Xin (Trust) in the Context of Labor Disputes

Abstract

This study objected to determine a conceptual framework and to create a causal model of trust violation and labor disputes, which moderated by cooperative and competitive orientation. Based on the theories of labor relation and trust, we posited that harmonious labor relation is built upon the trust between employer and employees; once the trust is violated, labor disputes occur. To verify such a framework, this study reported the responses of 200 non-managers and 200 managers selected from the enterprises in which labor disputes occurred frequently in south of China. Results indicate that trust violation between employer and employees generates labor disputes. However, non-manager and managers got distinguishing perception to trust violation and labor disputes. Therefore, companies should understand this dynamics and apply it in the HR practice and construct harmonious labor relations.