Research On Mediating Mechanism Of Labor-Capital Relationship From The Perspective Of Game Theory

Labor-Management relations not only affect the normal production and operation of enterprises, but also play an important role in the stability and development of the society. This is why Labor-Management relations have been concerned by the government and academia. Our country is currently transiting to marketization and industrialization, and the single public ownership under planned economic system has been replaced by market-oriented Labor-Management relations, market-oriented Labor-Management relations have become the basis of economic relations, and determining the economic basis of social relations to a large extent. At the same time, conflicts between employers and employees are upgrading in this process, and a variety of labor-management conflicts are emerging, some intense labor conflicts even begin to break out in some areas. Therefore, how to properly resolve the concern that exists between labor and management in the economic and social development process, and how to coordinate the fundamental interests of both employers and employees, has not only related to the prospects for business development issues, but also involves China’s implementation of the scientific concept of development. So, as a historical responsibility, building harmonious labor relations cannot be ignored in the process of economic and social development.We first researched the current status of the labor-Management relations through literature review, and then introducing game model of labor-Management relations by the prisoner’s dilemma game model from the perspective of game theory. By analyzing the game process between employers and employees, we got the non-cooperation outcome between employers and employees, and further analyzing causes of non-cooperation outcome between employers and employees, and trying to build game model for employers and employees to get out of the conflict and to achieve cooperation. Data of labor-Management relations from Chinese Academy of Social Sciences was borrowed by this article to collect related information about labor-Management relations of Jiaodong Peninsula enterprises, and then analyzed and concluded the current labor-Management relations status of these enterprises. The empirical results show that, under the situation of upgrading conflicts between labor and management in most parts of China, Labor-Management Relations of Jiaodong Peninsula showed significantly superior to many other regions of the country. These conflicts have been passed its peak and showing easing trend. Meanwhile, we concluded that, although conflicts between labor and management mitigated to a certain degree in recent years, but remains serious, building harmonious Labor-Management relations become urgent in current phase. Good relations between labor and management require not only efforts of their own, but also need actively guide of the government as a third party, and through functions of government’s policy formulation, supervision and inspection, conflicts then can be effectively coordinated. Comprehensively analyzing current situation of Labor-Management relations, this paper presents the following policy recommendations, including implement and improvement of relevant legal mechanisms and strengthen of labor legislation, strengthen of the Government’s supervision and monitoring efforts, promotion of union construction and collective bargaining system.