Private and Public Labor Relation Systems.

Private and Public Labor Relation Systems.

The National Labor Relations Act 1935 was established to promote collective bargaining among workers and protect the rights of both the employer and employee. Labour relations system is the processes through which employees, trade unions, employers, and the state relate to set a healthy working environment for purposes of contract arbitration and collective bargaining (Bercu& Vodă, 2017). More strengthening is needed in these labour systems for effective labour practices.

Public-sector labour relations system operates under government agencies such as unions, while private sector labour systems are under companies or individual businesses. The sole purpose of private labour systems is to maximize profits while, on the contrary, the public labour systems agitate for worker’s welfare and effective service delivery. It is profits that determine how private employees are paid (Bjerke, 2014).

For the city government’s employees, they should collaborate with the union in introducing new social and economic measures that will advance cooperation and quality public service delivery. The state, through the federal labour systems, needs to cut down on the heavy taxes that workers are subjected to. “The Trouble with Public Sector Unions” (2020) describes how a New Jersey’s governor, Chris Christie, took on the unions by signing an executive order. This was meant to prevent 400,000 workers from paying more taxes to fund the state’s fiscal ruin.

The free labour systems cannot incorporate higher remuneration according to worker performance since the unions do not operate for profit maximization (Bjerke, 2014). A study done by The USA Congressional Budget Office indicates that between the 2005–2010 periods, the employees in the public sector and private sectors had significant margins in paid wages due to the profits company. The city government should borrow better open collaboration policies from the private sector. This will achieve and establish the principles of employment stability, collaboration, and continuous improvement principles.

It is, therefore, essential to note that labour systems need to be strengthened for effective contract bargaining and protecting both the employers and employees. This essay highlights different players in the labour systems and how they correlate together. The future of both public and private labour systems look promising if workers, employers, and government are protected from exploitation and harmful labour practices. The public sector should implement open collaborations with its workers like its private counterpart for effective working relations. In an occurrence, this is not acted upon; it will derail the need to have better collective bargaining power.

References

Bjerke, J. (2014). Know the Major Differences between Private- and Public-Sector Companies. Recruiter.

Bercu, A. M., & Vodă, A. I. (2017). Labour Relations: Contemporary Issues in Human Resource Management. Issues of Human Resource Management, 1st ed. Croatia: InTech, 153-167.

The Trouble with Public Sector Unions (n.d). Retrieved from https://www.nationalaffairs.com/publications/detail/the-trouble-with-public-sector-unions