Industrial Relations

This paper compares the industrial relations in USA and UK, highlighting the similarities and differences in features and application. It also discusses the impact of Brexit and the role of the state in industrial relations.

Running head: INDUSTRIAL RELATIONS
INDUSTRIAL RELATIONS
Name of the Student
Name of the University
Author Note

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Introduction
The field of academia that focusses on the study of employment relationship is known
as Industrial relations (Lavelle 2019). The purpose of the paper is to compare the industrial
relations in between USA and UK. The comparison of the industrial relations will
demonstrate the differences and similarities regarding the features and application of
Industrial Relations. The paper will present examples regarding the features of industrial
relation of the Pacific Island country by reflecting its similarity and differences from USA
and UK. The paper will be concluded by presenting a summary regarding the overall
perspective of contrasting and similar features regarding industrial relations.
Body
Employers' association:
In United Kingdom, most of significant employer’s association have been acquired by
women. The concept of industrial relations reflects the collective meaning of administering
and governing employment relationships, specifically collective bargaining. The increasing
Human Resource Management Practices portrayed challenges on the easy assumptions and
resulted in the state of debate in UK and US. The reasons behind challenge can be the
dilemma of industrial relations being a subset under Human Resource Management and
possess declining significance due to the weakening of roles and importance of unions in
organization of United States and United Kingdom (Gooberman, Hauptmeier and Heery
2019). In United States, the service offerings of helping and informing labor union in regards
with labor law and legal matters, was suppressed by the Supreme Court. Employers
association both in United Kingdom and United States are weak in relation to the contribution
to employee welfare rights.
The employer association in countries like Vanuatu is better than U.K.

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Trade Unions:
The membership rate of trade or labor union in UK started declining in 1980s and in
1990s, from around 13 million in the year 1979 to approximately 7.3 million during 2000.
The data of September 2012 was lowest since 1940s, less than 6 million. Usually the
membership subscription is paid through DOCAS (Deduction of Contributions at Source).
The potential regulation of incorporating the practice of Deducting Subscriptions through
wages in Public Sector was delayed for 2019. The trade union memberships in United
Kingdom is around 6.35 million.
The state of Union membership of U.S. was similar to UK as the numbers were
decreasing at a faster rate. The data of 2016 of around 14.6 million memberships as compared
to 17.7 million during 1983 demonstrated the decline. The 2018 data of union membership in
U.S. is around 14.7 million.
Union memberships in Pacific Island countries like Vanuatu is declining with
minimum groups.
Role of the State:
The government of Britain was heavily affected by EU, which can be considered as a
state as the British parliamentary system review each law and regulations before execution.
With Britain approaching towards the decision of Brexit, the influence and role of state on
industrial relation in United Kingdom from EU will decline.
On the other hand, the influences of US state on industrial relations is practiced
beyond the role by projecting rules for terms and conditions in employment and by regulating
the interaction between management and labor. ‘Employment at will’ is practiced in United
States which results in job insecurity. In countries like Samoa, the state, employer and
employee groups determines the rules of workplace together unlike U.S.

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IR Legislation:
The legislations of the Industrial Relations in UK have experienced numerous
changes by European Union and Labor government since 1997. The laws have not
completely revolutionized but the landscape regarding industrial relations have changed. The
legislation states that trade union can be recognized under employer agreement or by
statutory recognition procedures (Heery, Hann and Nash 2018)
On the other hand, the legislations of industrial relations in US is becoming against
the formation of labor union and restricting foundation of relationship between employer and
employee. The law of Fair Labor Standards Act (FSLA) presents the rules for working hours,
overtime and minimum wages. The legislation restricts the flexibility of employer for
competitive strategies in global marketplace and for employees in terms of work schedule.
In Pacific Island countries, the industrial relation legislations are based on past legal
frameworks for the territories and interaction between employers and workers.
Dispute resolution systems:
The dispute resolution system of US involves American legal system, natural justice
and due procedure, court system, jurisdiction, early or alternation resolution of the civil
actions and electronic filing of case.
The dispute resolution system of UK is weak as the implication of HRM laws and
practices restricts the process of collective bargaining. Time approaching towards Brexit can
result in challenges of dispute resolution due to complex trade relations.
The Pacific Island Countries adhere to the Alternative Dispute Resolution (ADR)
system. Vanuatu believes that ADR is a traditional method for resolving disputes aligned
with system of formalized justice, similar to U.S.

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Collective bargaining:
The collective bargaining practices in UK is voluntary. Less than one third employees
of UK are covered under collective bargaining by around 29 percent in private sector and
about two third in public sector (Ewing 2016).
In U.S., around three quarters workers in private sector and around two-third workers
of public sectors are covered under collective bargaining (Ewing 2016).
In the Pacific Island Countries, the system of collective bargaining is well-structured
unlike U.S. and U.K. The initiation right is given to both union and employers within 30
days’ notice.
Employee involvement and participation:
U.S. usually do not support collective representation. Employee involvement and
participation in us is enhanced by communication system and quality circle programs, but
restricting voicing collectively.
In UK, the company and labor law offers flexibility to management for appointing
involvement practices. However, in EU jurisdictions, minimum standard of participations are
communicated to the employers. The businesses under the UK legislation offers the rights of
worker participation for a collective agreement and general meeting with or without trade
union.
In countries like Fiji and Vanuatu, the employment opportunities are increasing with
the positive implication of rules supporting employee engagement practices (Ilo.org 2019)
Major changes:
UK have experienced a major loss in the unionization aspect of the industrial
relations, which is changing the scenario of industrial relations. The changes in the whole
scenario of industrial relations in UK is changing by the plan executing Brexit. In U.S., the

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industrial relations have changed significantly by the strict involvement of state in the
regulation and control of employee relationships. In countries like Fiji, colonial period
established British-style in industrial relations system, resulted in the close link of trade
unions with the politics and ethnicity.
Conclusion
Therefore, it can be concluded by the paper that U.S. and UK have similar basic state
of industrial relation practices, as both countries are experiencing decreasing number of labor
union membership. Moreover, the impact of Brexit and over involvement of state of U.S. in
the industrial relation practices will disturb the current condition.

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References:
Ewing, K., 2016. The EU, the USA, and TTIP–Collective Bargaining and the Emerging
‘Transnational Labor Relations Act’. Theory & Struggle, (117), pp.16-20.
Gooberman, L., Hauptmeier, M. and Heery, E., 2019. The decline of Employers’
Associations in the UK, 1976–2014. Journal of Industrial Relations, 61(1), pp.11-32.
Heery, E., Hann, D. and Nash, D., 2018. Trade unions and the real Living Wage: survey
evidence from the UK. Industrial Relations Journal, 49(4), pp.319-335.
Ilo.org 2019. Labour standards and law in Pacific island countries (ILO in the Pacific).
[online] Available at: https://www.ilo.org/suva/areas-of-work/international-labour-standards/
lang--en/index.htm
Jennings, C., McCarthy, W.E.J. and Undy, R., 2017. Employee Relations Audits. Routledge.
Lavelle, J., 2019. Understanding Industrial Relations in a Comparative Context. In
Managerial Competencies for Multinational Businesses (pp. 236-256). IGI Global.