Asked by Andrew De La Rosa on Jul 26, 2024
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During the recent recession, many companies have instituted wage freezes, dropped health care coverage, and increased hours of work to maintain profitability. According to the industrial relations school, the competitive forces of the economy, and employees' rights to quit and find another job, provide a sufficient "check and balance" system to ensure that other employers do not take advantage of the poor economy simply as a way to decrease the share of profits that are paid to labor.
Wage Freezes
policies or agreements that temporarily halt increases in employee wages, often implemented during economic downturns or as part of cost-saving measures.
Industrial Relations School
A field of study that examines employment relationships, including the interactions between employers, employees, and the regulations and policies affecting work environments.
Competitive Forces
The pressures that firms in the same industry face from competitors, which influence their strategies and market positioning.
- Gain insight into the conventional economic approach towards efficiency, equity, and representation in employment relationships.
- Expound on the notion of the "labor problem" and its inherent characteristics.
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Learning Objectives
- Gain insight into the conventional economic approach towards efficiency, equity, and representation in employment relationships.
- Expound on the notion of the "labor problem" and its inherent characteristics.
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