7036HRM Strategic Employment Relations Assignment Sample

Strategic Employment Relations and Corporatism in Brazil

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Introduction To 7036HRM Strategic Employment Relations Individual Report

Employment Relations associate with creating and maintaining positive work relationship at the workplace. It is one of the vital components in the organization as it backed up with the morals of subordinates (Duggan et al, 2020). State plays important role in preserving employment and industrial relations as they guide companies to follow specific procedure. The present report will be specifically based on Brazil [Largest country in Global South] (Brazil, 2023). In the assignment, role of state and its influence on employee relationship would be critically discussed.

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Main Body

Critically reviewing level of corporatist system of employment relation

Corporatism refers to political system that is accountable for policy making in corporate groups; Corporatist theory of Industrial relation is explicated as the concept under which commercial sectors are bound to adopt fair practices that led to enhance relationship between companies and employee (Pepple and Olowookere, 2021). Corporate statism believes that, businesses must be form on the basis of society and state. In Brazil, corporate government regime is mainly applied on the listed companies that established in accordance with Brazilian Corporation Law 2 which is issued by Brazilian Securities Commission [CVM] (Employment Laws in Brazil, 2023). In Brazil, Consolidation of Labour Laws governs the employment relation in country, below mentioned are the main level of corporatist system in Brazil such as:

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The Brazilian constitution

The constitution acts as a foundation of all the legal practices in the country. This promotes non- discrimination policy and assure equality to everyone in organization. Therefore, companies in Brazil promote equivalence in the organization so each employee gets equal opportunities and there is no discrimination promoted at the work place (Employment Laws in Brazil, 2023). All the companies in Brazil need to strictly follow the constitution so they can promote peaceful environment at the workplace.

Consolidation of labour laws

This is often known as CLT, it is legal code that covers mandatory components related to employment relationship in Brazil For instance- working hours, salary, vacation, termination and regulations related to health and safety (Kreshpaj et al, 2020). Employers need to be aware about all of these specifications so accordingly working practices can be determined.

Supplementary legal codes and federal laws

The labor legal framework in Brazil often includes many other legal and federal laws. This is specifically for regulations related to health and safety. The main motive of this law is to develop safe and secure environment for employees at the workplace so they can perform their operations in specific manner without having any kind of fear (Employment Laws in Brazil, 2023). Studies have shown that, it is essential to develop safe working environment so, subordinates can feel safe and their health should be considered as the topmost priority in the organization and federal laws assist in this area.

Collective bargaining agreement

It is essential piece of labor law system. This agreement offers opportunity to employers and trade union in relation to negotiate condition as per the requirements of employees.

Employee Agreement

This is the support system for industrial relations in Brazil, specific guidelines are provided in agreement for both the parties- employer and employees (Hajiali et al, 2022). It is essential to follow these set of standards. Not following this result in creating higher penalties for superior and subordinates.

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The corporatist system in Brazil aligns with mandatory rules and regulation that are backed up with protecting the interest of employees. The state is responsible for implementing all the laws and agreement which are crucial to follow by organizations as this depicts that companies are following all the guidelines and employees are working in positive environment without experiencing any kind of hurdles or issues.

Steps taken by trade unions, employers' associations and the government in order to assure the success of corporatist system of regulation

Trade unions

The aim of the trade union is to protect the interest of employees while negotiating with their working conditions. Unified Worker's Central [CUT] is the national trade union centre of Brazil that has taken varied steps for corporatist system of regulation which are-

  • The union led to assure legal protection to workers by negotiating with pay and working conditions.
  • Employees are allowed to do maximum of 44 hours' work week that is divided in eight hours on day basis (Riyanto, Endri and Herlisha, 2021).
  • In case of extra work, subordinates must be given monetary benefits.
  • Trade union in Brazil provides legal assistance to organizations for solving disputes between employers and employees.
  • Union is accountable for advocating companies to adopt employee-friendly policies and regulations.

Thus, trade union shapes the working pattern in organization by advising them to follow a structured pattern through which employees in the company can feel protected. Overutilization of employees should be prohibited and fair practices must be performed in the organization.

Employer association

This is considered as an organization apart from trade union which focuses on maintaining peaceful environment at workplace. The steps taken by employer association are

  • This group present employers and promotes social and economic interest of the members.
  • It provides freedom of association at organization so everyone can share their issues and doubts (Freitas, et al, 2020).
  • Provides legal advice to employers in terms of solving conflict at workplace.

Government

Higher administration in Brazil is accountable for implementing the steps of employment law which typically involves-

  • The key component of employment law is to introduce minimum wage rate for the companies and this needs to be revised by government on periodically basis.
  • The leave policies must be aligned with the range of benefits so employees can maintain their persona and work life (De Stefano et al, 2021).
  • In accordance with Brazilian law, 30 days of annual leave are provided to employees when they complete one year with the organization.
  • The law recognize importance of family and therefore, maternity and paternity leaves are provided to employees.
  • Leave for special occasions are granted to employees.

Hence, this can be said that, In Brazil, trade union, employer association and government are accountable for maintaining employment relationship. They set rules and regulations which are important to be followed by the companies (Paixão and Meccarelli, 2020). In this manner, focus implied on corporatist system within achieving the major objectives. State plays most important role when it comes to managing employment relations as it takes the topmost authority for guiding all organizations.

Critically analysing key challenges experienced while establishing viable corporatism

Corporatism is specifically for corporate sectors in Brazil, it acts as strengthening element for companies while guiding about the steps which are needed to be taken in consideration. However there are certain challenges experienced while establishment of viable corporatism and that are-

Voluntary union dues

Currently, in Brazil, union dues that are owed to trade unions does not longer mandatory and this deducted from the compensation of employees (Corporatism Challenges in Brazil, 2023). This measure led to impact the system as employees are dissatisfied with this therefore; this is considered as one of the key challenge in viable corporatism (Lima and Dias, 2020). Also, there is no direct bond established between company employees from outsourcing service provider.

Negotiation prevails over law

There are multiple aspects that can be negotiated by overriding legal provision and the topmost are related to- working hours, rest breaks, internal policies, zero hour contract, compensation related to work efficiency and profit sharing schemes. This creates an unstructured pattern of work in organization that often impacts the productivity of business.

Working time control

Employers are allowed to track working hours of employees if they have lower than 20 subordinates. However employers who have more than 20 employee's monitors overtime period (Corporatism Challenges in Brazil, 2023). This might lead to develop inappropriate data related to working hours which is crucial to analyse whether subordinates are working for fixed period of time or not.

Salary impacts

Travelling expenses, fringe benefits and allowance are no longer included in employee's compensation and these not related to any kind of subject rights (de Andrade et al, 2020). This is a key challenge in corporatism as these compensation benefits provides support to employees and not including this led to create dissatisfaction for employees.

Termination of agreements

Employers are free in terms of terminating employment agreement based on the statutory severance right (Burity, 2020). Ratification of termination process within union is not mandatory. Also, employers can shut down businesses without having any prior consent.

These changes have been implemented after COVID-19 in Brazil which is acting as major challenges in establishment of sound corporatism. Employees are no longer to gain advantage in many terms and this lead to create major dissatisfaction in them.

Conclusion

Conclusively; it can be stated that, employment relationship sets a base on-to which organizations are guided to follow specific procedure. It has been witnessed that, state plays an important role when it comes to managing employment relations. The report was based on Brazil and corporatist system of work relationship in the country is described. Furthermore, corporatist system of regulation and key challenges in corporatism has been explained. The issues are comprised with the dissatisfaction of employees that does not contribute in maintaining employment relationship on significant note.

References

Books and Journals

  • Burity, J., 2020. Conservative wave, religion and the secular state in post-impeachment Brazil. International Journal of Latin American Religions. 4(1). pp.83-107.
  • de Andrade, J.V.B., Rodrigues, B.N., dos Santos, I.F.S., Haddad, J. and Tiago Filho, G.L., 2020. Constitutional aspects of distributed generation policies for promoting Brazilian economic development. Energy Policy. 143. p.111555.
  • De Stefano, V., Durri, I., Stylogiannis, C. and Wouters, M., 2021. Platform work and the employment relationship (No. 27). ILO Working Paper.
  • Duggan, J., Sherman, U., Carbery, R. and McDonnell, A., 2020. Algorithmic management and app?work in the gig economy: A research agenda for employment relations and HRM. Human Resource Management Journal. 30(1). pp.114-132.
  • Freitas, W.R.D.S., Caldeira-Oliveira, J.H., Teixeira, A.A., Stefanelli, N.O. and Teixeira, T.B., 2020. Green human resource management and corporate social responsibility: Evidence from Brazilian firms. Benchmarking: An International Journal. 27(4). pp.1551-1569.
  • Hajiali, I., Kessi, A.M.F., Budiandriani, B., Prihatin, E. and Sufri, M.M., 2022. Determination of work motivation, leadership style, employee competence on job satisfaction and employee performance. Golden Ratio of Human Resource Management. 2(1). pp.57-69.
  • Kreshpaj, B., Orellana, C., Burström, B., Davis, L., Hemmingsson, T., Johansson, G., Kjellberg, K., Jonsson, J., Wegman, D.H. and Bodin, T., 2020. What is precarious employment? A systematic review of definitions and operationalizations from quantitative and qualitative studies. Scandinavian journal of work, environment & health. 46(3). pp.235-247.
  • Lima, A.C.D.S. and Dias, C.G., 2020. Anthropology and the State in Brazil: questions concerning a complex relationship. Vibrant: Virtual Brazilian Anthropology. 17.p.e17454.
  • Paixão, C. and Meccarelli, M., 2020. Constituent power and constitution-making process in Brazi: concepts, themes, problems. Constituent power and constitution-making process in Brazi: concepts, themes, problems, pp.29-54.
  • Pepple, D. and Olowookere, K., 2021. Towards an understanding of the dynamics of work and employment relations during austerity. Public Organization Review. 21(2). pp.281-297.
  • Riyanto, S., Endri, E. and Herlisha, N., 2021. Effect of work motivation and job satisfaction on employee performance: Mediating role of employee engagement. Problems and Perspectives in Management. 19(3). p.162.

Online

  • Brazil, 2023. Online. Available through: <https://www.britannica.com/place/Brazil>
  • Corporatism Challenges in Brazil, 2023. Online. Available through: < https://www.ibanet.org/article/8F78036C-2DCA-43BB-88FB-C2CE105140A9 >
  • Employment Law in Brazil, 2023. Online. Available through: < https://www.skuad.io/employment-laws/brazil#:~:text=Maximum%20Work%20Hours%20and%20Overtime&text=In%20case%20of%20necessary%20extra,thereby%20increasing%20the%20monthly%20salary. >
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