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The Employment Relationship in the Manufacturing Sector

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Introduction

“Manufacturing industry refers to those industries which involves in the manufacturing and processing items and indulge in either creation of new commodities or in the value addition. The manufacturing industry accounts for a significant share of the industrial sector in developed countries. The final product can either serve as finished good for sale to customer or as intermediate goods used in the production process” (Economicwatch, 2010). In short, manufacturing industry is a diverse sector in which one can wide range of industries from technology to various creative activities. In 2009, around on in ten i.e. 9.8% of enterprises in the EU-27’s non-financial business economy were classified as manufacturing sector. With 31 million euro people employed and generating around 5.812 billion euro turnover and 1,400 billion euro value added (Anonymous, 2009)

According to Jose Manuel Barroso, the preface of “Europe 2020’s” states: “It’s about more jobs and better lives. It shows how Europe has the capacity the capacity to deliver smart, substantial and inclusive growth, to find the path to create new jobs and to offer a sense of direction to our societies” (Barroso, 2009).

Employee Relation in Manufacturing Sector:

“The employment relationship is an exchange relationship: the exchange of work for payment. It is often known as the work-wage bargain” (Willey, 2003). The employment relationship in manufacturing sector is unsatisfactory, exploitive, and unfinished and the employer tries to lower the employee by making him or her work for longer hours with minimum wages. According to Fox’s model of employee relation in organisation, the relation between the management (employer) and the workers is marked by “continuous ...

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