation by a Government released from the constraints of colonial administration. ▪ The second was the result of pre-empting the employment effect of the withdrawal of the British military base from Singapore. ▪ The third was due to a realisation that if the standard of living of Singaporeans were to continue to rise, MNC investment had to shift to high technology, high value-added production. These three transformations involved institutional changes that have determined the infrastructural arrangements for the fourth. Chris Leggett, The fourth transformation of Singapore’s industrial relations © 2024 SUSS. All rights reserved. S1 - 37  Four periods of transformation in Singaporean ER / IR ▪ Colonial Administration to Regulated Pluralism (1960-67) ▪ Regulated Pluralism to Corporatism (1968-78) ▪ Corporatism to Corporate Paternalism (1979-97) ▪ From Industrial Relations to Manpower Planning Ref: Leggett C (2007), ‘From Industrial Relations to Manpower Planning: the transformations of Singapore’s IR’, International Journal of Human Resource Management, Vol 18, No 4, 642-664. © 2024 SUSS. All rights reserved. S1 - 38  Colonial Administration to Regulated Pluralism (1960-1967) During Colonial rule the basic objective was to maintain worker dependency, and suppress conflict High levels of industrial conflict during 1940s/50s attributed to infiltration by Malaysian communists With self-government, the PAP (nationalists) put collective bargaining on a legal footing, and establish the Industrial Arbitration Court; also use union registration in attempt to control unions 1963 landmark dispute with two Public Daily Rated Employees’ Unions who had called an unlawful strike. Both unions de-registered in 1966. Anti strike provision for public servants introduced. The PAP-supported National Trades Union Congress is established and emerges as the peak body. © 2024 SUSS. All rights reserved. S1 - 39  Regulated pluralism to Corporatism (1968-78) Withdrawal of British military bases posed serious economic challenges; needed to redouble efforts to attract MNC business; imperative to industrialize Government legislates to make the Singapore workforce attractive to investors: low wages, no disputes, functional flexibility (no negotiation over workplace issues); union decline begins Establishes Tripartite National Wages Council (SNEF and NTUC incorporated) NTUC becomes a ‘transmission belt’ for government imperatives, especially productivity improvements Mediation, conciliation, and compulsory arbitration (strikes illegal) © 2024 SUSS. All rights reserved. S1 - 40  A Definition of Corporatism “a political structure…which integrates organized socio-economic groups through a system of representation and cooperative mutual interaction at the leadership level and of mobilization and social control at the mass level” (Panitch, 1977,p66) i.e. a POLITICAL rather than institutional arrangement in which sectional interests voluntarily subordinate themselves to a national interest. Ref: Panitch L (1977), ‘The Development of Corporatism in Liberal Democracies’, Comparative Political Studies, Vol 10, No 1, 61-90 © 2024 SUSS. All rights reserved. S1 - 41  Corporatism to Corporate Paternalism (1979-1997) Government objective to restructure Singapore economy towards capital intensive, high tech, value added business; In face of tight labor markets NWC boosts wage levels to choke off increase in employment, and force productivity increases; NTUC restructured to form industry wide unions, then enterprise unions (following Japan); Some notable disputes e.g. Singapore Airlines flight crew. Resulted in public ‘dressing down’ for pilots for letting down the Singaporean people. Employers using paternalist HR policies; long-term employment. 1985 recession (Growth at -1.8%); increased wage restraint, foreign workers repatriated. Growing pressure for more flexibility in wage systems. © 2024 SUSS. All rights reserved. S1 - 42  Post 1997: IR to Manpower Planning 1997 Asian Economic Crisis, growth plummets from 10.4% to 0.2%; results in immediate cost-cutting; Singapore government’s Ministry of Manpower thrown into the fore to develop a strategy of long-term transformation to a knowledge economy including: Integrated manpower planning Development of lifelong learning and employability Augmentation of the talent pool Competitive based wage system (more variable pay) Strong tripartite collaboration © 2024 SUSS. All rights reserved. S1 - 43  Reflection Question Read the article by Soh on the success of the tripartism in Singapore and speculation about the future of the model. Discuss why does Soh argue that tripartism has played a key role in Singapore’s economic success? What do you think lies ahead for the tripartite model? Soh Tze Min 2012, ‘The future of tripartism in Singapore: Concertation or dissonance?’, Ethos, issue 11, August. © 2024 SUSS. All rights reserved. S1 - 44  The Challenges of Tripartism Widening Socioeconomic Disparity Growing Workforce Diversity Alternative Platforms for Representation and Advocacy Risk of Complacency © 2024 SUSS. All rights reserved. S1 - 45  The Future of Tripartism: Scenario 1 Tripartism Endangered Driving forces in the environment are pulling the respective tripartite partners in different directions, and gaming by any one of the partners to gain maximum benefits for its constituents could damage trust in tripartite processes. Tripartism could be superseded by growing numbers of disparate independent interest groups advocating and contending for different worker interests - such as older workers, women, foreigners and local workers - along with alternative business interest groups who have similarly broken away from a federation representing employers’ interests. © 2024 SUSS. All rights reserved. S1 - 46  The Future of Tripartism: Scenario 2 Tripartism Rejuvenated The adaptive capacity and resilience and the institutional strength of Singapore’s tripartite model could prevail, allowing the essence of trust, mutual understanding and consensus to be retained while engaging with more diverse and complex worker demands. Should the process of negotiations and consensus building then become messier and more complex, the Government would have to play a greater role in balancing the interests between business and workers. © 2024 SUSS. All rights reserved. S1 - 47  The Future of Tripartism: Scenario 3 From Tripartite to Multipartite Relations The essence of trust, mutual understanding and cooperation may well be preserved within the tripartite partnership. But rather than having individual leaders representing aggregated interests from each stakeholder group, there will be collective leadership from businesses and unions to represent variegated stakeholder interests. Similarly, the Government would have to play a greater role in balancing these interests. © 2024 SUSS. All rights reserved. S1 - 48