The IEBM LibraryIndustrial relations in the United States of America

Both the relative power of the US economy and the global influence of its managerial and industrial relations models justify the effort necessary to understand it, despite the difficulties posed by its exceptionalism and complexity. The US influence on the global economy derives from the early development of professional management techniques in the USA, its guidance and financing of the post-Second World War recovery, and the size and worldwide scope of US multinational corporations.

The pressures of international competition have opened a Pandora's box of troubles for the US industrial relations system, among others. The move from oligopolistic markets to competitive ones has created the need for many industries in the USA to create new ways to organize work and cut costs. It may be that the necessary level of quality of some goods, such as automobiles and electronic equipment, cannot be attained without developing cooperative mechanisms that are inconsistent with the US adversarial model. However, it is unclear whether more cooperative work methods can endure under US capitalism, where the 'fast buck' is held in reverence, the pressures of predatory takeover artists keep management constantly squeezing for more profits, managers hold opposition to employee collective action as a part of their philosophy, and hierarchical habits are deeply ingrained. The trust that is the foundation stone of labour-management cooperation is difficult to build in such an environment.

Meanwhile, the traditional collective bargaining structure in the USA has fared rather well. It has devised means to cut labour costs. Unions have generally not opposed the adoption of new technology, and have bargained for innovations in cooperation, profit sharing, health care costs and holidays. Child care may be the next frontier. Similarly, in the unionized sector, the grievance and arbitration procedures continue to guarantee workers protection. In the non-union sector, many employers are adopting progressive and positive employment policies. There remains a concern about the overall strength of the US labour movement, which like those in many other countries, has declined in recent years.

Hoyt N. Wheeler