In view of the fact that employee relations occur on a range of different levels, the proper allocation of power amongst these levels is crucial as it can significantly affect the way an economy functions. There is no dispute regarding the implication of employee relations as a decisive element of people management policies. indeed, it that has a great impact on performance (Chartered Institute of Personnel and Development 2005. p. 1-4).The U.K. labour market embodies diversity and flexibility as proven by the extensive assortment of existing jobs varying from part-time jobs that require only a few hours of work to agency jobs and jobs that provide opportunities to work overtime. Around 4 million workers have the freedom, at any moment, to choose to get a better or different job especially in times of redundancies. There exist provisions to make work pay through the induction of tax credits and to make work accessible through committed assistance for the most disadvantaged. These have given opportunities for employment to more and more people (U.K. Dept. of Trade and Industry 2006. p.5)During the late 1980’2 and 1990s, widespread speculation regarding the prospects of labour relations and the new role of employees and their interest associations was circulating around Central and Eastern Europe. The revolution in the international economic and social aspects in these countries brought about seemingly unexpected configurations of labour relations and social corporations. Due to the fact that the social and economic perspectives of the transformation differ from one country to another, various strategies and practices of these institutions were built together with national and local customs of interest represented. This consequently resulted in a full variety of new autonomous structures of labour relations (Mako Simonyi 1997. p.221).