After World War I, the Soviets evolved their own labor relations model, in which the employees were motivated and encouraged by the unions to work hard for increasing the production activities, the union introduced and promoted industrial discipline which was responsible for the unprecedented rise in the production activities. The unions played a crucial role and responsibility of the 'transmission belt' as per the guide lines of the Communist Party, the purpose of the exercise was to ensure 'a loyal and willing following' (Richard, 1991). After the formation of Yugoslavia at the end of World War II, another theoretical model of labor relations evolved which was based on the concept of self-management. As per the model, the 'unions function much less as a transmission belt for the party than in the Soviet model' (Richard, 1991). The model made the union experience severe stress, although the production activities were on rise, however the government emerged as a more autonomous body. It was believed that, model was based on the principle according to which the labor relations were influenced and controlled by the party, in this case there was enough opportunity for the union and the employees, for example, the party and the union enjoyed the authority of the works councils at enterprise level due to such combination (Suzuki, 1996). American Model: Labor Relations

In United States deregulation was responsible for the phenomenal changes in the labor relations, before the implementation of the deregulation, the labor enjoyed 'heavily unionized industry' (Bert,...

Before deregulation, the high cost was bear by the customers, and the deregulation was significant milestone in this regard. The Americans are firm believer that when the industry is on the verge of collapse, it is suitable to downsize the industry, so that the expenses can be reduced. However in European countries the employer and federation take it to be their mortal, legal and social responsibility to provide earning opportunities to their employees in consistent manner, and ensure that the means are stable, irrespective of any worsening situation or turmoil. The labor relation has been strained before the Americans are fond on introducing labor saving technologies; therefore the unions are always under the threat of downsizing, which is rare in European countries. The encouraging aspect of the labor relations in North America is that the employers offer incentives to their employees including flexible timings, and vacations (Bert, 1999).
References

Hans Slomp. Labor Relations in Europe: A History of Issues and Developments. New York, Greenwood Press, 1990

Richard E. Dwyer. Labor Relations: A History of Issues and Developments. Monthly Labor Review

Bert Essenberg. Labor relations in a changing industry. International Labor Office Publications. 1999

Y. Suzuki. Deregulation of road freight transport: Labor implications. International…