Question: How can you explain the huge disperity between bargaining coverage and union diversity in some countries? TABLE 12.2 Labor Relations around the Globe: Union Membership

How can you explain the huge disperity between bargaining coverage and union diversity in some countries?

TABLE 12.2 Labor Relations around the Globe: Union Membership # Contract Coverage
CountryBargaining CoverageUnion Density
Korea12%10%
United States1211
Japan15+18
Canada2929
United Kingdom3025
South Africa3330
Czech Republic4713
Germany5818
Australia6017
Brazil6025
Spain7017
Sweden9068
France90+8
Finland90+69
Belgium9555
Austria95+27

Notes: Figures are circa 2012–2014. + indicates a lower-bound estimate. Source: Jelle Visser, "ICTWSS Data Base. Version 5.1 (Amsterdam, the Netherlands: Amsterdam Institute for Advanced Labour Studies, University of Amsterdam, 2016).

At the same time, labor relations around the globe are similar in other respects. The contemporary pressures on labor, management, and government are universal: globalization, financialization, decentralization, and flexibility. Moreover, the fundamental issues of labor relations are constant across all countries. The objectives of the employment relationship are efficiency, equity, and voice; there is a need to balance labor rights and property rights; and labor relations outcomes are determined by the environment and individual decision making. The U.S. New Deal labor relations system is one possible method of pursuing these objectives, but the comparative study of labor relations in other countries reveals many alternative possibilities. Therefore, this chapter outlines the labor relations systems of a number of representative countries. There are innumerable ways to order these countries, so to avoid confusion the tour here proceeds geographically from North America to Europe to Asia. The chapter concludes by revisiting the question of globalization: In an integrated world economy, is it possible to have unique national labor relations systems, or does integration force convergence of national institutions?

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