Emergence of Employment relations system also opened up arena for social dialogue between employers and employees. For example what is going in the banking industry recently due to financial crisis, social partners have been reported to have agreed on training of employees which got affected by mergers and acquisitions etc. This example shows the principal of subsidiarity, where each social partner, the employer and the government is working for the common good.
The examples mentioned above are a proof on how the state has an impact and influence on the employee-employer human relations and power balance between all parties involved. All three agents, the employer, employee and the government are working for the common good of the society. Even though the impact of these efforts are not measurable completely, the social dialogue and interaction helps all parties reach a consensus through mutual understanding and cooperation which leads to a more stable and healthy industrial or specifically Employment relations (Asper, 2001, pp 5).
During the same era, another impact of policies by state is apparent from the withdrawal of the ‘Fair Wages Resolution 1983’ and ‘1972 Industrial Relations Code of Practice’, where collective bargaining was discouraged. However, this practice has not been outlawed, as the human capital of many organizations continue to conduct in such industrial relation proposals (Unknown, Role of UK Government in Employment Relations, 2010).