The Role of Labor Unions in Promoting Sound Industrial Relations: A Case Study of St. George Brewery
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Date
2006-07
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A.A.U
Abstract
Sound industrial relations systems support the effort of building
competitive advantage. St. George Brewery managed to establish and
maintain relatively better industrial relations systems. The management,
union, and a significant proportion of employees have positive attitude to
each other. The management encourages unionization. It supports the
union in many ways. The management considers the union as
consultant on matters of human resource management. There is a spirit
of working in a manner of consultation, cooperation, and collaboration.
The union-management relation is based on pluralistic approach. The
union is accepted by all as legitimate representative of employees.
In the past five years, the company has no record of labor disputes that
went to external parties such as Conciliators, Labor Relations Board, or
Labor Courts for resolution. They believe in resolving industrial disputes
and conflicts internally. The majority of workers have trust and
confidence in the union. There is 100% union density.
The efforts exerted by the union enabled workers to secure annual salary
increment, bonus, "Zenbil" system (every four months adjustment of
salary), 24-hours life insurance, solidarity fund to cover medical expense
including medication abroad as deemed necessary, etc ... The union
established and is operating a share company. It is generating its own
income through different business lines. It is providing employees
financial support every holiday, when an employee is pensioned and
suspended from work due to some reasons. The union and workers
widely share the idea that attaining more and more benefits is a function
of increased productivity, profitability and the growth of the company.
The management and majority of employees believe that the union h~s
contributed to establishing and maintaining peaceful industrial relations.
On average, combining results of the various measurement variables,
71.9% of the respondents reported that the union is strong and the
existence of it benefits employees in improving the economic and social
life of employees.
The interaction of union and management in a matured and rational
manner contributed in this regard. Educational mix of the union officials
is relatively better than what we commonly experience. An executive
member is one of the union officials. The industrial relations situation of
the company can be modeled as the amalgamation of rights and
obligations based relations, mutual understanding that more benefits are
dependent on increased productivity, . profitability, and growth of the
company, and increased common interest between workers and
executives.
Union officials and some segment of workers reported that there are bits
of problems on areas of recruitment, promotion, and performance
evaluation. Some said the level of communication is not enough. Some
even reported dissatisfaction with the performance of the union. In order
to keep the system working and fill these gaps the company may
systematically introduce policies and practice of ongoing career planning
and development, open and transparent communication, regular and
systematic performance planning and development systems and more
workers' participation and involvement through Quality of Work Life
(QWL) programs.
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Keywords
George Brewery, Industrial Relations