Reference no: EM131423965

The United States has a very free labor market, and organizations both small and large have the freedom to produce, buy, and sell products as long as it is in compliance with the law. Every organization has their rules and policies that all employees must follow. These polices can be in reference to work schedules, education, skill set, or benefits offered. When employees do not follow company policy, they will have to face the consequences of the organization.

Under certain laws employers have the freedom to make these rules for their employees to follow, but the employees are also protected by these same laws that will prevent unfair labor practices from taking place in the workplace. In addition to these company policies, there are also regulations that the organization must stay in compliance with in order to uphold the laws of the local and state governments. When employers fail to follow these regulations they are putting the company at risk of fines and sometimes company shutdowns.

In my local area there is a high percentage of government regulated labor markets because there is a large percentage of workers that are employed by the government in the Maryland and Washing DC area. One example of the pros of a free labor market would be the regulations that are put in place to protect the employees, and the consumers of the products and services such as OSHA and the FDA.

Organizations like OSHA ensure that employers are maintaining a safe work environment by offering employees with the proper safety equipment and protection in the workplace (OSHA, 2015). This may seem like disadvantage for the employer, but when companies are meeting regulator standards, they will potentially meet or exceed production when they are able to operate more efficiently. The cons of a free labor market are the fluctuation of the economy.

Because organizations have the freedom to buy from certain suppliers and sell to consumers, their products are only as good as economic demands. If consumers are not purchasing products or services, from private sector businesses, the company will have serious financial issues. The labor market definitely needs to be regulated by the government to protect the employees and consumers.

This is why there are government regulated agencies that put labor laws in place such as the Civil Rights Act of 1964 which protects workers from being discriminated against based on age, race, gender, and religion (Bent-Goodley, 2014). This is a very important reason why government needs to regulate the free market. Many business owners may not follow these rules if they were not regulated.

References

Bent-Goodley, T. B. (2014). Social work and the civil rights act of 1964. Social Work, 59(4), 293-295. doi:10.1093/sw/swu040
OSHA adds key hazards for investigators' focus in healthcare inspections. (2015, August). J. J. Keller's Workplace Safety Advisor, 25(8), 6.

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DB4- Free Labor Markets

This most recent election season a major discussion topic in my state was, relevantly enough, labor concerns. Virginia had a question on the ballot concerning making its right-to-work status a part of the state's constitution. While the measure was defeated, the state is still right-to-work by law codes (just not amended to the state constitution) and very much a free labor market state with union membership well below the national average at 4.3% (Union members, 2017).

In a free market labor model, labor relations are tied to economic concerns where worker rights and protection are formed out of competition for human capital between companies (Budd, 2012, p46).This system forgoes the need for many government regulations regarding labor, but some level of regulation can still be beneficial to the overall world economy (Ranjan, 2016).

There is a common pattern across the world where the richest countries continue to obtain wealth while the poorer ones struggle to compete, and labor market styles contribute to this pattern (Hong, 2015). If two countries engage in trade when their labor markets are markedly different, there is a beneficial shift towards the country with better labor regulations and worker protections (Hong, 2015).

The workers in the countries with fair standardized wage rates and protections against unemployment have been shown through studies to have higher productivity, but this does not necessarily to continue to increase with additional policies (Ranjan, 2016). With a basic level of government regulation to protect against the worst outcomes, the free labor market can thrive without the need for extensive labor regulations.

Given that much of U.S. labor policy was developed before globalization, a transformation of labor laws and protections would allow them to be better matched to the environment companies and workers now find themselves in (Budd, 2012, p478).

The result of a free labor market will inherently give more power to the company than the employee, even though the idealistic view of such a market would involve a perfect balance (Moore, 2014). This inability to reach the ideal status of free market is why a certain measure of government policy is necessary (Hong, 2015).

With or without government requirements, Christian firms should seek to provide fair policies and voice for their employees. Deuteronomy 25:13-15 teaches to deal fairly and Leviticus 19:13 not to oppress others (NIV). Luke 6:38 says, "Give, and it will be given to you" (NIV), so it is important to remember that the way others are treated will be measured back.

References

Budd, J. W. (2012). Labor relations: Striking a balance (4th ed.). New York, NY: McGraw-Hill Irwin. ISBN: 9780078029431.
Hong, G. (2015).

Trade and global income inequality with frictional labor markets: A lesson from the Canada-US Free Trade Agreement. International Economic Journal, 29(2), 307-326.

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Moore, M. (2014). Reconstituting labour market freedom: Corporate governance and collective worker counterbalance. Industrial Law Journal, 43(4), 398-428.

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Ranjan, P. (2016). Globalization and risk averse workers: The roles of labor market and trade policies. Journal of International Economics, 103, 64-79. doi:10.1016/j.jinteco.2016.08.005

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https://dx.doi.org.ezproxy.liberty.edu/10.1016/j.jinteco.2016.08.005

Union members in Virginia. (2017). Bureau of Labor Statistics: Mid-Atlantic Office.

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https://www.bls.gov/regions/mid-atlantic/news-release/unionmembership_virginia.htm