26-05-2012, 02:51 PM
The State and Industrial Relations
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Definition of the state
The ‘State’ can be defined as an institutional system of political government, with a monopoly over tax and the legitimate use of force in a society. Our set of state institutions includes:
- the legislature (parliament);
- the executive (government ministers);
- the judiciary (courts);
- central administration (the civil service);
- the police and army, which from time to time have played an important role in industrial relations, especially industrial disputes;
- local government; and
- specialist agencies such as, in the employment field, industrial tribunals, conciliation and arbitration services, equal opportunities commissions and health and safety inspectorates
(Gospel and Palmer, 1993, p. 154).
Theories of state intervention
(Review Chapter 1 for general theories of IR and the role of the State)
In Western democratic society the distribution of power is often mediated through organised social interests (i.e. pressure groups).
Types of pressure groups:
- environmental groups (e.g. Greenpeace)
- cause groups (e.g. RSPCA)
- professional associations (e.g. Australian Medical Association)
They also include:
- trade unions (e.g. Australian Council of Trade Unions)
- employer associations (e.g. Business Council of Australia)
- business organisations in their own right
How they influence the political process
- lobby government, ministers and parliamentarians
- provide submissions to parliamentary and party enquiries
- use media campaigns and researched articles to persuade public and political opinion
Role played by the state in industrial relations (2)
2. Ability to manipulate social and economic environment
The state impacts industrial relations by its social and economic policies, and its ownership and management of public services and utilities:
(a) Social and economic policies (examples only).
- Welfare policies impact on labour mobility and employment levels
- Education policies impact on skill levels and occupational mobility
- Health policies impact on absenteeism and health and safety
- Taxation policies impact on wage rates and work incentives
- Monetary policies impact on employment levels and real wage rates
- Tariff policies impact on employer profits and collective bargaining outcomes
- Employment policies impact on employment and dispute levels
(b) Ownership and management of public services and utilities: all require direct state involvement in setting wages and working conditions for employees. These services and utilities include:
- infrastructure e.g. ports, roads, railways and bridges
- essential services e.g. hospitals and schools
- public utilities (unprivatised) e.g. water, power, gas and public transport
- public corporations e.g. insurance and telecommunications companies