INDUSTRIAL RELATIONS INDUSTRIAL RELATIONS THEORY AND PRACTICE Second Edition EDITED BY PAUL EDWARDS © 1995, 2003 by Blackwell Publishing Ltd except for editorial material and organization © 1995, 2003 by Paul Edwards 350 Main Street, Malden, MA 02148-5018, USA 108 Cowley Road, Oxford OX4 1JF, UK 550 Swanston Street, Carlton, Victoria 3053, Australia Kurfürstendamm 57, 10707 Berlin, Germany The right of Paul Edwards to be identified as the Author of the Editorial Material in this Work has been asserted in accordance with the UK Copyright, Designs, and Patents Act 1988 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs, and Patents Act 1988, without the prior permission of the publisher First edition published 1995 Reprinted 1996 (twice), 1998, 1999, 2001 Second edition published 2003 Library of Congress Cataloging-in-Publication Data Industrial relations : theory and practice / edited by Paul Edwards — 2nd ed p cm Includes bibliographical references and index ISBN 0–631–22257–X (hbk : alk paper)—ISBN 0–631–22258–8 (pbk : alk paper) Industrial relations—Great Britain I Edwards, P K (Paul K.) HD8391 I478 2003 331′.0941—dc21 2002009533 A catalogue record for this title is available from the British Library Set in 10/12pt Meridien by Graphicraft Limited, Hong Kong Printed and bound in the United Kingdom by MPG Books, Bodmin, Cornwall For further information on Blackwell Publishing, visit our website: http://www.blackwellpublishing.com CONTENTS List of Figures and Tables List of Common Abbreviations List of Contributors Preface The Employment Relationship and the Field of Industrial Relations Paul Edwards The Historical Evolution of British Industrial Relations Richard Hyman The Labour Market: History, Structure and Prospects Peter Nolan and Gary Slater Foreign Multinationals and Industrial Relations Innovation in Britain Anthony Ferner The State: Economic Management and Incomes Policy Colin Crouch Labour Law and Industrial Relations: A New Settlement? Linda Dickens and Mark Hall Management: Systems, Structures and Strategy Keith Sisson and Paul Marginson The Management of Pay as the Influence of Collective Bargaining Diminishes William Brown, Paul Marginson and Janet Walsh Trade Union Organization Jeremy Waddington 10 Employee Representation: Shop Stewards and the New Legal Framework Michael Terry 11 Industrial Relations in the Public Sector Stephen Bach and David Winchester vii ix x xiii 37 58 81 105 124 157 189 214 257 285 vi CONTENTS 12 Individualism and Collectivism in Industrial Relations Ian Kessler and John Purcell 13 New Forms of Work Organization: Still Limited, Still Controlled, but Still Welcome? John F Geary 14 Managing without Unions: The Sources and Limitations of Individualism Trevor Colling 15 Training Ewart Keep and Helen Rainbird 16 The Industrial Relations of a Diverse Workforce Sonia Liff 17 Low Pay and the National Minimum Wage Jill Rubery and Paul Edwards 18 Employment Relations in Small Firms Richard Scase 19 Industrial Relations, HRM and Performance Peter Nolan and Kathy O’Donnell 20 Concluding Comments Paul Edwards Index 313 338 368 392 420 447 470 489 513 522 FIGURES AND TABLES Figures 1.1 1.2 3.1 3.2 5.1 5.2 7.1 7.2 9A.1 12.1 12.2 14.1 The employment relationship Status and contract Workforce jobs by industry, UK 1978–1999 Part-time, temporary and self-employment, UK 1984–1999 Forms of high-level industrial relations systems Organization of interests and economic outcomes Restructuring within conventional organizational boundaries Restructuring beyond conventional organizational boundaries Strike frequency, 1946–2000 Management style in employee relations Changes in management style in employee relations Union membership and reasons for not joining a union by company 14.2 Employee perceptions of trust between staff and managers 21 62 63 106 108 163 164 245 317 320 384 385 Tables 1.1 1.2 1.3 1.4 1.5 1.6 3.1 3.2 3.3 Employment, unemployment and earnings, UK Distribution of employees by sector, UK Two routes to organizational flexibility HRM and the management of labour Managerial approaches to labour management Models of the emerging employment relationship Temporary employment across Europe Occupational change in the 1990s (employees and self-employed, including second jobs, UK) Inward and outward foreign direct investment (FDI) 1998 20 25 26 32 64 65 72 viii FIGURES AND TABLES 3.4 Employment in manufacturing as a percentage of civilian employment, 1960–1997 3.5 Shares of world trade in manufactures, 1960–1998 3.6 Technology and production shares in UK manufacturing output, 1971–1997 3.7 Hourly labour costs in manufacturing, 1960–2000 3.8 Relative labour productivity levels in manufacturing (GDP per hour worked) 4.1 Employment in foreign-owned manufacturing enterprises by industry, 1995 4.2 Foreign direct investment in UK manufacturing by country of origin, 1965–1998 4.3 Employment in foreign-owned enterprises in UK manufacturing by country of origin, 1983 and 1995 7.1 Management practices, by presence of personnel specialist and integrated employee development plan 8.1 Employees covered by collective bargaining for pay-fixing and principal level of pay-bargaining: GB establishments of 25 or more employees, 1960–1998 8.2 Percentages of employees covered by different pay-fixing arrangements 9.1 Union membership: Great Britain, 1948–2001 9.2 Strike trends in the United Kingdom, 1946–2000 9.3 Union density in Great Britain by individual, job-related and workplace characteristics 9A.1 Strikes by duration, 1946–2000 9A.2 Industrial action in workplaces with recognized unions, 1980–1998 10.1 Types of worker representatives, by trade union presence 10.2 Distribution of employees across workplaces with different forms of employee representation 11.1 UK workforce jobs by sector, 1981–2000 11.2 Membership of the 12 largest unions in 1979, 1992 and 1999 11.3 Union density by sector, autumn 2000 13.1 Incidence of group consultation and delegation in Europe 13.2 The intensity of group delegation 15.1 LSC’s National Learning Targets 17.1 Earnings distribution in OECD countries, 1980–1995 17.2 Incidence of low pay by gender and age 17.3 Part-time earnings and part-time employment, 1995 17.4 Minimum wages in selected countries, 1999 18.1 Pay determination by size of organization 19.1 Productivity levels in OECD countries, 1950–1998 19.2 Manufacturing productivity levels in selected OECD countries, 1950–1998 19.3 Total-factor productivity growth rates in selected OECD countries, 1980–1998 74 74 75 75 76 84 85 86 170 199 202 220 225 239 248 249 259 260 294 307 308 346 347 403 449 450 451 462 471 497 497 498 COMMON ABBREVIATIONS ACAS CAC CBI DE DfES DoH Donovan Commission DTI ECJ EWC HRM HSC IIP ILO NBPI NEDC NES NHS NMW NVQ SME SNB TUC WERS Advisory, Conciliation and Arbitration Service Central Arbitration Committee Confederation of British Industry Department of Employment Department for Education and Skills (formerly the Department for Education and Employment) Department of Health Royal Commission on Trade Unions and Employers’ Associations, chaired by Lord Donovan, 1965–8 Department of Trade and Industry European Court of Justice European Works Councils Human resource management Health and Safety Commission Investors in People International Labour Organization National Board for Prices and Incomes National Economic Development Council New Earnings Survey National Health Service National Minimum Wage National Vocational Qualification Small and Medium-Sized Enterprises Special Negotiating Body Trades Union Congress Workplace Employment Relations Survey (1998) CONTRIBUTORS Stephen Bach is Senior Lecturer at the Management Centre, King’s College, London William Brown is the Master of Darwin College and Professor of Industrial Relations at Cambridge University He is a member of the Council of ACAS and of the Low Pay Commission and Chair of the Disputes Committee for Fire Brigades Trevor Colling is Senior Research Fellow, Department of Human Resource Management, de Montfort University, and an Associate Fellow of the Industrial Relations Research Unit, University of Warwick Colin Crouch is Chairman of the Department of Social and Political Sciences and Professor of Sociology at the European University Institute, Florence He is External Scientific Member of the Max Planck Institute for Social Research, Cologne Linda Dickens is Professor of Industrial Relations in the Industrial Relations Research Unit at Warwick Business School, University of Warwick She is an ACAS mediator and arbitrator, a Deputy Chair of the Central Arbitration Committee, and an editor of the British Journal of Industrial Relations Paul Edwards is Professor of Industrial Relations at Warwick Business School, University of Warwick He is a former Director of the Industrial Relations Research Unit and former editor of Work, Employment and Society Anthony Ferner is Professor of International Human Resource Management in the Department of HRM, Leicester Business School, de Montfort University, and an Associate Fellow of the Industrial Relations Research Unit, University of Warwick John F Geary is Lecturer in Industrial Relations at the Michael Smurfit Graduate School of Business, University College Dublin and an Associate Fellow of the 524 INDEX conflict and co-operation 15 Conservative governments American influence 23 deregulation 40, 137, 230 economic policy shift (1980s) 113 European policy 116, 119, 124 flexibility aim 119 incomes policies 48–9 industrial relations reform 38, 53–4, 502, 503–5 Japanese MNCs 94 legislation: European issues 130, 274–5; Industrial Relations Act (1971) 51–2, 126, 144; regulation of industrial action 51–2, 124, 144; shift away from voluntarism 127; trade union regulation 229–30 neo-liberalism 105, 109 NHS policy 302 public sector policy 285–6, 287–8, 292, 297, 309 trade union policy 216–18, 227 training policies 395–400, 408, 414, 415 tripartism policy 120 Conspiracy and Protection of Property Act (1875) 39 Construction Industry Training Board 396 consultation concept of 276 EWCs 277 group 345, 346 sophisticated consultative style 317, 328–31 statutory provisions 141–3, 147 contract(s) fixed-term 58, 62, 132, 167, 295 part-time 119 personal 204 short-term 218, 295 status and 18–23, 21 temporary 218 Contracts of Employment Act (1963) 126 control consequences of work reorganization 348, 362 external sources of 515 increasing 349–52 core workers 318 Corus 168, 518 Council of Europe 448 councils, company or factory 257 craft control 42 Crafts, N 503 Crouch, C and Streeck, W 358 Cully, M 330 Curran, M 434 custom and practice 14 customer service 350–1 decision-making, management 173–5 de-collectivization 376–8 de-industrialization 73 delegation group 345, 346, 347 individual 345 Delors, J 114, 234 Denmark apprenticeships 407 temporary working 63 deregulation Conservative policy 40, 130, 137, 230, 457–9 development 111–12 effects 111–12, 163, 513 foreign MNCs 81, 100 Labour approach 40, 137 pay implications 457–60 disability rights 133–4, 421, 422 unemployment 430 Disability Discrimination Act (1995) 422, 426, 430, 437 Disability Rights Commission 134 discrimination Codes of Practice 424–5 definition 421 legislation 421–3 statutory rights 131 diversification 181 diversity agenda 517 approaches, managing 440–2 divisionalization 181 Donovan Commission/Report appointment of Commission 50, 126, 500 car industry influence 508 consultation 276 criticisms of 52 INDEX IR systems 44, 55 pragmatic approach to IR 30 private industry focus 52 recommendations 51 restrictive practices issue 50–1 shop stewards 263, 265, 500 single-employer bargaining 200 TUC’s evidence to 46 unfair dismissal proposal 126 workplace reforms 501 Dunlop, J T 23 Dunning, J 73 Economic and Monetary Union (EMU) 172, 183 economic performance and new work practices 353–4 Edmonds, J 238, 324 Edwards, P 353, 359 Edwards, T and Ferner, A 90 efficiency wage theories 192, 193–4 egalitarianism and autocracy 480–3 Electrical, Electronic, Telecommunication and Plumbing Union (EETPU) 218 Elger, T and Smith, C 91, 96 Elliott, R and Duffus, K 298 employability 54 employees, distribution by sector employers’ associations 122, 457 Employers’ Forum on Age 426 employment in foreign-owned enterprises by country of origin (1983 and 1995) 86 in foreign-owned manufacturing enterprises by industry (1995) 84 occupational changes 65, 65–6 part-time earnings 451 patterns of 59–61 recruitment and selection 432–5 relationship, see employment relationship restructuring 61–5 security of 296, 326, 331, 348, 354–5, 361, 515 unemployment and earnings workforce jobs by industry (1978–99) 62 workforce jobs by sector (1981–2000) 294 525 Employment, Department of (DE) 55, 119, 120, 400, 401 Employment Acts (1980 and 1982) 145 Employment Appeal Tribunal 134 Employment in Britain Survey 343 employment protection 53–4 Employment Protection Act (1975) 52, 126, 455, 458 Employment Relations Act (ERA) (1999) industrial action dismissals 145 Labour policy 152 pay implications 203 right to representation 278 trade union recognition 55, 128–9, 231, 233 trade union rights 140, 504 workers’ rights 132, 133, 137, 147, 278, 422 employment relationship analysis 8–23 components of industrial relations 8–10 conflict, power and frames of reference 10–13 contract and status 18–23 employees employers 2, fundamental nature of 16–17 methods of enquiry 17–18 models of 32 perspectives on rules 15–17 rules, power and the negotiation of order 13–15 small firms 470 society Employment Rights (Dispute Resolution) Act (1998) 135 Employment and Training Act (1973) 395 empowerment 22, 515 EPOC survey 340, 344–9 equal opportunities assessing equality approaches 437–42 changing agenda (1970–2000) 421–4, 517 Codes of Practice 424–5 employers’ adoption of equality policies 426–7 labour market and socio-economic changes 423–4 legal and political changes 421–3 managing diversity approaches 440–2 526 INDEX equal opportunities (cont’d) occupational segregation 430–2 trade union role 427–9 unemployment 429–30 workplace policies 424–9 Equal Opportunities Commission 134, 149, 422, 423, 424 equal pay, right to 131, 421, 448, 456 Equal Pay Act (1970) 421, 448, 456 Equality Commissions 126 Esso 91, 92 ethnic minorities Caribbean immigration 421 institutional racism 420 occupational segregation 431–2 recruitment and selection 432–4 remuneration 435–6 unemployment 430 euro zone 87, 116 European integration 7–8 legislation 23, 52, 55, 127, 141, 152, 422–3 social model 159–60, 172, 183–4, 215, 216, 228, 231, 234, 237, 514, 516 European Central Bank 116, 183 European Commission 108, 114, 172, 215 European Court of Justice (ECJ) 127–8, 141–2, 152, 230, 274 European Exchange Rate Mechanism 115 European Single Market 163, 172 European Trade Union Confederation (ETUC) 234 European Union (EU, earlier EC) Charter of the Fundamental Social Rights of Workers 128 employment law 127 equality issues 423 neo-liberalism 113–14 European Works Councils (EWCs) 142, 258, 268, 276, 277 European Works Councils Directive 184, 276 Europeanization 19, 32 Fair Wages Resolution 133, 208, 377, 455, 458 Fairness at Work 128, 150–1, 152 financial services 115, 357 Finland, temporary working 63 Fire Brigades Union 229 fixed-term contracts 58, 62, 132, 167, 295 Flanders, A 11, 12, 27, 44, 208, 372–3 flexibility balancing needs 519 external 165–6 financial performance 507 government policies 130, 131 internal 166 labour market 54, 70–1, 147, 514 management 174 organizational 20 workforce 165–7 Ford, H 161 Ford Motor Company 87, 91, 92, 93, 179, 410 Fordism 56, 162, 360, 473 foreign direct investment (FDI) 72, 81 employment in foreign-owned enterprises by country of origin (1983 and 1995) 86 employment in foreign-owned enterprises by industry (1995) 84 evolution of 82–7 pattern of 82–5 pay, productivity and employment 85 in UK manufacturing by country of origin (1965–98) 85 Fosh, P 270 Foundation Modern Apprenticeships (FMAs) 407 Fox, A 315, 334 France comités d’entreprise 277 minimum wage 462 productivity 496–8, 497, 498, 502 temporary working 63 trade unions vocational education and training 393 Freeman, R and Pelletier, J 219 Gallie, D 353, 373 gender collective bargaining effects 8, 28 equal opportunities 29 new work practices 348–9, 352–3 pay structures 29 public sector workforce 293–5 trade unions 29–30, 261–2 traditional IR 28 INDEX General Motors 87, 92, 98, 99, 518 General, Municipal and Boilermakers’ Union (GMB) 223, 229, 238, 324, 411 General Strike (1926) 50 Germany apprenticeships 407 HRM 98 income distribution 360 industrial relations system 23 managers 66 MNCs 93, 98, 99, 116 new work practices 361–2 part-time working 452 pay levels 462 productivity 496–8, 497, 498, 502 trade unions 10 training system 98, 393 unemployment 116 works councils 266 Giant’s Strength, A 500 globalization concept 6, 23 industrial relations systems 23–4 influence 59, 105, 111 Goss, D 481 Government Communication Headquarters (GCHQ) 217 Greece, temporary working 63 Green, F 405 Gregg, P and Wadsworth, J 71 Grimshaw, D 21 Guest, D 326, 354, 493, 506–7, 509 Guest, D and Hoque, K 331 Harris, R 86 Hatchett, A 292 Hayek, F 491 Health and Safety Commission (HSC) 120, 121 Health and Safety Regulations 142, 275 Health and Safety at Work Act (1974) 126 Heinz 92, 93 Hewlett Packard 93 Hicks, J 190 high commitment approach 316 management (HCM) 95, 163, 167–71, 175, 493, 506 527 practices 326, 329–32, 340, 376, 506, 516 work 6, 94, 95, 96 high involvement management 163 work 6, 514 high-tech employment 115 homeworkers 137 Hoque, K and Noon, M 180 Howell, C 325 HSBC 328 human relations, sophisticated 331–4 human resource management (HRM) employee commitment 226 German 98 IR and 25–7 management control 162 management of labour and 25 performance and 489–90, 492–4, 505–8 rise of 18, 163 term trend towards successful 374–6, 380–3 US 93–4 writing Huselid, M A 493, 506 hybridization of practices 96, 100 IBM 67, 93, 179 Ichniowski, C 353 immunity, trade union 125, 143–4 In Place of Strife 126 individualism development of 517 in practice (case studies) 378–85 sources and limitations 368–9 individualism and collectivism 313–35, 368 definitions and meanings 314–19 management 519 management preferences 325–7 management style 317, 320 shifting preferences 319–27 style in practice 327–34 union and employee preferences 321–5 individualization 204, 368 industrial disputes changing pattern 244–51 legal regulation of 143–6 public sector 297 528 INDEX industrial disputes (cont’d ) reduction of 121 strikes, see strikes in workplaces with recognized unions (1980–98) 249 industrial relations challenges to 27–31 changes 23–31, 513–14 climate of 357 components of 8–10 definition 1–2 fate of ‘good’ 118–19 high-level systems 106 historical evolution 37–8, 109–10 human resource management and 25–7 innovation: foreign MNCs 87–8; Japanese MNCs 94–7; mediating influence of British context 97–8; US MNCs 91–4 new work practices 357 systems 106–9 Thatcher’s revolution 503–5 transformation of British 53–6 voluntarism 38–41, 159, 230, 258, 513 Industrial Relations Act (1971) 51, 126, 144, 501 Industrial Training Act (1964) 395 Industrial Training Boards (ITBs) 217, 392, 394, 395, 396–7, 410 Industry Lead Bodies (ILBs) 398 Industry Training Organizations (ITOs) 396–7, 402 inflation 111, 117–18, 121–2 information EWCs 277 shared sources 177 statutory provisions 141–3, 147 information and communication technologies (ICTs) 58, 111, 163, 370 Inns of Court Conservative and Unionist Society 500 inputs insecurity 19–20 insider-outsider models 192, 193 Institute of Directors (IOD) 235, 325 intangible assets 59, 65, 78 integration 519 interest aggregation and representation 215 interests, organization of 108 International Adult Literacy Survey (IALS) 405 International Labour Office 448 International Labour Organization 117 International Monetary Fund 112 internationalization 6–8 Investors in People (IIP) 401–2, 411, 413 Involvement and Participation Association (IPA) 171, 330 Italy productivity 496–8, 497, 498 scala mobile reform 106 ITV 70 Jackson, Sir K 238 Japan American influence 23 investment in Britain 82, 90–1 managers 66 MNCs 73, 94–7, 98, 99 productivity 496–8, 497, 498 trade union relations 95, 98, 325 vocational education and training 393 work organization 81, 90–1, 94–7, 98, 266, 340 Japanization 94–7 Jensen, J 352 Jewson, N and Mason, D 439 job-evaluation systems 207, 500 job for life disappearance of 58, 59 Japan 94 US 92–3 job security 296, 326, 331, 348, 354–5, 361, 515 Kahn-Freund, O 40, 146 Keep, E and Mayhew, K 360 Kelly, J 27–8, 29, 279–80, 281 Kennedy Report 412 Keynesian policies 48, 107, 109, 111, 112–13, 228 Kirton, G and Greene, A.-M 427, 442 Knights, D and McCabe, D 356–7 knowledge economy 78 workers 77, 370, 378, 386 Kochan, T A 160, 172 Kodak 67, 92 Korczynski, M 350 INDEX labour costs 74–5, 75 international division of 71–6 Labour Force Survey 405, 406, 430, 432, 471 Labour governments deregulation 40 European policies 116, 119, 124, 411 incomes policies 48–9 industrial relations policies 38, 54–6 legislation: Donovan Report 51; Employment Relations Act (1999) 55, 145; employment rights 130–1, 133, 147; European issues 119, 124, 129, 130–1, 148, 230, 275; industrial disputes issues 145; National Minimum Wage 119, 147; New Labour 147–8; pay and working time 124, 147; trade union rights 52, 119, 229–30; voluntarism 126; 1974–9 126 modernization 290–2 National Minimum Wage 447, 460 neo-liberalism 105 New Labour 147–8, 151, 474 NHS pay policy 302–3 productivity policies 499 public sector policy 288, 309, 310 re-regulation 137 Third Way 214, 227 trade union relations 215, 216, 227–31, 414 training policies 401, 411, 414, 415 tripartism policy 121 labour market 58 Britain and the international division of labour 71–6 changing contours 61–71 co-ordination of 109 employment restructuring 61–5 equal opportunities 423–4 flexibility and segmentation 70–1 internal and external 66–70 monopsony models 192 occupational changes 65, 65–6 participation, pay and inequality regulation and low pay 452–60 twenty-first century 76–8 work futures 59–61 Labour, Ministry of 118–19 529 Labour Party 47, 48, 215 law and legislation European, see Europe labour law 124 Low Pay Commission 55 strikes 51 US 516–17 voluntarism tradition 38–41 1870–1960 125 1960s and 1970s 125–6 1979–97 127–8 1997 and after 128–9 Lazonick, W 42 Leadbeater, C 59, 371 leadership 270–1 lean organization 175 production 94, 163, 174, 265, 340 Learning and Skills Council (LSC) 394, 397, 401, 403–4, 412 learning society 22 Learning to Succeed 401 Learning Targets 401 Learning and Training at Work 2000 survey 406 Legal and General 172 Lepak, D and Snell, S 318 LG electronics 328 literacy, adult 407 Littlewoods 172 Lloyd, C 273, 278 Local Enterprise Companies (LECs) 400 local government 290–2, 303–4 Local Learning and Skills Councils (LLSCs) 401, 403–4, 412 low pay in Britain 447 definitions 447–9 earnings distribution in OECD countries (1980–95) 449 incidence of low pay by gender and age 450 labour market regulation and 452–60 National Minimum Wage 460–5, 466–7 women 459 young workers 459–60 Low Pay Commission (LPC) 208, 230, 279, 460–2, 465 530 INDEX Maastricht social protocol, see Social Chapter McCarthy, W E J 22 McDonald’s 93, 94 McGregor, D C 167–8 McIntosh, S and Steedman, H 407 management agent of capital 161–2 attitudes and priorities 265–7 challenges 183–4 choices and strategies 356–7 decision-making 173–5 difficulties 359 high-commitment (HCM) 95, 163, 167–71, 175, 493, 506 high-involvement 163 industrial relations practice 176 labour relations strategies 514 models of role 158–62 new agenda 269–70 new work practices 356–7, 359 partnership 171–3, 175, 330–1, 519 practices 170 recipes and realities 163–75 role of 67–8 strategic actor 160–1 style 314–15, 315, 320 systems actor 158–60 systems, structure and strategy 157 Theory X and Theory Y 168 total quality management (TQM) 163, 339, 349, 351, 399, 514 unscientific 41–4 workforce relations 375, 385 managerial approaches to labour management 26 managerial relations Manpower Services Commission (MSC) 120, 394, 395, 400, 410 manual workers 65, 77 Manufacturing, Science and Finance (MSF) 223, 308, 379, 412 manufacturing industry decline of 73, 111, 115, 116, 122 employment in (1960–97) 74 employment in foreign-owned enterprises by country of origin (1983 and 1995) 86 employment in foreign-owned enterprises by industry (1995) 84 foreign direct investment (1965–98) 85 high-tech 78 hourly labour costs (1960–2000) 75 shares of world trade (1960–98) 74 technology and production shares (1971–97) 75 Marginson, P 181 Marginson, P and Sisson, K 88 market contexts and competitive strategies 359–61 relations Marshall Aid 499 Martin, S 291 Martinez Lucio, M 356 Marx, K 11, 41 Maternity and Parental Leave Regulations (1999) 133, 149, 422 maternity rights 131, 133, 136, 137 Maurice, M 158 Metcalf, D 503 Millward, N 327–8 minimum wages in selected countries (1999) 462 see also National Minimum Wage Mobil 92, 326 mobilization 270–1 Modern Apprenticeships (MAs) 407, 408 modernization 172, 290–2 Monks, J 324, 412 monopsony models of the labour market 192, 463–4 Morgan, J 70 Morris, J 97–8 Moser Report 412 Motorola 171 Muellbauer, J 503 multi-skilling 95 multinational companies (MNCs) British-based 72–3, 183 growth and influence 163, 517–18 as industrial relations innovators 87–98 new work practices 358 pay determination 206 roles 7, 517–18 NAS/UWT 307 National Advisory Committee for Education and Training Targets (NACETT) 403 INDEX National Advisory Group on Continuing Education and Lifelong Learning (NAGCELL) 412 National Board for Prices and Incomes (NBPI) 49, 51 National Council for Vocational Qualifications (NCVQ) 397, 398 National Economic Development Council (NEDC) 49, 120, 217 National Education and Training Targets (NETTs) 402–3 National Enterprise Council 217 National Health Service (NHS) 285, 289, 293, 295–6, 301–3, 394 National Learning Targets 402–3, 403, 404 National and Local Government Officers Association (NALGO) 413 National Minimum Wage (NMW) 460–5 categories 131 effects 373 introduction 55, 119, 132, 133, 147, 149, 210, 447, 452 potential labour relations effects 463 terms 230 National Skills Task Force (NSTF) 397, 412 National Traineeships (NTs) 407 National Training Organizations (NTOs) 397, 398 National Training Task Force 401 National Union of Public Employees (NUPE) 413 National Union of Teachers (NUT) 306, 307 national vocational qualifications (NVQs) 397–9, 411, 413 nationalization 48 neo-liberalism assault on trade unions 215, 216–27 UK 105–6, 109, 113–14 US 105–6 Netherlands labour relations reform 106 part-time working 452 trade union organization 233 networks 60 New Deal 160, 466 New International Division of Labour thesis 24 531 Nickell, S 503 Non-Statutory Training Organizations (NSTOs) 396 occupation, management of industrial relations 177–8 Oliver, N and Wilkinson, B 341 Olson, M 108–9 Opportunity Now (Opportunity 2000) 426, 431, 438 organization(s) extended 175 large 180–2 lean 175 Organization for Economic Co-operation and Development 112 Organizing Academy 240–1 Ortiz, L 98, 99 Osterman, P 348 outputs outsourcing 174 owner-controllers 479–80 owner-directors 479–80 ownership foreign 179–80 management of industrial relations 179–80 public 179 Oxford School 30 Parental Leave Directive 133, 275 parental leave rights 131, 132, 151 Park, T.-J 272 part-time employment contracts 119 earnings 451–2, 451 growth 58, 61, 64–5, 167, 295, 371, 459 Labour policy 295 National Minimum Wage 464 pay levels 64–5 rights 132 UK (1984–99) 63 women 61, 64–5, 371, 431, 459, 464 Part-Time Work Directive 230 Part-Time Workers Regulations (2000) 422 participation 270–1 consultative 345 delegative 345, 347 direct 345–7, 345 532 INDEX partnership agreements 171–3, 175 business performance 330–1 job security 331 Labour policy 138 legislation issues 519 social 215, 235–8, 278–81, 514 strikes 224 term 151 Partnership Fund 394, 414 paternalism 316 pay allocative properties 194 average income (1979–85) 373 determination: and collective bargaining 296–306; in the face of European economic integration 206–7; forms of 297–9; reform of arrangements 299–300; by size of organization 471 differentials dispersion of 190–1 disputes over 225 earnings distribution in OECD countries (1980–95) 449 economic explanations of dispersion 191–4 employer’s role in pay determination 194–6 equality issues 131, 421, 435–6 fall (1970s) 508–9 foreign companies 85–7 inequality 208, 360, 373, 421, 450, 466–7 legislation 421 low, see low pay management of 189 management control and co-ordination of pay-setting arrangements 204–6 managing pay as a motivator 196–8 part-time earnings 451 percentages of employees covered by different pay-fixing agreements 202 performance-related 19, 300–1, 329, 436–7, 514–15 policies 500 productive properties 194 profit-related 329 public sector 122 systems 92 women 459 young people 459–60 Peacock Committee 69 performance Britain’s relative performance 496–8, 497, 498 HRM and 492–4, 505–8 measurement issues 494–6 new work practices and 353–4 performance-related pay (PRP) 19, 300–1, 329, 436–7, 514–15 personnel management (PM) Peters, T J 171 Phelps Brown, E H 321, 372 picketing 144 Pil, F K and MacDuffie, J P 174, 353, 357–8 Pirelli 174, 349 pluralism 11, 12, 27, 315–16, 334 Popper, K 24 portfolio workers 58, 59 power 12–13, 13–15 Prais, S J 502 Pratten, C F 502 Prison Officers’ Association (POA) 289 Private Finance Initiative (PFI) 288–9 privatization 53, 100, 138, 163, 218, 288, 293–4 problem-solving groups 4, 326, 339, 342 Procter, S and Mueller, F 355 production agile 163 lean 94, 163, 174, 265 Production Campaign 499 productivity Britain’s relative performance 496–8, 497, 498, 517 British levels of 49, 75–6, 489, 514 foreign companies 85–7 HRM and 492–4, 505–8 industrial relations and 490–8 measurement issues 494–6 politics of 498–502 relative levels in manufacturing (GDP per hour worked) 76 Thatcher revolution 503–5 total factor (TFP) 496 profit-related pay 329 Public Commercial Services Union (PCS) 223, 307, 308 INDEX public expenditure 118 public sector compulsory competitive tendering (CCT) 53, 179, 290, 291 Conservative policy 285–6, 287–8, 292, 297 contracting out 138 employment 293–6 growth 48 industrial relations 285–6 modernization 290–2 pay determination 49 privatization 53 state as employer 286–7 workforce jobs by sector 294 workplace unionism 271–2 public service agreements (PSAs) 291 Purcell and Ahlstrand matrix 316–19 purchasing power parity (PPP) 496 qualifications 397–401, 515 Qualifications and Curriculum Authority (QCA) 397, 398, 399 quality circles (QCs) 339, 343, 345 Race Directive (2000) 422–3 race issues, see ethnic minorities Race for Opportunity 426 Race Relations Act (1976) 134, 422 Racial Equality, Commission for 134 Railtrack 288 Rainnie, A 481 Ram, M 482, 484 Ramsay, H 12, 494, 507–8 recruitment and selection 432–5, 485–6 Redman, T and Wilkinson, A 26 Redundancy Payments Act (1965) 126 re-engagement 135 Regional Development Agencies (RDAs) 404 regulation of work 4–8 reinstatement 135 remuneration, see pay Renault representation, employee 257–8 distribution of employees across workplaces with different forms of employee representation 260 533 representatives 260–2 statutory system 274–81 in UK workplaces 259–64 representation, right to 140–1, 278 re-regulation 137, 348, 362 restrictive practices 49, 50–1 restructuring beyond conventional organizational boundaries 164 within conventional organizational boundaries 163 Return to Learn 413 Rifkin, J 59 rights collective 137–47; collective bargaining, employee representation and industrial action 137–8; legal regulation of industrial disputes 143–6; legal regulation of internal union affairs 146–7; right to representation 140–1; statutory information and consultation provisions 141–3, 147; statutory trade union recognition 138–40, 149 disability 133–4, 421, 422 discrimination 131 individual 129–37; enforcement 134–5; impact 135–7; nature and scope 131–4; rationale for action 129–31 maternity 131, 133, 136, 137 parental leave 131, 132, 151 women 137 Rome, Treaty of 448 Rover 7, 87, 172, 237, 268, 269, 277, 410 Rowthorn, R 71, 209 Royal College of Nursing (RCN) 223, 233, 301, 307 Royal Commission (1894) 49 rules, workplace custom and practice 14 perspectives on 15–17 pluralist view 11, 12 power and the negotiation of order 13–15 radical view 11, 12 unitary view 10–11, 11–12 sabbaticals 58 Sainsbury’s, employee councils 273 Scandinavia, income distribution 360 534 INDEX Scase, R and Goffee, R 478 school teachers 294, 295, 304–6 School Teachers’ Review Body (STRB) 305, 306 Schools Curriculum and Assessment Authority (SCAA) 397 Scott, A 333 Scottish Vocational Education Council (SCOTVEC) 397 Scottish vocational qualifications (SVQs) 397–8 Second World War 48 sector, management of industrial relations 176–7 Securicor Custodial Services Staff Association 289 security 519 job 296, 326, 348, 354–5, 361, 515 segmentation, labour market 70–1 segregation, occupational 430–2 self-employment 2, 58, 63, 63–4, 166–7, 478–9, 483–4 Senior Civil Service 300 services, traditional 65 services-based employment, shift to 61, 115, 371 severance payment, right to 132 share ownership, employee 326, 329 shareholders 159 shop stewards 50, 51, 218, 257, 262–71 sickness, long-term 71 size, management of industrial relations 178–9 skill(s) growth 515 multi-skilling 95 remuneration 435–6 retention 174 revolution 22 training and industrial relations 408–14 Skills Development Fund 404 Skills Survey 515 Skinner, D 436–7 Slichter, S 193 Small Business Service (SBS) 404 small firms creative and professional 483–6 economic and industrial relations context 470–1 employment relations 470 functions of 472–4 growth and survival 476–8 patterns of employment relations 478–86 pay determination by size of organization 471 role and nature of 472–8 traditional 478–80, 486 varieties of 474–6 Smith, S 359 Social Chapter (Maastricht Treaty) Conservative policy 119, 128, 142, 411 effects 152, 228, 230 Labour policy 54, 56, 116, 129, 142, 183, 214, 411 social theory 30 society 4, 28 Solving the Union Problem 53 Spain temporary working 63 trade unions 98 special negotiating bodies (SNBs) 143, 276, 278 stability, social 108, 113 Standard for Racial Equality for Employers 423 Standing Commission on Pay Comparability 297 state details of economic policy 114–21 economic policy 105–6 as employer 286–7 shift in economic policy 109–14 status 18–23, 21 stock markets 111, 112 Stopford, J and Turner, L 89, 90 Storey, J 25, 354, 375–6 strategic style 181 Streeck, W 20 strikes 49–50 by duration (1946–2000) 248 frequency (1946–2000) 245 legislation 51 productivity effects 502 reduction 121 supply-side labour policies 115–16 trends 224–7, 225, 244–51, 518 in workplaces with recognized unions (1980–98) 249 Structure of Earnings Survey 451 INDEX structure of occupations, horizontal and vertical 177 Sweden, part-time working 452 take-over 159 targets, performance 515 taxation 118 Taylor, S 351 Taylorism 97, 162, 362, 492, 494 teachers, school 294, 295, 304–6 team-briefing 326 teamworking egalitarian management 480 financial effects 507 gender issues 352–3 General Motors 98, 99 growth innovation 339, 340–1 Japanese methods 95 measurement 346 nature of 340–1, 342–3, 348 studies 351, 356 team analogy 12 UK 89, 342–3 technology and the production process 355–6 television and broadcasting 69–70 temporary employment 19, 62–3, 63, 64, 119, 218, 295 tendering, compulsory competitive (CCT) 53, 179, 290, 291 Tesco 172, 280 Thatcher, M 69, 491, 501, 503–5 Thomas Hedley 92–3 Tilly, mobilization theory 322 Tomlinson, J 499 total factor productivity (TFP) 496, 503 Total Quality Management (TQM) 163, 339, 349, 351, 399, 514 Trade Boards 46, 453–4 Trade Disputes Act (1906) 39, 144, 147 Trade Union Act (1871) 39 Trade Union Act (1984) 145, 228 Trade Union and Labour Relations Act (1974) 52 Trade Union and Labour Relations (Amendment) Act (1976) 144 Trade Union Reform and Employment Rights Act (1993) 232 535 trade unions American model challenge of neo-liberal assault 215, 216–27 closed shop 50 collective bargaining 44–8, 207–9 craft union practices 67 cross-border comparisons 207 decline 19, 465, 505 democracy 216, 217 density 9, 219–21; 1991, 1999 239; by sector (2000) 308 de-recognition 137, 201, 218, 329, 377 equality issues 427–9 European regulation 215, 216, 234–5 gender issues 29–30 immunity 125, 143–4 individualism and collectivism 321–5 Labour government relations 215, 227–31, 414 legal regulation of internal affairs 146–7 management relations 158 membership 384; decline 209, 219–22, 372–3; growth 50, 219, 243; rights 132, 147; twelve largest unions, 1979, 1992, 1999 307; 1948–99 220 mergers 215, 222–4 MNCs 95, 98 non-union sector 272–4 numbers of 45 officers 218 organization 214–16, 238–43, 306–9 performance effects 490–1, 507 political funds 146, 228–9 power 49 presence 18 public sector 271–2, 287, 297–9, 304–5 recognition: decline 218–19, 258; procedures 516; statutory 119, 138–9, 149, 231; US 93 representativeness 269 right to representation 140–1 rights 39 role 9–10 scope of political challenge 216–19 shop stewards 218, 257, 262–71 social partnership 215, 235–8 statutory information and consultation provisions 141–3 536 INDEX trade unions (cont’d) statutory recognition 138–9, 149, 231 strike trends 224–7 structures 257–8 Thatcher’s policies 503–4 time off for duties 131 training 411–14 transformation in the making 231–43 TUC affiliations 233 TUC changes 232–4 Wages Councils 454 welfare policy 113 women’s wages 421 Trades Union Congress (TUC) affiliated unions 217, 233 arbitration alternative 135 equal pay commitment 421 European issues 234–5 foundation 46 Labour Party relations 47, 48 New Realism approach 217 Organizing Academy 240 part-time workers 230 partnership 171 public service unions 308 reform 216, 231, 232–5 role and status 46, 49, 120, 215, 234 social partnership 236, 324 training 402 wage restraint policy 48 training changing policies and institutions after 1979 395–405 commitment to 514 effects 506 equal opportunities 425 German system 98, 393 national system before 1979 395 off the job 326 qualifications 397–401, 515 requirements 174 role of regulation 392–4 scale and scope of activity 405–8 skill and industrial relations 408–14 UK performance 406–8 Training Agency 120 Training in Britain 406 Training and Enterprise Councils (TECs) 120, 394, 400–2 Transfer of Undertakings Directive (1977) 128, 458 transmutation of practices 100 Transport and General Workers’ Union (TGWU) 45, 223, 308, 411, 412 tribunals 134–5, 150 tripartism, abandonment of 119–21 Truck Acts 133 TUC, see Trades Union Congress unemployment equality issues 429–30 gender issues 71 1970s 52 1980s 70, 115, 222 1990s 70–1, 115–16 unfair dismissal 52, 131, 136 unfair industrial practices 51 UNIFI 324, 328 Union of Construction and Allied Trades and Technicians (UCATT) 410 Union of Industrial and Employers’ Confederations of Europe (UNICE) 235 Union Learning Fund 394, 413, 414 Unipart 171 UNISON 223–4, 229, 261, 272, 307, 410, 413, 428 United Distillers 172 USA deregulation 112 HRM 93–4, 275 industrial relations innovation 91–4 influence 23 investment in Britain 82, 84 knowledge economy 78 legislation 516–17 managers 66 minimum wage 462 MNCs 72–3, 81, 91–4, 99 model 516–17 neo-liberalism 105–6 part-time working 452 pay inequality 373, 436, 450 pay policies 92 productivity 75, 496–8, 497, 498, 502, 517 trade unions 8, 93–4, 374 USDAW 280, 324 INDEX Vauxhall 277 vocational education and training (VET) 393, 396, 403, 404, 414–15 voluntarism decline 264–74 deregulation 457–60 end of 184 and growth of legal intervention 125–9 legal regulation and 453–7 role of 124 principle of 48 tradition of 38–41, 159, 230, 258, 513 training 393 Waddington, J and Whitston, C 323 Wadhwani, S 503 Wages Councils 46, 117, 130, 133, 453–8, 463, 465 Wagner Act (1935), US 93 Wajcman, J 28, 352, 420 Webb, S and B 4, 37, 44, 198 welfare policy 113 state 110, 286 Welsh Water 172, 280 whistle-blower protection 132 white-collar workers 65, 66, 177–8, 370 Whitley Councils 41, 53, 301, 302 winter of discontent 22 women childcare 440 employment 61, 371, 420, 423–4 exclusion 421 National Minimum Wage 464 new work practices 348–9, 352–3 occupational segregation 430–2 part-time employment 61, 64–5, 371, 431, 459, 464 pay inequality 8, 421, 435, 436, 456 public sector employment 293–5 recruitment and selection 434–5 statutory rights 137 teamworking 352–3 trade union membership 52, 459 trade union negotiations 428 trade union representatives 261–2 unemployment 429–30 Wood, S 95–6 537 Wood, S and de Menezes, L 169, 171 work futures 59–61 work organization, new forms of 338–40 adoption of 357–61 autonomy and control 349–52 climate of industrial relations 357 consequences of work reorganization 348–57 cross-national survey 344–7 destroying existing competencies 357–8 economic performance and 353–4 gender and 352–3 job security 354–5 limited space to invest 358–9 management choices and strategies 356–7 management difficulties 359 market contexts and competitive strategies 359–61 new work practices in Britain 342–4 survey evidence of new work practices 340–8 technology and the nature of the production process 355–6 Work and Parents Taskforce 133 work study systems 500 worker interests 27–8 worker protection 148–9 workfare 54 workforce agreements 132 working class 371–2, 518 Working Families Tax Credit 466 working time 54–5 Working Time Directive 116, 132, 151, 230, 275 Working Time Regulations (1998) 132–3, 142, 147, 149, 151, 275 workplace equality policies 424–9 relations 15–16 representation 234 size 178–9 Workplace Employment Relations Survey (WERS) decline of collectivity 518 design 18 devolution 182 employee representation 259, 261 equality policies 426, 438 flexibility 166 538 INDEX Workplace Employment Relations Survey (WERS) (cont’d ) high-commitment practices 169, 326, 328 HRM 506 information 17–18, 495, 505 low pay 452, 464 MNCs 89, 182 new work practices 340, 343 non-union workplace 331, 333 pay-fixing 203 shop stewards 263 trade union recognition 55 training 318, 409, 414 tribunal applications 150 Workplace Industrial Relations Survey (WIRS) 17, 89, 203, 331, 333, 343, 375, 495, 504–5 works council draft directive 258 works councils 266 World Bank 112 World Trade Agreements 163 World Trade Organization 23–4 Young Workers Scheme 460 Youth Training (YT) 407 Youth Training Scheme (YTS) 400, 407, 408, 410, 460 youth wages 456–7 [...]... The importance of this definition is developed below THE EMPLOYMENT RELATIONSHIP 9 state employer employment relationship employee employee representatives Figure 1.1 The employment relationship The employment relationship is by definition a relationship between an employee and an employer As shown in figure 1.1, this direct relationship may be mediated by the two other key institutions to IR, the trade... Sonia Liff is a Reader in Industrial Relations and Organizational Behaviour in the Industrial Relations Research Unit at Warwick Business School, University of Warwick She is an associate editor of the journal Gender, Work and Organization Paul Marginson is Professor of Industrial Relations at Warwick Business School, University of Warwick, and Director of the Industrial Relations Research Unit Peter... programme of research and teaching (which included some helpful suggestions on the concluding comments of this book) Paul Edwards THE EMPLOYMENT RELATIONSHIP 1 1 THE EMPLOYMENT RELATIONSHIP AND THE FIELD OF INDUSTRIAL RELATIONS PAUL EDWARDS The term industrial relations (IR) came into common use in Britain and North America during the 1920s It has been joined by personnel management (PM) and, since... arrangements might be put in place and what implications they have for economic welfare Analysing the Employment Relationship Components of industrial relations What has IR to say about how we might analyse such issues? The employment relationship has two parts, market relations and managerial relations (Flanders 1974) The former is the more obvious It covers the price of labour, which embraces not only... Keith Sisson is Emeritus Professor of Industrial Relations at the University of Warwick He is a former Director of the Industrial Relations Research Unit and was founding editor of the Human Resource Management Journal xii CONTRIBUTORS Gary Slater is Lecturer in Economics, Nottingham Trent University Michael Terry is Professor of Industrial Relations in the Industrial Relations Research Unit at Warwick... employment relationship Related to the new contours of industrial relations, there is no longer a need for a separate chapter on strikes and collective industrial action, which are covered in chapter 9 Third, ‘outcomes’ for managements and workers of industrial relations arrangements have been receiving increased attention The former chapter on industrial relations and productivity has accordingly been rewritten,... the development of industrial relations in the UK run through many chapters, and there is one wholly new chapter, on multinationals and industrial relations innovation Second, the ‘individualization’ of employment relations has been a developing theme It is considered in several revised chapters, and there is a new chapter on the management of the ‘individualized’ employment relationship Related to the... an employer and 2 PAUL EDWARDS receives a wage in return for his or her labour Industrial relations thus excludes domestic labour and also the self-employed and professionals who work on their own account: the contractual relations between a self-employed plumber and his customers are not industrial relations , but the relations between a plumbing firm and its employees are In the UK self-employment... tries to analyse the changing nature of industrial relations as a field of enquiry and to spell out its links to terms such as human resource management There is no need to repeat that discussion here, though it is worth highlighting that, as indicated by the quality of the main journals, the growing membership and activity of the British Universities Industrial Relations Association, and the number...CONTRIBUTORS xi Industrial Relations Research Unit, University of Warwick He was Jean Monnet Fellow at the European University Institute, Florence (2001–2) Mark Hall is Principal Research Fellow in the Industrial Relations Research Unit at the Warwick Business School, University of Warwick He co-edits the European Works Councils Bulletin and manages the UK input to the European Industrial Relations Observatory