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HRM vs. Labor Contractor

HRM has changed a lot for the past 100 years. The arena of HRM has been widening with the growing importance of employees who are essential for running any business. Indeed, human resource management was evolved from personal administration or labor contractors, which deals with the staff who were not looked at as the most valuable strength and investment for the company. Labor contractor was mainly concerned with the administrative online outplacement tasks that did with organizing a company, like a record-keeping and dealing with the employees' wages, salaries, and benefits.

Developing the Skills:

Now HRM has become the main criteria and essential resource for setting up any business. Unlike in the labor contractor, today, HRM focuses on the Employee's training and development to develop the skills and knowledge to relate with the company's need. Labor contractors used to emphasize seniority basis, but in today's context, talent and skills are given equal importance with seniority for finalizing the job's value.

Relationship Building:

The essential part of any successful business is the ability to build a solid and productive relationship. In unionized environments, the Hr department is often the administrator of the management-labor relationship. In a small company, this could be a generalist tasked with all types of employee-related responsibilities. The relationship with the local union leadership can combine seamlessly into the operation. A challenging one can take away much-needed time and resources from HRM.

Everyday Operations:

Several unionized workplaces operate as smoothly as the non-union counterpart. Although, even in locations with time-tested union relationships, there are levels of complexity that do not exist in the non-union place. HRM needs to have a clear understanding of the collective bargaining agreement.

The Discipline of Employee:

CBA contains employee discipline and wrong procedures. This procedure's outline is often in a series of steps, which an employee can be disciplined. The meeting between the HR and the union representative is often stepping 2 or 3, after an initial review of the manager's action. This meeting is designed to address issues at a level above the manager and Employee, taking any personal emotions out of the situation and operating on the most objective level. It is the place where a positive relationship can go a long way in resolving disagreements effectively.


Several times, outside negotiators will take a lead role in negotiating the collective bargaining agreements. During these negotiations, HR will combine data about injustice and provide the management negotiator with information about employee interest and salary information. Sometimes, in smaller businesses, the HsR professional will be asked to do a cost analysis of proposals. HR's union counterpart will be doing the same on the other side of the table.

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