ffirs.indd ii 1/15/10 7:36:47 PM INDUSTRIAL RELATIONS ffirs.indd i 1/15/10 7:36:46 PM ffirs.indd ii 1/15/10 7:36:47 PM INDUSTRIAL RELATIONS THEORY AND PRACTICE Third Edition EDITED BY TREVOR COLLING AND MICHAEL TERRY John Wiley & Sons, Inc. ffirs.indd iii 1/15/10 7:36:47 PM This edition first published 2010 © 2010 John Wiley & Sons, Ltd Registered offi ce John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom For details of our global editorial offices, for customer services and for information about how to apply for permission to reuse the copyright material in this book please see our website at www.wiley.com. The right of the authors to be identified as the authors of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved. 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ISBN 978-1-444-30885-3 Set in 10/12pt Meridien by MPS Limited, A Macmillan Company, Chennai, India Printed in Great Britain by Antony Rowe Ltd, Chippenham, Wiltshire ffirs.indd iv 1/15/10 7:36:48 PM CONTENTS List of Figures and Tables vii List of Common Abbreviations ix List of Contributors xi Preface xv Introduction 1 1 Work, the Employment Relationship and the Field of Industrial Relations 3 Trevor Colling and Michael Terry Section One British Industrial Relations in Comparative Context 27 2 British Industrial Relations: Between Security and Flexibility 29 Colin Crouch 3 British Industrial Relations: The European Dimension 54 Richard Hyman Section Two Actors 81 4 Management: Caught Between Competing Views of the Organization 83 Keith Sisson and John Purcell 5 State, Capital and Labour Relations in Crisis 106 Jason Heyes and Peter Nolan 6 Trade Unions: Power and Influence in a Changed Context 125 Melanie Simms and Andy Charlwood Section Three Contexts 149 7 Public Sector Industrial Relations: The Challenge of Modernization 151 Stephen Bach 8 Industrial Relations in the Private Sector 178 James Arrowsmith ftoc.indd v 1/15/10 4:49:07 PM vi CONTENTS 9 Multinational Companies: Transforming National Industrial Relations? 207 Paul Marginson and Guglielmo Meardi 10 Industrial Relations in Small Firms 231 Monder Ram and Paul Edwards Section Four Processes 253 11 Negotiation and Collective Bargaining 255 William Brown 12 Employee Representation 275 Michael Terry 13 The Changing Legal Framework of Employment Relations 298 Linda Dickens and Mark Hall 14 Legal Institutions and the Regulation of Workplaces 323 Trevor Colling Section Five Outcomes 347 15 Pay and Working Time: Shifting Contours of the Employment Relationship 349 Damien Grimshaw and Jill Rubery 16 Industrial Relations and Economic Performance 378 Paul Edwards and Sukanya Sengupta 17 Skills Policy and the Displacement of Industrial Relations: The Elephant in the Corner? 398 Ewart Keep, Caroline Lloyd and Jonathan Payne 18 Equality and Diversity: The Ultimate Industrial Relations Concern 422 Deborah Dean and Sonia Liff Index 447 ftoc.indd vi 1/15/10 4:49:07 PM FIGURES AND TABLES Figures 6.1 Trade union membership density 1950–2006 131 11.1 The approximate coverage of principal pay fixing arrangements for private sector employees in Great Britain, 1940–2004 257 15.1 Trends in the relative level of the minimum wage, 1999–2007 356 15.2 Changes in the average gender pay ratio 358 15.3 Trends in flexible working arrangements, 2001–06 372 Tables 2.1 Policies and practices for combining flexibility and security 31 2.2 UK policies and practices for combining flexibility and security 39 2.3 Female participation in employment (2007), European countries and the USA 41 2.4 Percentage foreign population (2007), European countries 42 2.5 Balance of trade as % of GDP (2007) and average annual growth rates (%) (1999–2008), advanced economies 43 2.6 Annual balance sheet totals of credit institutions as % of GDP (2006 or 2005), European countries 44 2.7 Mortgages as a % of disposable income (2006), selected countries 45 2.8 Women employed in health and other care occupations as % of all persons employed (2007), European and selected other countries 48 2.9 Social protection payments per capita in € (2006), European Union 49 4.1 Mergers and acquisitions in the UK, 1997–2006 92 4.2 Competing views of the work organization 98 7.1 Proportions employed within the UK public and private sectors by key characteristic in 2006 (%) 153 7.2 UK public sector employment by sector; headcount (000s) 158 ftoc.indd vii 1/15/10 4:49:07 PM viii FIGURES AND TABLES 7.3 UK public sector workforce in the UK headcount 160 7.4 Membership of UK trade unions with more than 100 000 members in 2007 170 8.1 Workforce jobs by industry (000s), 1978–2007 180 8.2 Manufacturing employment, 1998–2006 189 10.1 Dimensions of organization: the sector and the fi rm 245 14.1 Mapping responses to legislation 327 15.1 Pay determination in UK workplaces, 1998–2004 353 15.2 Listing of national minimum wage rates 355 15.3 Incidence of variable pay schemes, 2004 360 15.4 Usual weekly hours worked, by percentage share of employees, 1992–2008 365 15.5 The incidence of paid and unpaid overtime in WLB2 and WLB3 366 15.6 Reasons for working long hours, % of employees by occupational group 367 15.7 Flexible working and leave arrangements for non-managerial employees in continuing workplaces, 1998 and 2004 371 17.1 Joint regulation of training – % of workplaces 409 ftoc.indd viii 1/15/10 4:49:08 PM COMMON ABBREVIATIONS ACAS Advisory Conciliation and Arbitration Service BERR Department for Business, Enterprise and Regulatory Reform (formerly DTI now the Department for Business, Innovation and Skills (BIS)) CAC Central Arbitration Committee CBI Confederation of British Industry CRE Commission for Racial Equality DfES Department for Education and Skills DoH Department of Health Donovan Commission Royal Commission on Trade Unions and Employers’ Associations, chaired by Lord Donovan, 1965–68 DRC Disability Rights Commission DTI Department of Trade and Industry EAT Employment Appeal Tribunal EC European Commission ECJ European Court of Justice EHRC Equalities and Human Rights Commission EOC Equal Opportunities Commission ET Employment Tribunal EU European Union EWC European Works Council HRM Human Resource Management HSE Health and Safety Executive ILO International Labour Organization LFS Labour Force Survey MNC Multinational Company NES New Earnings Survey NHS National Health Service NMW National Minimum Wage fbetw.indd ix 1/15/10 4:41:41 PM x COMMON ABBREVIATIONS NVQ National Vocational Qualifi cation SME Small and Medium-Sized Enterprises TUC Trades Union Congress ULF/ULR Union Learning Fund/Union Learning Representative VET Vocational Education and Training WERS Workplace Employee Relations Survey fbetw.indd x 1/15/10 4:41:41 PM CONTRIBUTORS James Arrowsmith is Professor in the Department of Management and International Business, Massey University, New Zealand and an Associate Fellow of the Industrial Relations Research Unit, University of Warwick. Stephen Bach is Professor of Employment Relations at the Department of Management, King’s College, London. William Brown is the Master of Darwin College and Professor of Industrial Relations at Cambridge University. Andy Charlwood is Senior Lecturer in HRM at the York Management School, University of York. Trevor Colling is Senior Lecturer in the Industrial Relations and Organizational Behaviour Group, Warwick Business School, University of Warwick and Director of Masters Programmes in Industrial Relations. Colin Crouch is Professor of Governance and Public Management at Warwick Business School, University of Warwick. He is External Scientific Member of the Max Planck Institute for Social Research. Deborah Dean is Senior Lecturer in the Industrial Relations and Organizational Behaviour Group, Warwick Business School, University of Warwick. Linda Dickens is Professor of Industrial Relations at Warwick Business School, University of Warwick. Paul Edwards is Professor of Industrial Relations at Warwick Business School, University of Warwick. He is former Director of the Industrial Relations Research Unit. Damian Grimshaw is Professor of Employment Studies and Director of EWERC (European Work and Employment Research Centre) at the Manchester Business School, University of Manchester. fbetw.indd xi 1/15/10 4:41:41 PM xii CONTRIBUTORS Mark Hall is Professorial Fellow at the Industrial Relations Research Unit, Warwick Business School, University of Warwick. Jason Heyes is Reader in Human Resource Management and Head of the International Management and Organization Group at Birmingham Business School, University of Birmingham. Richard Hyman is Professor of Industrial Relations at the London School of Economics and Editor of the European Journal of Industrial Relations. Ewart Keep is Deputy Director of the ESRC Centre on Skills, Knowledge and Organizational Performance (SKOPE), School of Social Sciences, Cardiff University.