To what extent is the employment relationship based on an inequality of power between labour and capital?
Throughout the years, the relationship between the capital and the labour has passed through several stages and they differ in the power they have over each other. There are different perspectives into analysing these relationships. There are institutions that defend both sides of the conflict and, there are contracts and regulations that help things run smoother and favourable for both parties.
Employment relationship regards to the interactions between employees and employers. They are exchanges between both of the parties in order to satisfy each other’s needs and wants. For example the workers interests include pursuit for higher pay, safe working conditions, education and the possibility to grow within a company or industry. The employer’s need is to generate profit to satisfy the shareholders, and generate employee productivity and efficiency. (Rose, 5). All these expectations are obtained with the exchange of work power from the employees and wages and salary from the employers. Disputes between the two parties often appear because of their difference in pursuits and there are different institutions, which are intended to solve these disputes in a formal way.
There are key institutions that have influenced each other in a checks and balance manner. On the side of the employees, the trade unions are the source of power. It allows employees to gather in a formal basis in order to put pressure on the employers to solve disputes in regard with working conditions, labour laws, unemployment benefits, sick pay, and pensions among other topics of concern of the employee (Burchil, 25). Collective bargaining is one of the main methods used by unions in order to achieve a particular goal. However, Burchil explains that competition also exists within the members of the unions, since these ‘bodies’ are interested in politics,...