Labor Management Partnership

Posted in Human Resource Terms, Total Reads: 177
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Definition: Labor Management Partnership

Labor management partnership is when a trade union and an employer comes to a collective agreement so as to enter a system of joint consultation in decision making by the labor and management giving the effect of a social partnership at enterprise level.


A labor management partnership is essential for economic success. The objectives of such a partnership are broad like improving the work lives of employees and also improving the productivity of the firm and the quality of the goods and services of the firm. It aims to improve mutual respect and cooperation between labor and management. It should be understood that such labor management partnerships are not restricted to normal everyday things like quality control circle or safety committee and they are also not a substitute of collective bargaining. The other contractual agreements between the labor and management continue to handle things like compensation, benefits, work timings, rules and regulations of the shop floor etc.


The main objective of labor management partnerships is to increase the trust between the management and the trade unions, improved working conditions, more job security, training for employees, equal opportunities, higher employee morale, employee involvement in decision making, less grievances and hence a better organizational climate and more competitive advantage for the firms. Although conflict between labor and management can never be eliminated but a better and positive relationship between labor and management can be established through this partnership.

This kind of partnership is popular in UK and North America.

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