Reference is also made to collective bargaining as an important aspect of labor relations. Moreover, the cost of labor contracts is analyzed, as possible, as this cost is differentiated across industries and enterprises. The examination and the analysis of the above elements of labor relations leads to the following assumption: labor relations are necessarily influenced by the local economy and social ethics, as this influence is reflected in the cost of labor contracts and the level of success of collective bargaining. From this point of view any effort for the improvement of labor relations would be based on the following criteria: close monitoring of the costs involved and cooperation with unions, as representatives of an important part of the local population.
The form of labor relations worldwide is based on similar criteria: the need for employee safety, for trust in the workplace and for increased protection of employees’ compensation, including salary and potential benefits. For many decades, legislators in all countries have tried to develop a legal framework for ensuring the protection of rights of both employers and employees, as incorporated in labor relations. However, the enforcement of relevant laws has been often proved problematic, a fact that is reflected in the high number of legal texts emphasizing on the particular sector. Moreover, it should be noted that the intervention of legislators and judges in labor conflicts has not been always in favor of employees. In the study of Holley, Jennings, and Roger it is mentioned that ‘in 1884 a judge in the state of Tennessee wrote: all may dismiss their employees at will’ (Holley, Jennings, and Roger 522). In any case, the need for effective management of labor relations, in all their aspects, has been a priority for politicians, legislators and theorists. An example is the theory