Final-offer arbitration: risking all on a two-horse race?

Article Abstract:

Final-offer arbitration (FOA) is a major element in the new-style labor agreements that have been adopted in the UK manufacturing sector. FOA differs from traditional arbitration in that the arbitrator is barred from making compromises and is instead required to choose either the final position of the union or the employer. The FOA's winner-take-all system has become increasingly popular in many workplaces since it is believed to promote moderation by encouraging negotiated settlements, as opposed to conventional arbitration which tends to promote drawn-out labor disputes. A survey of 72 plants with new-style agreements affirms this assumption that FOA is superior to conventional arbitration in preventing disputes, particularly when mediation or conciliation is also used. The survey also shows that the use of FOA encourage unions to be less rigid about accepting pay compromises.

Negotiation, mediation and arbitration, Labor relations, Collective labor agreements

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Participation, contigent pay, representation and workplace performance: evidence from Great Britain

Article Abstract:

Most UK companies now operate some form of employee involvement, and many also have a contingent pay scheme. Recent research has considered whether this approach has really brought the benefits which were originally anticipated, focusing on the authoritarian, collective bargaining and employee involvement forms of workplace governance. It was found that no one system is better than the others in all areas, with employee involvement leading to greater productivity but not having a positive impact on industrial relations.

Research, Participatory management

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Where do we go from here?

Article Abstract:

There are currently very mixed views on the future of the internal labour market (ILM). The trend towards non-union industrial relations will certainly allow attention to be refocused on the employment relationship while certain agents on the worker side do not exist. It is important to realise that workers cannot ever be just passive receptors of initiatives from managers, and that they therefore need to be taken into account when undertaking research on this issue.

Analysis, Labor market

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