Block 3: The rise and decline of labour unions M.Nageb 1University of London B.Sc Core Management Concepts Block 3: The Rise and Decline of Labour Unions Lecturer: M.Nageb
Block 3: The rise and decline of labour unions M.Nageb 2
Block 3: The rise and decline of labour unions M.Nageb 3BLOCK 3: THE RISE AND DECLINE OF LABOUR LEARNING OUTCOME What is the learning outcome of this chapter • outline the key features of the history of labour unions • describe the potential benefits of unions to firms and employees • discuss the reasons for union decline in modern industrial societies. 3.1 Introduction Why labour unions are on the MN2177 syllabus? Why are Labour Unions still on the Core Management Concepts syllabus? Well, they represent a really important aspect of the development of firms and management. They emerged as an initial response to the development of large workplaces and remind us how quickly the world has changed in the last 200 years. They remind us that employees have a choice of voice or exit. That collective bargainingpower can be significant. That the lawto protect employees is very different to how it is. And it all reminds us why managers should take employee voice seriously. Finally, and fundamentally, understanding unions helps you to understand that there are often difficult decisions to make with regard to balancing forced cooperation with consummate cooperation.
Block 3: The rise and decline of labour unions M.Nageb 43.2 LABOUR RELATIONS IN THE SHORT TWENTIETH CENTURY Study Guide • Outline the key features of the history of labour unions 1. 19thCentury • During this time, Industrialisation in Europe and the immigrant society of the US, required the creation of an industrial labour force for a factory system which was substantially differentfrom a pre-industrial and agrarian society. • This shiftwas marked by political and economic issueswhich had its impacton both industrial practiceand the development of academic theories2. Proposition of this chapter – 4 Proposition 1. Industrialisation and the factory system needed a labour force quite substantially differentfrom the preceding pre-industrial and agrarian work force. 2. This transition had resistancewhich culminated into the formation of unions and political development(for example the labour party in the UK supports the unions) 3. The strategies of managementhad to changefrom compulsion to co-operationto ensure that labour force were able to comply with performance attributes. In addition capital-intensive industries warranted skill labour force. This increased the bargaining powerof the labour force against management.
Block 3: The rise and decline of labour unions M.Nageb 54. What developed further, to ensure that performance attributeswere complied with, was the provision of labour welfareand this eventually resulted in the establishment of human resource management (Block 4).