Question 7 Present by: Kang Kai, Brendon Chen & Wilson

Lim

Compare and contrast the key characteristics of

the British, German and French systems of
industrial relations. How do the differences
between these systems impair the development of
labour internationalism amongst workers? Why
must HR managers have an understanding of
industrial relations systems? Give examples.
Outline
1.Introduction
• Definition of Industrial Relation
• National IR System
• European Typologies
2.Illustration and Examples
• Key characteristics of the British, German and
French systems of IR
• How do the differences impair labour
internationalism
• Why must HR managers have an
understanding of IR systems.
3.Conclusion
Industrial Relations
Introduction

1.Industrial Relation
• IR seeks to explain variations with and
between nations in respect to worker-
employer-state relations.
• IR promotes labour and focuses on workers.

2.National IR System
• Consists of a unique interplay of culture and
legal regulation system.
• In theory, every nation-state possesses a
distinctive IR system.
Industrial Relations
Introduction

3.European Typologies
• ‘Rhineland’ Model
Germany, Austria, Belgium, Netherlands

• ‘Latin’ Model
France, Italy, Portugal, Spain, Greece

• ‘Anglo-Irish’ Model
UK and Ireland

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Key Characteristics

Compare and
contrast the key
characteristics of
the British,
German and
French systems of
industrial relations
Industrial Relations
Key Characteristics

Regulation Weak, voluntarism Extensive legal Strong state

framework intervention
Worker- Adversarialism, Co-operative High levels of
employer mutual mistrust adversarialism /
relations militancy
Collective Decentralized Centralized Strong state
bargaining intervention
Union / No statutory works Formalized Low level of
councils councils until EWC union
and National membership
Information/Consul
tation Directives
Formalization Low level Formalized Low level
of IR structure
Worker rights weak Strong Weak
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Labour Internationalism

How do the
differences between
these systems impair
the development of
labour
internationalism
amongst workers

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Labour Internationalism

EMU & Establishment of

EURO
• Economic integration of single Market

• Reduce transaction cost and exchange rate risk

• Increase labour market competition

• Lead to increased ‘regime competition’

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Labour Internationalism

EMU
To counter ‘globalized competition’
• Increase competition on industrial relations
system amongst member countries

• Pressurize policy-maker and practitioners to

make their arrangement as ‘competitive’ to
secure the investment

• So as ‘regime competition’

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Labour Internationalism

IR Regime Differences & Effect on

Labour Internationalism
Worker-employer relationship
• Germany: Autonomy, with Extensive legal
framework; co-operative, co-determination
• France: Strong State Intervention; High level of
adversarialism
• UK: Autonomy, adversarialism and mistrust
Effect on LI
• Differences in type of the worker-employer
relationship, and ways of handling it may block
LI. Industrial Relations
Labour Internationalism

IR Regime Differences & Effect on

Labour Internationalism
Works councils
• Germany: Powerful WC, Supervisory boards
• France: Intermediate WC (for info/consultation);
• UK: No WC until EWC and NI/CDs;

Effect on LI
• Differences in WC power, show the different
position, power and rights of worker, may also
impair LI

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Labour Internationalism

IR Regime Differences & Effect on

Labour Internationalism
Formality of IR Structure
• Germany: Formalized IR Structure
• France: Not so formalized IR Structure
• UK: low level of formalization of IR

Effect on LI
• Differences IR Structure, show the differences in
terms of protection provision, voice channel for
the worker from employer, may also impair LI

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Understanding of IR Systems

Why must HR
managers have an
understanding of
industrial relations
systems? Give
examples.

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Understanding of IR Systems

Understanding of IR
Systems
• Industrial relations promotes labour (focus on
workers)

• Comparative IR terminology: Employment

relations systems, Workers rights, Labour
internationalism

Industrial Relations
Understanding of IR Systems

• Explain variations within and between nations in

respect to worker-employer-state relations.

• HR managers in MNCs often have to play the

middle ground. (Promote business aims and
uphold fiduciary obligation to workers)

• So it is essential that HR is well informed of the

dynamics of cross-national labour relations and
idiosyncrasies of national IR systems.

Industrial Relations
Understanding of IR Systems

National IR Systems
• In theory, every nation-state possesses a
distinctive IR system (which consists of a unique
interplay of culture and legal regulation system)

• Caveat: no nation-state is a homogeneous entity

(legal system is shared by all, but cultural
practices vary from one region to the next… UK is
perfect example).

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Understanding of IR Systems

• HR managers must not be immersed within their

national systems to such an extent that vested
interests can hinder cross-border relations.

• HR managers must work hard to in order to

minimise dissonant cognitions and build a
commonly shared organisational culture.

• Inability to understand IR can result in business

failure.

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Understanding of IR Systems

Examples
• Cross-National Labour Relations in the Corus EWC
from the notes.

• The BMW European Works Council article.

(BMW and Rover)

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Conclusion

Conclusion

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Conclusion

Industrial Relations in
Europe
• The difference of national Industrial relation
system between European countries is shaped by
each of own unique national culture and legal
regulation system.

• It also arranged by policy maker and practitioner

to secure the investment under pressure of
globalization competition, and it is set to
competes to each other (Streeck, 1992)

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Conclusion

Industrial Relations in
Europe
• The difference of national Industrial relation
system between European countries create
obstacle for development of labour
internationalism amongst workers.

• HR manager must possess intensive knowledge

and familiarize with the dynamics of cross-national
labour relations and idiosyncrasies of national IR
systems, in order to minimize dissonant cognitions
and build a commonly shared organizational
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Conclusion

Industrial Relations in
Europe
• HR managers must not be immersed within their
national systems to such an extent that vested
interests can hinder cross-border relations,
mishandling the IR could be vital to the company.

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Industrial Relations

Q&A

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