This special issue reports on the changing social contract between employers and employees in botht he public and private work sectors with a focus on the American experience. The concept of "Employee Relations Ethics"(ERE) is introduced and defined as: "Treating employees properly and with respect and dignity." The lead article introduces a "new" theory of management which is employee centered rather than customer driven or stockholder mandate. The papers that follow address how: *the "changing nature of the American work force" has negatively effected US ERE; *universities skirt the law and contribute to ERE problems; *new work trend of working in teams impacts ERE; and *global compassion versus world competition determine and control ERE results. The final piece presents an ERE case study explaining the "broken covenant" between U.S. military policymakers and American troops during this era of warfare retrenchment and downsizing.