By Colin Crouch
The habit of alternate unions, employers, and governments varies generally around the international locations of western Europe. Colin Crouch attempts to provide an explanation for those adjustments and determine their importance. He considers a hundred and twenty years of business kinfolk background in 15 nations and ends by means of looking motives a lot extra again in time than is mostly essential.
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Extra resources for Industrial Relations and European State Traditions
Example text
Alternatively, a union may have members across a wide number of industries, never constituting a large proportion of any given work-force despite the possibly large overall size of the union itself. Again, such a union can externalize, and moreover does not have its own fate bound to the future of any individual industry. General and white-collar unions come in this category. Our attention remains limited to industry-level unions. Union movements dominated by exposed-sector, industry-type unions should therefore represent the type most capable of facilitating the actions of a centralized confederation trying to internalize national economic desiderata.
However, if an organization becomes so large that its membership includes a significant proportion of the ‘public’, it is forced to internalize part of that externality, and has an impact sufficiently large to be discerned. Olson calls these organizations ‘encompassing’, a word so useful in describing the phenomenon concerned that it passed immediately into general academic currency. To illustrate with the simplest and most relevant example, a small work group that negotiates a rise in its pay that can be financed through price rises which in turn have no substantial effect on demand for the goods or services produced need have no regard to the contribution thereby made to general inflation in the society at large.
It is from that encounter that industrial-relations systems develop. A Formal Model Our starting point is the relationship between two actors in a capitalist economy—organized labour (L) and (organized) capital (C), which is a subset of the wider relationship between labour and capital. The parenthesis around ‘organized’ in the case of capital indicates that capital may appear as an individual firm, not necessarily as a group or association of firms, while labour is always collectively organized, at least informally, if it is taking part in an exchange going beyond the simple wage-effort bargain that binds individual employees to their jobs.
