TON DUC THANG UNIVERSITY
FACULTY OF LABOUR RELATIONS & TRADE UNIONS
Chapter 2: Labor, management, and
goverment interactions
Lecturer: Hoang Thi Tuong Vinh, MA.
COURSE CODE: A03051 Chapter 2 1
An overview of how labor, management, and
governments interact
The role of the national government in labor
relations
The role of the Unions and politics in labor
relations
The role of the employers in labor relations
COURSE CODE: A03051 Chapter 2 2
Last week, we studied different theories of
Industrial Relations. All of these theories (from Karl
Marx through the institutionalist, to the ILO) agree that
“labor is not a commodity.”
What does it mean to say “labor is not a
commodity?”
What would it mean if labor was treated as just
another commodity or factor in production?
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COURSE CODE: A03051 Chapter 2
A critical assumption underlying labor relations is that there
is an inherent conflict of interest between employees
and employers.
Common interest – success of enterprise (joint gains,
reputation, growth)
Conflicting interest – higher pay, benefits, control of work,
job security
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COURSE CODE: A03051 Chapter 2
◦If employees are dissatisfied, they should exit (quit) a job
and seek employment elsewhere.
◦Employers who dissatisfy workers will not be able to
attract good employees and will therefore be forced to
improve their employment practices
◦Under what circumstances and for which type of
worker might an exit strategy work?
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COURSE CODE: A03051 Chapter 2
