Collective bargaining and industrial disputes resolution

Collective Bargaining (CB) and Industrial Dispute Resolution (IDR) are integral parts of the labour laws in any country. Therefore, the laws related to them are to be followed by the corporate sectors and employees. The laws for the countries differ due to the varied structured system of work in the different countries.

The Industrial Dispute Resolution within Germany is managed by the Trade Unions (TU) which are comprised of the Industry Unions where one union represents the entire industry (Furåker & Larsson, 2020). With the growth of the Unions, the Employers’ Associations also grew with similar strength to safeguard the position of the employers. Other than these, the Work Councils (WC) are formed through the nomination of the employees irrespective of the union that they belong to. The Work Council Officer works closely with the Union Officers. The union and the Employers’ Associations are centralised allowing the CB to be conducted in a formalised manner (Garaudel, 2020). CB is made through formal meetings while the WC looks towards peaceful arbitration and compliance of the Collective Agreements (CA) by both parties. The co-decisions are usually taken under the supervision of the WC while Co-operative joint decision-making is done under the supervision of the Supervisory Board. There are also Local Labour Courts, Regional Labour Courts and the Federal Labour Court to govern and resolve trade disputes (Ilo.org, 2023).

The control of the TU over the formal procedures of CB is similar to the employers. The different termination procedure is the ordinary termination which is the expiry of the employment contract after a particular time. The extraordinary termination is related to the sudden removal of employment without prior notice (Laulié & Morgeson, 2021). In such cases, the hearing of the WC is considered before the decision is taken by the employer. Germany does not have a single Labour Code but there are numerous labour standards specified through different acts like Civil Code, Works Constitution Act, Act on CA and so on. The minimum wages for the employees are regulated according to the act based on “Payment of Wages and Salaries on Public Holidays and in case of sickness; Protection against Dismissal Act; Act on the Commercial Transfer of Employees” (Ilo.org, 2023). The employers are usually not responsible for paying any wages after the termination of the contract of employment. The employment policies are also regulated by the Labour Act.

Singapore follows a similar Labour Practice with some of the differences from the German Labour Law. Singapore follows the Tripartite Cooperation where the TU are represented by the National Trade Union Congress (NTUC) and the Employers’ Association represented by the Singapore National Employers’ Federation (SNEF) work closely to resolve Industrial Disputes and gain Collection Bargaining under the supervision of the Ministry of Manpower (MOM) (Mom.gov.sg, 2023). The system follows formal legislation under the guidelines of MOM regarding the work passes, employment practices, workplace safety and health hazards of the employees and also foreign manpower employment. CB is usually done by serving notice from each party to the other regarding different employment-related issues. The receiving party of the notice should accept the invitation for the meeting to commence. The CA form is valid for 2 years and a maximum of 3 years (Schnabel, 2020). The CA also has to be filled with the Industrial Arbitration Court (IAC) for certification within one week from the date of signing. When both parties are unable to agree, they seek a conciliation from the MOM. All the power is divided among the parties with the supervisory power on the MOM. the procedures are normally followed with formal notices and applications. Unfair dismissal or termination can be appealed by the employee through the TU to the MOM. Proper enquiry requires the replacement of the employee to the former employment within one month from dismissal. Any retrenchment by the employer requires to provide the employee with retrenchment benefits (Johan & Yuan, 2023). The wages are not fixed in Singapore and keep changing according to the changing market demand and employment needs. Therefore, CB can only set wages for a particular period of the CA. In Singapore, the CA is based on the particular company whereas for Germany this is fixed for the entire employers for the particular industry.

Despite the differences between the laws in Singapore and Germany, there are a few similarities that help to maintain the industrial laws in both countries. Both countries have a strong presence of TU who are instrumental in resolving disputes. Both countries have a strong legal framework for arbitration and resolution of disputes regarding CB through the arbitration courts. In both countries, the employees exercise the right to participate in CB and have their representation in the unions. The countries have laws regarding the representation of the employees within the executive bodies of the Trade Union. Both countries place importance on social dialogue where the employees, employers and government bodies arrive for verbal conversations.

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Law on collective bargaining and industrial disputes resolution

The key factors that have influenced the shaping of the labour laws regarding the IDR and CB are based on the historical, political, economic, social and ideological aspects related to the countries. The labour laws were introduced in Germany much later than in the UK. However, it took off quickly in the 1800s. The unions were also started during that time. However, during the reign of Hitler, unionisation was suppressed.

The Unions again started after the Second World War. The Unions were also built to show the strong ideological affiliation towards equality and normalisation of employment (Ioannou, 2023). The ideology for building the Unions was the effort of the employees to have their representation and hold in the industrial market and to reduce the dominance of the employers that could lead to servitude.

The social causes like the building of the socially homogenous working class and the urge to gain occupational stability in the society. The growth of industrialisation in Germany led to the need for more labourers in the industries and this became one of the prestigious professions (Aiginger & Rodrik, 2020). With the growth of industrialisation, there rose the need for more power for the employees within the industries. The growth of Unions also led to a reduction of militancy within the industries.

The Industrial Revolution in Germany also led to the growth of many industries with different demands for employees. The difference in the job roles also needed a better classification and clarification of the wages. Therefore, the Unions developed the standard labour laws and CA for maintaining similar wages within the industrial sectors. Min et al., (2019) have mentioned that the standardisation of the work hours for the employees was also fixed according to the laws.

Politically, Germany became a part of the European Union (EU) and there was the need for similar legislation to be followed in Germany as was the need for maintaining the labour laws in Germany. Therefore, the need for standard labour law in Germany was following the labour laws followed in all the countries under the EU.

Singapore was ruled by the British forces till 1971. Therefore, the country did not have any constructive labour law or employee recognition. The country received independence much later and they needed strong employment and industrial laws to strengthen the country’s foundation and help the country to survive the fallout due to the impoverishment in the country. The country was also placed among the third world due to their lack of basic needs and amenities. The country needed to build their infrastructure based on industrialisation to speed its growth and thus the labour law was introduced to support industrialisation (Min et al., 2019).

The country’s economic conditions were also collapsing after Singapore received independence the Industrial laws took up the development of the economic situation to help the country gain back its power. The country had to compete in the era of globalisation and therefore the development of industries was needed in the country to attract foreign investments. The country needed to develop their economic situation to gain more power in the global area. The country needed to develop their economic situation to maintain its independence and not fall prey to any foreign powers. The fluctuating market conditions also led to disputes regarding employee wages or employment contracts (Horwitz & Cooke, 2021). This led to strikes, work stoppages or violence. Therefore, the labour laws entitled CA for asserting the wages.

The country’s social conditions also needed to be changed after independence. Singapore comprises various races. The government, after independence, wanted stability among the citizens of the country and to avoid the discrimination done against the weaker races. Therefore, the country introduced labour laws so that the employees could group under the trade unions and get their needed justice regarding employment (Johan & Yuan, 2023). The country also needed laws and unionisation to protect the local labourers as well as support the foreigners coming to work in Singapore.

The political reasons for the employment law were the government’s deliberate initiative to develop the country into the first world economy and also support the local labourers within their localised industrialisation. The country faced globalisation very soon and the entry of foreign workers needed a fixed law for managing all employment.

Recommendations for changes on collective bargaining and industrial disputes resolution

            Based on the context of legal frameworks, policies, processes, and other aspects in Singapore, it can be recommended that there is a strong need for more employee representation in the trade Union such as to increase the percentage of employees here to conduct the legal processes more properly and efficiently. With a small workforce, it is going to be difficult for the management of the trade union to conduct the work smoothly and in a faster way (Nekhili et al., 2021). The time limit for CA needs to be increased as well in order to make sure that the parties can get the notice within the proper time. Another recommendation is that it is essential to develop a faster decision-making process at the court level of Singapore regarding any legal cases, industrial disputes, or incidents to ensure that the ultimate outcomes must be gained within a few days rather than waiting for a long time (Duppati et al., 2020). It will be effective to maintain the satisfaction level of the parties and there will be less pressure on the workforce as the increase of pending cases can develop high pressure.

            In terms of practices on employment, it has been observed that in Singapore, there is no such fixed wage rate for the employees and it fluctuates based on the industrial revolution and market demands. This type of aspect is responsible for creating inequality in the pay structure and raising strong dissatisfaction among the workers. In order to deal with this, it is essential for the government to come up with a law of a fixed wage based on which it can be possible to mitigate the concept of flexible wages (Bilan et al., 2020). It will be effective to ensure an equal pay structure for each of the employees and maintain their satisfaction level while facilitating workforce growth. Moreover, with the help of the fixed-wage structure, it can also be possible to avoid discrimination or the gender pay gap issue in the nation.

            Another recommendation is associated with the development of an individual law structure that can be effective for both domestic and foreign businesses as well as their employees to resolve existing disputes quite fast and smoothly (Nekhili et al., 2021). It is observed that most of the exciting laws of this nation are governed by the British emphasis and hence, foreign businesses face such difficulties while entering this market or wanting to make an investment. This type of aspect can shutter the economic growth of the country and hence, essential actions need to be taken into focus in this matter. Apart from that, it is also essential to strengthen the guidelines of the Tripartite and make sure that each of the businesses within the nation follows it strictly to avoid any type of legal issues (Duppati et al., 2020). Thus, from the overall context, it can be stated that the above-developed recommendations must be adopted by Singapore in order to ensure business growth and maintain a fair employment approach throughout the nation along with maintaining political stability.

Evaluation of legal and ethical aspects and issues related to recruitment in Singapore

            Fair and ethical recruitment process gains the most importance throughout the world and it is essential to maintain the minimum standards regarding the employment contracts suitably.

i) Legal aspect

Focusing on the legal aspect of Singapore regarding recruitment, it is observed that the “Employment Act 1968” is well-maintained here and it deals with several issues such as termination, employment contracts, working hours, annual leaves, and others (CIPD, 2023). Several amendments are observed within the act and it was updated last in April 2019. Recruitment and selection here are included under the “statutory regulation” and, employers must comply with the different “Tripartite Guidelines on Fair Employment Practices” related to employment (Yeoh, Goh & Wee, 2020). The “Ministry Of Manpower” (MOM) is responsible for investigating the complaints related to “discriminatory employment practices” and is capable of taking strong actions against the complaints (Snef.org.sg, 2020).

In order to recruit or hire employees in Singapore, it is essential for the employers to check the background whereas the “Personal Data Protection Act” (PDCA) is followed here to keep the information of the applicants private enough (Morgan Lewis Stamford LLC, 2022). The presence of the “fixed-term employment contract” in Singapore and the “Employment Agencies Act” (EAA) which is the governor of the business firms, as well as individuals who place the jobseekers, help to maintain the legal aspects properly in recruitment to ensure that the job seekers must get the right placements and all types of employment opportunities that are available within the nation.

ii) Reasons behind ethical consideration in recruitment

            Ethical consideration needs to be taken into focus at the time of recruitment in order to ensure that the selection of the candidates for their required jobs is conducted without discrimination (Tippins, Oswald & McPhail, 2021). In the case of Singapore, it is observed that ethical issues matter to the Singaporean jobseekers at the time of recruitment and after recruitment and hence, it is essential for employers to keep a strong focus in this matter. According to Xafis et al., (2020), ethical consideration in the recruitment process is essential to avoid “lack of conviction”, expediency, biases, indifference, and motivational as well as indirect blindness in the recruitment phase. In a similar aspect, employers in Singapore want to consider the ethical prospects for avoiding those issues.

Based on the context of “Deontological theory”, moral rightness and practical acts need to be well-maintained in business firms to maintain ethical aspects by keeping a strong focus on obligations, responsibilities, and duties (Lazar & Timmons, 2019). There are different situational factors that keep the employers of Singapore from acting ethically such as repetitive situations, “badly conceived goals” and distractions while recruiting people. In order to fulfil the expectations of job seekers and maintain the brand image in the competitive market, ethical consideration is essential.

iii) Plausible events related to ethical concern

            In terms of plausible events that can generate ethical concern at the time of recruitment in Singapore are the presence of discrimination, harassment, mental abuse, data privacy, and favouritism. As per the statement of Mahmud (2021), 60% of the employers in Singapore were penalised for relying upon “discriminatory hiring” in 2021, and along with this, 47 employers were added to the watch list of MOM as the suspected ones for following the “discriminatory hiring practices”. Apart from that, MOM also penalised 5 employers for conducting age discrimination in the hiring process (Iau, 2020). Based on this context, it is quite clear that discrimination occurs in the hiring process for which ethical concern is quite common. Favouritism, harassment, and mental abuse by showing the threat of making private data public are also plausible events that need to be taken into focus by EAA in Singapore to deal with these in the upcoming days.

Measures and ways for companies to minimise unethical practices in recruitment

            In order to deal with unethical practices in the recruitment process, it is essential for employers to undertake the best possible actions. Tursunbayeva et al., (2022), stated that the development of an “ethical recruitment policy” is mostly effective for employers to maintain ethical standards at the time of hiring and it helps to prevent the scope of discrimination effectively. In order to develop this policy, the guidelines of Tripartite need to be taken into focus as well (Tal.sg, 2023). Development of the standardised interview process is also relevant to keep the requirement bias-free and in this matter, skilled employers with “predetermined questions” need to be considered (Tursunbayeva et al., 2022). As an impact, it can be possible to provide equal time to the candidates for communicating about their skills and abilities and no such chance to do favouritism can be entertained in this way.

            Implementation of the “blind hiring practices” is another effective way or measure for the companies in Singapore to prevent unethical practices in recruitment. Under these practices, hiding the demographic information of the candidates at the time of reviewing CVs, hiding the name of the applicants at the time of evaluating the “work assignments” and avoiding the “social-media pre-screening” are included (Szczur & Obradovich, 2023). All of these are going to be effective enough to reduce the concern of data privacy as well as discrimination at the time of recruitment. The use of hiring technologies such as LinkedIn, Zoom, Upwork, and others can be relevant for developing the recruitment process such as from “candidate screening” to the on boarding and there is no such scope to conduct discrimination or favouritism (Thunberg & Arnell, 2022). It will be helpful for employers on a strong aspect to make the recruitment process as time-efficient and along with this; it is also possible to select the best candidates for the job role.

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            Another way to ensure that the recruitment process is fair enough is to assemble “diverse hiring panels” through which it can be possible to prevent unethical practices such as discrimination in recruitment. Based on the statement of Melchers, Roulin & Buehl (2020), the presence of a diverse panel can be able to focus on the core skills and competencies of the applicants rather than focusing on age, gender, race, or others. This panel will also be effective for casting the net wider as well as systematically to avoid the presence of bias in the recruitment process. Hence, it will be helpful for employers, especially in Singapore to hire rare talents and retain them for the long term.

            According to Szczur & Obradovich (2023), it is essential to train the interviewers properly to ensure that they must learn about “fair hiring practices”. It can be another measurable way to prevent unfair practices significantly by avoiding questions like age-related, gender-related, or ethnicity-related to the participants. It is not only effective to avoid discrimination but also helps the participants to feel relaxed while providing the interview and a sense of trust will be developed among them regarding the organisation. Avoidance of the “unconscious bias” is another effective way to keep the recruitment process fair enough and in order to maintain this aspect, there is a strong need to incorporate ethical practices as well as maintain fairness along with traceability in the hiring process (Melchers, Roulin & Buehl, 2020). These are going to be beneficial for the participants to verify the ethical consequences of the organisations regarding recruitment and they can apply based on their preferences. Thus, from the overall context, it can be stated that the aforementioned ways are going to be beneficial for minimising unethical practices in the recruitment process quite easily.

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