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Anemployers' organization oremployers' association is a collective organization of manufacturers, retailers, or otheremployers ofwage labor. Employers' organizations seek to coordinate the behavior of their member companies in matters of mutual interest, such as during negotiations withtrade unions or government bodies. Employers' organizations operate like trade unions and promote the economic and social interests of its member organizations.
In afree market the rivalry between competing companies naturally tends to preclude combined action for the advancement of common interests.[1] The emergence oftrade unions and their efforts to establishcollective bargaining agreements on a local or an industry-wide level ultimately paved the way for combined action by competitors employing such labor in common.[1]
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.[1]
As was the case for unions, the first employers' organizations emerged in large industrial cities during the first half of the 19th century.[2] Both unions and employers' organizations tended to be localized.[2] As unions began to proliferate and to gain strength in negotiations over wages and conditions through the use ofstrike actions, employers began to unite in order to restrict wage rates and otherwise fetter the emerging organized labor movement.[2]
The role and position of an employers' organization differs from country to country. In countries with anAnglo-Saxon economic system (such as theUnited Kingdom and theUnited States), where there is no institutionalized cooperation between employers' organizations, trade unions and government, an employers' organization is aninterest group oradvocacy group that throughlobbying tries to influencegovernment policy. In these countries, employers' organizations tend to be weaker, with many of their functions taken over byindustry trade groups, which are basicallypublic relations organizations.
In countries with asocial market economy, such asAustria,Sweden,Norway andthe Netherlands, the employers' organizations are part of a system of institutionalized deliberation, together with government and the trade unions. In tri-partite bargaining the so-calledsocial partners strike agreements on issues likeprice levels,wage increases,tax rates andpension entitlements. In these countriescollective bargaining is often done not between one corporation and one union, but between national employers' organizations and national trade unions.
In countries likeSwitzerland, the negotiations often take place at the cantonal level, branch by branch.[3] 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.
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