Comparative Industrial Relations: Ideologies, institutions, practices and problems under different social systems with special reference to socialist planned economies

265 Pages·1983·24.015 MB·English

by  J. Wilczynski (auth.)

COMPARATIVE INDUSTRIAL RELATIONS
As a working person -or unemployed at one stage or another-have
you ever wondered in which direction industrial relations are moving in
the world at large? Is it as bad -or as good -in this country as
elsewhere? Can we learn anything useful from the solutions and failures
of other countries? This book may not provide all the answers to these
and other perplexing questions of our times, but it goes a long way in
that direction.
This study identifies and discusses contrasts and unexpected similar
ities between all the major spheres of industrial relations in the three
world divisions -the developed capitalist market economies, the social
ist planned economies and the less-developed countries of the Third
World. Employment, unemployment, work discipline, organized
labour, industrial democracy, technological change, wages, incentives,
inflation, industrial disputes and international migrations of workers
under different social systems are the major fields of analysis.
Special attention is given to the conditions and recent developments in
the socialist countries-both European and Asian, plus Cuba. Amongst
specific questions examined are such topical issues as the role of labour
in the social system, women and employment, alienation, the humaniz
ation of work, collective bargaining, independent unionism, workers'
participation in ownership and management, technological redun
dancy, differences in personal earnings, strikes, the settlement of
disputes and the Marxist view of'guest workers'. The significance of the
emergence and activities of Solidarity in Poland is considered in a broad
context, together with dissident trade unions and work stoppages in
other socialist countries. References for further reading are provided at
the end of each of the ten chapters, including original socialist sources
available in English.
By the same author
The Economics and Politics of East-West Trade
The Economics of Socialism
Das sozialistische Wirtschaftssystem (German translation)
Economia de socialismo (Portuguese translation)
Economia del socialismo (Spanish translation)
Elm al-eqtssad al-eshtraki (Arabic translation)
L'economia dei paesi socialisti {Italian translation)
Samajvadhache arthasastra (Marathi translation)
Socialistische economie (Dutch translation)
Towards Multilateral Payments in Comecon Foreign Trade
Socialist Economic Development and Reforms
Desarollo y reformas en los paises socialistas (Spanish translation)
Prospects for the Export of Australian Farm Products
Profit, Risk and Incentives under Socialist Economic Planning
Technology in Comecon
The Multinationals and East-West Relations
Comparative Monetary Economics
An Encyclopedic Dictionary of Marxism, Socialism and Communism
COMPARATIVE
INDUSTRIAL
RELATIONS
Ideologies, institutions, practices and problems
under different social systems
with special reference to socialist planned economies
J. Wilczynski
Associate Professor of Economics
University of New South Wales at Duntroon
Royal Military College, Duntroon, CQI!berra
© J ozef Wilczynski 1983
Softcover reprint of the hardcover 1st edition 1983 978-0-333-33430-0
All rights reserved. No part of this publication may be
reproduced or transmitted, in any form or by any means,
without permission
First published 1983 by
THE MACMILLAN PRESS LTD
London and Basingstoke
Companies and representatives
throughout the world
ISBN 978-1-349-06409-0 ISBN 978-1-349-06407-6 (eBook)
DOI10.1007/978-1-349-06407-6
Contents
Preface vii
l. LABOUR AND THE SOCIAL SYSTEM I
A. The social system I
B. The role of labour 7
C. The problem of industrial relations 13
2. EMPLOYMENT, UNEMPLOYMENT, MOBILITY 17
A. Manpower, the labour market, planning 17
B. Women and employment 25
C. Unemployment and shortages of labour 32
D. The mobility and turnover of labour 39
3. WORK DISCIPLINE AND CONDITIONS OF WORK 45
A. Work morality and discipline 45
B. Working hours 50
C. Alienation and humanization 53
D. The ILO and its standards 58
4. TRADE UNIONS AND COLLECTIVE
BARGAINING 65
A. Historical background 65
B. Trade unions' organization and functions 68
C. Trade unions and the state 72
D. Independent unionism under socialism 76
E. Collective bargaining 82
F. International trade unionism 87
5. INDUSTRIAL DEMOCRACY AND WORKERS'
PARTICIPATION 97
A. Industrial democracy 97
B. Workers' participation and ownership 99
v
vi Contents
C. Workers' participation in management 102
D. Workers' participation and trade unions 107
E. Conclusions and limitations 110
6. TECHNOLOGY AND LABOUR 116
A. Technological change and labour 116
B. The growth of labour productivity 121
C. Technological unemployment 125
D. Tackling technological redundancy 128
7. WAGES, INCENTIVES AND LIVING STANDARDS 133
A. Wage theories, policies and practices 133
B. Incentives 139
C. The differentiation of earnings 144
D. Standards of living 149
8. INFLATION AND LABOUR 157
A. The evidence and sources of inflation 157
B. Wages and inflation 165
C. Broader social and economic effects 169
D. Anti-inflationary and compensatory measures 171
9. INDUSTRIAL DISPUTES 176
A. Freedom to strike 176
B. The incidence of industrial disputes 179
C. Causes of industrial conflict 184
D. The principles and machinery of settlement 189
10. INTERNATIONAL MIGRATIONS OF WORKERS 195
A. The extent and directions 195
B. Principles and mechanisms 199
C. Economic benefits 204
D. Economic and social problems 207
E. Migrant workers and Marxism 212
Notes and References 219
m~x 244
Preface
Industrial relations are no longer a matter of isolated employer
employee dealings, but a question of wider economic, social and political
consequence -and they are becoming increasingly complex under the
impact of technological and social change. But in these developments,
however progressive (or regressive), the basic problem has essentially
remained -the conflict of interests between employers and employees.
This generalization is valid in application to any social system.
For a long time it was officially claimed in the Marxist-ruled countries
that under socialism basic industrial conflict did not exist, as the
interests of the socialist state and of the workers were identical. As is
demonstrated in this book, these countries also have the problem of
conflicting industrial relations-they have always had it, however
suppressed it might have been. The industrial upheavals in Poland
1980-2 bear dramatic witness to this inexorable reality.
As is well known, industrial conflicts lead not only to immediate losses
to the parties directly involved, but also to other entities and in many
cases to the public. To minimize these adverse effects and the cost to
society, it is important that industrial disputes are reduced to a
minimum, or are at least settled speedily and in a manner fair and
reasonable to the parties concerned (and society in general).
Industrial relations differ in detail from one workplace to another, but
in each country they conform to, or are at least exposed to, the same
political, legal, economic and social set-up. There are, of course,
considerable differences in these set-ups. Nevertheless meaningful
generalizations can be made as to capitalism and socialism. The focus of
attention in this study is to examine the differences between these two
rival systems of our times.
Comparative industrial relations is a relatively new field of study.
Although the International Labour Organization recognized the value
of this field long ago, and in 1960 established the International Institute
for Labour Studies in Geneva, it is surprising how little interest had been
aroused until recently. There are now many specialists in the field who
believe that the comparative study of industrial relations on a more
systematic basis is long overdue.
vii
viii Preface
This discipline holds great promise for theoretical writers, policy
makers and practitioners on both sides of the Iron and Bamboo, or
Strategic and Technological curtains. The increasing internationaliz
ation of economic relations, the expanding activities of the international
trade union movements, the international repercussions of tech
nological change on work relations and the growing assertiveness of the
workers under both systems further enhance the need for this study in
the international setting. A knowledge of industrial relations under
different social systems may not only be helpful to a better understand
ing of different countries, but may also suggest new solutions to
domestic problems. The reader will be surprised at how much mutual
(mostly subconscious) transplantation of ideas and practices has taken
place between the two systems -to the chagrin of parochial diehards,
but to the delight of the believers in the convergence thesis.
In this book the author examines all major facets of industrial
relations in capitalist market economies and under socialist economic
planning. The usual approach is in each case to first outline the
principles and practices prevailing in capitalist countries. Against this
backdrop, the contrasting elements in the socialist set-up are examined
in greater detail and striking, unexpected similarities are pointed out.
Special attention is given to the role of ideology and political factors
which, in the author's view, were largely neglected in the past treatment
of industrial relations (especially in the West). Differences amongst
capitalist nations as well as amongst the socialist countries are indicated
where warranted.
The author's well-meant intention is to be honestly informative and
neutral. He does not, however, steer away from critical evaluations of
both sides, still in a detached and constructive spirit.
Much of the research for this book was carried out at the University of
Manitoba where the author was Visiting Professor in the Department of
Economics in 1980. He wishes to thank the University for the facilities
provided and the fruitful atmosphere for research. He profited from the
ideas and counter-ideas of Professors C. L. Barber, N. E. Cameron,
C. W. Gonick, J. Loxley, D. Mole, P. Phillips, H. Rempel, W. Simpson,
R. H. Vogt, A.M. C. Waterman and Mr R. Grynberg, but in no way
implies their responsibility for any shortcomings of this book.
University of Manitoba, J. WILCZYNSKI
Winnipeg, and University
of New South Wales at Duntroon,
Canberra
1 Labour and the
Social System
A. THE SOCIAL SYSTEM
The social system can be briefly described as a network of relations
amongst individuals and groups regulated by beliefs and institutions.
Social systems can be viewed in historical ('vertical') perspective or in the
contemporary ('horizontal') scene. In this study we are primarily
concerned with the comparative setting prevailing in the world today,
although we shall be occasionally referring- still for comparative
purposes-to historical antecedents.
Capitalism and socialism 1 are the two major social systems confront
ing each other today- competitively and antagonistically. To gene
ralize, capitalism is noted for a multi-party system of government, the
predominantly private ownership of the means of production, the
operation of the market mechanism and the freedom of enterprise
spurred basically by the private profit motive.
On the other hand, socialism is characterized by the mono-party
system of government exercised (or dominated) by the communist party,
the social ownership of the means of production (land and capital), 2 and
economic planning guided by social interest as interpreted by the ruling
party.
From the above fundamental elements other related features derive,
such as those pertaining to personal freedom, economic management,
the allocation of resources, prices, developmental strategy, income
distribution and external economic relations. The contrasts between the
two rival social systems are summarized under 20 criteria of comparison
in Figure 1.1.
Capitalism is best developed in the 'Western countries' (numbering
25), viz. in Western Europe, North America, Japan, New Zealand,
Australia and South Africa. On the whole, they have reached high
income levels and most are highly industrialized.
I