Running head: LABOR LAW/COLLECTIVE BARGAINING
Labor Law/ Collective Bargaining
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Institution
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LABOR LAW/COLLECTIVE BARGAINING
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Labor Law/ Collective Bargaining
Labor markets involve a series of repeated exchanges between two main factors of
production namely capital and labor. Various issues including legal, cultural, political, and
institutional mechanisms affect labor markets, like any other markets (Arup, 2006). Regulation
of labor markets is one controversial, but important element of public policy in the US. It
involves many different aspects that aim at improving the relationship between employees and
employers and protecting jobs in the country. Labor market regulation, therefore, involves
addressing issues such as employment contracts, terms of employment, and the nature of work.
Labor market regulation is a difficult process because it is such a polarizing debate with two
main opposing viewpoints, one which supports collective bargaining and regulation policies, and
the other which lays emphasis on the benefits of promoting market processes such as demand
and supply to control the labor market. The main objective of labor market regulations, however,
is to ensure that the different approached used lead to improved social and economic outcomes.
Regulation of labor markets is an important process because of the direct impact that the
labor markets have on the welfare of employees and their significant others. Various reasons for
regulating labor markets include exploitation of employees, injustice, and market failures (Arup,
2006). There are both formal and informal ways of intervening in the labor market. Informal
mechanisms include cultural processes that seek to maintain justice and eradicate exploitation.
However, as societies grow and adopt complex economic and social systems, labor market
regulation tends to lean towards formal approaches. There are two main mechanism of formal
regulation in the labor market. These include direct intervention by the government and
collective voice. Direct government intervention entails enacting statutes that control market
processes in the labor market while collective voice involves two main approaches namely
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voluntary collective bargaining and representation of employees and employers trough unions
(Hayter, 2011).
In the US, various political and economic forces have shaped labor market regulations
over the years. Political ideologies and movements that have contributed to the development in
labor market regulations include human rights movements, civil rights movements, the fight for
equality, and feminism among others. It was not until the 20th century that developments in
regulation of labor market began to take place. The first major development was the civil rights
movement that sought to end discrimination on a racial basis. This was in line with other
developments in the political developments in the country. The executive order 1802 that was
issued in 1941 represents the first major attempt to regulate labor markets. The order sought to
outlaw racial discrimination in employment. Other landmine laws that followed political
developments include title VII of Civil Rights Act (1964), Title I of Americans with Disabilities
Act (1990), and Family and Medical Leave Act (1993). The Equal Employment Opportunity
Commission was also created, as well as various other anti-discrimination laws to do away with
all forms of discrimination in employment opportunities. There were also many other landmark
cases that helped to shape the current framework of labor regulations. Another major political
development in the country that contributed a lot to improving labor market in the country
includes the formation of trade unions (Arup, 2006). Labor unions were mainly established to
represent views of employees in collective bargaining to improve employment terms, wages,
working conditions, employee benefits, and dispute resolution mechanisms. The labor unions are
political in nature and have also contributed to shaping different political issues in the country.
The two main labor unions are the American Federation of Labor–Congress of Industrial
Organizations (AFL-CIO) and the Change to Win Federation.
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Economic issues that have facilitated the regulation of labor markets in the US include
creation of employment opportunities, protection of existing jobs, and improving the production
process (Chiswick, 2011). Improved labor relations are likely to improve the economy through
opening up more job opportunities and increasing production. Labor regulation seeks to create an
environment where the employees can work efficiently with peace of mind (Hayter, 2011). This
will in turn increase employee engagement and lead to increased levels of production. Another
economic aspect of labor regulations is the existing uneven market power in the labor market.
This can come as a result of employers having excess powers at the expense of employees. This
situation can lead to exploitation of employees and unjust treatment, as well as having long-term
effects on employee performance (Chiswick, 2011). Another reason for regulating labor markets
is to create a framework where both employers and employees have access to information in
order to make appropriate economic decisions. Information is very important in the production
process. There is need for both employees and their employers to have adequate information
about their industry and products, employment trends and other important economic issues in
order to make appropriate decisions.
Labor market regulations in the US have had significant effects on the labor market in the
country. The first major impact of such regulations is the improvement of employee welfare.
Labor regulations put the welfare of employees at the core of their objectives and seek to protect
employees from unjust treatment from their employers. The employees have an avenue to
address employment disputes through collective bargaining (Chiswick, 2011). Collective
bargaining has led to improved labor relations where both employees and employers come
together to address emerging issues in their relationship. This has created a great environment for
the employees to perform their functions and increase their productivity. On a wider scale, labor
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regulation has resulted in improving the economy through protection of jobs, opening p
employment avenues, and allowing both employee and employers to share relevant information
that can facilitate proper decision making in order to improve their operations (Hayter, 2011).
Another impact of labor regulations is ensuring respect for human rights, eradicating segregation
and discrimination on racial, religious, sex, and other grounds. This has improved the number of
people who seek employment opportunities. This competition for labor has resulted in improved
outcomes of labor in the market.
LABOR LAW/COLLECTIVE BARGAINING
References
Arup, C. (2006). Labor law and labor market regulation: Essays on the construction,
constitution and regulation of labor markets and work relationships. Annandale, NSW:
Federation Press.
Chiswick, B. R. (2011). High-skilled immigration in a global labor market. Washington, D.C:
AEI Press.
Hayter, S. (2011). The Role of Collective Bargaining in the Global Economy: Negotiating for
Social Justice. Cheltenham: Edward Elgar Pub.
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