An employers' organization or employers' association is a collective organization of manufacturers, retailers, or other
employer
Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any o ...
s of
wage labor
Wage labour (also wage labor in American English), usually referred to as paid work, paid employment, or paid labour, refers to the socioeconomic relationship between a worker and an employer in which the worker sells their labour power unde ...
. Employers' organizations seek to coordinate the behavior of their member companies in matters of mutual interest, such as during negotiations with
trade union
A trade union (labor union in American English), often simply referred to as a union, is an organization of workers intent on "maintaining or improving the conditions of their employment", ch. I such as attaining better wages and benefits ...
s or government bodies. Employers' organizations operate like trade unions and promote the economic and social interests of its member organisations.
History
In a
free market
In economics, a free market is an economic system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of government or any ot ...
the rivalry between competing companies naturally tends to preclude combined action for the advancement of common interests.
[F.W. Hilbert, "Employers' Associations in the United States," in Jacob H. Hollander and George E. Barnett (eds.), ''Studies in American Trade Unionism.'' New York: Henry Holt and Co., 1912; pg. 185.] The emergence of
trade union
A trade union (labor union in American English), often simply referred to as a union, is an organization of workers intent on "maintaining or improving the conditions of their employment", ch. I such as attaining better wages and benefits ...
s and their efforts to establish
collective bargaining
Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights for workers. The ...
agreements on a local or an industry-wide level ultimately paved the way for combined action by competitors employing such labor in common.
The collective entities established by commercial enterprises acting in concert on such matters are known variously as employers' organizations or employers' associations.
Historically, employers' associations were of two general types: those consisting only of employers in a single trade or industry, or those bringing together employers from across a broad spectrum of industries on a local, regional, or national basis.
As was the case for unions, the first employers' organizations emerged in large industrial cities during the first half of the 19th century.
[Hilbert, "Employers' Associations in the United States," pg. 186.] Both unions and employers' organizations tended to be localized.
As unions began to proliferate and to gain strength in negotiations over wages and conditions through the use of
strike action
Strike action, also called labor strike, labour strike, or simply strike, is a work stoppage caused by the mass refusal of employees to work. A strike usually takes place in response to employee grievances. Strikes became common during the ...
s, employers began to unite in order to restrict wage rates and otherwise fetter the emerging organized labor movement.
International variations
The role and position of an employers' organization differs from country to country. In countries with an
Anglo-Saxon economic system (such as the
United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and ...
and the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...
), where there is no institutionalized cooperation between employers' organizations, trade unions and government, an employers' organization is an
interest group or
advocacy group
Advocacy groups, also known as interest groups, special interest groups, lobbying groups or pressure groups use various forms of advocacy in order to influence public opinion and ultimately policy. They play an important role in the develop ...
that through
lobbying
In politics, lobbying, persuasion or interest representation is the act of lawfully attempting to influence the actions, policies, or decisions of government officials, most often legislators or members of regulatory agencies. Lobbying, whic ...
tries to influence
government policy
Public policy is an institutionalized proposal or a decided set of elements like laws, regulations, guidelines, and actions to solve or address relevant and real-world problems, guided by a conception and often implemented by programs. Public ...
. In these countries, employers' organizations tend to be weaker, with many of their functions taken over by
industry trade group
A trade association, also known as an industry trade group, business association, sector association or industry body, is an organization founded and funded by businesses that operate in a specific industry. An industry trade association partici ...
s, which are basically
public relations
Public relations (PR) is the practice of managing and disseminating information from an individual or an organization (such as a business, government agency, or a nonprofit organization) to the public in order to influence their perception. ...
organizations.
In countries with a
social market economy
The social market economy (SOME; german: soziale Marktwirtschaft), also called Rhine capitalism, Rhine-Alpine capitalism, the Rhenish model, and social capitalism, is a socioeconomic model combining a free-market capitalist economic system alon ...
, such as
Austria
Austria, , bar, Östareich officially the Republic of Austria, is a country in the southern part of Central Europe, lying in the Eastern Alps. It is a federation of nine states, one of which is the capital, Vienna, the most populous ...
,
Sweden
Sweden, formally the Kingdom of Sweden,The United Nations Group of Experts on Geographical Names states that the country's formal name is the Kingdom of SwedenUNGEGN World Geographical Names, Sweden./ref> is a Nordic countries, Nordic c ...
and
the Netherlands
)
, anthem = ( en, "William of Nassau")
, image_map =
, map_caption =
, subdivision_type = Sovereign state
, subdivision_name = Kingdom of the Netherlands
, established_title = Before independence
, established_date = Spanish Netherl ...
, the employers' organizations are part of a system of institutionalized deliberation, together with government and the trade unions. In tri-partite bargaining the so-called
social partners strike agreements on issues like
price level
The general price level is a hypothetical measure of overall prices for some set of goods and services (the consumer basket), in an economy or monetary union during a given interval (generally one day), normalized relative to some base set ...
s,
wage increases,
tax rate
In a tax system, the tax rate is the ratio (usually expressed as a percentage) at which a business or person is taxed. There are several methods used to present a tax rate: statutory, average, marginal, and effective. These rates can also be ...
s and
pension entitlements. In these countries
collective bargaining
Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights for workers. The ...
is often done on a national level not between one corporation and one union, but national employers' organizations and national trade unions.
In countries like
Switzerland
). Swiss law does not designate a ''capital'' as such, but the federal parliament and government are installed in Bern, while other federal institutions, such as the federal courts, are in other cities (Bellinzona, Lausanne, Luzern, Neuchâtel ...
, the negotiations often take place at the cantonal level, branch by branch. The state is not involved in these negotiations, but can step in if the employers and the trade unions don't reach an agreement in a sector where salary dumping exists.
See also
*
Chamber of commerce
A chamber of commerce, or board of trade, is a form of business network. For example, a local organization of businesses whose goal is to further the interests of businesses. Business owners in towns and cities form these local societies to ...
*
List of employer associations
*
Federation of International Employers
Footnotes
External links
{{Authority control
Labor relations
*