This text looks at the introduction of economic constraint into industrial relations and examines whether a wage-driven or employment-driven industrial relations regime can be adopted or is applicable. As the term implies, the former regime produces more employment and generates a higher income for all workers in the long run while the latter obtains a wage premium for the employed at the expense of the unemployed. Futhermore, in a wage-driven industrial relations regime, the strength of the union is an important determinant of wages while there is no such contemporanous relationship between union strength and wage increases in the employment-driven regime. The Singapore industrial relations system based on the resource-constraint approach is analyzed in this book.
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