THE CONTEXT OF INDUSTRIAL RELATIONS

There are 2 main dimensions in the context of Industrial Relations, namely internal and external context. The  Industrial Relations are
conducted within the external context of the national political-economic, the
international influence and the internal context of the organization.

1.
The Political Context

The Political Context is
formed by the government of the day. 
Some governments will want to curb the power of the trade unions through
legislation and will succeed to some degree. 
Some will be committed to some changes in the area of trade union
recognition but can say that it does not intend to make any other major changes
to existing trade unions legislation.

2.
The Economic Context

The Economic Context
affects employment with fluctuation and workforce downsizing mostly in the
manufacturing sector.  This sector has
experienced capital intensive technology rather than labour intensity.  This has weakened power of the unions and
their ability to bargain economically.

3.
The Regional Grouping
Context

The conduct of employee
relations in EU countries and COMESA Employees’ relations concerning works
councils, free movement of labour, working hours, and many countries are
affected by the regional treaty and Programme of action regulations and
initiatives of these same  groupings .

4.
The Intra-Organizational
Context

The need to take ‘costs
out of the business’ has meant that employers have focused on cost of labour
usually the highest and most difficult cost to reduce.  Hence, the ‘lean organization’ movement and
large scale redundancies, especially in manufacturing sector.

There has been pressure
for greater flexibility and increased management control of operations.  This situation has had a direct impact on
employee relations’ policies and union agreements.

The widespread
introduction of new technology and information technology has aimed to increase
productivity by achieving higher levels of efficiency and reducing labour
costs.  Organizations are relying more on
a core of key full-time staff, leaving the peripheral work to be done by
subcontractors and the increasing numbers of part-timers of women and men.  This has reduced the number of employees who
wish to join unions or remain trade union members.