Labor Relations in a Globalizing World by Harry C. Katz

1 A Framework for Analyzing Labor Relations

A PERSPECTIVE DRAWN FROM THE FIELD OF 
INDUSTRIAL RELATIONS
Whether we are at work or at leisure, we are affected by the conditions under 
which we work and the rewards we receive for working. Work plays such a 
central role in our lives and in society that the study of relations between em-

ployee and employer cannot be ignored.
This book traces how labor, management, and governments acting as indi-

viduals or as groups have shaped and continue to shape the employment rela-

tionship. Employment is analyzed through the perspective of industrial 
relations, the interdisciplinary field of study that concentrates on individual 
workers and groups of workers, unions and other forms of collective repre-

sentation, employers and their organizations, and the environment in which 
these parties interact.
The discipline of industrial relations differs from other disciplines that study 
work because of its focus on labor-management interactions. Thus, this book 
describes how unions and other forms of collective representation (such as 
works councils) influence working conditions and workplace outcomes and 
helps explain, for example, why workplaces have high wages in one situation 
and low wages in another. It also identifies how effective labor-management 
relations can contribute to improved economic performance, both in specific 
workplaces and enterprises and in the national economy.
Although the agricultural sector in emerging countries involves work and 
the production of food, we do not address the relationship between those 
who work on farms and those who own or manage those farms. Even though 

many of the concepts addressed in this book have some relevance in describ-

ing agricultural work, work of that type is sufficiently distinct from other 
forms of work to warrant separate consideration.
The study of labor relations focuses on the key participants involved in the 
employment relationship, the role of industrial conflict, and the performance 
of unions and other forms of collective representation. This chapter defines 
these key components of labor relations and describes how this book analyzes 
them.
THE PARTICIPANTS
The key participants (or parties) involved in labor relations in emerging coun-

tries are management, labor, government, international agencies, and non-

governmental organizations (NGOs).1
Management
The term management refers to individuals or groups who are responsible 
for promoting the goals of employers and their organizations. Management 
encompasses at least three groups: (1) owners and shareholders of an organiza-

tion; (2) top executives and line managers; and (3) labor relations and human 
resource staff professionals who specialize in managing relations with employ-

ees, unions, and other forms of collective representation. Management plays 
key roles in negotiating and implementing a firm’s work practices and em-

ployment outcomes.
Labor
The term labor encompasses both employees and the unions and other enti-

ties that represent them. Employees are at the center of labor relations. They 
influence whether the firms that employ them achieve their objectives, and 
they shape the growth and demands of the entities that represent them.
Government
The term government encompasses (1) national, regional, and local political 
processes; (2) the administrative agencies responsible for making and enforc-

ing public policies that affect labor relations; and (3) roles and activities 
through which the interests of the public are represented. Government policy 
shapes how labor relations proceeds by regulating, for example, how workers 
form unions, what rights unions may have, and how workplace disputes are 
resolved.

Labor Relations in a Globalizing World by Harry C. Katz