A Handbook of Human Resource Management Practice

which, it is believed, makes for readier acceptance than if they were imposed by a
third party such as the State. This concept of voluntarism was defined by Kahn-
Freund (1972) as ‘the policy of the law to allow the two sides by agreement and prac-
tice to develop their own norms and their own sanctions and to abstain from legal
compulsion in their collective relationship’. It was, in essence, voluntarism that came
under attack by government legislation from 1974 onwards, including the principle
of ‘immunities’ for industrial action and the closed shop.

760 ❚ Employee relations

Figure 50.1 Employee relations: reconciliation of interests

Employees

‘highest wages

and conditions’

survival of the

enterprise

Employers

profit/surplus

high quality service

survival of the

enterprise

reflect relative bargaining powers

reconciliation of

different interests

processes

agreements

different

interests

common

interest