7 Strategic Variables of Labor Management Relations

Strategic Variables of Labor-Management Relations are discussed in detail step by step below:

Strategic variables of labor management relations

1. Competition

When high-quality, price-competitive foreign started making inroads in the 1970s and many previously insulated corporations had to compete with the manufacturing facilities of countries such as Japan. China, Poland, and Mexico had a significantly lower rate than products made in the United Static.

2. Anti-union Sentiment

According to a Gallup poll, labor’s approval rating dropped from 76 percent in 1957 to about 55 percent by 1987—1988.

A number of factors contributed to that change, including well-publicized union corruption cases, such as that of Jackie Presser, the Teamsters president; the disruption of the public conveniences via airline, train, or bus strikes, such as the public transit workers’ strike in loss Angels in the summer of 1994; a public perception that high union wage settle mentions led to inflationary cycles; and a generation more dedicated to personal goals than to group action.

3. Dispersion of Labor

Much of the successful labor organizing activity earlier in the century was based in the Northeast or Midwest, where there were large concentrations of industrial installations.

For example, the auto industry was concentrated in states like Michigan and Ohio the farm implement industry in Iowa and Illinois, Steelmaking in Pennsylvania, and apparel in the Northeast.

Since the factories were large and geographically concentrated it was easier to organize and to control the labor supply in these areas.

Strategic Variables of Labor Management Relations
Strategic Variables of Labor-Management Relations

4. Economic Conditions and Employment

From 1982 to 1991 and then again from 1992 to 1993, the U economy experienced the longest sustained economic expansion in its history. (A brief recession occurred in 1991—1992).

Overall job growth was occurring, despite the decline of employment in industries such as steel and autos. During relatively prosperous times, when jobs are plentiful and wages are rising, unions have difficulty attracting new members.

5. Law

The lobbying and passing of legislation may be a mixed blessing for the unions, however. Support of issues provided the unions a platform on which to attract mass members.

However, once legislation has been passed or defeated and court cases have been completed, the public may no longer be aware of the efforts unions make on behalf of their members.

6. Enlightened Management

It is often argued that the management of many companies has taken a more progressive view of the human resources of the organization.

Unions have long maintained that they would have little reason to exist if it were not for poor and self-serving management.

7. Changing Demographics

The changing demographics of the U.S. Labor force can have a significant effect on the union movement. The “graying” of the workforce can potentially pit one segment against the other.

For instance, older may be much m in trust in pension and retirement benefits; younger workers may desire current high wages.

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