Development Of Industrial Relations In Hong Kong Commerce Essay

Development Of industrial Relations In Hong Kong Commerce EssayIn responding to the question, I agree with that the organisation activity of industrial relations in Hong Kong has been less spurtalized and less centralized. There argon three critical factors influenced the development of the industrial relations in Hong Kong. In the following essay, there will be a definition and description on industrial relations and the function of cover unions in Hong Kong. And discuss the mount of sparing, policy-making and institutional sociology environment in post colony Hong Kong that affecting the function of cope union.Industrial Relations and Trade UnionThe terms of Industrial Relations is used to define the relationship and interactions between the employees ( trifleers) and employers (management) within the organizational settings. Those interactions or activities were involved entirely aspects of the job relationship, human resource management, employee relations and union-ma nagement relations. The of import parties to the employment relationship and the key actors are workers and workers organizations (usually trade union), employers and managers and likewise the state (Bacon, 2009). Since there have difference berth among employers, employees (workers) and trade unions (workers organization), the industrial relation sum different things to different people. For workers, they wants fairness of employment outcome, better pay, workplace safety, job security and training, while employer wants more efficiency, more productivity, more flexibility in the workforce.In general, trade unions have a wide range of beneficial outcome. They can be the actor to force managers improve human resources management practices, being the contribution of consulting, promoting job equal opportunities, increasing job satisfaction and decrease labour turnover. Meanwhile, trade unions also acted as a representative of employee to voice out their ask as well as express t heir views and interests in the workplace. Furthermore, they can create issues covering on the wages and working hours, to encourage employees to be better producers for their employers and hold back employers provide better working conditions for employee through the activities of collective bargaining and negotiation. Thus, industrial relations were often subject to joint regulation which required cooperation among employee and employer participation in finding making.However, in Hong Kong, union effects nowadays appear to have reduced obviously or just apply limited effect in some special circumstance. It probably caused by the change of industrial relations since World War II, under the governance of compound British rule for one hundred fifty years prior to Chinas sovereignty.Critical factors leading that influence trade unions in Hong KongEconomic FactorsFirst of all, from the aspect of economic factors, entrepot trade was the mainstay thrift in Hong Kong. Nevertheless, wi th the declined of entrepot trade, the sudden influx of refugees and the capital from Shanghai and other major Chinese cities transferred to Hong Kong that influenced the movement of unions in labour relation. With the expansion of manufacturing sector (such as clothing and electronics) that facilitate the semi-worker and the skill transferred among difference industries. Manufacturing activities have accounted for the large share of labour force together with other sector, such as restaurants and hotels, wholesale and retail, handicraft and finance (Ng, 1984). At that time, Small firm of individual business provided more employment opportunities. Hong Kong has accomplished a high rate of economic growth with begin unemployment rate.Under this circumstance, union membership is low and the collective bargaining is practically non-existent. There was no incentive to recognize trade unions or bargain conjointly within workers. In addition, the perception of British voluntaristic trad ition, gentlement agreement among the workplace are more significant than collective agreements, the lacking of legal obligation of enforceable weigh that allow employer adjust their labour force in conformity to adapt with the market condition (Chiu and Levin,1996). Meanwhile, the new economic structure only focused to touch the economist prescription in the organizational level in regard of employment relations. Government had adopting a non-interventionist policies in the mixer and economic sphere that had no intention to restructure the industry by implementing regulation, tax policies or subsidies, remains the lowest taxes among the world to preserve providence incentives (Tang, 1999). It had created a capitalist framework of the economy that encourage private sector to pursuit the market capitalism. Furthermore, the free market approach, Laisse-faire policies initiated by the judicature on economic activities only consist with minimal regulatory, no minimum wage legislat ion, no fixing prices. That means people can buy from whom they want, to sell from whom they buy and to invest they want or to hire whom they want, to work for whom they want (Tang, 1999). As a result, the collusion between government and employer that emerged conflictual interest between labour and capital that empower employer over the labour process and employment relations by bargaining between individual employers and workers.(Chiu and Levin, 1999). Moreover, trade union in Hong Kong are all in political orientated, they are only evoke in realizing political objective rather than seeking economic benefit for the workers through establishing formal rule making arrangement with employer (Chiu and Levin, 1999)Political and Sociology FactorsThe nature of political agreement for Hong Kongs revision to China was maintained the British rule of economic governance. Under this old model, administration worked was boneyly worked with business community that to ensure the constancy of social and economic environment. Such policies were also included public housing programme, comprehensive system of education, public health, subsidized in transport and social service. Colonial government approach of non intervention policy that allowed business elite integrated largely in governance the system of compound Hong Kong by formulating public policies in responds to the interests and demands of the dominant resources controller and economic elites (Chiu and Nevin, 1996). In the wake of the economic environment, a magnitude domestic disturbance posed major crises of legitimacy, which alert the colonial government had to build a new basis of legitimacy in order to increase the commitment to voluntarism (Chiu and Nevin, 1999) Since the Hong Kong Government had made a formal commitment for the urbane servant over the employment term and condition that initiated the practice trend of civil-service to private-sector approach. This kind of voluntarist framework had influenced the development of private sector to be more formalise in labour relations in civil service that resulting a process of both formal and informal pressures on the dependent and cultural outlook within the organization. Meanwhile, trade union being recognised by the colonial government and creating formal airs for their participation in decision making on terms and condition of employment which is more advanced than other private sector employers. (Chiu and Nevin, 1996)Through the expanding minimum standards of employment not solely for the capitalist nevertheless also coincide the interest for vulnerable categories of employees in the workforce. The birth of the international legislation for women and child labour and the enactment of the Employment Ordinance and its subsequent amendments were establish in 1920 and 1966-67 respectively in order to maintain domestic stability and legitimacy. The policy are set for prohibit any discrimination and guarantee to all persons equal an d effective protection against discrimination on any ground such as race, colour, sex, language, religion, political or other opinion, national or social origin, property, birth or other status (Chiu and Levin, 1996).In addition, the set up of Labour Department in 1947, the establishment of the Employment Ordinance in 1974 (Chiu and Levin, 1996) and the domesticate of political structure in 1980s, establishment of district boards with elected members to advise the government on the matters affecting the welfare of the district (Tang, 1999),begun elected seats onto the legislative Council as the British and Chinese government negotiated for Hong Kongs future. Political parties representing grass-root and labour interest were able to exercise far more to influence in the legislature (Tang, 1999). Since it open up up of the political system, small business and firms, as well as labour groups were more active in competing for political support to advance interests. in addition that, the establish of the Trade Unions and Trade Disputes Ordinance, that allow multiple union to form in the same trade, industry or enterprise that facilitate unions fragmentation and reducing potential untied opposition from organized labour to colonial rule. The approach of positive non-intervention taken by Labour Department, emphasised not to impose miffed control over unions activities and political orientation.However, the behaviour of the trade unions FTU CTU in Hong Kong, always fall into opposite and competition position between two Chinese government (pro-Chinese Communist Party and pro-Kuomintang Party) rather than using their resources to enhance the interest of workers through their domestic political action.Cultural Factors The cultural factors of Neo-Confucian ideological which suggests workers in Chinese nightspot accept authoritarian management and avoid confrontation with the employer (Chan and Snape, 2000). The traditional Chinese cultural of paternalism and instr umental individualism in the work place, can be see as the collectivistic particularism of the Chinese family (Ng, 1984) which is a concept of utilitarianistic familism that typically concerned about the interest of family over societal or other group interest, thus, they are low in participating of social affair with co-workers and neighbour (Chiu and Nevin, 1999). Therefore, with these two ideologies among employee, employment just viewed as their secondary concern. The low level of social involvement of political apathy that underpinning the low level of participation in the unionisation and collective action among workers.On the other hand, the practical exercise of Chinese workers perceptiveness unofficial methods and personal network to achieve their goals rather than in a formal channel. In addition, the rapid growth of labour population by the influx of refugee that had influenced the attitude and behaviour among the workplace as their primary interest was maximizing the income to get familial group survival.Main unions grouping in Hong KongThe unions in Hong Kong are encompassed with three main federations. The Hong Kong Federation of Trade Union (FTU), the largest union in Hong Kong and was established in 1947. Second is the pro-democracy Hong Kong Confederation of Trade Unions (CTU) was formed in 1990 and has been worked close with the Christian Industrial Committee (CIC) that focusing on labour education and advising workers on grievances. Third, is pro-nationalist Hong Kong and Kowloon Trades Union Council (TUC), was established in 1948. There are also umpteen difference independent unions which are smaller in specific sector, such as Hong Kong Chinese Civil Servants association (HKCCSA) and Hong Kong Professional Teachers Union (HKPTU).Traditionally, FTU have the role of taking an overly conciliatory line in labour disputes and focusing on the provision of welfare services to its members. However, it took a more moderate perspective that in l ine with Beijings conciliatory open door policy that not only participating in social affairs, striving for rights and benefit for workers but also promoting social stability and economic prosperity in Hong Kong.While CTU aims to build independent unions and encourage Hong Kong workers to see unions membership being about the protection of their interests (Snape and Chan,1997). The lead of CTU was aimed to obtain the support from the grass-roots by effectively representing workers interests to government and to employers, playing a positive role in labour disputes by adopting an inclusive approach to unionization and desired to maintain stability which enable CTU is often cast in the role of trouble-shooter, and emphasizing the importance of CTUs political autonomy that to develop a political consciousness and to preserving trade union and other freedoms in Hong Kong.TUC, the association of KuoMinTang (KMT), affiliate has been seen as an expression of loyalty to the Nationalists. I t displayed their influence mainly through their participation channel of communication with the government only. (Snape and Chan,1997) such as Labour Advisory Board. The leader of TUC has implemented low profile approach that in order to avoid provoke Beijing. And the leadership were comes from the older age group that affecting the recruitment activity was more less than other unions and have been difficulties in recruiting younger workers.ImplicationHowever, accordance to the historical background, the effectiveness of trade union activities in Hong Kong is open to question. Given that the impact of Neo-Confucian, Chinese family and paternalism had influenced the mentality of Chinese workers and the first migrant generation, participated in the colonial educational system which limiting collective challenge towards colonial government should not be exaggerated. However, the combination of legislation and regulatory of voluntarism and the cultural perspective cannot be overlooked . This was not only influenced the institutions of family and education system but also foster the dominance of individual and instrumental labour market strategic.In accordance to its political background, governments non-intervention approach, collective bargaining in after world war II seems effective fro most of big business firms, however, the institutional environment had influenced the new form of modern labour organization in Hong Kong. That emerged the declined of labour movement and the new guild origins with a mutual aid function.From the aspect on welfare orientation, trade union acted as a principle agency between two rivalry Chinese parties, Kuomingtang and Chinese Communist Party. With tendency of enlarge their power and seeking the support from employer. However, it can lead to the reshape of industrial relation governance structure as well as trade union while the economic turn weak. In addition, trade union in Hong Kong can be viewed as mimetic as it replete with r evolutionary and nationalistic movement. (Chiu and Levin, 1999) Under this circumstance, trade union lobbying benefit for worker are become ineffectiveness and gave the grounds for government and employer for resisting bargaining relations with the unions.ConclusionIn general, trade unions role in other countries are concluding bargaining with employers for better pay, bonuses and allowance, better working conditions and more welfare benefit and try to get involve in the decision making are supported by employee. However, it doesnt not meant employee prefer representation and participation through trade union in Hong Kong. It can be taken due to the mentality difference among Hong Kong and others. The culturally conditioned fatalism and typically in-depth and influence employee in Hong Kong that lead to resistance of collective action (Chan and Snape, 2000). Besides the economic, political and sociological factors, employee apathetic to trade union can be seen as a key factor that influence trade union in Hong Kong became less formalized and less centralized.