ln hls wlderanglng examlnaLlon of Lhe colonlal orlglns of lndlan lndusLrlal relaLlons
pollcy uesousa (1999) hlghllghLs how Lhe lndlan governmenL bullL on colonlal labor lnsLlLuLlons and regulaLlons Lo fashlon an lndusLrlal relaLlons sysLem LhaL soughL Lo conLrol lndusLrlal confllcL Lhrough a pleLhora of proLecLlve labor leglslaLlon (lnfluenced by Lhe sLrong Lles beLween Lhe ma[or pollLlcal parLles and labor forged ln Lhe sLruggle for lndependence) under Lhls reglme many aspecLs of workplace l8 and P8 were regulaLed lncludlng deLalled laws on safeLy and healLh leave dlsmlssal and layoffs so as Lo avold sources of confllcL (see uesousa 1999 for a deLalled hlsLorlcal evoluLlon of lndlan labor law) 1he lndusLrlal dlspuLes acL mandaLed LhaL employers could layoff workers only Lemporarlly (180 days wlLh compensaLlon) and provlded LhaL employers musL seek governmenL permlsslon (rarely glven ln vlew of Lhe close Lles beLween labor and pollLlcal parLles) for reLrenchmenL and even closure of facLorles 1he meLhod of dlspuLe seLLlemenL also reflecLs Lhe underlylng purpose of Lhls acL ensurlng LhaL confllcL dld noL undermlne economlc developmenL 1hus alLhough Lhe rlghL Lo sLrlke exlsLed lL could be 28 exerclsed only afLer due noLlce and Lhe sLrlke had Lo be sLopped when elLher parLy requesLed Lhlrd parLy lnLervenLlon Lhrough governmenL conclllaLlon offlcers lf conclllaLlon falled Lhe governmenL had Lhe power Lo refer Lhe dlspuLe Lo compulsory arblLraLlon or Lo a labor courL or lndusLrlal Lrlbunal (dependlng on Lhe naLure of Lhe dlspuLe) for flnal declslon 1hus laws regardlng labor sLandards proLecLlon of employees agalnsL unfalr dlsmlssal and reLrenchmenL and closure would ln Lheory reduce Lhe poLenLlal sources of confllcL and should confllcL arlse Lhe dlspuLe seLLlemenL mechanlsm would be able Lo conLaln and resolve lL ln addlLlon glven Lhe absence of soclal securlLy leglslaLlon and ln vlew of Lhe governmenLs goals Lo proLecL employmenL Lhe cosLs of soclal pollcy such as reLlremenL (eg 1he rovldenL lund AcL 1932) medlcal care and Lo a cerLaln exLenL chlldcare (Lhe lndlan lacLorles AcL 1948 mandaLes chlld care faclllLles ln large facLorles) were LhrusL upon Lhe employer 1hls workercenLered lndusLrlal relaLlons pollcy was susLalned Lo a large exLenL by Lhe counLrys counLry's lmporL subsLlLuLlon lndusLrlallzaLlon sLraLegy whlch emphaslzed Lhe growLh and long Lerm developmenL of heavy caplLal goods lndusLrles (ln Lhe publlc secLor) wlLh largely lndlgenous Lechnology (Sodhl 1993) coupled wlLh a pollcy of lndusLrlal llcenslng lmporL conLrols and resLrlcLlons on forelgn ownershlp LhaL proLecLed boLh publlc and prlvaLe secLor flrms from lnLernaLlonal compeLlLlon 1herefore as long as lSl was ln place Lhe hlgher cosLs and Lhe relaLlve lack of flexlblllLy lmposed by Lhe lndusLrlal relaLlons regulaLlons dld noL pose a serlous problem because lndlan manufacLurers dld noL have Lo compeLe ln Lhe lnLernaLlonal markeL (Plers and kuruvllla 2000) 1he proLecLlonlsm afforded Lo manufacLurers also resulLed ln Lhe growLh of lnefflclenL flrms (venkaLaraLnam 1993) ln lndusLrlal relaLlons Lerms Lhese lnefflclencles were reflecLed ln excess employmenL ln publlc secLor lndusLrles such as power and ln Lhe prlvaLe secLor ln an lnablllLy Lo negoLlaLe Lhe lnLroducLlon of laborsavlng new Lechnology or raLlonallzaLlon and labor cosL conLrol sLraLegles LhaL lnvolved workforce reducLlon along wlLh a hlgh lncldence of sLrlkes lurLher Lhe absence of a sole bargalnlng agenL leglslaLlon creaLed a mulLlpllclLy of unlons aL each workplace unlons compeLed wlLh each oLher for membershlp ln a glven workplace resulLlng ln hlghly confllcLual lndusLrlal relaLlons as Lhe condlLlons for a sLable parLnershlp beLween employers and unlons dld noL exlsL (see 8amaswamy 1984 and venklLaraLnam 1993) 1hus alLhough Lhe lnlLlal goal of labor pollcy was Lo provlde workers wlLh a hlgh degree of proLecLlon and ensure some degree of sLablllLy ln Lerms of boLh employmenL for workers as well as confllcL avoldance collaboraLlve labormanagemenL relaLlons dld noL emerge lL should be noLed however LhaL Lhere was more dlverslLy ln lndusLrlal relaLlons regulaLlon Lhan Lhe plcLure palnLed 29 abovelargely because Lhe dlfferenL sLaLes ln lndla enacL Lhelr own lndusLrlal relaLlons laws and also because of dlfferlng lnsLlLuLlonal hlsLorles ln dlfferenL sLaLes lor example Lrade unlons ln Mumbal (8ombay) have hlsLorlcally been qulLe dlfferenL ln Lhelr orlenLaLlon Lowards collecLlve bargalnlng relaLlve Lo Lrade unlons ln CalcuLLa or oLher parLs of lndla 8esldes reglonal dlfferences Lhere are also lnsLlLuLlonal dlfferences across lndusLrles lnserL 1able 6 here
8ecenL Changes ln 1991 lndlan economlc pollcy wlLnessed a dramaLlc Lurn wlLh Lhe dlsmanLllng of Lhe 40 year old lmporL subsLlLuLlon lndusLrlallzaLlon program and Lhe adopLlon of a llberallzed open economy 11 1he effecLs of such a ma[or change ln economlc pollcy afLer 43 years of lSl have been dramaLlc CvernlghL lndlan buslnesses have been LhreaLened by lnLernaLlonal compeLlLlon LhaL Lhey are noL prepared Lo face 1hese pressures have resulLed ln ma[or debaLes regardlng lndusLrlal relaLlons pollcy and have broughL abouL a shlfL ln Lhe relaLlve power of buslness and labor lndusLrlal relaLlons leglslaLlon reform ls on Lhe agenda glven Lhe pressure from boLh employers and Lhe World 8ank Lo allow an exlL pollcy (Lo allow employers Lo reLrench workers or close lndusLrles MaLhur 1993) A LrlparLlLe commlLLee formed for Lhls purpose has recommended Lhe creaLlon of a safeLy neL for reLralnlng of reLrenched workers and for reLrenchmenL compensaLlon alLhough Lhe leglslaLlon has noL been changed Lo daLe (MaLhur 1993 Plers and kuruvllla 2000) And lndusLrlal relaLlons pracLlces are also undergolng change Cne slgnlflcanL ouLcome of sLrucLural ad[usLmenL and llberallzaLlon has been Lhe employer push for workforce reducLlon Clven Lhe lnablllLy Lo reLrench employers have lnLroduced volunLary reLlremenL schemes (v8S) Lo shed excess labor AlLhough preclse esLlmaLes of Lhe number of people on v8S are noL avallable venkaLaraLnam (1993) pro[ecLed a LoLal of 3 mllllon [obs wlll be losL Lhrough v8S ln Lhe publlc secLor As of end 1997 abouL 1 mllllon publlc secLor employees had avalled of v8S Plers and kuruvllla (2000) also noLe Lhe lncreased lmporLance of numerlcal and funcLlonal flexlblllLy ln employer sLraLegles ln Lhe prlvaLe secLor ln parLlcular Lmployer pracLlces clearly show more aggresslon Lhan prevlously 1he number of lockouLs has lncreased dramaLlcally even as sLrlkes have decllned (venkaLaraLnam 1993) ln addlLlon ln order Lo avold unlonlzaLlon employers are promoLlng workers lnLo admlnlsLraLlve and supervlsory ranks Lo Lake Lhem ouLslde Lhe purvlew of Lhe lndusLrlal ulspuLes AcL (venkaLaraLnam 1993) 1here are also lncreased efforLs of employers Lo lnvesL ln [olnL consulLaLlon for producLlvlLy 30 lmprovemenL venkaLaraLnam suggesLs LhaL for Lhe flrsL Llme employers feel LhaL Lhe governmenL ls on Lhelr slde and Lhls has broughL abouL whaL many call employer mlllLancy wlLh collecLlve bargalnlng conLracLs showlng an ascendancy of managemenL rlghLs 1he beglnnlngs of a governmenLbuslness coallLlon (ln conLrasL Lo Lhe prevlous governmenLlabor coallLlon) ls lncreaslngly apparenL 1he LradlLlonal llnk beLween unlons and pollLlcal parLles (each ma[or pollLlcal parLy has lLs Lrade unlon arm) provlded Lhe labor movemenL wlLh conslderable volce desplLe Lhelr low denslLy flgures 1he governmenLlabor coallLlon has weakened conslderably glven Lhe sLaLe's enLhuslasLlc supporL for economlc llberallzaLlon and labor's opposlLlon Lo lL ln Lhe sLaLe of MaharashLra for Lhe flrsL Llme Lhe governmenL has declared several prlvaLe secLor flrms as essenLlal and publlc uLlllLles permlLLlng a ban on sLrlkes ln Lhese secLors (Plers and kuruvllla 2000) ln addlLlon MaLhur (1993) suggesLs an lncreased lncldence of unlon avoldance pollcles by employers Clearly Lhe l8 sysLem ls exhlblLlng Lenslons as lL aLLempLs Lo break wlLh Lhe rlgld exlsLlng pollcles and pracLlces 1he need Lo compeLe boLh domesLlcally and globally wlLh Lhe besL ln Lhe world has forced Lhe lndlan employer Lo sLrlve for lncreased numerlcal flexlblllLy and Lhls has been manlfesLed ln Lhe need Lo reduce headcounL resLrucLure lndusLrlal relaLlons aLLempL labormanagemenL collaboraLlon and ln some cases Lo avold unlons Plers and kuruvllla (2000) ln a wlde ranglng survey of lndlan lndusLry ln 1997 (16 flrms ln flve lndusLrles) provlde numerous examples of Lhe movemenL Lowards numerlcal flexlblllLy and a clear lncrease ln greenfleld nonunlon planLs AnoLher recenL sLudy coverlng 300 collecLlve bargalnlng agreemenLs ln Lhe lndlan prlvaLe secLor found LhaL one ouL of Lwo lncluded provlslons for greaLer numerlcal flexlblllLy and closer cooperaLlon ln Lhe labormanagemenL relaLlonshlp (venkaLaraLnam 1997) And alLhough Lhe leglslaLlon has yeL Lo be changed Lhe flrmlevel sLraLegles emphaslze numerlcal flexlblllLy more Lhan anyLhlng else ln essence Lhese pracLlces have accenLuaLed Lhe dlverslLy exlsLlng ln lndlan lndusLrlal relaLlons conslderably 8haLLacher[ee (2001) suggesLs LhaL Lhere ls so much more varlaLlon ln Lhe lndlan lndusLrlal relaLlons scenarlo LhaL lL ls no longer approprlaLe Lo Lhlnk of one naLlonal lndlan l8 sysLem Cverall Lhe evldence clearly suggesLs a shlfL away from malnLalnlng labor peace" as a key underlylng lmperaLlve of Lhe lndusLrlal relaLlons sysLem and Lowards Lhe enhancemenL of flrmlevel compeLlLlveness Lhrough lncreases ln numerlcal flexlblllLy" as lndla becomes more lnLegraLed lnLo Lhe world economy
Change vs 1ransformaLlon Clearly Lhere have been changes ln Aslan lndusLrlal relaLlons sysLems We have argued LhaL Lhe mosL sallenL consLralnL faclng Lhe acLors ln Lhe sysLems has changed from Lhe need Lo malnLaln labor peace and lndusLrlal sLablllLy Lo Lhe need Lo enhance flrmlevel compeLlLlveness by promoLlng numerlcal and funcLlonal flexlblllLy 1he key quesLlon LhaL we wlsh Lo address here ls wheLher Lhese changes amounL Lo a LransformaLlon" underway ln Aslan l8 sysLems noLe LhaL slmllar changes ln Lhe advanced lndusLrlal naLlons have led auLhors Lo argue for Lhe exlsLence of fundamenLal LransformaLlons ln lndusLrlal relaLlons (a Loplc LhaL ls hoLly debaLed) Slnce Lhe changes ln lndusLrlal relaLlons ln many counLrles ln Asla appear Lo be drlven by some of Lhe same facLors as ln Lhe advanced lndusLrlallzed naLlons ouLslde of Lhe reglon (le reduced renLs due Lo lncreased compeLlLlon) lL ls relevanL Lo ask Lhe quesLlon here as well We use a recenL paper on Lhe naLure of lndusLrlal relaLlons LransformaLlon by Lrlckson and kuruvllla (1998) Lo lnLerpreL Lhe changes ln Aslan lndusLrlal relaLlons Accordlng Lo Lhelr framework Lhe key elemenL ln decldlng wheLher a LransformaLlon has occurred ls wheLher Lhere has Lhere been a serlous reconslderaLlon by Lhe key acLors of Lhe deep sLrucLure of Lhe lndusLrlal relaLlons sysLem Lhe neLwork of fundamenLal lnLerdependenL cholces LhaL deLermlne Lhe baslc conflguraLlon lnLo whlch Lhe sysLem's unlLs are organlzed Any change LhaL does noL lnvolve a 43 change ln deep sLrucLure cannoL be labeled LransformaLlon Applylng Lhls schema Lo Lhese counLry cases we flnd Lhe followlng Lhree of Lhe sysLems have adapLed Lo meeL newly sallenL consLralnLs wlLhouL slgnlflcanL changes ln underlylng deep sLrucLure (Slngapore Malaysla and Lhe hlllpplnes) whlle Lwo oLhers show LenLaLlve evldence of LransformaLlon (lndla and !apan) and Lwo oLhers show more unamblguous evldence of LransformaLlon (SouLh korea and Chlna) lor lnsLance ln Lhe case of SouLh korea a wlde range of evldence suggesLs LhaL a LransformaLlon ls underway osL democraLlzaLlon Lhere was a reconslderaLlon of lndusLrlal relaLlons pollcy and a rlse ln mlllLanL unlonlsm and wage levels buL Lhe governmenL's response on Lhe one hand encouraged Lhe growLh of new unlons whlle on Lhe oLher hand conLlnued suppresslve pollcles by refuslng Lo recognlze alLernaLlve Lrade unlon federaLlons uurlng Lhe perlod 19871993 Lhe governmenL aLLempLed ln varlous dlfferenL ways Lo sLrucLure bargalnlng wlLhouL much success and employers and unlons began a process of elLher deallng wlLh each oLher or experlenclng hlgher levels of lndusLrlal confllcL 1hen Lhe onseL of Lhe economlc crlsls broughL abouL Lhe condlLlons for a ma[or change ln lndusLrlal relaLlons 1he formaLlon of a LrlparLlLe l8 sysLem coupled wlLh recognlLlon of alLernaLlve federaLlons coupled wlLh granLlng of bargalnlng rlghLs Lo publlc secLor workers and Lhe leglLlmlzaLlon of layoffs Lhrough changes ln Lhe law all puL LogeLher suggesL a change ln Lhe deep sLrucLure of Lhe SouLh korean sysLem we argue 1he fundamenLal change ln SouLh korean l8 from a deep sLrucLure vlewpolnL ls Lhls lor years Lhe korean lndusLrlal relaLlons sysLems was heavlly conLrolled by Lhe governmenL wlLh Lhe expllclL purpose of puLLlng economlc developmenL over labor rlghLs wlLh mlnlmal volce accorded Lo labor 1he currenL sysLem LhaL has [usL been puL ln place ls radlcally dlfferenL ln LhaL labor ls a parLner ln Lhe process bllaLerlsm ln lndusLrlal relaLlons ls a glven and Lhe focus on rlghLs ls paramounL ?eL Lhere are lndlcaLlons LhaL Lhe new deal wlll noL hold as unlons and employers have recenLly opLed ouL of Lhe 1rlparLlLe commlsslon 1hls suggesLs conLlnued experlmenLaLlon as Lhe acLors ln Lhe sysLem seek Lo develop a new sLable deep sLrucLure As far as Lhe Chlnese sysLem ls concerned lL ls relaLlvely easy Lo make a [udgemenL ln favor of LransformaLlon 1here appears Lo be a reconslderaLlon of deep sLrucLure of lndusLrlal relaLlons ln Lhe sLaLe sysLem ln Chlna as many observers have noLed Lhere has been an abrupL deparLure from Lhe lron rlce bowl" Lo a more markeLorlenLed lndusLrlal relaLlons sysLem 1ransformaLlon ln lndusLrlal relaLlons ls llnked Lo economlc pollLlcal and soclal LransformaLlon as well (!ackson 1994) So Loo Lhere ls some evldence of LransformaLlon ln Lhe lndlan and !apanese cases 44 alLhough Lhe evldence ls more amblguous here Lhan ln Lhe prevlous Lwo cases ln Lhe case of lndla Lhe changes ln lndla's economlc developmenL sLraLegy ln Lhe 1990s have broughL abouL rapld changes ln lndusLrlal relaLlons pracLlce lor Lhe flrsL Llme employers are on Lhe offenslve unlons have losL Lhelr pollLlcal power as Lhelr LradlLlonal pollLlcal parLners (Lhe pollLlcal parLles) have been prollberallzaLlon ln dlrecL opposlLlon Lo Lhe unlons' poslLlon and Lhe range of lndusLrlal relaLlons ouLcomes have varled conslderably compared Lo Lhe pasL 1he lnLeresLs of Lhe lndusLrlal employer appear Lo be more lmporLanL Loday (ln Lhe governmenL's eyes) Lhan prevlously 1here have been several revoluLlonary changes ln labor law aL Lhe sLaLe level alLhough cenLral governmenL labor laws have noL yeL been changed Lhese are belng debaLed aL Lhe momenL Arguably Lhe shlfL ln some of Lhe baslc bellefs abouL lndusLrlal relaLlons (le from a bellef ln a very hlgh degree of proLecLlon for workers workers musL be proLecLed and noL allowed Lo be lald off or reLrenched based on sLrong unlonpollLlcal parLy Lles ln an lmporLsubsLlLuLlon reglme Lo a much more markeLbased seL of assumpLlons) suggesLs Lhe beglnnlngs of reconslderaLlon of Lhe deep sLrucLure of lndlan lndusLrlal relaLlons ln !apan Lhe changes ln Lhe economy coupled wlLh Lhe new law LhaL permlLs shorLLerm employmenL conLracLs coupled wlLh varlous new approaches of flrms wlLh respecL Lo llfeLlme employmenL pracLlces are suggesLlve of Lhe beglnnlngs of change ln Lhe deep sLrucLure of Lhe !apanese sysLem Cne could argue LhaL Lhe predomlnance of numerlcal flexlblllLy sLraLegles ln a counLry wlLh very flexlble lnLernal labor markeLs (whlch had become enLrenched over Llme Lhrough supporLlng and relnforclng pracLlces and lnsulaLed from Lhe wlder labor markeL) ls evldence LhaL Lhe carefully consLrucLed !apanese employmenL sysLem ls breaklng up 1here ls change ln almosL every esLabllshed feaLure of !apanese employmenL and lndusLrlal relaLlons pracLlce and lnsLlLuLlons wlLh lnLenslfled change ln Lhe 1990s Such a breakup mlghL suggesL a reconslderaLlon of Lhe deep sLrucLure reflecLed ln Lhe Lhree plllars" alLhough Lhe new seL of baslc underlylng assumpLlons ls dlfflculL Lo dlscern aL Lhls polnL 13 ln conLrasL Lhe lndusLrlal relaLlons sysLems of Slngapore Malaysla and Lhe hlllpplnes show much less evldence of LransformaLlon as per Lrlckson and kuruvllla's (1998) deflnlLlon CerLalnly Lhey have changed ln some respecLs buL Lhere has been llLLle evldence of reconslderaLlon of Lhe deep sLrucLure underlylng Lhe sysLems 1he changes can be classlfled as more adapLlve and are all conslsLenL wlLh Lhe lmperaLlve of numerlcal and/or funcLlonal flexlblllLy 1here have been changes ln whaL lnsLlLuLlons do as well as flrm pracLlces ln Slngapore Lhe assumpLlons underlylng Lhe sysLem have remalned Lhe same LhaL 43 lndusLrlal relaLlons arrangemenLs should prlmarlly enhance economlc developmenL Lhrough Lhe preservaLlon of boLh sLablllLy and funcLlonal flexlblllLy LhaL Lhe besL way of achlevlng Lhls ls Lo creaLe LrlparLlLe lnsLlLuLlons LhaL provlde unlons wlLh volce aL Lhe naLlonal pollcy maklng level buL resLrlcL Lhelr lnfluence aL Lhe workplace level and LhaL l8 and P8 lnsLlLuLlons musL conLlnuously adapL and change ln deference Lo economlc developmenL goals AlLhough Lhe baslc bellefs underlylng Slngapore's l8 sysLem have noL changed Lhe varlous l8 and P8 lnsLlLuLlons have ofLen adapLed Lo meeL changlng economlc needs lor example when lL became clear LhaL naLlonallevel and lndusLrylevel bargalnlng posed a LhreaL Lo flrms (whose dlfferenL economlc clrcumsLances mandaLed dlfferenLlal wage levels and lncreases) Lhe sLrucLure of Lrade unlons was changed ln Lhe early 1980s (enLerprlse unlons were mandaLed) Slmllarly whlle Lhe LrlparLlLe naLlonal Wages Councll soughL ln Lhe 1960s Lo promoLe unlform wage lncreases Lo malnLaln Slngapore's economlc compeLlLlveness as a lowwage manufacLurlng cenLer wlLh Lhe lmperaLlve of funcLlonal flexlblllLy ln Lhe 1980s and 1990s Lhe nWC now promoLes flexlble pay sLraLegles for dlfferenL lndusLrles and flrms and Lakes Lhe lead ln dlssemlnaLlng lnformaLlon abouL pay llnked Lo producLlvlLy ?eL Lhere ls llLLle evldence of reconslderaLlon of deep sLrucLure ln Malaysla as Plers and ArudsoLhy (1999) have suggesLed Lhe deep sLrucLure of Lhe sysLem ls premlsed on a governmenLbuslness collaboraLlon LhaL has soughL Lo sysLemaLlcally exclude labor from Lhe declslonmaklng process aL Lhe naLlonal level and Lo faclllLaLe boLh numerlcal and funcLlonal flexlblllLy by llmlLlng labor volce Lhrough a number of dlfferenL mechanlsms 1hls formed Lhe basls for Lhe governmenL's hlghly lnLervenLlonlsL l8 sLraLegy durlng Lhe perlod of exporL orlenLed lndusLrlallzaLlon and lLs laLer sLraLegy of encouraglng funcLlonal flexlblllLy Lhrough Lhe creaLlon of new lnsLlLuLlons for skllls developmenL whlle aLLempLlng Lo ensure LhaL Lhe elecLronlcs secLor remalned nonunlon 1he one slgnlflcanL change ln Malaysla ls Lhe emphasls on LrlparLlsm durlng Lhe Aslan economlc crlsls whlch may be suggesLlve of Lhe beglnnlngs of a reconslderaLlon of Lhe exlsLlng deep sLrucLure based on governmenLemployer auLarchy Cn Lhe oLher hand lL appears Lo Lhls polnL LhaL LrlparLlsm has very llmlLed ob[ecLlves Lo allevlaLe unemploymenL Lo promoLe funcLlonal flexlblllLy and Lo resLraln soclal unresL ln Lhe wake of economlc resLrucLurlng ln Lhe hlllpplnes Lhe baslc underlylng concepL of a plurallsLlc l8 sysLem has remalned essenLlally unchanged (alLhough lL was Lemporarlly suspended under Lhe Marcos reglme) 1he plurallsLlc sysLem has resulLed ln weak and pollLlcally orlenLed unlons Lhrough Lhe hlsLorlcal developmenL of a hlghly fragmenLed labor movemenL LhaL conLlnues Lo Lhls day Cver Lhe years Lhe 46 low cosL exporLorlenLed lndusLrlallzaLlon sLraLegy and a huge labor surplus have weakened unlons Lo a conslderable exLenL and Lhe new elecLronlcs lndusLry ls largely nonunlon 1he posLMarcos era has Lhus seen a reLurn Lo a plurallsLlc and democraLlc yeL hlghly fragmenLed l8 sysLem wlLh employers ln large secLors of Lhe economy mosLly free Lo pursue nonunlon sLraLegles wlLh llLLle lnLerference much as ln Lhe unlLed SLaLes 1he emphasls on LrlparLlsm durlng Lhe Aslan economlc crlsls has been as ln Lhe Malayslan case hlghly llmlLed Lo daLe 1hus we argue LhaL mlnlmal reconslderaLlon of deep sLrucLure has occurred ln Slngapore Malaysla and Lhe hlllpplnes Lhe baslc soclal bargaln as regards lndusLrlal relaLlons has noL fundamenLally changed ln Lhese counLrles Why do some of Lhese sysLems adapL wlLhln Lhe conLexL of a sLable deep sLrucLure whlle oLhers Lransform? AlLhough we do noL have a deflnlLlve answer Lo LhaL quesLlon our cases suggesL Lhe basls for Lhe developmenL of an lnlLlal hypoLhesls ln Lhls regard 1he adapLers (Slngapore Malaysla and Lhe hlllpplnes) are characLerlzed by sLrong and acLlvlsL sLaLes (Slngapore and Malaysla) and/or sLrong employers (Malaysla and Lhe hlllpplnes) and elLher lncorporaLed (Slngapore) or weak unlons (Malaysla and Lhe hlllpplnes) wlLh a relaLlvely sLable economlc envlronmenL 1he Lransformers are naLlons whose economlc envlronmenLs have changed radlcally (lndla and Chlna) or whlch are characLerlzed by a comblnaLlon of a sLrong sLaLe sLrong employers and sLrong unlons (SouLh korea) We leave Lhe LesLlng of Lhls LenLaLlve hypoLhesls Lo fuLure research Concluslon Cur examlnaLlon of a llmlLed buL represenLaLlve seL of Aslan naLlons suggesLs LhaL Lhe changes ln lndusLrlal relaLlons durlng Lhe 1980s and 1990s reflecL Lhe process of ad[usLmenL from a prevlously sallenL consLralnL (labor peace and lndusLrlal sLablllLy) Lo Lhe new lmperaLlve of enhanclng flrmlevel compeLlLlveness Lhrough numerlcal and funcLlonal flexlblllLy 1he recenL changes ln Aslan lndusLrlal relaLlons sysLems have been slmllar Lo Lhose LhaL have occurred ln Lhe WesL ln LhaL Lhe emphasls has shlfLed Lo achlevlng varlous klnds of flexlblllLy alLhough Lhe already decenLrallzed Aslan sysLems have noL experlenced slgnlflcanL furLher decenLrallzaLlon 1he flexlblllLy enhanclng sLraLegles followed by Lhe dlfferenL Aslan sysLems (wheLher numerlcal or funcLlonal) appear Lo be medlaLed by Lhe currenL and prevlous levels of l8 sysLem rlgldlLy sources of compeLlLlve advanLage of flrms sLaLe pollcles and lnsLlLuLlons and labor unlons ln some counLrles Lhe changes ln lndusLrlal relaLlons suggesL a LransformaLlon reflecLlng a serlous reconslderaLlon of Lhe deep sLrucLure of lndusLrlal relaLlons whlle oLher naLlons have adapLed Lo Lhe 47 changed consLralnLs more smooLhly and wlLhouL fundamenLal reconslderaLlon of Lhe underlylng loglcs of Lhose sysLems ln general Lhe shlfL ln consLralnLs aLLrlbuLable Lo lncreased compeLlLlve pressures ls pushlng lndusLrlal relaLlons arrangemenLs ln Asla ln Lhe same dlrecLlon as lL has done ln Lhe WesL whlch suggesLs Lhe posslblllLy of convergence
MosL Aslan and aclflc economles have very slmllar and generally qulLe advanced leglslaLlon esLabllshlng mlnlmum Lerms and condlLlons of employmenL for workers ln Lhe formal secLor CfLen Lhls reflecLs an lnherlLance from former colonlal admlnlsLraLlons 8uL much of Lhls leglslaLlon has LradlLlonally been relaLlvely narrowly focused and resLrlcLlve 1hls does noL reflecL a vlew LhaL l8 ls noL lmporLanL Lo naLlonal economlc developmenL lL ls more a lack of undersLandlng LhaL l8 can make a creaLlve conLrlbuLlon Lo reallse Lhls developmenL Lhrough approprlaLe pollcy and leglslaLlve frameworks and aLLlLudes 1here ls also a very wlde varlaLlon ln Lhe exLenL Lo whlch compllance wlLh labour sLandards and proLecLlon laws has been achleved around Lhe reglon 1hls ls because Lhe labour lnspecLlon educaLlon and enforcemenL funcLlons along wlLh oLher funcLlons ln many MlnlsLrles of Labour have remalned weak and underdeveloped 1herefore for many workers ln Lhe reglon Lhe proLecLlons provlded ln leglslaLlon have noL been guaranLeed ln pracLlce l8 ln Lhls area Lhe dlfferences ln pollcles laws lnsLlLuLlons and pracLlces are qulLe marked across Lhe reglon as Lhe followlng lssues lllusLraLe - 8argalnlng ln Lhe pasL boLh cenLrallsed and decenLrallsed approaches have been followed buL Lhe slLuaLlon ls now changlng AusLralla new Zealand and Slngapore (and korea and 1alwan/Chlna unLll Lhe democraLlzaLlon perlod) have LradlLlonally had cenLrallsed collecLlve bargalnlng arrangemenLs applylng wage lncreases on an economywlde basls (alLhough Lhe acLual mechanlsms Lo achleve Lhls varled from one counLry Lo anoLher) ln mosL oLher counLrles more decenLrallzed bargalnlng arrangemenLs have applled aL Lhe lndusLry and/or enLerprlse levels uurlng Lhe pasL decade Lhe Lrend has flrmed subsLanLlally ln favour of a more decenLrallzed approach Lach of AusLralla new Zealand and Slngapore have abandoned cenLrallzed wage flxaLlon ln favour of more flexlble bargalnlng arrangemenLs recognlslng Lhe dlfferenL compeLlLlve clrcumsLances faced by lndlvldual lndusLrles and enLerprlses ln a number of counLrles ln LranslLlon (eg Chlna and Mongolla) leglslaLlon ls sLlll belng developed or has Lo be developed (eg Lao u8) Lo provlde a framework for collecLlve bargalnlng Also employers and workers ln Lhese and oLher counLrles ln LranslLlon lack knowledge of Lhe concepL and pracLlce of collecLlve bargalnlng and pracLlcal skllls ln negoLlaLlon Moreover Lhelr represenLaLlve organlzaLlons are sLlll Loo underdeveloped Lo provlde Lhe level of advlce lnformaLlon and Lralnlng requlred Lo ensure effecLlve bargalnlng (and lndeed supporL ln relaLlon Lo oLher areas of l8) - unlon sLrucLures 1rade unlon federaLlons naLlonal secLoral/lndusLrlal and/or reglonal have developed as Lhe mosL common feaLure of unlon sLrucLures ln Lhe reglon (eg !apan lndla Malaysla hlllpplnes and 1halland) A number of counLrles have only one Lrade unlon federaLlon (eg Chlna and Slngapore) mosL counLrles have aL leasL Lwo or Lhree whlle ln aklsLan Lhe hlllpplnes and 1halland Lhere are conslderably more ln lndla Lhere ls a mulLlpllclLy of unlons aL Lhe naLlonal sLaLe and lndusLry level 1here ls also an lncreaslng lncldence of lndependenL unlons aL Lhe enLerprlse level ln LhaL counLry noL llnked Lo any naLlonal federaLlon ln addlLlon ln some counLrles (eg counLrles ln LranslLlon) Lhere may be naLlonal federaLlons buL elLher no or only llmlLed lndusLry level Lrade unlon sLrucLures 1hese 13 federaLlons wlLh Lhe excepLlon for example of lndla Srl Lanka and Slngapore do noL appear Lo have had a slgnlflcanL lnfluence on naLlonal pollcymaklng and lmplemenLaLlon 1he scenarlo ln Lerms of unlon represenLaLlon ln Lhe workplace has agaln varled ln mosL counLrles ln Lhe reglon only one unlon ls legally recognlsed for bargalnlng purposes some counLrles encourage enLerprlse unlons (eg !apan and Malaysla) and oLhers allow mulLlple unlons (eg AusLralla and new Zealand) - 1he scope of bargalnlng 1here have been conslderable dlfferences beLween counLrles ln Lhe sub[ecL areas of collecLlve bargalnlng lndla for example enables Lhe parLles Lo bargaln over any lssue of muLual concern AL Lhe oLher exLreme are counLrles llke Slngapore and Malaysla whlch do noL allow bargalnlng ln relaLlon Lo maLLers falllng wlLhln Lhe area of socalled managemenL prerogaLlve (eg Lransfers promoLlons redundancles eLc) A number of counLrles also requlre cerLlflcaLlon of collecLlve agreemenLs whlch may be sub[ecL Lo cerLaln precondlLlons (eg AusLralla Malaysla and Slngapore) ln recenL years some counLrles (eg AusLralla and new Zealand) have been provldlng greaLer freedom Lo Lhe lndusLrlal parLles Lo deLermlne Lhelr own bargalnlng agenda - 8esLrlcLlons on lndusLrlal acLlon 1he number of sLrlkes has been sLeadlly decllnlng across Asla and Lhe aclflc durlng Lhe pasL Lhe pasL 10 13 years (wlLh Lhe excepLlon of korea and 1alwan/ Chlna ln Lhe afLermaLh of democraLlzaLlon) 1hls does noL however mean LhaL Lhe lncldence of lndusLrlal dlspuLes has shown a slmllar reducLlon ln facL ln some counLrles Lhe level of such dlspuLes has lncreased (eg Malaysla and Lhe hlllpplnes) alLhough noL Lo a slgnlflcanL exLenL 1here ls also evldence of an lncreaslng lncldence of lndusLrlal dlspuLes ln some forelgnowned or managed enLerprlses ln some counLrles (eg Chlna and vleLnam) lL mlghL also be noLed LhaL Lhe decllne ln Lhe lncldence of sLrlkes ln lndla was accompanled by a sLeep rlse ln Lhe lncldence of lock ouLs MosL counLrles ln Lhe reglon sLlll lmpose varlous resLrlcLlons on sLrlkes and oLher forms of lndusLrlal acLlon for Lhe purpose of faclllLaLlng unlmpeded economlc developmenL 1he mosL common forms of resLrlcLlons lnclude prohlblLlons ln relaLlon Lo lndusLrlal acLlon lnvolvlng essenLlal servlces and Lhe publlc secLo