International Human Resource Management-MJ Version

expected to take the initiative in formulating claims and demands, while
management is largely reactive. This reflects the mutual recognition implicit in
the process of collective bargaining and which is often enshrined in the earliest
national compromises. In the case of PECs, it is management that very often
played the key role, initiating the negotiations and coming to the bargaining
table with its own bargaining agenda. Important too is the understanding that,
as well as seeking to negotiate changes in the terms and conditions traditionally
covered by collective bargaining, management has also often been willing to go
further and include items that previously were regarded as falling within its pre-
rogative, such as changes in work organization or future investment.
In many cases, management has not had a great deal of choice in the
matter. The practical reality is that many of the changes that it has been seeking
to introduce involve the terms and conditions of existing collective agreements
and/or works agreements. Arguably even more important, however, is the fact
that intensifying competition requires management both to minimize costs and
promote the co-operation and commitment of the workforce necessary for
continuous improvement. In these circumstances, the legitimacy of management

448 International Human Resource Management

The ‘old’ industrial relations The ‘new’ industrial relations

Key assumptions

• stability • change


• conflict • co-operation


• social justice • continuous improvement


• standardization • diversity


• a predominant level of activity • multiple levels of activity


• centralization • decentralization (subsidiarity)

Subject matter

• claims/grievances • information/benchmarking


• rights/obligations • standards/targets


• pay and conditions • employment and competitiveness


• inputs • outputs

Processes

• distributive bargaining • integrative bargaining


• agreement making • social dialogue


• law making • target setting


• vertical integration • horizontal co-ordination


• enforcement/sanctions • monitoring/learning

Changing emphases in industrial relations

FIGURE 17.3