Key role of government
The government has 6 key roles in employment relations, the first one being an economic manager. As an economic manager, the government places great emphasis on macroeconomic policies in terms of money supply, aggregate demand and fiscal regulations and thereby, affecting the operation of labour markets and the utilisation of manpower. The provision of a return to work incentive is an example. In this role, the state has taken steps to encourage and promote labour mobility. An example is providing training to address skill shortages in the economy. The second role of the government is as a legislator. This is the most direct influence on employment relations (ER) and this is done through enacting legislations to create auxiliary, restrictive and regulatory rules to control the behavi...