What Is Labor Relations? Why Is It Important Today?

The modern workforce has changed for good, and employers are slow to catch up. 

That’s likely why strike activity doubled in 2022, and the number of workers involved jumped 60% year over year, according to a new “Labor Action Tracker” report from Cornell’s School of Industrial and Labor Relations. The tracker provides a comprehensive database of up-to-date strike and labor protest activity across the United States.

You may have heard about the 40-day walkout of 48,000 graduate students at the University of California (the biggest strike of 2022) or the high-profile Starbucks walkouts that started in 2022 and have carried over into this year. 

While most companies won’t ever face the complications of working with unions, labor relations knowledge and skills are becoming increasingly important to have on an HR team. 

A Connected Movement

Despite the lack of unionization in certain industries, employers of nonunion workers are facing paralleled complaints from their workforces. 

Employees want better pay—especially in the midst of rising inflation. They want better, more flexible work conditions, and they want to know that their health and safety are being prioritized in the workplace. 

For nonunion workers, this might look like higher salaries, better work-from-home options, improved PTO and sick leave, a greater sense of purpose, and better health benefits–but the core messages and demands remain the same. Union or nonunion, the workers’ movement is connected, and no employers are immune. 

At any organization, there are always going to be differences of opinion with employees, tough decisions to be made, and unacceptable behavior to address. It’s a major advantage–especially in the midst of a workforce evolution—to have someone on your HR team who knows the principles of labor relations to ensure that these conversations and negotiations don’t go south. 

In a time where turnover—and its costs_remain high, retention is top of mind for organizations everywhere. Having someone with the ability to finesse tough conversations, find common ground, and preserve key relationships is critical to the success of every business. 

Expanding Your Labor Relations Expertise

Labor relations refers to the relationship between employees, their exclusive representatives, and management. Simply put: it’s the ways in which employers negotiate with and respond to the collective bargaining power of workers. 

Colloquially, it points to the relationship between employers and unions, but it’s used interchangeably today also to mean the relationship between employers and employees in any industry. 

An expert understands and demonstrates knowledge of laws, rules, regulations, case law, principles, and practices related to negotiating and administering labor agreements. They might have a degree in labor relations or labor studies, or an advanced certification to demonstrate their skill set. 

An expert is able to identify, evaluate, and recommend management interventions to solve complex issues that arise between employees and employers. They negotiate contracts and protect a business’s reputation. 

To expand the expertise at your organization, you can: 

• Hire a labor relations expert on your team
• Hire a part-time consultant if a full-time resource isn’t the right choice for your unique business
• Expand the knowledge of your current team through training and certifications
• Hire for the skill set by making certain these skills arema job requirement when recruiting

The Case for Expanding Your Labor Relations Expertise 

Tomorrow on America Back to Work: Expert Interview Series, we’re talking to Lyndsay Bliss, an HR expert with an MBA with more than 15 years of global human resource experience, to share more about what modern labor relations look like today. 

Click here to listen to the episode and subscribe. 

Plus, on Friday, we’ll share more about why expanding the expertise of your HR team is critical to the success of your business–especially in the current labor climate–as America Back to Work returns to the blog. 

America Back to Work features weekly blogs and interviews with industry professionals, and together, we’re dreaming up a future where companies are thriving, employees enjoy their jobs, and America is back to work. Click here to subscribe.